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Resolution No. 3187-21 Reimbursement Nolan 1 RESOLUTION NO. 3187-21 2 A RESOLUTION BY THE BOARD OF DIRECTORS 3 OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT 4 REIMBURSEMENT RESOLUTION FOR THE WATERLINE UPGRADE AND IMPROVEMENT PROJECT 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 reconstruction of the Project or portions of the Project with moneys ('Project Funds") 11 provided by the State of California, acting by and through the State Water Resources 12 Control Board (State Water Board); and 13 WHEREAS, the State Water Board may fund the Project Funds with proceeds from 14 the sale of obligations the interest upon which is excluded from gross income for federal 15 income tax purposes (the "Obligations"), and 16 WHEREAS, prior to either the issuance of the Obligations or the approval by the 17 State Water Board of the Project Funds the Agency desires to incur certain capital 18 expenditures (the "Expenditures") with respect to the Project from available moneys 19 of the Agency; and WHEREAS, the Agency has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary 21 period and it is necessary to reimburse the Agency for the Expenditures from the 22 proceeds of the Obligations. NOW, THEREFORE, THE AGENCY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS 24 FOLLOWS: SECTION 1. The Agency hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval 27 by the State Water Board of the Project Funds. SECTION 2. The reasonably expected maximum principal amount of the Project Funds is $16,222,314. 1 SECTION 3. This Resolution is being adopted no later than 60 days after the date on 2 which the Agency will expend moneys for the portion of the Project costs to be 3 reimbursed with Project Funds. SECTION 4. Each Agency expenditure will be of a type properly chargeable to a 4 capital account under general federal income fax principles. 5 SECTION 5. To the best of our knowledge, this Agency is not aware of the previous 6 adoption of official intents by the Agency that have been made as a matter of course 7 for the purpose of reimbursing expenditures and for which tax-exempt obligations 8 have not been issued. 9 SECTION 6. This resolution is adopted as official intent of the Agency in order to 10 comply with Treasury Regulation §1 .150-2 and any other regulations of the Internal 11 Revenue Service relating to the qualification for reimbursement of Project costs. 12 SECTION 7. All the recitals in this Resolution are true and correct and this Agency so 13 finds, determines and represents. 14 WE, THE UNDERSIGNED, do hereby certify that the above and foregoing 15 Resolution No. 3187-21 was duly and regularly adopted and passed by the Board of 16 Directors of the South Tahoe Public Utility District at a regular meeting held on the 17th 17 day of June 2021, by the following vote: 18 AYES: Cefalu, Romsos, PETERSON, Sheehan, Exline 19 NOES: None 20 ABSENT: None 21 22 Kelly Sh ehan, Board President 23 South Tahoe Public Utility District ATTEST: 24 25 26 Melonie Guttry, Clerk of the oard South Tahoe Public Utility District 27 28 29 Resolution No.3187-21 30 June 17,2021 Page 2