HomeMy WebLinkAboutR-2014-064 Intent to Use Water and Sewer Revenue Bonds or Notes for Prior Expenditure Reimbursement RESOLUTION NO. 2014 -064
A RESOLUTION of the City Council of the City of Yakima, Washington, declaring the City's
intent to issue Water and Sewer Revenue Bonds or Notes to reimburse
the City for prior expenditures.
WHEREAS, the Internal Revenue Code of 1986 requires that a municipality declare its
intent to issue tax - exempt bonds to reimburse the municipality for prior expenditures before the
expenditures are incurred;
THE CITY COUNCIL OF THE CITY OF YAKIMA, WASHINGTON DOES HEREBY ,
RESOLVE AS FOLLOWS:
The City reasonably expects to reimburse the following expenditures with the proceeds
of Water and Sewer Revenue Bonds or Notes to be issued by the City: projects at the
wastewater treatment plant to address capacity restrictions, permit compliance and operational
improvements, including bio- solids dryer, head works bar screen replacement, and
improvements to filters and clarifiers to improve overall plant efficiencies, and collection system
projects including installation of a new pump station, construction of new trunk lines and
replacement of existing trunk lines to increase pipeline flow capacity. The City expects to issue
approximately $[6,000,000] principal amount of Water and Sewer Revenue Bonds or Notes for
the projects The expenditures to be reimbursed from the tax - exempt bond or note proceeds
will be made from the funds of the Sewerage System.
The adoption of this resolution shall not obligate the City to issue any debt, all of which
shall require separate and additional official approval by the City Council.
ADOPTED at a regular meeting of the City Council of the City of Yakima, Washington,
this 6 day of May, 2014.
CITY OF YAKIMA, WASHINGTON
VI 1 Micah Caw ayo r
ATTEST
Sonya Claa ee, City Clerk
CERTIFICATE
I, the undersigned, Clerk of the City of Yakima, Washington (the "City "), and keeper of
the records of the City Council (the "Council "), DO HEREBY CERTIFY:
1. That the attached Resolution No. 2014 -064 is a true and correct copy of a
resolution of the City Council, as finally adopted at a regular meeting of the Council held on the
6 day of May, 2014, and duly recorded in my office
2. That said meeting was duly convened and held in all respects in accordance with
law, and to the extent required by law, due and proper notice of such meeting was given; that a
legal quorum was present throughout the meeting and a legally sufficient number of members of
the Council voted in the proper manner for the passage of said Resolution; that all other
requirements and proceedings incident to the proper adoption of said Resolution have been fully
fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate.
IN WITNESS WHEREOF, I have hereunto set my hand this day if ,
2014.
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
6;)
Item No. /
For Meeting of: 5/6/2014
ITEM TITLE: Resolution declaring the City's intent to issue Water and
Sewer Revenue Bonds or Notes to reimburse the City for
prior expenditures.
SUBMITTED BY: Cindy Epperson, Director of Finance & Budget
Tara Lewis, Financial Services Manager
Shelly Willson, Wastewater Manager
SUMMARY EXPLANATION:
The City of Yakima's Wastewater Division's Capital Improvement Program incorporates projects
at the wastewater treatment facility plant and the collection system. Treatment Facility Plant
capital projects are needed to expand treatment capacity restrictions, meet permit compliance
requirements, and make operational improvements. Projects may include Bio- solids Dryer,
Head Works Bar Screen replacement, and improvements to filters and clarifiers to improve
overall plant efficiencies. The Collection system projects include installation of a new pump
station, and construction of new trunk lines and replacement of existing trunk lines to increase
pipeline flow capacity. The City actively seeks out grants from Federal and State sources to
offset overall capital cost to the citizens of Yakima, however, it is anticipated that the City will
require $6,000,000 to be used as local match for grants and to fund projects that will not be
eligible for grants.
This $6 million dollar revenue bond issue has been in the Wastewater Capital Fund's budget
since 2012. Fortunately, we were able to obtain low- interest loans and grants from State
agencies for the work that was done in 2012 and 2013, so that the revenue bonds could be
postponed. Currently, the capital fund balance of $3.6 million has been significantly reduced,
so it is now time to consider bonding for the 2014 -2015 projects. An estimate of debt service is
being included in the cost of service study that is currently in progress.
This Reimbursement Resolution will allow the City to reimburse itself for expenditures made on
the project before financing is obtained. This resolution is required to satisfy federal tax exempt
debt issuance rules in order to use financing proceeds at such time as debt may be issued to
reimburse project expenditures already incurred at the time of issuance.
This does not authorize the City to issue debt at this time, but rather anticipates that debt will be
issued at Council's approval at such time as deemed necessary and prudent in the project
undertaking.
Resolution: X Ordinance:
Other (Specify):
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: Yes Amount:
Funding Source /Fiscal
Impact:
Strategic Priority: Improve the Built Environment
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL: City Manager
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description Upload Date Type
❑ 2014 WW Reimbursement Resolution 4/25/2014 Cover Memo