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HomeMy WebLinkAbout92-04 RDA ResolutionRESOLUTION NO. RDA 92-04 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DECLARING CERTAIN FINDINGS REGARDING CITY EXPENDITURES IN CONNECTION WITH THE CONSTRUCTION OF THE MARGARITA ROAD EXTENSION INTERIM IMPROVEMENTS AS REQUIRED BY UNITED STATES DEPARTMENT OF THE TREASURY REGULATIONS (SECTION 1.103-18) WHEREAS, on January 27, 1992, the United States Department of the Treasury (the "Treasury") issued final regulations (Section 1.103-18) relating to the use of bond proceeds for the reimbursement of expenditures made prior to the date of issuance of bonds (the "Reimbursement Regulations"); and WHEREAS, under the Reimbursement Regulations, in general, if specified requirements are satisfied, the proceeds used for reimbursement are deemed to be spent on the date of reimbursement; and WltEREAS,if such requirements are not satisfied, then proceeds used for reimbursement will remain subject to the rebate, arbitrage and other rules relating to tax-exemption until ultimately spent; and WHEREAS, the Reimbursement Regulations apply to tax-exempt obligations issued after March 2, 1992, except that the Reimbursement Regulations do not apply to expenditures before such date if such expenditures were made after September 8, 1989, and if there was objective evidence at the time of the expenditures that the issuer reasonably expected to reimburse the expenditure with bond proceeds; and WHEREAS, the Temecula Redevelopment Agency ("Agency") desires to construct the Margarita Road Extension Interim Improvements from Winchester Road to Solana Way at a total cost of $700,000.00. The Agency further intends to reimburse itself for the purchase price of the project from the proceeds of Redevelopment Bonds the agency intends to issue ("Obligations"). Agency intends to make expenditures relating to the purchase and development of the property in anticipation of issuance of the obligations collectively referred to as the ("Expenditure"); and WHEREAS, in order to comply with the Reimbursement Regulations, the public interest and convenience require that the agency officially declare its intent that the agency reasonably expects to reimburse the Expenditure with proceeds of the Obligations; NOW THEREFORE, IT IS HEREBY RESOLVED, DETFJIMINED AND DECLARED by the Redevelopment Agency of the City of Temecula as follows: Section 1. The foregoing recitals are true and correct. Section 2. The agency reasonably expects to reimburse the Expenditure with proceeds from the Obligations. The reimbursement of the Expenditure is consistent with the agency's established budgetary and financial circumstances. There are no funds or sources of money of the Agency, or any related person or commonly controlled entity, that have been, or reasonable expected to be, reserved, allocated on a long-term basis or otherwise set aside to pay costs of the property to be paid or reimbursed out of proceeds of the Certificates. Section 3. This Resolution is a declaration of Agency's official intent under the Reimbursement Regulations. Section 4. The maximum principal amount of the Obligations for which the Expenditure is made is reasonably expected to be $20,000,000.00 Section 5. The proceeds from the Obligations are to be used for the Project. Section 6. The City Clerk/Agency Secretary shall certify the adoption of this Resolution and thenceforth and thereafter same shall be in full force and effect. PASSED, APPROVED AND ADOPTED this 25th day of August, 1992. ATTEST: City Clerk/Agenc~LS~cretary [SEAL] STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) CITY OF TEMECULA ) I, June S. Greek, City Clerk/Redevelopment Agency Secretary of the City of Temecula, HEREBY DO CERTIFY that the foregoing Resolution No. RDA 92-04 was duly adopted at a regular meeting of the Redevelopment Agency of the City of Temecula on the 25th day of August, 1992, by the following roll call vote: AYES: 5 AGENCY MEMBERS: Birdsall, Lindemans, Moore, Parks, Mufioz NOES: 0 AGENCY MEMBERS: None ABSENT: 0 AGENCY MEMBERS: None Re~o~.RDA\ 92-04 3