HomeMy WebLinkAboutReso 2008-054 - WCRF
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RESOLUTION NO. 2008 - 54
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING ESTABLISHING A W ASTEW A TER CAPITAL RESERVE
FUND (WCRF) TO COMPLY WITH REVENUE PROGRAM
REQUIREMENTS ASSOCIATED WITH THE STATE REVOLVING
FUND FOR CONSTRUCTION OF WASTEWATER TREATMENT
FACILITIES'
WHEREAS, Section 204 (b) (1) of the CW A requires recipients of monies from the State Revolving
Loan Fund (SRF) to develop user charge systems and to have the legal, institutional, managerial, and financial
capability to construct, operate, and maintain the treatment works; and
WHEREAS, recipients of SRF loans are required to prepare a Revenue Program in accordance with
the Revenue Program Guidelines of the State, adopt a sewer use ordinance, and establish an acceptable
dedicated source, or sources, of revenue to repay the SRF loan; and
WHEREAS, all recipients ofSRF loans are required to create a dedicated Wastewater Capital Reserve
Fund (WCRF) for expansion, major repair, or replacement of their wastewater treatment facilities; and
WHEREAS, the City of Redding seeks to take advantage of monies available from the SRF loan
program and to meet all necessary requirements to establish a qualified Revenue Program.
NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Redding that the City
of Redding hereby establishes the City of Redding Wastewater Capital Reserve Fund (COR- WCRF) with the
following parameters:
1. The City shall deposit sufficient funds to build up the COR- WCRF at a minimum rate of one-
half of one (0.5) percent of the SRF loan amount each year for a period of ten (10) years.
2. All interest earned on deposits to the COR-WCRF shall remain in the COR-WCRF for the
uses specified below. The City shall replace any amountS-expended from the COR-WCRF by
depositing at a minimum annual rate of ten (10) percent ofthe expended amount.
3. The City's unused bonding capability for the wastewater enterprise may be used to offset,
dollar for dollar, the required cash deposits to the COR-WCRF.
4.
Unused bonding capability means, with respect to each SRF loan contract issued after January
21, 1993, an amount equal to unissued bonds or other indebtedness authorized either by vote
of the local electorate or by provisions oflocal or other law under which the borrower would
be legally permitted to issue such bonds or other indebtedness without approval by the local
electorate or by any other public entity.
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5.
The amounts required to be deposited in the COR-WCRF may be reduced by any amounts
held and not previously allocated for the purposes ofthis calculation. The amounts may be
held in any fund or account established pursuant to a resolution or indenture of a borrower
pursuant to which any bonds or other indebtedness have been issued and are outstanding,
which amounts may be used for the purposes for which the COR-WCRF is established.
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6. Money deposited in the COR- WCRF shall be available for the costs for planning, design, and
construction of capital improvements to the wastewater treatment facilities.
7. The City will prepare and submit a report on COR- WCRF activities and fund status beginning
five (5) years after the State's approval of the final Revenue Program. A report shall be due
every five (5) years for the life of the loan contract.
8. The requirement to create and maintain a COR-WCRF shall remain in force for the life ofthe
loan contract. At the end of the loan contract, disposition of the COR-WCRF will be the City's
responsibility.
I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at a regular
meeting of the City Council on the 3rd day of June, 2008, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Bosetti, Dickerson, Jones, Murray, and Stegall
None
None
None
Attest:
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Form Approved:
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