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HomeMy WebLinkAbout8245RESOLUTION NO 8245 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS DECLARING THE CITY'S OFFICIAL INTENT TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED BY THE CITY OF REDLANDS, A RELATED PARTY OR OTHER AFFILIATE, AND APPROVING CERTAIN RELATED ACTIONS WHEREAS, the City of Redlands, California (the "City"), or an affiliate or related party to the City, including the Redlands Financing Authority (any such party, including the City, the "Issuer"), expects to undertake the acquisition and improvement of an existing building, located at 300 East State Street, Redlands, California, for purposes of relocating City Hall, including the majority of police department operations and the fire department administrative office, and the retrofitting of City -owned streetlights in the City to realize energy savings and provide improved roadway/right-of-way visibility at night (the "Project"), using revenues, proceeds from bonds or other borrowing, and/or other funds, and WHEREAS, the Issuer expects to pay certain expenditures related to the Project prior to the issuance of debt (such expenditures, the "Reimbursement Expenditures"), and WHEREAS, the Issuer reasonably expects to issue obligations in an amount not to exceed twelve million dollars ($12,000,000) (the "Obligations") and to use all or a portion of the proceeds of the Obligations to reimburse the Reimbursement Expenditures that are paid before the date of issuance or delivery of the Obligations, and WHEREAS, United States Treasury Regulations Section 1 150-2 provides generally that proceeds of tax-exempt obligations are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such obligations unless certain procedures are followed, among which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer must declare its official intent to reimburse such expenditure with proceeds of such obligations, and WHEREAS, it is in the public interest and for the public benefit that the City declare its official intent to use all or a portion of the proceeds of the Obligations to reimburse the Reimbursement Expenditures that are paid by the Issuer before the date of issuance of the Obligations, and WHEREAS, proceeds of the Obligations will be allocated to the Reimbursement Expenditures no later than eighteen (18) months after the later of (i) the date the cost is paid, or (ii) the date the Project (or each component thereof) is placed in service or abandoned, but in no event more than three (3) years after the cost is paid, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as follows Section 1 The City hereby declares its official intent to use all or a portion of the proceeds of the Obligations to reimburse the Reimbursement Expenditures that are paid before the date of issuance of the Obligations. 1 I:\Resolutions\Res 8200-8299\8245 Reimbursement Expenditures.doc Section 2 The City hereby declares that it reasonably expects (1) to pay the Reimbursement Expenditures prior to the date of issuance of the Obligations and (11) to use all or a portion of the proceeds of the Obligations for reimbursement of the Reimbursement Expenditures that are paid by the Issuer before the date of issuance of the Obligations This declaration is made solely for purposes of establishing compliance with the requirements of Umted States Treasury Regulations Section 1 150-2 This declaration does not bind the City or the Issuer to make any expenditure, incur any indebtedness, or proceed with the Project Section 3. All actions heretofore taken by the officers, employees and agents of the City with respect to the actions set forth above are hereby approved, confirmed and ratified Section 4 The City Clerk shall certify to the adoption of this Resolution and thenceforth and thereafter the same shall be in full force and effect ADOPTED, SIGNED AND APPROVED this 2 th day of July, 2021 (0 Paul T Barich, Mayor ATTEST Donaldson, City Clerk 4125 0830 8528 2 2 I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 20th day of July, 2021 AYES Councilmembers Foster, Tejeda, Davis, Guzman -Lowry, Mayor Banch NOES None ABSENT None ABSTAINED None Donaldson, City Clerk 4125 0830 8528.2 3