HomeMy WebLinkAbout2014-06-17; Municipal Water District; Resolution 14921 RESOLUTION NO. "'492
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2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
CARLSBAD MUNICIPAL WATER DISTRICT (CMWD), TO
APPROVE AND AUTHORIZE DEDICATION OF A REVENUE
4 SOURCE FOR THE DISTRICT'S REPAYMENT OF THE CAUFORNIA
STATE WATER RESOURCES CONTROL BOARD LOAN AND
5 DEDICATION OF A CAPITAL RESERVE FUND FOR THE PHASE
RECYCLED WATER PROJECT.
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8 WHEREAS, on November 27, 2012, 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
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improvement ofthe Recycled Water System; and
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WHEREAS, the Board desires to finance the costs of constructing the Phase III Recycled
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14 Water Project; and
15 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
21 federal income tax purposes (Obligations); and
22 WHEREAS, this resolution expresses the intent of the Board in order to comply with
Treasury Regulations 1.150-2 and any other regulations ofthe Internal Revenue Service relating
to the qualification for reimbursement of Project costs.
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1 NOW, THEREFORE, BE IT HEREBY RESOLVED by the Board of Directors of the Carisbad
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Municipal Water District as follows:
1. That the above recitations are true and correct.
2. That CMWD hereby dedicates the Recycled Water Rate Fund, and if insufficient,
the net revenues of the District to repayment of any and all State Water Resources Control
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7 Board Loans on the Phase III Recycled Water Project. This dedicated source of revenue shall
8 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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14 repayment of said loan(s). Interest shall accrue on all advances to the Recycled Water Fund for
15 repayment of said loan(s) from the date of each advance to the date repaid to the advancing
District fund at an average annual rate of return earned on the city's pooled funds as
determined by the City Treasurer for each fiscal year. Interest shall be compounded annually.
Repayments shall be made from available funds in the Recycled Water Fund as determined by
the Administrative Services Director.
3. Should revenues other than Recycled Water Fund revenues be used in the
repayment ofthe State Revolving Fund loan(s) on the Phase III Project, funds shall be advanced
to the Recycled Water Fund with interest from the net revenues of the District for the
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PASSED, APPROVED AND ADOPTED at a Special Meeting ofthe Board of Directors ofthe
CaHsbad Municipal Water District of the City of CaHsbad on the 17*^ day of June, 2014, by the
following vote to wit:
AYES:
NOES:
ABSENT:
Board Members Hall, Packard, Wood, Schumacher and Blackburn.
None.
None.
MATT HALL, President
ATTEST:
BARBARA ENGLESON, Sefc/etary
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