HomeMy WebLinkAboutResolution No. 05-C0500 0
RESOLUTION NO. 05-050
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF AZUSA DECLARING ITS INTENTION TO
REIMBURSE CERTAIN EXPENDITURES FROM
THE PROCEEDS OF A PROPOSED TAX-EXEMPT
FINANCING, AS REQUIRED BY UNITED STATES
DEPARTMENT OF TREASURY REGULATIONS
SECTION 1.150-2
WHEREAS, the City of Azusa (the "City") is contemplating the issuance by the City, or an
entity on behalf of the City, of tax-exempt obligations (the "Bonds") to fund various capital
improvements to its water utility (together, the "Project"); and
WHEREAS, Project expenditures will occur prior to the date of issuance of the
Bonds (the "Reimbursable Expenditures"); and
WHEREAS, section 1.150-2 of the Treasury Regulations (the "Treasury
Regulations") promulgated under the Internal Revenue Code of 1986, as amended,
requires that in order that an allocation of proceeds of the Bonds to an expenditure paid
prior to the issuance of the Bonds be respected by the Internal Revenue Service, the City
generally must no later than 60 days following such payment have declared its reasonable
official intent to reimburse for such payment out of proceeds of the Bonds; and
WHEREAS, the City desires to facilitate the allocation of proceeds of the Bonds to
the reimbursement for payment of all or a portion of the Reimbursable Expenditures for
the Project;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Azusa
as follows:
SECTION 1. Compliance with Treasury Regulations
This Resolution is adopted solely for purposes of establishing compliance with the
requirements of section 1.150-2 of the Treasury Regulations. This Resolution does not obligate
the City to make any expenditure, issue the Bonds or proceed with the Project.
SECTION 2. Intent to Reimburse City from Bond Proceeds
The City hereby declares its reasonable official intention to issue Bonds or incur other
obligations in an amount that is currently expected to be approximately $25,000,000, and to apply
a portion of the proceeds thereof to the reimbursement of the City for the prior payment of
Reimbursable Expenditures. 'The City recognizes that under section 1.150-2 of the Treasury
Regulations, the allocation of proceeds of the Bonds to Reimbursable Expenditures (other than
certain de minimis or preliminary expenditures described in section 1.150-2(Q of the Treasury
Regulations) will be recognized only if (i) the Reimbursable Expenditures were paid not earlier
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than 60 days prior to the adoption of this Resolution and (ii) the allocation of proceeds of
the Bonds to such reimbursement is made not later than the later of (a) 18 months after
the date of payment of the Reimbursable Expenditures or (b) 18 months after the date
upon which the Project is placed in service or abandoned, but in no event more than three
years after the date of the original expenditure of such moneys.
SECTION 3. Effective Date
This Resolution shall take effect from and after the date of its passage and adoption.
Adopted by the Council of the City of Azusa on this 23rd day of May, 2005.
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Mayor
ATTESTP"-
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF AZUSA )
I, Vera Mendoza, City Clerk of the City of Azusa, do hereby certify that
Resolution No. 05-050 was adopted by the Council of the City of Azusa, California at a
regular meeting held on the 23rd day of May, 2005, and that same was adopted by the
following vote:
AYES: COUNCILMEMBERS: HARDISON, CARRILLO, ROCHA, HANKS, CHAGNON
NOES: COUNCILMEMBERS: NONE /J
ABSENT: COUNCILMEMBERS: NONE
City Clerk