HomeMy WebLinkAbout4816_CCv0001.pdf RESOLUTION NO. 4816
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDLANDS DESIGNATING ITS CERTIFICATES OF
PARTICIPATION (1991 SOLID WASTE CAPITAL
IMPROVEMENTS PROJECT) AND THE INSTALLMENT SALE
AGREEMENT AS QUALIFIED TAX-EXEMPT OBLIGATIONS
WHEREAS, the City Council (the "City Council" ) of the
City of Redlands (the "City") has previously authorized the
issuance of its certificates of participation in an aggregate
principal amount not to exceed $8, 000, 000 (the "Certificates" ) and
authorized the necessary legal documents, including and Installment
Sale Agreement between the City and the Redlands Public
Improvements Corporation (the "Installment Sale Agreement") ,
relating to such Certificates in order to finance the acquisition,
construction, installation and equipping of the City' s solid waste
capital improvements project (the "Project") by its adoption of
Resolution No. 4808 on October 22, 1991; and
WHEREAS, the City Council, including all subordinate
entities thereof, does not anticipate that it will issue tax-exempt
obligations in excess of $10, 000, 000 in the 1991 calendar year; and
WHEREAS, the City Council wishes to designate the
Certificates and the Installment Sale Agreement relating to the
Certificates and the Project as "qualified tax-exempt obligations"
pursuant to and for the purposes of Section 265 (b) (3) of the
Internal Revenue Code of 1986, as amended.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY
THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS:
Section 1. Designation ^as Qualified Tax-Exe=t
Obligations . The City Council hereby determines that the City,
including all subordinate entities thereof, does anticipate that it
will issue tax--exempt obligations in excess of $10, 000, 000 in
aggregate principal amount in the 1991 calendar year, and hereby
designates the Installment Sale Agreement and the Certificates as
"qualified tax-exempt obligations" pursuant to and for the purposes
of Section 265 (b) (3) of the Internal Revenue Code of 1986, as
amended.
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Section 2 . Effective Date. This Resolution shall take
effect upon adoption.
ADOPTED this 19th day of November 1991.
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ATTEST:
City Cle3jk of the/-
City
City of -$edland
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KAB78794
I, Lorrie Poyzgr , City Clerk of the City of
Redlands, California, do hereby certify that the foregoing
Resolution was regularly introduced and adopted by the City Council
of the City of Redlands, California, at a regular meeting thereof
held on the 19th day of November 1991, by the following
vote of the City Council :
AYES : Councilmembers Beswick, Larson, Milson.
NOES : Councilmember Cunningham; Mayor DeMirjyn
ABSENT: None
ABSTAINED: None
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the official seal of the City of Redlands, California this
19th day of November 1991.
City leak of tMr; ' ity of Redlands,
California
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LAW OFFICES OF
BEST, BEST & KRIEGER
November 7, 1991
MEMORANDUM
TO: CITY COUNCIL, CITY MANAGER AND CITY ATTORNEY
FROM: SPECIAL COUNSEL
RE: CERTIFICATES OF PARTICIPATION (1991 SOLID WASTE CAPITAL
IMPROVEMENTS PROJECT)
At its meeting of October 22 , 1991, the City Council
approved all necessary legal documents relating to the City' s
Certificates of Participation, proceeds of which will be used to
finance the acquisition and construction of capital improvements to
the City' s solid waste disposal system.
The City' s financial advisor believes that the
Certificates of Participation may be more marketable if designated
by the City Council as "qualified tax-exempt obligations" pursuant
to Section 265 (b) (3) of the Internal Revenue Code of 1986, as
amended. Designation of the Certificates of Participation as
"qualified tax-exempt obligations" allows more favorable tax
treatment of interest to certain financial institutions.
Attached is a resolution designating the Certificates of
Participation as "qualified tax-exempt obligations . " We recommend
adoption of the attached resolution to provide additional
flexibility in the marketing of the Certificates of Participation.
Glen E. Stephens
Kim A. Byrens