AGENDA
ITEM
RESOLUTION NO. 2024-35
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES STATING
ITS INTENTION AND EXPECTATION TO REIMBURSE EXPENDITURES INCURRED
BY THE CITY IN THE PLANNING, DESIGN AND CONSTRUCTION OF THE
SEPARATE INDUSTRIAL WASTEWATER SYSTEM PRIOR TO OBLIGATIONS
APPROVED BY THE STATE WATER RESOURCES CONTROL BOARD
WHEREAS, the City of Gonzales (the “City”) desires to finance the costs of constructing the Separate Industrial Wastewater System, including the treatment facility, pipelines and other infrastructure (the “Project”); and
WHEREAS, the City intends to finance the construction of the Project with moneys (“Project Funds”) provided by the Sate 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 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 moneys of the City; and WHEREAS, the City 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 City for the Expenditures from the proceeds of the Obligations.
NOW THEREFORE BE IT HEREBY RESOLVED by the City Council of the City of Gonzales 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 approval by the State Water Board of the Project Funds.
Section 2. The reasonably expected maximum principal amount of the Project Funds is $28,884,000.
Section 3. This resolution is being adopted no later than 60 days after the date on which the city will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds.
Section 4. Each expenditure shall be of a type properly chargeable to a capital account under general federal tax principles.
Section 5. To the best of staff’s knowledge, city staff 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 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 the Resolution are true and correct and the City Council so finds, determines and represents.
PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 17th day of June 2024 by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Jose L. Rios, The Honorable Mayor
ATTEST:
Mary Villegas, Deputy City Clerk