HomeMy WebLinkAboutRes 1291 - Intent to Reimburse Capital Expenditures for Waterworks Utility Improvements 1LA:..wq�y r
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Resolution No. 1291 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, DECLARING ITS OFFICIAL INTENTION TO REIMBURSE
CAPITAL EXPENDITURES IN CONNECTION WITH THE CONSTRUCTION
OF CERTAIN EXTENSIONS OF AND IMPROVEMENTS TO THE
WATERWORKS UTILITY OF THE CITY FROM PROCEEDS OF A FUTURE
BORROWING.
WHEREAS, the City of Tukwila, Washington (the "City intends to make expenditures
for the Project (identified below) from funds that are available but that are not (and are not
reasonably expected to be) reserved, allocated on a long -term basis or otherwise set aside for
those expenditures, and reasonably expects to be reimbursed for those expenditures from
proceeds of bonds or other obligations "bonds issued to finance those expenditures; and
WHEREAS, certain federal regulations (the "federal reimbursement regulations relating
to the use of proceeds of tax exempt bonds to reimburse the issuer of the bonds for expenditures
made before the issue date of the bonds require, among other things, that not later than 60 days
after payment of the original expenditure the City (or any person designated by the City to do so
on its behalf) declare a reasonable official intent to reimburse those expenditures from proceeds
of bonds;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1. Description of Project for Which Capital Expenditures are to be Made. The
City intends to make (and /or, not more than 60 days before the date of this declaration, has
made) expenditures, and reasonably expects to reimburse itself for those expenditures from
proceeds of bonds, for the construction of the system or plan of additions to and betterments and
extensions of the Waterwo ks Utility of the City specified, adopted and ordered to be carried out
by Ordinance No. 146 9 of the City (the "Project").
Section 2. Maximum Principal Amount of Obligations Expected to be Issued for the
Project. The City expects that the maximum principal amount of bonds that will be issued to
finance the Project will be $4,000,000.
Section 3. Declaration Reasonable. The City has reviewed its existing and reasonably
foreseeable budgetary and financial circumstances and has determined that the City reasonably
expects to reimburse itself for expenditures for the Project from proceeds of bonds because the
City has no funds available that already are, or are reasonably expected to be, reserved, allocated
on a long -term basis, or otherwise set aside by the City for those expenditures on the Project.
Section 4. Limitations on Uses of Reimbursement Amounts. The City will not, within 1
year after the expected reimbursement, use amounts corresponding to proceeds received from
bonds issued in the future to reimburse the City for previously paid expenditures for the Project
in any manner that results in those amounts being treated as replacement proceeds of any tax
exempt bonds, i.e., as a result of being deposited in a reserve fund, pledged fund, sinking fund or
similar fund (other than a bona fide debt service fund) that is expected to be used to pay
principal of or interest on tax exempt bonds. Nor will the City use those amounts in any manner
that employs an abusive arbitrage device to avoid arbitrage restrictions.
Section 5. Effective Date of Resolution and of Declaration. This resolution and
declaration of official intent shall take effect and be in force immediately upon adoption of this
resolution.
PASSED BY THE CITY COUNCIL OF TIDE 9ITY OF TUKWILA, WASHINGTON, at
a regular meeting thereof this ,�1„?'` day of dam ,1994.
Steve Mullet, Council President
ATTEST/AUTHENTICATED:
O ne E. Cantu, City Clerk
APPROVED AS TO FORM:
By
Office of the City Attorney
Filed with the City Clerk: ,.V— /l- 9
Passed by the City Council:. 9 f�
Resolution Number 1,,t91
wtrwks 02117194
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