HomeMy WebLinkAboutResolution No. 17-7752-Declaring Intention to Reimburse Expenditures from the Proceeds of Obligations to be Issued by the CityF-111111111 :4 • • • • i; • 11 i
WHEREAS, the Downey voters adopted Measure S, a twenty-year, half -cent sales tax,
in November of 2016; and
WHEREAS, to fulfill its commitment to improve streets, parks and infrastructure, 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; and
WHEREAS, 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 declares an intention to reimburse such
expenditure; and
WHEREAS, it is in the public interest and for the public benefit that the City declares its
official intent to reimburse the expenditures referenced herein.
RESOLVENOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOEI
HEREBY is •
Section 1. The City intends to issue obligations (the "Obligations") for the purpose of
paying the costs of City facilities, including improvements to the City Hall area, fire stations,
public parks, and streets (the "Project").
Section 2. 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 3. The maximum principal amount of the Obligations is $80,000,000.
Section 4. The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED this 24th day of Octobµ m .M.
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FERNAN60 VASQUE ayor
WARA ALICIA DUARTE, CMC
Interim City Clerk
RESOLUTION NO.
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I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular meeting held on the 24th day of October, 2017 by the following
vote, to wit:
AYES:
Council Members: Rodriguez, Saab, Ashton, Mayor Vasquez
NOES:
Council Member: None.
ABSENT:
Council Member: Pacheco
ABSTAIN:
Council Member: None.
MAIC A ALICIA DUARTE, CIVIC
Interim City Clerk
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