HomeMy WebLinkAboutR-1998-096 Bond Proceeds•
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RESOLUTION NO. R-98- 96
A RESOLUTION to declare the City's intent to use bond proceeds to reimburse,
with certain restrictions, construction costs related to Water
Improvements contained in the 1998 budget.
WHEREAS, the City Council of the City of Yakima deems it to be in the
best interests of the City that it adopt this resolution to allow reimbursement from
bond proceeds of construction costs related to the 1998 Water Capital Program in
the 1998 budget; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
YAKIMA:
Section 1. The City of Yakima reasonably expects to reimburse the
expenditures described herein with the proceeds of debt to be incurred by the City
(the "Reimbursement Bonds").
Section 2. The expenditure with respect to which the City reasonably
expects to be reimbursed from the proceeds of Reimbursement Bonds are for
Water System Improvements as described in the 1998 Water Capital Program and
the 1998 Budget.
Section 3. The maximum principal amount of debt obligation expected to
be issued for the project described in Section 2 is $3.470 million.
ADOPTED BY THE CITY COUNCIL this c-13 day ofctiv, , 1998.
ATTEST:
CITY CLERK
Legal/BD
Reimb. Bonds
JOHN PUCCINELLI
MAYOR
ITEM 1 !ME:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 1(c,
For Meeting Of Tune 23, 1998
Resolution to declare the City's intent to use bond proceeds to reimburse,
with certain restrictions, construction costs related to Water
Improvements contained in the 1998 Budget.
SUBMITTED BY: Department of Finance & Budget
CONTACT PERSON/TELEPHONE: Cindy Eppersona&ing Director of Finance & Budget
Tim Jens ccountant
SUMMARY EXPLANATION:
At the July 7, 1998 meeting a bond ordinance will be presented for Council's review to issue
revenue and refunding bonds for the water/sewer utility. The issuance of bonds to pay for
water capital projects was recommended in the 1996 Cost of Services study, and was carried
forward from 1997 into the 1998 Water Capital budget.
According to the Water Division Manager, some construction has commenced. Federal Tax
regulations contain requirements relating to timing of expenditures paid from tax exempt
bond proceeds. Therefore, it is necessary to approve this resolution to reimburse construction
costs that have occurred not more than 60 days prior to the adoption of this resolution with
bond proceeds. (Engineering and Architecture, or "soft costs", are exempt from the 60 day rule
as long as they don't exceed 20% of the bond issue.)
This is an administrative requirement to ensure that bond proceeds can be used for
reimbursing the City's funds already spent on project construction.
Resolution X Ordinance Contract Other (Specify)
Funding Source Not Applicable
APPROVED FOR SUBMITTAL:
City
anager
STAFF RECOMMENDATION: Adopt Resolution
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: