Resolution 2000-05
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RESOLUTION NO. 2000-05
A RESOLUTION OF DECLARING INTENTION TO REIMBURSE
EXPENDITURES UNDER FEDERAL TAX RULES, CITY OF
GILROY, BONFANTE GARDENS PROJECT
RESOLVED, by the City Council (the "Council") ofthe City of Gilroy (the "City"),
County of Santa Clara, California:
WHEREAS, the City proposes to issue tax-exempt bonds, notes or other kinds of
debt (the "Obligations") to finance the certain improvements for the Bonfante Gardens
Recreational Project (the "Project") and to use a portion of the proceeds of the Obligations
to reimburse expenditures made by the City for the Project before the issuance of the
Obligations; and
WHEREAS, United States Income Tax Regulations section 1.150-2 (the
"Regulations") provides generally that proceeds oftax-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 (with certain exceptions), prior to the payment of any such expenditure,
the issuer declare an intention to reimburse such expenditure; and
WHEREAS, it is in the public interest and for the public benefit that the City declare
its official intent to reimburse the expenditures referenced herein;
NOW, THEREFORE, it is hereby DECLARED and ORDERED, as follows:
I. Obligations. The City intends to issue the Obligations, in the maximum principal
amount of approximately $40,000,000, within the meaning of the Regulations to finance
all or a portion of the costs of the Project.
2. Reimbursement. The Council hereby declares that the City reasonably expects 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.
3. Purpose. The adoption of this resolution shall be solely for the purpose of complying
with the provisions of the Regulations and shall not be deemed an approval of all or any
part of the Project or a commitment on the part of this Council to issue any or all of the
Obligations or otherwise provide for financing.
4. Effective. This resolution shall be effective from the date of its adoption by the Council.
RESOLUTION NO. 2000-05
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PASSED AND ADOPTED this 7th day of February, 2000 by the following vote:
AYES:
COUNCILMEMBERS: G. ARELLANO, P. ARELLANO,
MORALES, PINHEIRO, SUDOL, VELASCO, SPRINGER
NOES:
COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
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Tom Springer, Mayol
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Rhonda Pellin, City Clerk
RESOLUTION NO. 2000-05
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I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certifY that the attached
Resolution No. 2000-05 is an original resolution, duly adopted by the Council of the City of
Gilroy at a regular meeting of said Council held on the 7th day of February, 2000, at which
meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 3rd day of March, 2000.
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City Clerk oftheGty of Gilroy
(Seal)