CC Resolution 12400RESOLUTION NO. 12400
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
DECLARING INTENTION TO REIMBURSE EXPENDITURES
UNDER FEDERAL TAX RULES
WHEREAS, the City of Campbell (the "City"), County of Santa Clara, State of California,
in connection with the acquisition, construction and improvement of certain property to be used
for municipal purposes, as approved by voters in the City at the November 6, 2018 election (the
"Project"), expects to issue tax-exempt bonds (the "Obligations") to finance all or a portion of
the Project and to use a portion of the proceeds of the Obligations to reimburse expenditures
made by the City for the Project prior to the issuance of the Obligations;
WHEREAS, United States Income Tax Regulations Section 1.150-2 (the "Regulations")
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, among 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 BY THE CITY COUNCIL OF THE CITY OF
CAMPBELL AS FOLLOWS:
1. Obligations. The City intends to issue the Obligations, in the maximum principal
amount of $50,000,000, within the meaning of the Regulations to finance all or a portion of the
costs of the Project.
2. Reimbursement. The City Council of the City (the "Council") hereby declares
that the City reasonably expects 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.
3. Purpose. The adoption of this resolution shall be solely for the purpose of
complying with the provisions of the Regulations and shall not be deemed an approval of all or
any part of the Project or a commitment on the part of this Council to issue any or all of the
Obligations or otherwise provide for financing of the Project.
4. Effectiveness. This resolution shall be effective from the date of its adoption by
the Council.
PASSED AND ADOPTED this 15th day of January, 2019, by the following roll call vote:
AYES: Councilmembers: Resnikoff, Bybee, Gibbons, Landry, Waterman
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ATTEST:
Wendy o d, City berk
APPROVED:
//V hA 4L
Ric and M. Waterman, Mayor
06