HomeMy WebLinkAboutResolution No. UB- 08-C1000
RESOLUTION NO. 08-C100
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
DECLARING 1 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 city's participation
share in Lodi Energy Project ("Lodi Project"); and
WHEREAS, Lodi 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 proceedI s 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 Lodi
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 his 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 Lodi Project.
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SECTION 2.
The City hereby.
obligations in an amoi
apply a portion of the F
Reimbursable Expendi
Regulations, the alloca
certain de minimis or
Regulations) will be re
than 60 days prior to t
Bonds to such reimbur
payment of the Reimbi
Project is placed in ser
the original expenditure
to Reimburse City from Bond Proceeds
ieclares its reasonable official intention to issue Bonds or incur other
at that is currently expected to be approximately $10,000,000, and to
oceeds thereof to the reimbursement of the City for the prior payment of
nes. 'The City recognizes that under section 1.150-2 of the Treasury
on of proceeds of the Bonds to Reimbursable Expenditures (other than
reliminary expenditures described in section 1.150-2(t) of the Treasury
ognized only if (i) the Reimbursable Expenditures were paid not earlier
.e adoption of this Resolution and (ii) the allocation of proceeds of the
ement is made not later than the later of (a) 18 months after the date of
-sable Expenditures or (b) 18 months after the date upon which the Lodi
ice or abandoned, but in no event more than three years after the date of
of such moneys.
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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 27th day of October, 2008.
Joseph 1. Rocha, Mayor
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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 the
foregoing Resolution No. 08-C100 was duly introduced and adopted at a regular meeting of the
Azusa Utility Board/City Council on the 27th day of October 2008, by the following vote, to wit:
AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
Vera Mendoza, City Clerk