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Resolution 2689-99 -.. 1 2 3 4 5 6 7 8 9 13 '- 14 15 16 22 23 24 25 26 27 \., 28 RESOLUTION NO. 2689-99 A Resolution of the Board of Directors of the South Tahoe Public Utility District Declaration of Official Intent of South Tahoe Public Utility District to Reimburse Certain Capital Expenditures for Proceeds of Taxable or Tax-Exempt Indebtedness WHEREAS, the South Tahoe Public Utility District ("District") intends to construct the Water System Improvements Replacement ("Project"); and WHEREAS, the District expects to pay certain capital expenditures in connection with the Project prior to the issuance of taxable or tax-exempt indebtedness to be used to finance 10 such expenditures; and 11 WHEREAS, the District is authorized to incur or issue debt obligations to finance costs 12 of the project; and WHEREAS, the District anticipates it will issue debt obligations for the purpose of financing costs of the Project on a long-term basis; and WHEREAS, Section 1.150-2 of the Treasury Regulations requires the District to declare its reasonable official intent to reimburse prior expenditures for the Project with proceeds of 17 a taxable or tax-exempt borrowing; 18 NOW, THEREFORE BE IT RESOLVED, that the Board of Directors of the South Tahoe 19 Public Utility District as follows: 20 Section 1. The Board of Directors of the District finds and determines that the 21 foregoing recitals are true and correct. Section 2. The Resolution is adopted by the Board of Directors of the District solely for the purpose of establishing compliance with the requirements of Section 1.150-2 of the Treasury Regulations. This Resolution does not bind the District to make any expenditures, incur any indebtedness, or proceed with the Project. Section 3. The Board of Directors expects the District will pay certain capital expenditures in connection with the Project prior to the issuance of taxable or tax-exempt indebtedness for the Project. The reimbursement of such Project expenditures is consistent ... 13 ~ 14 15 16 17 18 19 20 21 22 23 24 \.., 1 Resolution No. 2689-99 Page 2 2 3 with the District's established budgetary and financial circumstances. As of the date hereof, 4 the Board of Directors of the District reasonably expects that such Project expenditures shall 5 be paid from the District's funds. The Board of Directors of the District does not expect that 6 the District's Water Capital Outlay Fund moneys, temporarily used to pay such Project 7 expenditures, will be permanently available for the Project. Proceeds of taxable or tax-exempt 8 indebtedness will need to be issued for the Project since there are insufficient funds or 9 sources of moneys that have been, or reasonably are expected to be, allocated, reserved, or 10 otherwise made available on a long-term basis, pursuant to the District's budget, to pay costs 11 of the Project. 12 Section 4. Project expenditures that are to be reimbursed to the District shall not have been paid from proceeds of any other tax-exempt indebtedness. Section 5. The Board of Directors of the District hereby declares the District's official intent to use proceeds of taxable or tax-exempt indebtedness in a principal amount not to exceed $10,000,000 to reimburse itself for future Project expenditures. The Board of Directors of the District reasonably expects that such indebtedness will be secured by and payable from the Water Enterprise Fund revenues. Section 6. The Resolution shall be continuously available for inspection by the general public during normal business hours at the offices of the District, located at 1275 Meadow Crest Drive, South Lake Tahoe, California. Section 7. This Resolution shall take effect from and after its adoption. PASSED AND ADOPTED at a duly held Regular Meeting of the Board of Directors of the South Tahoe Public Utility District on the 18th day of February, 1999 by the following 25 votes: 26 I I I I I I I I I I I I 27 I I I I I I I I I / / / 28 I / / I / / / / / / I / \" 1 Resolution No. 2689-99 Page 3 2 3 4 AYES: Directors 5 NOES: None 6 ABSENT: None 7 8 9 10 Wallace, Strohm, Jones, Gochnauer, Mosbacher -.. 11 12 13 14 15 ATTEST: 16 17 18 K~ ~~erk~~ S-;;,I?md 19 Ex-Officio Secretary to the Board of Directors \., 20 21 22 23 24 25 26 27 28