Sponsor
Alderman Friedel
Title
City of Racine, Wisconsin, "Declaration of Official Intent to Reimburse", Virginia Street and Michigan Blvd. Sanitary Sewer Project
Whereas, the City of Racine, Wisconsin, owns and operates regional wastewater treatment and conveyance facilities through the Racine Wastewater Utility; and
Whereas, improvements to the wastewater system are necessary and include the Virginia Street-Michigan Boulevard project identified as CWFP Project #4285-15 (the "Project"); and
Whereas, the Utility expects to obtain a loan to provide long-term financing for the Project from the Clean Water Fund Program; and
Whereas, construction of the Project is expected to proceed prior to the Clean Water Fund Program (the "CWFP") loan being available; and
Whereas, the City 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 $2,500,000.
Fiscal Note: Funding will be supplied by the Wastewater Utility.