HomeMy WebLinkAboutRESO7414RESOLUTION NO. 7414
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO
ALTO DECLARING INTENTION TO REIMBURSE
EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS TO
BR ISSUED BY THE CITY AND DIRECTING CERTAIN
ACTIONS
The Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1, The City proposes to undertake the Project
referenced below, to issue debt for the Project and to use a
portion of the proceeds of such debt to reimburse expenditures
made for the Project prior to the issuance of the debt.
,SECTION 2. United States Income Tax Regulations section
1.150-2 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; one of which
is a requirement that (with certain exceptions), prior to the
payment of any, such expenditure, the issuer declare an intention
to reimburse such expenditure.
SECTION 3, It is in the public interest and for the
public benefit that the City declare its official intent to
reimburse the expenditures referenced herein.
SECTION 4. The City intends to issue obligations (the
"Obligations") for the purpose of paying the costs of its City of
Palo Alto Utility Revenue Bonds 1995 Series A financing of storm
drainage improvements, including costs of design, pipes, inlets,
pump station improvements and erosion controls (the "Project")..
SECTION 5. The City hereby declares that it reasonably
expects (i) to pay certain costs of the Project prior to the date
of issuance of the Obligations and (ii) to use a portion of the
proceeds of the Obligations for reimbursement of expenditures for
the Project that are paid before the date of issuance of the
Obligations.
SECTION 6L The adoption of this resolution shall not
obligate the City to complete the Project or issue the
Obligations.
,SECTION 7. The City Council finds that the action hereby
approved does not constitute a project under the California
Environmental Quality Act.
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