HomeMy WebLinkAbout2012-11-27; Municipal Water District; Resolution 14571
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RESOLUTION NO. 1457
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD MUNICIPAL WATER DISTRICT (CMWD), TO
APPROVE AND AUTHORIZE DEDICATION OF A REVENUE
SOURCE FOR THE DISTRICT'S REPAYMENT OF THE
CALIFORNIA STATE WATER RESOURCES CONTROL
BOARD LOAN AND DEDICATION OF A CAPITAL RESERVE
FUND FOR THE PHASE III RECYCLED WATER PROJECT.
WHEREAS, the Board of Directors of the Carisbad Municipal Water District has
authorized the Executive Manager, or his designee, to apply for a State Water Resources Control
Board Loan to fund all or a portion of the cost of expansion and improvement of the Recycled Water
System; and
WHEREAS, the Board desire to finance the costs of constructing the Phase III Recycled
Water Project; and
WHEREAS, the Board intends to finance the construction of the Project or portions of the
Project with moneys (Project Funds) provided by the State of California, acting by and through the
State Water Resources Control Board; and
WHEREAS, the State Water Resources Control Board may fund the Project Funds with
proceeds from the sale of obligations the interest upon which is excluded from gross income for
federal income tax purposes (Obligations); and
WHEREAS, prior to either issuance of the Obligations or approval by the State Water
Resources Control Board the Project Funds the Board desires to incur certain capital expenditures
with respect to the Project from available moneys of CMWD; and
WHEREAS, the Board 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 CMWD for the expenditures from the proceeds of the Obligations.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Board of Directors of the
Carisbad Municipal Water District as follows:
1. That the above recitations are true and correct.
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2. The Board hereby states its intention and reasonably expects to reimburse
expenditures paid prior to the issuance of the Obligations or the approval by the the State Water
Resources Control Board of the Project Funds.
3. The reasonably expected maximum principal amount of the Project Funds is
$30,000,000.
4. This resolution is being adopted no later than 60 days after the date on which
CMWD will expend moneys for the Project costs to be reimbursed with Project Funds.
5. Each expenditure by CMWD will be of a type properly chargeable to a capital
account under general federal income tax principles.
6. The Board is not aware of the previous adoption of official intents by CMWD 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.
7. This resolution expresses the intent of the Board in order to comply with Treasury
Regulations 1.150-2 and any other regulations of the Internal Revenue Service relating to the
qualification for reimbursement of Project costs.
8. That CMWD hereby dedicates the Recycled Water Rate Fund, and if insufficient,
the Water Replacement Fund to repayment of any and all State Water Resources Control Board
Loans on the Phase III Recycled Water Project. This dedicated source of revenue shall remain in
effect until the loan is fully discharged unless modification or change of such dedication is approved
in writing by the State Water Resources Control Board.
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PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of
Directors of the Carisbad Municipal Water District of the City of Carisbad on the 27th
day of November, 2012, by the following vote to wit:
AYES: Board Members Hall, Kulchin, Blackburn, Douglas, Packard
NOES: None
ABSENT: None
ATTEST:
LORRA
(SEAL) Karen R. Kundtz, Assistant Secretar)
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