HomeMy WebLinkAboutCC Reso 2024-20 - Declaring Intention to Reimburse Expenditures RE CIPs from Proceeds RESOLUTION 2024-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH DECLARING ITS
INTENTION TO REIMBURSE EXPENDITURES RELATING TO CAPITAL IMPROVEMENTS
FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS
WHEREAS, the City of Ukiah (the "City') owns and operates facilities and property for the
collection, treatment and distribution of water, including recycled water, in the City's service area;
and
WHEREAS, the City is undertaking capital improvement projects generally referred to as the
phase 4 refinements to the water recycling project (the "Project"), and may issue debt for such
Project and Project related costs, and to use a portion of the proceeds of such debt to reimburse
expenditures made for the Project prior to the issuance of the debt; and
WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally that
proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for
reimbursement of expenditures made prior to the date of issuance of such debt unless certain
procedures are followed, one of which is a requirement that prior to the payment of any such
expenditures, the issuer declares an intention to reimburse such expenditure; and
WHEREAS, it is in the public interest and for the public benefit that the City declares its official
intent to reimburse the expenditures referenced herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah, as follows:
Section 1. Description of Project. The City Council hereby declares that it reasonably expects
the City to issue tax-exempt obligations in one or more series (the "Obligations") for the purpose
of paying some or all of the costs of the Project and related capital improvements.
` Section 2. City Expectations. The City hereby declares that it reasonably expects to pay certain
costs of the Project prior to the date of issuance of the Obligations and to use a portion of the
proceeds of the Obligations for reimbursement of expenditures for the Project that are paid before
the date of issuance of the Obligations. The maximum principal amount of Obligations expected
to be issued is $15,000,000.
Section 3. Effective Date. This Resolution shall take effect from and after the date of its passage
and adoption.
PASSED AND ADOPTED by the City Council of the City of Ukiah on May 15, 2024 by the
following vote:
AYES: Councilmembers Rodin, Orozco, Sher, Crane, and Mayor Duenas
NOES: None
ABSENT: None
ABSTAIN: None
Jos ma D rias, Mayor
ATTEST:
Kridtine Lawler, City Clerk