HomeMy WebLinkAboutr 10436 reimburse expenditures relating to water rec projRESOLUTION NO. 10436 (2013 Series)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING
INTENTION TO REIMBURSE EXPENDITURES RELATING TO \ryATER
RECLAMATION PROJECTS FROM THE PROCEEDS OF TAX.EXEMPT
OBLIGATIONS
\ryHEREAS, the City of San Luis Obispo (the "City") is proceeding to construct
improvements to its water reclamation facility, consisting generally of facilities for the onsite
cogeneration of energy, solids management, upgrading and optimizing aging infrastructure,
efficient lighting, and process system control (the "Project"); and
WHEREAS, in order to provide funds to finance the Project, the City Council intends to
either (i) issue and sell its tax-exempt bonds or certificates of participation in the aggregate
principal amount of approximately $7,200,000 (the "Bonds") or (ii) apply to the California
Infrastructure and Economic Development Bank for a hnancing through its Infrastructure State
Revolving Fund Program (the "I-Bank Financing"), each of would be payable from wastewater
revenues of the City (the "Bonds"); and
WHEREAS, in order to use the proceeds of the Bonds or the I-Bank Financing to
reimburse advances made by the City for the Project before the date of issuance of the Bonds or
the I-Bank Financing, but not more than 60 days before the date of adoption of this Resolution,
Section 1.150-2 of the United States Income Tax Regulations requires that City Council declare
its intention to reimburse such advances from the proceeds of the Bonds or the I-Bank Financing;
and
WHEREAS, it is in the public interest and for the public beneht that the City declare its
official intent to reimburse the expenditures referenced herein.
NO\ry, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. Declaration of Intent. The City Council hereby declares that it reasonably
expects to issue the Bonds or enter into the I-Bank Financing and to use a portion of the proceeds
thereof to reimburse expenditures made by the City for the Project before the date of issuance of
the Bonds or the l-Bank Financing, and not more than 60 days before the date of adoption of this
Resolution. If issued, the Bonds would be issued in an aggregate principal amount which is
sufhcient to raise funds for the Project in the approximate amount of $7,200,000. If used, the
amount of the I-Bank Financing would be approximately 57,200,000.
SECTION 2. Effective Date. This Resolution shall take effect from and after the date of
its passage and adoption.
R 10436
Resolution No. 10436 (2013 Series)
Page 2
Upon motion of Council Member Carpenter, seconded by Vice Mayer Smith, and on the
following roll call vote:
Council Members Ashbaugh and Carpenter, Vice Mayor Smith and
Mayor Marx
None
None
The foregoing resolution was adopted this 7th day of May 2013.
Marx
ATTEST:
v
City Clerk
APPROVED AS TO FORM:
Christine Dietrick
City Attorney
AYES
NOES:
ABSENT: