Sponsor
Alderman Spangenberg
Title
City of Racine, Wisconsin 2011 Interim Financing Comfort Resolution
WHEREAS, the City of Racine, Wisconsin, owns and operates a regional drinking water treatment plant through the Racine Water Utility; and
WHEREAS, the Utility plans to make Capital improvements to the plant and the distribution system through its 2011 Capital Improvement Program (CIP) and anticipates a revenue bond issuance in 2011 following a water rate case before the Wisconsin Public Service Commission (PSC); and
WHEREAS, said improvements include but are not limited to the replacement of water mains in the distribution system, replacement of variable frequency drives for the backwash water motors, lead service replacement, water meter replacement and other small projects that are included in the 2011 Water Utility C.I.P.; and
WHEREAS, these improvements may need to proceed prior to receipt of the actual revenue bond issuance due to construction schedules for City of Racine paving projects in 2011; and
WHEREAS, the City and its Water Utility wishes to document its intent to use the future revenue bond issuance/loan as a refinancing tool for expenditures that may be made before revenue bond loan closing; and
WHEREAS, this resolution documents this intent and meets the letter and spirit of IRS's Reimbursement Regulations, Section 1.150-2.
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 Water Utility shall make expenditures as needed from funds on hand, located in the water fund, and/or possibly a short term loan from the City of Racine to pay the costs of planning, engineering and construction of these improvements until the revenue bond proceeds become available.
2. Declaration of Official Intent. The City hereby officially declares it's intent under 26 CFR Section 1.150-2 to reimburse said expenditures with proceeds of the revenue bond issuance, the aggr...
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