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RESOLUTION NO. 94-1§
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
UKIi~H DECLARING INTENTION TO REIMBURSE EXPENDITURES
FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED
BY THE CITYAND DIRECTING CERTAIN ACTIONS
WHEREAS, the City proposes to undertake the project referenced
below, to enter into a lease financing for such project, and to use
a portion of the proceeds of such refinancing to reimburse
expenditures made for the project prior to the issuance of the
financing;
WHEREAS, United States Income Tax Regulations Section 1.103-18
provides generally that proceeds of a tax-exempt financing are not
deemed to be expended when such proceeds are used for reimbursement
of expenditures made prior to the date of issuance of such
financing unless certain procedures are followed, among which is a
requirement that (with certain exceptions), prior to the payment of
any such expenditure, the issuer must declare an intention to
reimburse such expenditure; and
waEREAS, it is in the public interest and for the public
benefit that the City declare its official intent to reimburse the
expenditures referenced herein;
NOW, THEREFORE, IT IS HEREBY DECLARED AND ORDERED as follows:
Section 1. The city intends to execute a lease in a maximum
principal amount of $1,300,000 (the "Obligation") for the purpose
of paying the costs of acquiring 41.63 acres of land used as back
8 holes of a golf course (the "Project").
Section 2. The City hereby declares that it reasonably
expects to use the proceeds of the Obligation for reimbursement of
expenditures for the Project that are paid before the date of
issuance of the Obligation.
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Section 3. The foregoing declaration is consistent with the
budgetary and financial circumstances of the City in that there are
no funds (other than proceeds of the Obligation) that are
reasonably expected to be (i) reserved, (ii) allocated, or
(iii) otherwise set aside, by or on behalf of the City or any
entity controlled by the City, for the expenditures for the Project
that are expected to be reimbursed from the proceeds of the
Obligation.
Section 4. Within not more than thirty (30) days following
the date of adoption of this Resolution, the city Clerk is directed
to make this Resolution available to the public at the customary
location of public records of the city. The city Clerk is hereby
further directed to assure such public availability until the date
of issuance of the Obligations.
Section 5. This resolution is a declaration of official
intent under Income Tax Regulations Section 1.103-18.
a
AYES:
NOES:
ABSENT: None
ABSTAIN: None
PASSED AND ADOPTED by the City Council of the City of Ukiah at
regular meeting thereof held on the 15th day of
September
, 1993.
Councilmembers Mastin, Malone, Wattenburger, Shoemaker and
Mayor Schneiter
None
ATTES~ .
By: /~ ~ >
3:FIN\RES.REFA
Mayor
Fred Schneiter