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HomeMy WebLinkAboutCity Council - 96-101 RESOLUTION NO. 96-101 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, DECLARING ITS INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROPOSED TAX EXEMPT FINANCING AS REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY REGULATIONS SECTION 1.150-2 WHEREAS, the United States Department of the Treasury (the "Treasury"), has issued regulations (Section 1.150-2) relating to the use of bond proceeds for the reimbursement of certain expenditures made prior to the date of issuance of bonds (the "Reimbursement Regulations"); and Under the Reimbursement Regulations, in general, if specified requirements are satisfied, the proceeds used for reimbursement are deemed spent on the date of reimbursement; and If such requirements are not satisfied, then proceeds used for reimbursement will remain subject to rebate, arbitrage and other rules relating to tax exemption until ultimately spent; and The Reimbursement Regulations apply to tax exempt obligations issued after June 30, 1993; and The City of Huntington Beach, California (the "City") intends to make certain expenditures (collectively, the "Expenditure"), in anticipation of the City's issuance of tax exempt obligations (the "Obligation"), in connection with the financing, acquiring, constructing and equipping of an 800 Mhz communications system and a portion of certain capital improvements relating to the Pier Plaza, including administrative costs related thereto (collectively, the "Project"); NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND DECLARE AS FOLLOWS: SECTION 1.: Recitals. The foregoing recitals are true and correct. SECTION 2.: Official Intent. This Resolution is a declaration of the City's official intent under the Reimbursement Regulations. This declaration shall not bind the City to make any expenditure, incur any indebtedness or proceed with the Project. SECTION 3.: Reimbursement Expectations. The City reasonably expects to reimburse itself for the Expenditure made from the City's general fund 1 adllnlreimbu rs11 1/1 2196 and/or Pier Plaza and/or equipment replacement funds in anticipation of the issuance of the Obligation with proceeds from the sale of the Obligation. 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 Obligation. SECTION 4.: Maximum Principal Amount of Obligation. The maximum principal amount of the Obligation from which Expenditure is to be reimbursed is reasonably expected to be $7,000,000. SECTION 5.: Use of Proceeds. The proceeds from the Obligation are to be used for the financing, acquisition, construction and equipping of the Project, funding a reserve fund and paying certain costs of issuance related thereto. SECTION 6.: Effectiveness, The City Cleric shall certify the adoption of this Resolution and thereafter the same shall be in full force and effect. PASSED AND ADOPTED by the City Council of the City of Huntington Beach, California, at a regular meeting held on the 1-8th day of November , 1996. CITY OF HUNTINGTON BEACH, CALIFORNIA. Mayor ATTEST: APPROVED AS TO FORM: City Clerk ti� City Attorney REVIEWED AND APPROVED: INITIA D AN PROVED: City Administrator Dep Administrative/ Adminis ative Services 2 ad Iljnlreimbu rs11 1112196 Res.No. 96-101 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 18th of October, 1996 by the following vote: AYES: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green NOES: None ABSENT: Garofalo City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California G/resofuti/resbkpg