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)