HomeMy WebLinkAboutReso 92-153 - Declaration of official intent of the City Council of the COR to incur taxable or tax-exempt indebtedness in order to reimburse certain capital expenditures RESOLUTION NO. 1Z/tea
DECLARATION OF OFFICIAL INTENT OF THE CITY
COUNCIL OF THE CITY OF REDDING TO INCUR
TAXABLE OR TAX-EXEMPT INDEBTEDNESS IN ORDER
TO REIMBURSE CERTAIN CAPITAL EXPENDITURES.
WHEREAS, the City Council of the City of Redding (the "City") is a
duly constituted and existing municipal corporation of the State of California;
WHEREAS, the City intends to construct, equip, and improve certain
facilities consisting of the real and personal property more fully described in Exhibit
A attached hereto, located in Shasta County, California (the "Project");
WHEREAS, the City expects to pay certain capital expenditures in
connection with the acquisition, construction, and development of the Project prior
to the issuance of taxable or tax-exempt indebtedness to finance such expenditures;
WHEREAS, the City is authorized by the law of the State of California
to incur or issue debt obligations or to enter into installment sale agreements
(including indebtedness and securities of any kind or class, the interest to be paid
on which is either taxable or tax-exempt);
'I WHEREAS, the City intends to undertake an installment sale transaction
with a third party to be identified (the "Third Party") to issue taxable or tax-exempt
obligations of the City (the "Obligations") for the purpose of financing on a long-
term basis the costs of the Project;
WHEREAS, pursuant to the requirements of Section 1.103-17 of the
ry proposed Treasury Regulations, the City must, among other things, express a
.{ reasonable official intent to reimburse prior expenditures for the Project with
proceeds of a taxable or tax-exempt borrowing; and
WHEREAS, the City wishes to declare its official intent to use proceeds
of taxable or tax-exempt Obligations in order to reimburse Project expenditures and
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to finance such Project costs on a long-term basis with the proceeds of such
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Obligations;
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Redding as follows:
Section 1. The City Council of the City of Redding finds and determines
that the foregoing recitals are true and correct.
Section 2. This Resolution is executed hereby and on behalf of an
adopted by the City Council of the City of Redding solely for purposes of
establishing compliance with the requirements of Section 1.103-17 of the proposed
Treasury Regulations. Terms used herein, unless otherwise defined, shall have the
meanings set forth in the Internal Revenue Code of 1986 (the "Code") and in Section
1.103-17 of the proposed Treasury Regulations that were published on April 25,
1991. This Resolution does not bind the City to make any expenditures, incur any
indebtedness, or proceed with the Project.
Section 3. The City Council of the City of Redding expects the City will
pay certain capital expenditures in connection with the construction and/or
development of the Project prior to the City and the Third Party executing and
delivering the Obligations for the Project. The reimbursement of such Project
expenditures is consistent with the City's previously established budgetary and
financial circumstances. As of the date hereof, the City Council of the City of
Redding reasonably expects that such Project expenditures shall be paid from the
lawfully available funds of the City's Solid Waste Fund and short-term fund
transfers. The City Council of the City of Redding does not expect that moneys in
the City's Solid Waste Fund and short-term fund transfers temporarily used to pay
such Project expenditures will be needed for purposes for which the City's Solid
Waste Fund are otherwise intended to be used prior to the anticipated date of
execution and delivery of the Obligations for the Project. Other than proceeds of
the Obligations to be issued for the Project and Solid Waste Fund, there are no funds
or sources or moneys which have been, or reasonably are expected to be, allocated,
reserved, or otherwise made available on a long-term basis pursuant to the City's
budget to pay costs of the Project.
Section 4. Project expenditures to be reimbursed shall not have been
paid from proceeds of any tax-exempt indebtedness.
' • •
Section 5. The City Council of the City of Redding hereby declares the
City's official intent to use proceeds of taxable or tax-exempt indebtedness to
reimburse itself for future Project expenditures. The City Council of the City of
Redding reasonably expects that such indebtedness will be secured by and payable
from the Solid Waste Fund of the City.
Section 6. This Resolution shall be continuously available for inspection
by the general public during the normal business hours at the offices of the City
located at 760 Parkview Avenue, Redding, California, commencing on the date which
is ten (10) days after the adoption of this Resolution.
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Section 7. This Resolution shall take effect immediately upon its
adoption.
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The foregoing Resolution was passed and adopted by the City Council
of the City of Redding on April 21 , 1992, by the following vote.
AYES: COUNCIL PERSONS: Anderson, Arness, Dahl, Kehoe & Moss
NOES: COUNCIL PERSONS: None
ABSENT: COUNCIL PERSONS: None
ABSTAIN: COUNCIL PERSONS: None
Charl-i-e-Di6s--s
Mayor
ATTEST: FORM APPROVED:
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4 CONNIE STRO HMAYER, ty Clerk RA ALL A. HAY ty Attorney
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ATTACHMENT "A"
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