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09-13-2005 CC Rpt A19COUNCIL AGENDA STAFF REPORT Meeting Date : September 13, 2005 Public Hearing : Discussion Item: Consent Item: 20 05 SEP -6 PM I: 55 APPRoveoAs ecoMMeNoeo .. -.6.H1,· 0~HILLSLt K SEPTEMBER 6, 2005 TO: FROM : HONORABLE MAYOR AND CITY COUNCIL MEMBERS CITY MANAGER SUBJECT: ADOPT A RESOLUTION DECLARING THE CITY'S INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS RECOMMENDATION: It is recommended that the City Council: "ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, DECLARING ITS INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS." BACKGROUND/ANALYSIS : The Shoppes-Government Center and the new Community Park will entail funding from the Community Facilities Districts (CFO) 1, 2, 4, 5, 6 & 8 in conjunction with other funding sources such as Development Impact Fee funds, Gas Tax, and Measure I. To facilitate the use of the CFO monies, a bonded indebtedness will have to be issued to finance the project. At the appropriate time, the City expects to issue bonds in order to finance the City improvements related to the Government Center project and the new Community Park. Prior to the issuance of the bonds, the City expects to be incurring some costs for which it expects to reimburse itself out of the proceeds from the sale of the bonds. In order to preserve the ability to be reimbursed, Federal tax law requires the City to adopt a resolution so stating the intent to have the costs incurred prior to the issuance of bonds paid from the proceeds at that later time. REVIEW BY OTHERS: This agenda item has been reviewed by the City Attorney and the City's bond counsel (Orrick, Herrington and Sutcliffe, LLP). APPROVED AS RECOMMENDE D /!!Cf '.· AGENDA DATE: SEPTEMBER 13, 2005 SUBJECT: ADOPT A RESOLUTION DECLARING THE CITY'S INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS PAGE TWO FISCAL IMPACT: There is no fiscal impact resulting from this action . Recommended by: DLB:JRL :ddk I I I RESOLUTION NO. 05R-~51_ A RESOLCJTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, DECLARING ITS INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF INDEBTEDN6SS. WHEREAS, the City of Chino Hills (the "City"), a municipal corporation of the State of California, intends to acquire, construct and improve certain capital improvements in connection with a government center project, including roadways, parking and other related costs (the "Project"); and WHEREAS, the City expects to pay certain expenditures (the "Reimbursement Expenditures") in connection with the Project prior to the issuance of indebtedness for the purpose of financing costs associated with the Project on a long-term basis; and ,, WHEREAS, the City reasonably expects that debt obligations in an amount not expected to exceed $75,000,000 will be issued and that certain of the proceeds of such debt obligations will be used to reimburse the Reimbursement Expenditures. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO HILLS DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. All of the recitals herein contained are true and correct and the City Council of the City of Chino Hills so finds. SECTION 2. This declaration is made solely for purposes of establishing compliance with the requirements of Section 1.150-2 of the Treasury Regulations. This declaration does not bind the City to make any expenditure, incur any indebtedness or proceed with the Project. SECTION 3. The City hereby declares its official intent to use proceeds of indebtedness to reimburse itself for Reimbursement Expenditures. SECTION 4. This Resolution shall take effect immediately upon its adoption. 1 of 3 . . I SECTION 5. The City Clerk shall certify as to the adoption of this Resolution. ' PASSED, APPROVED and ADOPTED this 27th day of September, 2005. ATTEST: ~~~ERK APPROVED AS TO FORryl: MARK D. HEN . LEY, CITY ATTORNEY I ' .. I 2 of 3