HomeMy WebLinkAboutReso 80-22 SRF ReimbursementRESOLUTION NO. 80-22
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
STATING ITS INTENTION AND REASONABLE EXPECTATION
TO REIMBURSE EXPENDITURES PAID PRIOR TO THE
ISSUANCE OF THE OBLIGATIONS OR THE APPROVAL OF
THE STATE WATER BOARD
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay (the "Agency") desires to finance the costs of Morro
Bay constructing and/or reconstructing certain public facilities and improvements relating to its
water system, including certain treatment facilities, pipelines and other infrastructure (the
"Project"); and
WHEREAS, the Agency intends to finance the construction and/or reconstruction of 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 Water Board); and
WHEREAS, the State Water Board may fund the Project Funds with proceeds from the
sale of obligations the interest upon which is excluded from gross income for federal income tax
purposes (the "Obligations"), and
WHEREAS, prior to either the issuance of the Obligations or the approval by the State
Water Board of the Project Funds the Agency desires to incur certain capital expenditures (the
"Expenditures") with respect to the Project from available moneys 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 period and it is
necessary to reimburse the Agency for the Expenditures from the proceeds of the Obligations.
NOW, THEREFORE, THE AGENCY DOES HEREBY RESOLVE, ORDER AND
DETERMINE AS 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 by the State Water
Board of the Project Funds.
SECTION 2. The reasonably expected maximum principal amount of the Project Funds is
$87,777,000
SECTION 3. This resolution is being adopted no later than 60 days after the date on
which the Agency will expend moneys for the construction portion of the Project costs to be
reimbursed with Project Funds.
SECTION 4. Each Agency expenditure will be of a type properly chargeable to a capital
account under general federal income tax principles.
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SECTION 5. To the best of our knowledge, this Agency is not aware of the previous
adoption of official intents by the Agency that have been made as a matter of course for the
purpose of reimbursing expenditures and for which tax-exempt obligations have not been
issued.
SECTION 6. This resolution is adopted as official intent of the Agency in order to comply
with Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service
relating to the qualification for reimbursement of Project costs.
SECTION 7. All the recitals in this Resolution are true and correct and this Agency so
finds, determines and represents.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 23rd day of August 2022 by the following vote:
AYES:
Headding, Addis, Barton, Ford, Heller
NOES:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
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CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Dana Swanson, City Clerk of the City of Morro Bay, hereby attest to and certify that the foregoing
Resolution No. 80-22 is the original resolution adopted by the Morro Bay City Council at its regular
meeting held on the 23rd day of August 2022, by the following vote:
AYES: Headding, Addis, Barton, Ford, Heller
NOES: None
ABSENT: None
(Olrty- Clerk