RESOLUTION NO. 2024-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON
DECLARING INTENTION TO REIMBURSE EXPENDITURES RELATING TO THE
WWTP EXPANSION PHASE III FROM THE PROCEEDS OF TAX-EXEMPT
OBLIGATIONS
WHEREAS, the City of Patterson (the “City”) owns and operates wastewater facilities within the city limits ; and
WHEREAS, the City anticipates undertaking an expansion of its existing wastewater facilities located on 14901 Poplar Avenue, to issue debt for this capital improvement project, and to use a portion of the proceeds of such debt to reimburse expenditures made for the WWTP Expansion Phase III prior to the issuance of the debt; and WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, one of which is a requirement that prior to the payment of any such expenditures, the issuer declares an intention to reimburse such expenditure; and WHEREAS, it is in the public interest and for the public benefit that the City declares its official intent to reimburse the expenditures referenced herein for the Wastewater Expansion Phase III Project.
WHEREAS, The City may use some combination of funding as the funding becomes available. The VOP CFD may need to reimburse the other funding sources for this project such that it will contribute up to $12 million towards the wastewater plant expansion as originally intended.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Patterson as follows:
Section 1. Description of Project. The City Council hereby declares that it reasonably expects the City, or a related entity, to issue tax-exempt obligations in one or more series (the “Obligations”) for the purpose of paying the costs of capital improvement projects related to the Wastewater Treatment Plant Expansion Phase III (the “Project”).
Section 2. City Expectations. The City hereby declares that they have incurred costs for this project to the date of issuance of the anticipated Obligations and is currently seeking a portion of the proceeds of the Obligations for reimbursement of expenditures for the Project that were paid before the date of issuance of the Obligations. The maximum amount of the reimbursement being requested through this resolution is $10,000,000.
Section 3. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.
The foregoing resolution was introduced at a regular meeting of the City Council of the City of Patterson held on the 3
rd day of December 2024, by , who moved
its adoption, which motion was duly seconded by , and the resolution adopted by the following roll call vote:
AYES:
NOES:
EXCUSED:
APPROVED:
Michael Clauzel
Mayor of the City of Patterson
ATTEST:
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct, and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 3 rd day of December 2024, and I
further certify that said resolution is in full force and effect and has never been rescinded or modified.
DATED:
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City Clerk of the City of Patterson