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HomeMy WebLinkAboutAFA 2025-001City of Atascadero Resolution No. AFA 2025-001 Page 1 of 3 RESOLUTION AFA 2025-001 RESOLUTION OF THE BOARD OF DIRECTORS OF THE ATASCADERO FINANCING AUTHORITY PROVIDING FOR THE ISSUANCE OF FEDERALLY TAX-EXEMPT LEASE REVENUE BONDS TO FINANCE THE CITY OF ATASCADERO PUBLIC SAFETY FACILTIES PROJECT AND APPROVING CERTAIN ACTS IN CONNECTION THEREWITH WHEREAS, the City of Atascadero (the “City”), a municipal corporation and general law city of the State of California, desires to finance certain costs of the demolition of Fire Station No. 1, the design and reconstruction of Fire Station No. 1, the design and renovation of Fire Station No. 2, and the design and renovation of the Police Department headquarters building (collectively, the “Project”); and WHEREAS, the City has requested that the Atascadero Financing Authority (the “Authority”) assist in the financing of the Project by issuing lease revenue bonds in the reasonably expected maximum principal amount of $30,000,000 (the “Bonds”); and WHEREAS, the interest on the Bonds will be excluded from gross income for federal income tax purposes; and WHEREAS, prior to the issuance of the Bonds the City and Authority desire to incur certain expenditures with respect to the Project from available monies of the City which expenditures are desired to be reimbursed by the Authority from a portion of the proceeds of the sale of the Bonds; and WHEREAS, prior to and as a condition to issuance of the Bonds, the City Council of the City (the “City Council”) and the Board of Directors of the Authority (the “Board”) must authorize the issuance of the Bonds at a future public meeting. NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Atascadero Financing Authority: SECTION 1. Recitals. All the recitals in this Resolution are true and correct and this Board so finds, determines and represents. SECTION 2. Reimbursement. The Authority hereby states its intention and reasonably expects to reimburse Project costs incurred prior to the issuance of the Bonds with proceeds of the Bonds. The Project is described in Exhibit A attached hereto. (a) The reasonably expected maximum principal amount of the Bonds is $30,000,000. Docusign Envelope ID: 72603AE3-6568-48D4-9AF7-D135591277E8 City of Atascadero Resolution No. AFA 2025-001 Page 2 of 3 (b) This resolution is being adopted on or prior to the date (the “Expenditures Date or Dates”) that the Authority will expend monies for the portion of the Project costs to be reimbursed from proceeds of the Bonds. (c) Except as described below, the expected date of issue of the Bonds will be within 18 months of the later of the Expenditure Date or Dates and the date the Project is placed in service; provided, the reimbursement may not be made more than three years after the original expenditure is paid. For Bonds subject to the small issuer exception of Section 148(f)(4)(D) of the Internal Revenue Code, the “eighteen-month limit” of the previous sentence is changed to “three years” and the limitation of the previous sentence beginning with “; provided, . . . .” is not applicable. (d) Proceeds of the Bonds to be used to reimburse for Project costs are not expected to be used, within one year of reimbursement, directly or indirectly to pay debt service with respect to any Bond (other than to pay current debt service coming due within the next succeeding one year period on any tax exempt Bond of the Authority (other than the Bonds)) or to be held as a reasonably required reserve or replacement fund with respect to an Bond of the Authority or any entity related in any manner to the Authority, or to reimburse any expenditure that was originally paid with the proceeds of any Bond, or to replace funds that are or will be used in such manner. (e) This resolution is consistent with the budgetary and financial circumstances of the Authority, as of the date hereof. No monies from sources other than the Bond issue are, or are reasonably expected to be reserved, allocated on a long term basis, or otherwise set aside by the Authority (or any related party) pursuant to their budget or financial policies with respect to the Project costs. To the best of our knowledge, this Board is not aware of the previous adoption of official intents by the Authority that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax exempt Bonds have not been issued. (f) The limitations described in Section 2(c) and Section 2(d) do not apply to (a) costs of issuance of the Bonds, (b) an amount not in excess of the lesser of $100,000 or five percent (5%) of the proceeds of the Bonds, or (c) any preliminary expenditures, such as architectural, engineering, surveying, soil testing, and similar costs other than land acquisition, site preparation, and similar costs incident to commencement of construction, not in excess of twenty percent (20%) of the aggregate issue price of the Bonds that finances the Project for which the preliminary expenditures were incurred. (g) This resolution is adopted as official action of the Authority in order to comply with Treasury Regulation § 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Authority expenditures incurred prior to the date of issue of the Bonds, is part of the Authority’s official proceedings, and will be available for inspection by the general public at the main administrative office of the Authority. SECTION 3. Effectiveness. This resolution shall take effect immediately. Docusign Envelope ID: 72603AE3-6568-48D4-9AF7-D135591277E8 City of Atascadero Resolution No. AFA 2025-001 Page 3 of 3 PASSED AND ADOPTED at a regular meeting of the Atascadero Financing Authority held on the 12th day of August, 2025. On motion by Director Funk and seconded by Director Dariz, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: Directors Funk, Newsom, Peek, Dariz, Chair Bourbeau NOES: None ABSENT: None ABSTAIN: None ATASCADERO FINANCING AUTHORITY Charles Bourbeau, Chair ATTEST: Lara K. Christensen Secretary Docusign Envelope ID: 72603AE3-6568-48D4-9AF7-D135591277E8 City of Atascadero Resolution No. AFA 2025-001 Exhibit A EXHIBIT A DESCRIPTION OF PROJECT Design, acquisition, construction and/or installation of certain public capital improvements to be located in the City, including some or all of the following: the demolition of Fire Station No. 1, the design and reconstruction of Fire Station No. 1, the design and renovation of Fire Station No. 2, and the design and renovation of the Police Department headquarters building. Docusign Envelope ID: 72603AE3-6568-48D4-9AF7-D135591277E8