Resolution 2002-68
RESOLUTION NO. 2002-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY, CALIFORNIA DECLARING INTENTION TO REIMBURSE
EXPENDITURES UNDER FEDERAL TAX RULES
RESOLVED, by the City Council (the "Council") of the City of Gilroy (the "City"),
County of Santa Clara, California:
WHEREAS, the City proposes to undertake a project consisting generally of the
acquisition and construction of improvements to and for library, administration, police, fire,
corporation yard, park and recreation facilities (the "Project"), to issue tax-exempt bonds, notes
or other kinds of debt (the "Obligations") to finance 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 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 (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:
1. 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.
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RESOLUTION NO. 2002-68
~
Thomas W. Springer,
4.
Council.
Effective. This resolution shall be effective from the date of its adoption by the
PASSED AND ADOPTED this 3rd day of September, 2002 by the following vote:
AYES:
COUNCILMEMBERS: DILLON, GARTMAN, MORALES,
PINHEIRO, VELASCO, SPRINGER
NOES
COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: ARELLANO
APPROVED:
r
A?1T:
~J~.
Rhonda Pellin, City Clerk
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RESOLUTION NO. 2002-68
I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certifY that the attached
Resolution No. 2002-68 is an original resolution, duly adopted by the Council of the City of
Gilroy at a regular meeting of said Council held on the 3rd day of September, 2002, 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 25th day of September, 2002.
~fith QA~
City Clerk of the City of Gilroy
(Seal)