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HomeMy WebLinkAbout1992-37 Sewer Fund Loan RESOLUTION NO. 92-J7 A RESOLUTION OF THE CITY OF ASHLAND, OREGON EVIDENCING ITS INTENT TO REIMBURSE CAPITAL EXPENDITURE AND TO APPROVE A LOAN TO THE SEWER FUND. RECITALS' A. The City of Ashland, Oregon (the"city") expects to cause certain capital expenditures to be incurred for the waste water digester roof. B. C. The City intends to reimburse itself for such capital expenditures with the proceeds of borrowings incurred by the City (the "Reimbursement Bonds"). United States Treasury Regulation 1.103-18 sets forth certain requirements that must be complied with in order for the proceeds of Reimbursement Bonds to qualify as an expenditure of bond proceeds, one of such requirements is that on or before the date the expenditure that is being reimbursed is paid, the issuer of Reimbursement Bonds must declare a reasonable official intent to reimburse itself for the capital expenditure. D. Ors 294.460 requires an ordinance or resolution to permit a loan from one loan to another. THE MAYOR AND THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. It is the reasonable intent of the City to reimburse the capital expenditure for the projects described on the attached Exhibit A with the proceeds of Reimbursement Bonds in the principal amount estimated to be $579,000. SECTION 2. That the City Recorder- Treasurer is authorized to loan the sewer fund up to $450,00 during the 1992-93 fiscal year. The loan will be made from the Cemetery Trust fund and shall pay interest quarterly at the rate of one tenth percent (10 basis points) above the local governmental investment pool rate. The foregoing resolution was READ and DULY ADOPTED at a regular meeting of the City Council of the City of Ashland on the"/__~d k~--C_.4~ct.~¢.~ ay of ., 1992. SIGNED and APPROVED this .7'~ day of ~ , 1992. f Catherine M. Golden, Mayor Paul Nolte, City Attorney H:\JILL\WP\COUNCIL\IRS