Res 21-031RESOLUTION NO. 21-031
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY CALIFORNIA REGARDING ITS INTENTION TO ISSUE
TAX-EXEMPT OBLIGATIONS FOR ITS WATER SYSTEM
WHEREAS, the City of Poway (the "City") proposes to undertake the financing of the
acquisition and construction of certain improvements, betterments, renovations and
expansions of facilities within its water system (as described in Exhibit A, collectively, the
"Project");
WHEREAS, the City intends to finance the acquisition, construction and installation of
the Project or portions of the Project with the proceeds of the sale of obligations the interest
upon which is excluded from gross income for federal income tax purposes (the
"Obligations"); and
WHEREAS, the City desires to pay certain costs with respect to the Project prior to
the issuance of the Obligations from available moneys of the City and to reimburse itself for
such costs from a portion of the proceeds of the sale of the Obligations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as
follows:
SECTION 1: The City Council of the City of Poway (the "City Council") hereby
specifically finds and declares that each of the statements, findings and determinations of the
City that are set forth in the above recitals are true and correct.
SECTION 2: The City reasonably expects, and hereby states its intention, to
reimburse itself for Project costs incurred prior to the issuance of the Obligations with
proceeds of the Obligations. Exhibit A describes either the general character, type, purpose,
and function of the Project or the fund or account from which Project costs are to be paid and
the general functional purpose of the fund or account.
SECTION 3: The reasonably expected maximum principal amount of the Obligations
that is anticipated to be used for such reimbursement is $69,500,000.
SECTION 4: Except as described in Section 8 below, this resolution is being adopted
not later than 60 days after the payment of the original expenditures (the "Expenditures Date
or Dates").
SECTION 5: Except as described in Section 8 below, the expected date of issue of
the Obligations will be within 18 months of the later of: (a) the Expenditure Date or Dates; or
(b) the date that the Project is placed in service; provided that the reimbursement may not be
made more than three years after the Expenditure Date or Dates.
SECTION 6: Proceeds of the Obligations to be used to reimburse the City for Project
costs are not expected to be used, within one year of reimbursement, directly or indirectly to
pay debt service with respect to any obligation (other than to pay current debt service coming
due within the next succeeding one year period on any tax-exempt obligation of the City (other
than the Obligations)) or to be held as a reasonably required reserve or replacement fund
Resolution No. 21-031
Page 2
with respect to an obligation of the City or any entity related in any manner to the City, or to
reimburse any expenditure that was originally paid with the proceeds of any obligation, or to
replace funds that are or will be used in such manner.
SECTION 7: This resolution is consistent with the budgetary and financial
circumstances of the City as of the date hereof. No moneys from sources other than the
Obligations are, or are reasonably expected to be, reserved, allocated on a Tong -term basis
or otherwise set aside by the City (or any related party) pursuant to their budget or financial
policies with respect to the Project costs. To the best of our knowledge, this City Council is
not aware of the previous adoption of official intents by the City that have been made as a
matter of course for the purpose of reimbursing expenditures and for which tax exempt
obligations have not been issued.
SECTION 8: The limitations described in Sections 4 and 5 above do not apply to: (a)
costs of issuance of the Obligations; (b) an amount not in excess of the lesser of $100,000 or
five percent (5%) of the proceeds of the Obligations; or (c) any preliminary expenditures, such
as architectural, engineering, surveying, soil testing, and similar costs other than land
acquisition, site preparation, and similar costs incident to commencement of construction, not
in excess of twenty percent (20%) of the aggregate issue price of the Obligations that finances
the Project for which the preliminary expenditures were incurred.
SECTION 9: This resolution is adopted as official action of the City in order to comply
with Treasury Regulation § 1.150-2 and any other regulations of the Internal Revenue Service
relating to the qualification for reimbursement of City expenditures incurred prior to the date
of issue of the Obligations, is part of the City's official proceedings, and will be available for
inspection by the general public at the main administrative office of the City.
SECTION 10: This resolution shall take effect immediately.
PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of
the City of Poway, California on the 1st day of June, 2021 by the following vote, to wit:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
ATTEST:
MULLIN, FRANK, GROSCH, LEONARD
NONE
VAUS
NONE
Vaid . Pavi las, CM , City Clerk
Barry Leon rd, Deputy Mayor
Resolution No. 21-031
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EXHIBIT A
DESCRIPTION OF PROJECT
• Clearwell Bypass Project
• Clearwell Replacement Project
• San Diego County Water Authority Treated Water Connection Project
• Pipelines that provide redundancy and operational flexibility