HomeMy WebLinkAboutReso 91-269 - 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 I
RESOLUTION NO. 91-1�
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DECLARATION OF OFFICIAL INTENT OF THE CITY COUNCIL OF THE
CITY OF REDDING TO INCUR TAXABLE OR TAR-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 acquire, construct,
reconstruct , equip and improve certain facilities consisting
of the real and personal property more fully described in
Exhibit A attached hereto , located in the City of Redding,
California (the "Project" ) ;
WHEREAS, the City expects to pay certain capital
expenditures in connection with the acquisition, construction,
reconstruction, renovation and rehabilitation of the Project
prior to the issuance of taxable or tax-exempt indebtedness to
finance such expenditures ;
WHEREAS, the City is authorized by the laws 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) ;
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 "Obl.igations." ) 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 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 to finance such
Project costs on a long-term basis with the proceeds of such `
Obligations ;
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i 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 and 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
expenditure, 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 acquisition, construction, reconstruction,
renovation and/or rehabilitation 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 electric
system. No portion of the City' s general fund or any other
fund of the City or of any related person has been budgeted to
be used to pay the costs of construction, reconstruction,
renovation or rehabilitation of the Project (or any pgrtion
thereof) . The City Council of the City of Redding does not
expect that moneys in the City' s electric system funds
temporarily used to pay such Project expenditures will be
needed for purposes for which the City' s electric system funds
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, 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 .
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f 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 electric system funds of the
City.
Section f . This Resolution shall be continuously
available for inspection by the general public during normal
business hours at the offices of the City located at
760 Parkview, Aven.ue , Redding, California ,
commencing on the date which is ten (10) days after the
adoption of this Resolution.
Section 7 . This Resolution shall take effect
immediately upon its adoption.
The foregoing Resolution was passed and adopted by
the City Council of the City of Redding on July 2 1991 by
the following vote:
AYES: COUNCIL PERSONS: Arness, Buffum, Fulton, moss & Dahl
NOES: COUNCIL PERSONS: None
ABSENT: COUNCIL PERSONS: None
ABSTAIN: COUNCIL PERSONS : None
Mayor - MIKE DAHL
ATTEST:
ETHEL A. NICHOLS, City Clerk
FORM APPROVED:
RA DALL A. HAYS, EJ y Attorney
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Exhibit "A"
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CITY OF REDDING
THE PROJECT
A 31MW electric generating unit
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