RESOLUTION NO. 2026-__
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SALINAS DECLARING THE INTENT OF THE CITY TO BE REIMBURSED FOR CERTAIN CAPITAL EXPENDITURES FROM THE PROCEEDS OF INDEBTEDNESS WHEREAS, the City of Salinas (the “City”) intends to purchase street sweeping vehicles, that will facilitate the City performing an essential governmental function (the "Project"); and WHEREAS, the City will pay certain equipment purchase Capital Expenditures in connection with the Project (the "Expenditures") prior to the issuance of one or more series of tax-exempt obligations in the expected approximate principal amount of $2 million (the "Indebtedness") for the purpose of financing costs associated with the Project; and WHEREAS, the City reasonably expects that certain of the proceeds of the Indebtedness will be used to reimburse the City for the Expenditures; and WHEREAS, Section 1.150-2 of the Treasury Regulations requires the City to declare its reasonable official intent to be reimbursed for prior Capital Expenditures made for the Project with proceeds of a subsequent borrowing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of the CITY OF SALINAS as follows:
The City finds and determines that the foregoing recitals are true and correct.
This declaration is made solely for purpose of establishing compliance with the requirements of Section 1.150-2 of the Treasury Regulations, and does not bind the City to make any expenditure, incur any indebtedness, or proceed with the Project.
The City declares its official intent to use proceeds of the Indebtedness to reimburse itself for Expenditures made on or after the date which is no more than 60 days prior to the date of adoption of this Resolution.
The City will make a reimbursement allocation, which is a written allocation by the City that evidences the City's use of proceeds of the Indebtedness to reimburse itself for an Expenditure, no later than eighteen (18) months after the later of the date on which the expenditure is paid or the Project is placed in service or abandoned, but in no event more than three years after the date on which the Expenditure is paid.
The City recognizes that exceptions are also available under the Treasury Regulations for certain "preliminary expenditures," costs of issuance, certain de minimis amounts, expenditures by "small issuers" (based on the year of issuance and not the year of expenditure) and expenditures for construction projects of at least five (5) years.
This Resolution shall take effect upon its adoption by this City Council.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF SALINAS this ___ day of _________ 2026 by the following Roll Call Vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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Mayor
ATTEST:
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City Clerk
APPROVED AS TO FORM:
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City Attorney