Sponsor
Alderman Shakoor
Title
City of Racine, Wisconsin
Declaration of Official Intent to Reimburse Kinzie - Roosevelt Interceptor Improvements
Resolution No. 15-0053
WHEREAS, the City of Racine, Wisconsin, owns and operates a wastewater treatment plant and conveyance system through the Racine Wastewater Utility; and
WHEREAS, recent storm events have caused basement back-ups in the system; and
WHEREAS, the construction of a larger Interceptor at Kinzie and Roosevelt (Project) is expected to reduce some of these basement backups; and
WHEREAS, the Utility expects to obtain a loan to provide long-term financing for the Project from the CWFP; and
WHEREAS, construction of the Project is expected to proceed prior to the CWFP loan being available; and
WHEREAS, the Racine Wastewater Utility wishes to declare its intent to use its internal funds to temporarily fund the construction of the Project until the CWFP loan, or other long-term financing, can be obtained; and
WHEREAS, this resolution documents the City's intent to reimburse its internal funds, as required by Treasury Regulations 26 CFR 1.150-2, with tax-exempt bond proceeds.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Racine, Wisconsin, that:
1. Expenditures of Funds. The City or the Racine Wastewater Utility shall make expenditures as needed from funds on hand, including funds in the Wastewater Fund, to pay the cost of planning, engineering and construction of the Project until the CWFP loan proceeds become available.
2. Declaration of Official Intent. The City hereby officially declares its intent under Treasury Regulations, 26 CFR 1.150-2 to reimburse said expenditures with proceeds of the CWFP loan, the aggregate principal amount of debt expected not to exceed $2,000,000.
PASSED AND ADOPTED this day of , 20 .
BY: City of Racine, Wisconsin
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Mayor
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Clerk
Fiscal Note: The Wastewater Utility Applied for a Clean Water Fund Loan through the State of Wisconsin. It may expend internal funds that would be reimbursed by loan funds in the future.