HomeMy WebLinkAbout2008-06-24 - RESOLUTIONS - TAX EXEMPT EXPENDITURES (2)RESOLUTION NO. 08-67
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, DECLARING ITS INTENTION TO
REIMBURSE CERTAIN EXPENDITURES FROM A TAX-EXEMPT OBLIGATION
AS REQUIRED BY UNITED STATES DEPARTMENT OF
TREASURY REGULATIONS SECTION 1.150-2
WHEREAS, the City of Santa Clarita, California (the "City") is contemplating the use of
one or more series of tax-exempt bonds or other financing obligations (the "Bonds") to fund the
acquisition, design, construction, improvement, installation, preservation and/or rehabilitation of
park, recreational and related facilities of benefit to the City, including, but not limited to park
and library improvements, recreation and community centers and sports complexes (collectively,
the "Project"); and
WHEREAS, the City intends to incur certain Project expenses prior to the date of
delivery of the Bonds (the "Reimbursable Expenses"); and
WHEREAS, Section 1.150-2 of the regulations (the "Treasury Regulations")
promulgated under the Internal Revenue Code of 1986, as amended (the "Code'), requires the
City to declare its 'reasonable official intent to reimburse such Reimbursable Expenses for the
Project from proceeds of the Bonds which the City reasonably expects will be incurred prior to
the issuance of the Bonds, and that a portion of the proceeds of the Bonds shall be used to
reimburse the City for such Reimbursable Expenses.
NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does
hereby resolve as follows:
SECTION 1. All of the foregoing recitals are true and correct.
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SECTION 2. 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 bind
the City to make any expenditure, incur any indebtedness or proceed with the P'rojec't: --
SECTION 3. The City hereby declares its reasonable official "iritenhon`to issue or to
have issued on its behalf one or more series of Bonds or incur other tax-exempt-'. debt in the
expected estimated maximum principal amount of $70 million for the aggregate series of Bonds
and to use proceeds of the Bonds to reimburse itself for the Reimbursable Expenses.
All of the Reimbursable Expenses covered by this Resolution were 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 1.150-2(f)(2) that are exempt from
the sixty day requirement pursuant to Section 1.150-2 of the Treasury Regulations. The non-
exempt Reimbursable Expenses 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 4. The City reasonably expects to reimburse itself for the Reimbursable
Expenses made from one or more of various funds of the City, including the General, Quimby
and Facilities Replacement Funds, in anticipation of the issuance of the Bonds with proceeds
from the sale of the Bonds. The reimbursement of the expenditure is consistent with the City's
budgetary and financial circumstances. There are no funds or other sources of money of the City,
or any related person or controlled entity, that have been, or are reasonably expected to be
reserved, allocated on a long term basis or otherwise set aside to pay the costs of the Project to be
paid or reimbursed out of the proceeds of the Bonds.
SECTION 5. 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 and
execution and delivery of a supplemental tax certificate and other related documents and
certificates 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 6. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 24th day of June, 2008.
AYOR
ATTEST:
CITY CLERK`,
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, do hereby certify
that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita
at a regular meeting thereof, held on the 24th day of June, 2008, by the following vote:
AYES: COUNCILMEMBERS: Ender, Weste, Ferry, McLean, Kellar
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
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CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL RESOLUTION
I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is
a true and correct copy of the original Resolution No. 08-67, adopted by the City Council of the
City of Santa Clarita, California on June 24, 2008, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this _ day of
, 20_
Sharon L. Dawson, MMC
City Clerk
By
Susan Caputo
Deputy City Clerk
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