Loading...
HomeMy WebLinkAboutReso 2008-141 RESOLUTION NO. 2008-141 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REGARDING ITS INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS WHEREAS, the City Council of the City of Chula Vista (the City) desires to reimburse its General Fund to finance the costs of capital improvements eligible to be funded from amounts in the City's Public Facilities Development Impact Fee Fund (the Project); and WHEREAS, the City intends to reimburse its expenditures for and to finance the acquisition of the Project or portions of the Project with the proceeds of obligations to be issued by the Redevelopment Agency of the City of Chula Vista, the interest upon which is excluded from gross income for federal income tax purposes (the Obligations); and WHEREAS, prior to the issuance of the Obligations the City desires to incur certain expenditures with respect to the Project from available monies of the City which expenditures are desired to be reimbursed by the City from a portion of the proceeds of the sale of the Obligations. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION I. The City hereby states its intention and reasonably expects to reimburse the Project costs incurred prior to the issuance of the Obligations with proceeds of the Obligations. Those Project costs will include capital improvements eligible to be funded from amounts in the City's Public Facilities Development Impact Fee Fund. SECTION 2. The reasonably expected maximum principal amount of the Obligations is $5,000,000. SECTION 3. This resolution is being adopted not later than 60 days after the payment of the original expenditures with respect to the Project (the Expenditures Date or Dates). SECTION 4. Except as described below, the expected date of issue of the Obligations will be within eighteen months of the later of the Expenditure Date or Dates and the date the Project is placed in service; provided, the reimbursement may not be made more than three years after the Expenditure Date. Resolution No. 2008-141 Page 2 SECTION 5. Proceeds of the Obligations to be used to reimburse for Project costs are not expected to be used, within one year ofreimbursement, directly or indirectly to pay debt service with respect to any obligation (other than to pay current debt service coming due within the next succeeding one year period on any tax-exempt obligation of the City (other than the Obligations, the 2004 Certificates and the 2006 Certificates) or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the City or any entity related in any manner to the City, or to reimburse any expenditure that was originally paid with the proceeds of any obligation, or to replace funds that are or will be used in such manner. SECTION 6. This resolution is consistent with the budgetary and financial circumstances of the City, as of the date hereof. No monies from sources other than the Obligation issue are, or are reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside by the City (or any related party) pursuant to their budget or financial policies with respect to the Project costs. To the best of our knowledge, this City Council is not aware of the previous adoption of official intents by the City that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued. SECTION 7. The limitations described in Section 3 and Section 4 do not apply to (a) costs of issuance of the Obligations, (b) an amount not in excess of the lesser of $100,000 or five percent (5%) of the proceeds of the Obligations, or (c) any preliminary expenditures, such as architectural, engineering, surveying, soil testing, and similar costs other than land acquisition, site preparation, and similar costs incident to commencement of construction, not in excess of twenty percent (20%) of the aggregate issue price of the Obligations that finances the Project for which the preliminary expenditures were incurred. SECTION 8. This resolution is adopted as official action of the City in order to comply with Treasury Regulation S 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of City expenditures incurred prior to the date of issue of the Obligations, is part of the City's official proceedings, and will be available for inspection by the general public at the main administrative office of the City. SECTION 9. All the recitals in this Resolution are true and correct and this City Council so finds, determines and represents. Presented by Approved as to form by Gn/ M . a Kachadoorian Finance Director ~~.~~\}. Ann Moore City Attorney Resolution No. 2008-141 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista, California, this 3rd day of June 2008 by the following vote: AYES: Councilmembers: Castaneda, Ramirez, and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: McCann and Rindone ATTEST: ~ Cheryl Cox, yo1- I(~ ;f( ~~ Donna R. Norris, CMC, Interim City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Donna R. Norris, Interim City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2008-141 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 3rd day of June 2008. Executed this 3rd day of June 2008. ;r/~ ~,~~ Donna R. Norris"t:MC, Interim City Clerk