2002/06/25 City Council Resolution (3)RESOLUTION NO. 2002 -128
A RESOLUTION DECLARING THE OFFICIAL INTENT TO
REIMBURSE EXPENDITURES FROM THE PROCEEDS OF
TAX EXEMPT OBLIGATIONS
RESOLVED, by the City Council of the City of Rohnert Park (the "City "):
WHEREAS, the City of Rohnert Park (the "City ") desires to finance the
construction and acquisition of the facilities described in detail below (collectively the "Project ");
and
WHEREAS, the City will be expending funds for the construction and acquisition
of the Project; and
WHEREAS, the City has applied for grant funding for the project and is
anticipating a fifty percent reimbursement; and
WHEREAS, the City reasonably expects to reimburse the non -grant funded
expenditures of the project by authorizing the sale and delivery of one or more series of revenue
bonds, as described below:
NOW, THEREFORE, it is hereby ORDERED and DETERMINED, as follows:
SECTION 1. This Resolution is a declaration of official intent to reimburse
expenditures pursuant to Treasury Regulations Section 1.150 -2.
SECTION 2. The City desires to finance the construction and acquisition of the
Project consisting of the purchase and installation of residential water meters and meter reading
system. The project will be initially funded through an interfund loan from the Sewer Connection
Fund to the Water Meter Installation Project Fund. The loan will consist of a maximum principal
amount of $4,000,000 plus interest calculated at the lesser of the rates for LAIF or the City
portfolio.
SECTION 3. The City shall repay the Sewer Connection Fund through funding
from a State grant and the balance from the sale and delivery of one or more series of revenue
bonds (the "Bonds "), the interest component on which is excludable from gross income under
Section 103 of the Internal Revenue Code. The maximum principal amount of bonds expected to
be issued for the Project is $4 Million.
SECTION 4. The City shall repay the Sewer Connection Fund no later than
eighteen (18) months after the later of (i) the date on which the final expenditure payment is made
according to the contract, or (ii) the date on which the Project is deemed complete and placed in
service, but in no event more than 3 years after the expenditure is paid.
Resolution No. 2002 -128
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SECTION S. This Resolution expresses the City's expectations as of this date
with respect to the financing of the construction and acquisition of the Project. Future events or
extraordinary circumstances beyond the control of the City may result in the Project being
financed in a manner other than as described in this Resolution, and nothing contained herein
constitutes an irrevocable commitment by the City to issue the Bonds.
I certify that the foregoing resolution was duly adopted at a meeting of the City Council of
the City of Rohnert Park held on the 25 day of June, 2002.
CITY OF ROHNERT PARK
MACKENZIE: AYE REILLY: AYE VACANCY: NIA VIDAK- MARTINEZ: AYE FLORES: AYE
AYES: (4) NOES: (0) ABSENT: (0) ABSTAIN: (0)