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Resolution No. 3023-16 Reimbursement for Watrline Replacement 1 RESOLUTION NO. 3023-16 2 A RESOLUTION BY THE BOARD OF DIRECTORS 3 OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT 4 REIMBURSEMENT FOR WATERLINE REPLACEMENT PROGRAM 5 6 WHEREAS, the South Tahoe Public Utility District (the "Agency") desires to 7 finance the costs of constructing and/or reconstructing certain public facilities and 8 improvements relating to its water and wastewater system, including certain 9 treatment facilities, pipelines and other infrastructure (the"Project"); and 10 WHEREAS, the Agency intends to finance the construction and/or 11 12 reconstruction of the Project or portions of the Project with moneys ("Project Funds") 13 provided by the State of California, acting by and through the State Water Resources 14 Control Board (State Water Board); and 15 WHEREAS, the State Water Board may fund the Project Funds with proceeds from 16 17 the sale of obligations the interest upon which is excluded from gross income for federal 18 income tax purposes (the"Obligations"), and 19 WHEREAS, prior to either the issuance of the Obligations or the approval by the 20 State Water Board of the Project Funds the Agency desires to incur certain capital 21 expenditures (the "Expenditures") with respect to the Project from available moneys of 22 23 the Agency; and 24 WHEREAS, the Agency has determined that those moneys to be advanced on 25 and after the date hereof to pay the Expenditures are available only for a temporary 26 period and it is necessary to reimburse the Agency for the Expenditures from the 27 proceeds of the Obligations. 28 29 NOW, THEREFORE, THE AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS 30 FOLLOWS: 1 SECTION 1. The Agency hereby states its intention and reasonably expects to 2 reimburse Expenditures paid prior to the issuance of the Obligations or the approval 3 by the State Water Board of the Project Funds. 4 SECTION 2. The reasonably expected maximum principal amount of the Project 5 Funds is $4,500,000. 6 7 SECTION 3. This resolution is being adopted no later than 60 days after the date on 8 which the Agency will expend moneys for the portion of the Project costs to be 9 reimbursed with Project Funds. 10 SECTION 4. Each Agency expenditure will be of a type properly chargeable to a 11 12 capital account under general federal income tax principles. 13 SECTION 5. To the best of our knowledge, this Agency is not aware of the previous 14 adoption of official intents by the Agency that have been made as a matter of course 15 for the purpose of reimbursing expenditures and for which tax-exempt obligations have 16 not been issued. 17 18 SECTION 6. This resolution is adopted as official intent of the Agency in order to 19 comply with Treasury Regulation §1.150-2 and any other regulations of the Internal 20 Revenue Service relating to the qualification for reimbursement of Project costs. 21 SECTION 7. All the recitals in this Resolution are true and correct and this Agency so 22 finds, determines and represents. 23 24 WE, THE UNDERSIGNED, do hereby certify that the above and foregoing 25 Resolution No. 3023-16 was duly and regularly adopted and passed by the Board of 26 Directors of the South Tahoe Public Utility District at a regular meeting held on the 5TH 27 day of May, 2016, by the following vote: 28 29 Resolution No.3023-16 30 Page 2 May 5,2016 1 AYES: Cefalu, Vogelgesang, Sheehan, Wallace 2 NOES: None 3 ABSENT: Jones 4 5 6 Randy Vogelgesang, Board President 7 South Tahoe Public Utility District ATTEST: 8 9 7)74tti. Melonie Guttry, Clerk of th Board 11 South Tahoe Public Utility District 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Resolution No.3023-16 29 Page 3 May 5,2016 30