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HomeMy WebLinkAbout94-15 5 6 7 8 9 10 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 1 2 3 4 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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 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