ATTACHMENT 1
2022 electric revenue bonds
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RESOLUTION NO. _____________________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BURBANK DECLARING ITS INTENTION TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS OF A
PROPOSED TAX- EXEMPT BOND FINANCING, AS
REQUIRED BY UNITED STATES DEPARTMENT OF
TREASURY REGULATIONS SECTION 1.150-2
THE COUNCIL OF THE CITY OF BURBANK FINDS:
A. The City of Burbank (the “City”) is contemplating the issuance of tax-exempt electric revenue obligations (the “Bonds”) to fund the costs associated with the construction and improvement of various electric utility facilities that serve a governmental purpose, including construction of the Willow Substation, repair and replacement of portions of the Golden State Substation, conversion of electrical circuit s, construction of solar generation and battery storage systems, undergrounding distribution lines and replacement and upgrade of distribution system equipment, (the “Project”); and B. Certain Project expenditures will be paid by BWP’s cash reserves prior to the date of issuance of the Bonds (the “Reimbursable Expenditures”); and C. Section 1.150-2 of the Treasury Regulations (the “Treasury Regulations”) promulgated under the Internal Revenue Code of 1986, as amended, requires that in order that an allocation of proceeds of the Bonds to a capital expenditure paid prior to the issuance of the Bonds be respected by the Internal Revenue Service, the City generally must no later than 60 days following such payment have declared its reasonable official intent to reimburse for such payment out of proceeds of the Bonds; and D. The City desires to facilitate the allocation of proceeds of the Bonds to the reimbursement for payment of the Reimbursable Expenditures for the Project; THE COUNCIL OF THE CITY OF BURBANK RESOLVES:
1. This Resolution is adopted solely for purposes of establishing compliance with the requirements of section 1.150- 2 of the Treasury Regulations. This Resolution does not obligate the City to make any expenditure, issue the Bonds or proceed with the Project.
2. The City hereby declares its reasonable official intention to issue Bonds or incur other obligations in the amount not to exceed $120,000,000, and to apply a portion of the proceeds thereof to the reimbursement for the prior payment of Reimbursable Expenditures. The City recognizes that under section 1.150- 2 of the Treasury Regulations, the allocation of proceeds of the Bonds to a Reimbursable Expenditure (other than to certain de minimis or preliminary expenditures described in section 1.150- 2(f) of the Treasury Regulations) will be recognized only if (i) the Reimbursable ATTACHMENT 1
2022 electric revenue bonds
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Expenditure was paid not earlier than 60 days prior to the adoption of this Resolution and (ii) the allocation of proceeds of the Bonds to such reimbursement is made not later than the later of (a) 18 months after the date of payment of the Reimbursable Expenditure or (b) 18 months after the date upon which the Project is placed in service or abandoned, but in no event more than three years after the date of payment of the Reimbur sable Expenditure.
3. This Resolution shall become effective immediately.
PASSED and ADOPTED this ___ day of November, 2022.
Jess A. Talamantes
Mayor
Approved as to Form:
Office of the City Attorney
Attest:
By:
Joseph H. McDougall
Zizette Mullins, MMC, City Clerk City Attorney
STATE OF CALIFORNIA )
CITY OF BURBANK ) ss.
COUNTY OF LOS ANGELES )
I, Zizette Mullins, MMC, City Clerk of the City of Burbank, do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the Council of the City of Burbank at its regular meeting held on the ___ day of November, 2022, by the following vote:
AYES:
NOES:
ABSENT:
___________________________
Zizette Mullins, MMC, City Clerk