HomeMy WebLinkAboutRES 2003-26 - Board rTRUCKEE DONNER I
PUblIC Utility District
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Resolution No. 2003- 26
REIMBURSEMENT RESOLUTION
RESOLUTION OF THE BOARD OF DIRECTORS OF TRUCKEE
DONNER PUBLIC UTILITY DISTRICT REGARDING ITS INTENTION TO
ISSUE TAX-EXEMPT OBLIGATIONS
WHEREAS,the Board of Directors of the Truckee Donner Public Utility District(the
"District")desires to finance the costs of developing a fiber optic broadband infrastructure network
as described on Exhibit A hereto (the "Project");
WHEREAS, the District intends to finance the acquisition of the Project with the
proceeds of the sale of certificates of participation,general obligation bonds or other forms of debt,
the interest upon which is excluded from gross income for federal income tax purposes (the
"Obligations");
WHEREAS, prior to the issuance of the Obligations the District desires to incur
certain capital expenditures(the"Expenditures")with respect to the Project from available moneys of
the District; and
WHEREAS, the Board of Directors has determined that those moneys to be
advanced on and after the date hereof to pay the Expenditures are available only for a temporary
period and it is necessary to reimburse the District for the Expenditures from the proceeds of the
Obligations.
NOW,THEREFORE,THE BOARD OF DIRECTORS OF THE TRUCKEE DONNER
PUBLIC UTILITY DISTRICT DOES HEREBY RESOLVE, ORDER AND DETERMINE AS
FOLLOWS:
SECTION 1. The District hereby states its intention and reasonably expects to
reimburse Project costs incurred prior to the issuance of the Obligations with proceeds of the
Obligations.
SECTION 2. The reasonably expected maximum principal amount of the Obligations
is $16,000,000.
SECTION 3. This resolution is being adopted on or prior to the date that the District
will expend moneys for the portion of the Project costs to be reimbursed from proceeds of the
Obligations.
SECTION 4. The District will make a reimbursement allocation, which is a written
allocation that evidences the District's use of proceeds of the Obligations to reimburse an
Expenditure, no later than 18 months after the later ofthe date on which the Expenditure is paid or
the Project is placed in service or abandoned, but in no evVent more than three years after the date
on which the Expenditure is paid. The District recognizes that exceptions are available for certain
"preliminary expenditures," costs of issuance, certain de minimis amounts and expenditures for
construction projects of at least 5 years.
SECTION 5. Each Expenditure will be either(a) of a type properly chargeable to a
capital account under general federal income tax principles(determined in each case as of the date
of the Expenditure), (b)a cost of issuance with respect to the obligation, (c)a nonrecurring item that
is not customarily payable from current revenues,or(d)a grant to a party that is not related to or an
agent of the District so long as such grant does not impose any obligation or condition (directly or
indirectly) to repay any amount to or for the benefit of the District.
SECTION 6. 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
Obligation issue 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 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 7. 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.
SECTION 8. All the recitals in this Resolution are true and correct and this Board of
Directors so finds, determines and represents.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the
District on the twenty third day of June, 2003 by the following roll call vote:
AYES: Directors Aguera, Hemig, Maass and Van Gundy
NOES: Director Sutton
ABSENT: None
TRUCKEE DONN PUBLIC UTILITY DISTRICT
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ATTEST:.:-,,
Peter L. Holzmeister, 15istrict Clerk