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HomeMy WebLinkAboutReso. 2026-004 - Approving Reimbursement for the Drinking Water State Revolving Fund RESOLUTI�N NQ, 2026-0i�4 A �OLUTItaN ()F THE �'ITY GOUNCIL QF THE CITY 4F DDING APP�tOVING IMBURSEMENT FOR THE DRINKING WATER STATE VOLVING FUI�TD► WHE AS, the City af Redding {the"Agency") is committed ta praducil�g and providing high- quality water to its residents; and WHE A�,the Agency desires ta finance the costs af constructing and/or reconstructing certain public facilities and improvements relating to its water system, including but not limited to the Pump Statian 1 Replacemerit Project{the „Prt�ject"), and WIHEREAS, the Agency intends to finance the construction and/or reconstruction of the Project or portions of the Prc�ject with moneys ("Project �'unds") provided by the State of California, acting by and through the State �ater Resources Control Baard (State Water Board); and WHE AS, the State Water Board may fund the Project Funds with prflceeds from the sale of obligations the interest up�n which is excluded from gross incc�me for federal incc�rne tax purposes {the "Obligations")> and WHE AS, priar to either the issuance of the t�bligations or the appraval by the State Water Board of the Project Funds the Agency desires to incur certain capital expenditures (the ��Ex�enditur�s") with respect to the Project from available moneys of the Agency; and �VHE AS, the Agency has determined that those moneys to be advanced on and after the date hereof tc� pay the Expenditures are available only for a temporary period ar�d it is n�cessary to reirnburse the Agency for the Expenditures from the proceeds of the C7bligations; ��wy l II�+ " P'� y T�E f���rE��;y ���+�7 ��+ B� �:7�L Y�y � ER �1\dJ ��+TE ��� f�� FQLL�w�: 1, The Agency hereby states its intention and reasonabiy expects to reimburse Expenditures paid prior to the issuance of the Obligations �r the apprc�val by the State Water Bc�ard of the Prt�ject Funds. 2. The r�asanably expected maximum principal amaunt of the Praject Funds is $50,000,000: 3, This Resolution is being adapted no later than b0 days after the ciate an which the Agency will expend rnoneys for the construction pc�rtion of the Project costs to be reimhursed with Project Funds. 4. Each Agency expenditure will be of a type properly chargeable ta a capital accaunt und�r general federal income tax principles. 5. To the best of our knowledge, this Agency is not aware of the previous adoption of official intents by the Agency that have been made as a matter af course for the purpose of reimbursing expenditures and for which tax-exempt t�bligatioi�s have not been issued. 6. This Resolutioi�is adc�pted as official intent c�fthe Agency in order to comply with Treasury Regulation �1.150-2 and any other regulations af the Internal Revenue�ervice relating to the qualification for reimbursement of Project casts. 7. All the recitals in this Resalution are true and correct and this Agency so finds, determines and represents: 8. This Resolution shall take effect imrnediately upon its passage. I HE �Y CERT�FY that the fc�regoing resolution was introduced at a regular meeting of the City Council of the City of Redding on th� 20th day of January, 2026, and was duly adc�pted at said meeting by the follawinb vote. �YES: COUNCIL MEMBERS: -AUDETTE,D►HANLTKA,MUNNS,I2ESNER,LITTAU Nt?ES; COUNCIL ME ERSs -l'd+QNE t�SSENT: COUNCIL ME ERS: -1VI�NE ABSTAIN: CCIUNCIL ME ERS. -N(3NE f � � � MIKE LITTAU,Mayar ATTEST: FO AFPROVED: �, �i « . . � e� f�. � m; �� .,� ��� � �� ��s� � ��,�.�, � .� � a,��"�� �-mSHARLENE�TIPTO , City Cl�rk Gl`�RISTIAN M. CURTIS, City r�ttorney Resolution No. 2026-004