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Resolution 2989-15 1 RESOLUTION NO. 2989-15 2 A REIMBURSEMENT RESOLUTION BY THE BOARD OF DIRECTORS 3 OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT FOR THE DIAMOND VALLEY RANCH 4 IRRIGATION IMPROVEMENTS (PROJECT) 5 WHEREAS, the South Tahoe Public Utility District ("District") desires to finance the 6 costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including certain treatment facilities, � pipelines and other infrastructure ("Project"); and, $ WHEREAS, the District intends to finance the construction and/or reconstruction of 9 the Project or portions of the Project with moneys ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (State 10 water Board); and, 11 WHEREAS, the State Water Board may fund the Project Funds with proceeds from 12 the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the"Obligations"), and, 13 14 �NHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the District desires to incur certain capital 15 expenditures (the"Expenditures") with respect to the Project from available moneys of 16 the District; and, �7 WHEREAS, the District has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period 18 and it is necessary to reimburse the District for the Expenditures from the proceeds of the �9 Obligations. 20 THEREFORE,THE DISTRICT DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: 21 22 SECTION 1. The District hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State 23 Water Board of the Project Funds. 24 SECTION 2. The reasonably expected maximum principal amount of the Project 25 Funds is $8,860,891. 26 SECTION 3. This Resolution is being adopted no later than 60 days after the date on which the District will expend moneys for the portion of the Project costs to be 27 reimbursed with Project Funds. 28 SECTION 4. Each District ex enditure will be of a t p ype properly chargeable to a 29 capital account under general federal income tax principles. 30 SECTION 5. To the best of our knowledge, this District is not aware of the previous adoption of official intents by the District that have been made as a matter of course for � the purpose of reimbursing expenditures and for which tax-exempt obligations have not 2 been issued. 3 SECTION 6. This Resolution is adopted as official intent of the District in order to comply 4 with Treasury Regulation §1.150-2 and any other regulations of the Internai Revenue Service relating to the qualification for reimbursement of Project costs. 5 SECTION 7. All the recitals in this Resolution are true and correct and this District so 6 finds, determines and represents. 7 WE, THE UNDERSIGNED, do hereby certify that the above and foregoing $ Resolution was duly and regularly adopted and passed by the Board of Directors of the 9 South Tahoe Public Utility District at a regular meeting duly held on the 20t" day of August, 2015, by the following vote: 10 11 AYES: Jones, Vogelgesang, Sheehan, Wallace �2 NOES: None 13 ABSENT: Cefalu 14 15 - - 16 L' ..�- _ Randy Vogelgesang, Board President 17 �$ ATTEST: 19 20 2� Melonie Guttry, Clerk of the oard 22 23 24 25 26 27 28 29 Resolution No.2989-15 August 20,2015 30 Page 2