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HomeMy WebLinkAbout2021-06-08 - Resolution No. 2021-17 RESOLUTION NO. 2021-17 RESOLUTION OF THE BOARD OF DIRECTORS OF THE YORBA LINDA WATER DISTRICT REGARDING INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS WHEREAS, the Yorba Linda Water District (the "District") is a county water district that is duly organized and existing under and pursuant to Division 12 of the California Water Code (Section 30000 et seq.); and WHEREAS, the District desires to finance the costs of acquiring, constructing and installing certain public facilities and improvements related to its water system, as provided in Exhibit A attached hereto and incorporated herein (the "Project"); and WHEREAS, the District 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 District desires to pay certain costs with respect to the Project prior to the issuance of the Obligations from available moneys of the District and to reimburse itself for such costs from a portion of the proceeds of the sale of the Obligations. NOW, THEREFORE, the Board of Directors of the Yorba Linda Water District hereby finds, determines, declares and resolves as follows: SECTION 1. The foregoing recitals are true and correct. SECTION 2. The District 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 $35,000,000. 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"). Resolution No.2021-17 Regarding Intention to Issue Tax-Exempt Obligations 1 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 District 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 District (other than the Obligations)) or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the District or any entity related in any manner to the District, 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 District as of the date hereof. No moneys from sources other than the Obligations are, or are reasonably expected to be, reserved, allocated on a long-term basis or otherwise set aside by the District (or any related party) pursuant to their budget or financial policies with respect to the Project costs. To the best of our knowledge, this Board of Directors is not aware of the previous adoption of official intents by the District 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 District 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 District expenditures incurred prior to the date of issue of the Obligations, is part of the District's official proceedings, and will be available for inspection by the general public at the main administrative office of the District. Resolution No.2021-17 Regarding Intention to Issue Tax-Exempt Obligations 2 SECTION 10. This resolution shall take effect immediately. PASSED AND ADOPTED this 8t" day of June 2021 by the following called vote: AYES: Directors DesRoches, Hawkins, Jones, Lindsey, and Miller NOES: None ABSENT: None ABSTAIN: None ,. Phil Hawkins, President Yorba Linda Water District ATTEST: Annie Alexander, Board Secretary Yorba Linda Water District Reviewed as to form by General Counsel: Andrew B. Gagen, Esq. Kidman Gagen Law, LLP Resolution No.2021-17 Regarding Intention to Issue Tax-Exempt Obligations 3 EXHIBIT A DESCRIPTION OF PROJECT Upgrades, acquisitions, replacements, rehabilitation and construction of facilities and equipment for the District's water system, including but not limited to upgrades to water storage reservoirs, pressure reducing stations, pipeline replacements, pumping stations, well sites and disinfection facilities, treatment plant, advanced metering infrastructure, and improvements to the District's administrative headquarters facility.