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HomeMy WebLinkAboutRES NO 28-94RESOLUTION NO. 2 8 - 9 4 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAKERSFIELD DECLARING INTENT TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF SUBSEQUENT REFUNDING BONDS THEREFOR AND DIRECTING CERTAIN RELATED ACTIONS /~/~DAUTHORISING TEMPORARY APPROPRIATION OF SEWER ENTERPRISE REVENUES FOR CURRENT REDEMPTION OF ASSESSMENT DISTRICT NO. 86-2 IMPROVEMENT BONDS RESOLVED BY THE CITY COUNCIL (the "Council") OF THE CITY OF BAKERSFIELD (the "city") as follows: WHEREAS, by Resolution No. 60-86, adopted on June 4, 1986, the Council formed the City of Bakersfield Assessment District No. 86-2 (the "District"), pursuant to the Municipal Improvement Act of 1913 (the "Law"); and WHEREAS, byResolution No. 165-86, adopted on November 5, 1986, the Council authorized the issuance of the City of Bakersfield Assessment District No. 86-2 Improvement Bonds, Series A (the "Series A Bonds"), originally issued in the aggregate principal amount of $7,927,223.96, and by Resolution No. 180-87, adopted on September 23, 1987, the Council authorized the issuance of the city of Bakersfield Assessment District No. 86-2 Improvement Bonds, Series B (the "Series B Bonds"), originally issued in the aggregate principal amount of $3,310,000, and by Resolution No. 18- 88, adopted on February 17, 1988, the Council authorized the issuance of the City of Bakersfield Assessment District No. 86-2 Improvement Bonds, Series C (the "Series C Bonds"), originally issued in the aggregate principal amount of $2,470,000, and by Resolution No. 52-88, adopted on March 30, 1988, the Council authorized the issuance of the city of Bakersfield Assessment District No. 86-2 Improvement Bonds, Series D (the "Series D Bonds"), originally issued in the aggregate principal amount of $4,568,000 (the Series A Bonds, the Series B Bonds, the Series C Bonds and the Series D Bonds, collectively, the "Prior Bonds"), all under the provisions of the Improvement Bond Act of 1915, being Division 10, commencing with Section 8500, of the California Streets and Highways Code (the "Bond Act"), for the purpose of providing funds for the construction of improvements within the District; and WHEREAS, on January 12, 1994, the Council adopted Resolution No. 12-94 and Resolution No. 13-94 authorizing the refunding of the ~-~-~or Bonds and providing for the issuance of refunding bonds therefor (the "Refunding Bonds"); and 2/16/94(1946.1) WHEREAS, the notice to call and redeem the Prior Bonds has been sent to the owners thereof and the Prior Bonds are to be surrendered for redemption on March 2, 1994 (the "Redemption Date"); and WHEREAS, circumstances require that the Refunding Bonds will not be issued until after March 2, 1994; and WHEREAS, in order to redeem the Prior Bonds on the Redemption Date, the City intends to pay the required redemption price from its sewer enterprise revenues and to reimburse said revenues with proceeds from the sale of the Refunding Bonds; and WHEREAS, Section 1.150-2 of the United States Treasury Regulations to the Internal Revenue Code of 1986, as amended (the "Reimbursement Regulation"), 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, among which is a requirement that, prior to the payment of any such expenditure, the issuer must declare an intention to reimburse such expenditure; and WHEREAS, a portion of the Refunding Bonds will constitute a tax-exempt debt of the City; and WHEREAS, it is in the public interest and for the public benefit that the city declare official intent to reimburse itself for the expenditures referenced herein in accordance with the Reimbursement Regulation; THEREFORE, THE COUNCIL FINDS, DETERMINES AND ORDERS as follows: SECTION 1. All of the recitals herein contained are true and correct and the Council so finds. SECTION 2. Subject to Section 3, the Finance Director for the City is hereby authorized to appropriate from the City's sewer enterprise revenues an amount necessary to pay, as of the Redemption Date, the outstanding principal of and interest and premium on the Prior Bonds, and such costs and expenses associated therewith, if any. Such appropriation (hereinafter, the ,,Appropriation") shall not exceed $11,830,00, which is the authorized aggregate principal amount of the Refunding Bonds. The Finance Director shall make such appropriation and transfer such funds to the paying agent or escrow agent, as appropriate, for the Prior Bonds, as soon as practical but in no event later than 72 hours before the Redemption Date. SECTION 3. The appropriation set forth in Section 2 hereof is contingent upon the Bakersfield Public Financing 2/16/94(1946.1) 2 ORIGIN,~L Authority having received a final bond purchase contract on or before February 25, 1994 from First California Capital Markets Group, Inc., the underwriter for the issuance of the Bakersfield Public Financing Authority Revenue Bonds, Series 1994B and Series 1994C (collectively, the "Pool Bonds"), which were authorized for issuance pursuant to PFA Resolution No. 3-93, adopted by the Board of Directors of the Authority on November 10, 1993. The City Manager shall determine and confirm the receipt of such a contract. SECTION 4. The City hereby declares its intent to reimburse itself for the Appropriation with proceeds from the sale of the Refunding Bonds. The maximum aggregate principal amount of Refunding Bonds expected to be issued for the refunding of the Prior Bonds is $11,830,000. The expected source of funds to be used to pay debt service on the Refunding Bonds is the special assessments to be levied against real property within City of Bakersfield Assessment District No. 86-2. SECTION 5. This resolution shall constitute a declaration of official intent under the Reimbursement Regulation. SECTION 6. The Appropriation for which the city will reimburse itself pursuant to this resolution is an "original expenditure" (as defined in Section 1.150-2(c) of the Reimbursement Regulation), which satisfies the requirements of Section 1.150- 2(d)(3) of the Reimbursement Regulation. SECTION 6. The adoption of this resolution is consistent with the budgetary and financial circumstances of the City. SECTION 7. This Resolution shall take effect from and after its passage and adoption. 2/16/94(1946.1) 3 I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the city Council of the City of Bakersfield at a regular meeting thereof held on the 23rd day of February 1994, by the following vote: NOES: COUNCILMEMBERS City Clerk and Ex officio Clerk of the Council of the City of Bakersfield APPROVED this 23rd day of February 1994 MAYOR ersfield APPROVED AS TO FORM: BURKE, WILLIAMS & SORENSEN, Bond Counsel By. Richard H. Hargrove COUNTERSIGNED: ATTORNEY o~ the C~y of Bakersfield 2/16/94(1946.1)