RESOLUTION NO. 2022-82
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES DESIGNATING THE AMOUNT OF THE 1.0 MILLION GALLONS A DAY (MGD) INDUSTRIAL
WASTEWATER SYSTEM EXPENDITURES TO BE REIMBURSED BY PROCEEDS FROM
THE CLEAN WATER STATE REVOLVING FUND
WHEREAS, the City of Gonzales ("City") desires to finance the costs of constructing or reconstructing certain public facilities and improvements relating to its wastewater system, including certain treatment facilities, pipelines and other infrastructure (the "Project"); and WHEREAS, the City intends to finance the construction and/or reconstruction of the Project or portions of the Project with monies ("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 City desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available monies of the City; and WHEREAS, the City has determined that those monies to be advanced on or after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the City for the Expenditures from the proceeds of the Obligations.
NOW, THEREFORE, THE GONZALES CITY COUNCL DOES HEREBY
RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
SECTION 1. The City 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 Fundsis $27,000,000.
SECTION 3. This resolution is being adopted no later than 60 days after the date on which the CITY will expend monies for the construction portion of the Project costs to be reimbursed with Project Funds.
SECTION 4. Each City expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.
SECTION 5. To the best of our knowledge, this City is not aware of the previous adoption of official intents by the City 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 City in order to comply with TreasuryRegulation §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 City so finds, determines and represents.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 21
st day of November 2022, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
_______________________________
Jose L. Rios, The Honorable Mayor
ATTEST:
_____________________________
Mary Villegas, Deputy City Clerk