HomeMy WebLinkAboutResolution No. 93-C118RESOLUTION NO. 93-C118
A RESOLUTION OF THE CITY OF AZUSA DECLARING
ITS INTENTION TO REIMBURSE CERTAIN
EXPENDITURES FROM THE PROCEEDS OF
OBLIGATIONS TO BE ISSUED BY THE CITY OR A
RELATED ENTITY AND DIRECTING CERTAIN
ACTIONS
WHEREAS, the City of Azusa or a related entity such as the Azusa Public
Financing Authority, propose to undertake the project referenced below, to issue debt
for such project and use a portion of the proceeds of such debt to reimburse
expenditures made for the project prior to the issuance of the debt
WHEREAS, the United States Income Tax Regulations Section 1.150-2 provides
generally that proceeds of tax exempt debt are not deemed to be expended when such
proceeds are used for reimbursement of expenditures made prior to the date of issuance
of such debt unless certain procedures are followed, among which is a requirement that
(with certain exceptions), prior to the payment of any such expenditure, the issuer
declare an intention to reimburse such expenditure; and
WHEREAS, it is in the public interest and for the public benefit that the City
declare its official intent to reimburse the expenditures referenced herein;
NOW, THEREFORE„ THE CITY COUNCIL OF THE CITY OF AZUSA DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The City intends to issue, or cause a related entity of the City to issue,
obligations (the "Obligations") for the purpose of paying the costs of acquisition
and construction of the gas electric production facility to be located at the Azusa
Landfill.
Section 2. The City hereby declares that it reasonably expects to use a portion of
the proceeds of the Obligations for reimbursement of expenditures for the Project
that are paid before the date of issuance of the Obligations.
Section 3. The maximum principal amount of the obligations is $5.5 million.
Section 4. The statements expressed herein solely constitute current statements
of intent on the part of the City and shall not constitute an irrevocable decision
or undertaking by the City to participate in the issuance of Obligations with
respect to the Project. Further, any Obligations issued shall be issued subject to
the condition, among others, that the City or a related entity shall have agreed to
acceptable terms for the Obligations and of the sale and delivery thereof.
Section 5. This Resolution shall take effect immediately upon its passage and
shall remain in full force and effect thereafter; provided that this Statement of
Intent shall cease to be effective at any time the City shall rescind the same.
Section 6. That the City Clerk shall certify to the adoption of this resolution.
ADOPTED AND APPROVED THIS 20th DAY OF Sept.1993.
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Resolution No. 93-CllB
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City
Council of the City of Azusa at a regular meeting thereof, held on the 20th day of
September 1993, by the following vote of the City Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILUMMBERS:
ABSTAIN: COUNCILUMMBERS:
DANGLEIS, MADRID, NARANJO, MOSES
ALEXANDER
NONE
NONE