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HomeMy WebLinkAbout2020-08-25 - RESOLUTIONS - DECLARING ITS INTENT TO REIMBURSE CERTAIN EXPENDIT (2)RESOLUTION NO.20-59 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DECLARING ITS INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS EXPECTED TO BE ISSUED TO FINANCE THE ACQUISITION OF A RECREATIONAL FACILITY AS REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY REGULATIONS SECTION 1.150-2 WHEREAS, the City Council of City of Santa Clarita, California (the "City"), or its related entity, including the Santa Clarita Public Financing Authority (the "Authority") (collectively, the "Issuer") expects to incur one or more series of tax-exempt bonds or other financing obligations (collectively, the "Obligations"), to finance all or a portion of the costs associated with the acquisition of real property, and improvements located thereon 27745 Smyth Drive in Santa Clarita, and rehabilitation, construction and/or installation costs related thereto (the "Project"); and WHEREAS, the City expects that certain expenditures relating to the Project will be incurred and paid from other sources of money available to the City prior to the issuance of the Obligations (the "Reimbursable Expenditures"); and WHEREAS, the City reasonably expects that a portion of the proceeds of the Obligations Will be used to reimburse all or a portion of 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 for an allocation of proceeds of the Obligations to a capital expenditure paid prior to the issuance of the Obligations to be respected by the Internal Revenue Service, the City generally must no later than sixty (60) days following such payment have declared its reasonable official intent to reimburse itself for such payment out of proceeds of the Obligations; and WHEREAS, the City desires to facilitate the allocation of proceeds of the Obligations to the reimbursement for payment of the Reimbursable Expenditures for the Project. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. This resolution is adopted 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 or proceed with the Project or obligate the Issuer to cause the issuance of the Obligations until and unless all other necessary actions and approvals are taken or received in accordance with all applicable laws. Page 1 of 3 SECTION 2. The City hereby declares its reasonable official intention to reimburse the applicable Reimbursable Expenditures with respect to the Project from proceeds of Obligations that may hereafter be issued by the Issuer or on behalf of the City. The maximum principal amount of Obligations expected to be issued for the Project is $16,000,000. All of the Reimbursable Expenditures covered by this resolution were or are to be made not earlier than sixty (60) days prior to the adoption hereof, other than certain de minimis amounts and preliminary expenditures as described in Treas. Reg. Section 1. 1 50-2(f)(2) that are exempt from the sixty-day requirement pursuant to Section 1.150-2 of the Treasury Regulations. The non- exempt Reimbursable Expenditures covered by this resolution are eligible for reimbursement provided the reimbursement occurs not later than eighteen (18) months after the later of the date the original expenditure is made or the date the property is placed in service; but in no event more than three (3) years after the original expenditure is made. SECTION 3. All actions heretofore taken by the officers, or their respective designees, and the employees and agents of the City in connection with the financing of the Project are hereby ratified and confirmed. The officers and their designees, the employees and agents of the City are hereby authorized to take any and all actions in connection with the financing of the Project and as may be necessary and consistent with the purposes of this resolution. SECTION 4. This resolution shall take effect immediately upon its adoption. SECTION 5. The City Clerk shall certify to the adoption of this resolution. PASSED, APPROVED, AND ADOPTED this 25t' day of August, 2020. 0611136 CITY CLERK . DATE: ` --, MAYOR 1 Page 2 of 3 J 1 C STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 20-59 was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 25th day of August, 2020, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: McLean, Miranda, Kellar, Weste, Smyth None None CITY CLERK Page 3 of 3