1994-096 Golf Course Finance RESOLUTION NO. 94-96
A RESOLUTION DECLARING INTENTION TO REIMBURSE EXPENDITURES
FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED BY THE CITY-
GOLF COURSE FINANCING
WHEREAS, the City proposes to undertake the acquisition and construction of a
municipal golf course, including related facilities and appurtenances (the "Project") in
connection with the proposed Encinitas Ranch development, and to incur indebtedness to be
repaid from golf course revenues (the "Obligations") to finance all or a portion of the Project,
and, in furtherance of the policy of the City to ensure that any advances from the General Fund
in respect of the Project are fully reimbursed, to use a portion of the proceeds of the Obligations
to reimburse expenditures made by the City in respect of the Project prior to the issuance of the
Obligations;
WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally
that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used
for reimbursement of expenditures made prior to the date of issuance of such debt unless
certain procedures are followed, one of which is a requirement that (with certain exceptions),
prior to the payment of any such expenditure, the issuer declare an intention to reimburse such
expenditure; and
WHEREAS, it is in the public interest and for the public benefit that the City declare its
official intent to reimburse the expenditures referenced herein.
NOW THEREFORE BE IT RESOLVED, as follows:
Section 1. The City intends to issue the Obligations for the purpose of paying costs
related to the Project.
Section2. The City hereby declares that it reasonably expects (i) to pay certain
costs of the Project prior to the date of issuance of the Obligations and (ii) to use a portion of
the proceeds of the Obligations for reimbursement of expenditures for the Project that are paid
before the date of issuance of the Obligations.
Section 3. The maximum principal amount of the Obligations is $8,000,000.
Section 4. The adoption of this Resolution shall in no way obligate the City to issue
or incur the Obligations or to advance any funds in respect of the Project.
PASSED AND ADOPTED this 21st day of September, 1994, by the following vote to
wit:
AYES: Bond, Davis, DuVivier, Hano, Wiegand
NAYS: None
ABSENT: None
ABSTAIN: None
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City of Encinitas, California
ATTEST:
E. Jane ~51, City Clerk
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