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HomeMy WebLinkAboutCC Reso No 2016-046 CC Reso Intention to Issue Tax Exempt ObligationsRESOLUTION NO. 2016 -046 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE REGARDING ITS INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS WHEREAS, the City Council of the City of Lake Elsinore (the " Issuer") desires to finance the costs of acquiring certain public facilities and improvements, as provided in Exhibit A attached hereto and incorporated herein (the "Project'); and, WHEREAS, the Issuer intends to finance the acquisition 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, prior to the issuance of the Obligations the Issuer desires to incur certain expenditures with respect to the Project from available monies of the Issuer which expenditures are desired to be reimbursed by the Issuer from a portion of the proceeds of the sale of the Obligations. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: Section 1. The above recitals are all true and correct. Section 2. The Issuer hereby states its intention and reasonably expects to reimburse 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 is $11,000,000. Section 4. This resolution is being adopted on or prior to the date (the "Expenditures Date or Dates ") that the Issuer will expend monies for the portion of the Project costs to be reimbursed from proceeds of the Obligations. Section 5. Except as described below, the expected date of issue of the Obligations will be within eighteen months of the later of the Expenditure Date or Dates and the date the Project is placed in service; provided, the reimbursement may not be made more than three years after the original expenditure is paid. For Obligations subject to the small issuer exception of Section 148(f)(4)(D) of the Internal Revenue Code, the "eighteen -month limit' of the previous sentence is changed to "three years" and the limitation of the previous sentence beginning with {';provided,...." is not applicable. Section 6. Proceeds of the Obligations to be used to reimburse 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 Issuer (other than the Obligations)) or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the Issuer or any entity related in any manner to the Issuer, 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. CITY COUNCIL RESOLUTION NO. 2016 -046 PAGE 2OF3 Section 7. This resolution is consistent with the budgetary and financial circumstances of the Issuer, as of the date hereof. No monies from sources other than the Obligation issue are, or are reasonably expected to be reserved, allocated on a long term basis, or otherwise set aside by the Issuer (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 Issuer 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 Section 3 and Section 4 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 Issuer 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 Issuer expenditures incurred prior to the date of issue of the Obligations, is part of the Issuer's official proceedings, and will be available for inspection by the general public at the main administrative office of the Issuer. Section 10. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 12th day of April, 2016. Brian Tis; ale, Mayor ATTEST: Susarn M. Domen, MMC, City Clerk APPROVE AS TO FOR B bars Leibol , City Attorney CITY COUNCIL RESOLUTION NO. 2016 -046 PAGE 3OF3 STATE OF CALIFORNIA COUNTY OF RIVERSIDE SS CITY OF LAKE ELSINORE I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2016 -046 was adopted by the City Council of the City of Lake Elsinore at a regular meeting held on the 12th day of April, 2016 by the following vote: AYES: Council Members Johnson, Manos, and Hickman, Mayor Pro Tern Magee, and Mayor Tisdale NOES: None ABSTAIN: None ABSENT: None -Susa Domen, MMC, City Cler EXHIBIT A DESCRIPTION OF PROJECT • Development of 75 acres of campground owned by the Issuer for public use • Campground improvements to include: • New main entry and gate house • Check -in building, offices and laundry • Snack and concessions stand • Dump station • Club house • Extended stay spaces (100) • Double pull through spaces (20) • Class A & B spaces (116) • Cabins (6) • Activity squares (4) • Gazebo with Wi -Fi • Tot -lot with cover • Dog park • Horseshoe pit • Half basketball courts • Outdoor checkers /chess • Putting green • Campsites (234) • R.V. and boat storage spaces (120) • Bait & tackle shop • Picnic /barbeque /shade structures • Restroom /shower building with trash enclosures A -1