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HomeMy WebLinkAboutReso 112-23 Declaring Intention to Incur Bonded Indebtedness to Finance the Acquisition and Construction of Certain Public Facilities in and for City of Dublin CFD No. 2023-1 (East Ranch) Reso. No. 112-23, Item 7.1, Adopted 10/17/2023 Page 1 of 3 RESOLUTION NO. 113 – 23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN DECLARING INTENTION TO INCUR BONDED INDEBTEDNESS TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES IN AND FOR CITY OF DUBLIN COMMUNITY FACILITIES DISTRICT NO. 2023-1 (EAST RANCH) WHEREAS, the City Council of the City of Dublin (the “City Council”) has this date adopted its resolution titled, “Declaring Intention to Form a Community Facilities District and Levy Special Taxes in City of Dublin Community Facilities District No. 2023-1 (East Ranch) to Finance Certain Public Services and the Acquisition and Construction of Certain Public Facilities in and for such Community Facilities District” (the “Resolution of Intention”), stating its intention to form the City of Dublin Community Facilities District No. 2023-1 (East Ranch) (the “CFD”) pursuant to the Mello- Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code (the “Act”), for the purpose of financing certain public facilities (the “Facilities”) and public services, as further provided in that Resolution of Intention; and WHEREAS, the City Council estimates the amount required for the financing of the costs of the Facilities to be the sum of not to exceed $67,000,000; and WHEREAS, in order to finance the costs of the Facilities it is necessary to incur bonded indebtedness in the amount of not to exceed $67,000,000 on behalf of the CFD; and WHEREAS, United States Income Tax Regulations section 1.150-2 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, one of which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditure; and WHEREAS, it is in the public interest and for the public benefit that the City declares its official intent to reimburse itself and/or other local agencies constructing and/or acquiring the Facilities on whose behalf the City will issue debt the expenditures related to the Facilities with the proceeds of bonded indebtedness and other debt issued by the City for the CFD. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby finds, determines and resolves as follows: 1. The City Council declares and finds that in order to finance the acquisition and construction of the Facilities, which are described in the Resolution of Intention, it is necessary to incur a bonded indebtedness. 2. The purpose for which the proposed debt is to be incurred is to provide the funds necessary to pay for the cost of the Facilities. The City hereby declares its intention to reimburse itself and/or other local agencies constructing and/or acquiring the Facilities certain expenditures for the Facilities from the proceeds of the bonded indebtedness and other debt described in this Resolution, including costs of the Facilities paid by the City and/or other local agencies on whose DocuSign Envelope ID: 504F8FEF-55B2-444E-AC31-81655F27BDD6 Reso. No. 112-23, Item 7.1, Adopted 10/17/2023 Page 2 of 3 behalf the City will issue debt for the CFD prior to the date of issuance of such bonded indebtedness and other debt not in excess of the amount described herein. 3. The maximum amount of the proposed debt is $67,000,000. Indebtedness subject to this limit shall only include indebtedness evidenced by bonds or notes and shall not include bonds described in Section 53364.2(e) of the Act. 4. It is the intention of the City Council that any such bonds issued shall be made callable in accordance with the terms of the Act and as more specifically to be set forth in any resolution authorizing issuance of the bonds, and shall be issued in such series and bear interest payable semi-annually or in such other manner as the City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from the date of the issuance thereof. 5. In the event any series of bonds issued under the authorization is refunded to produce savings meeting the requirement of Section 53362.5 of the Act, all or a portion of the savings achieved through the issuance of refunding bonds may be used to finance Facilities insofar as the savings component provides capacity for bonded indebtedness in excess of that being refunded, and such additional bonded indebtedness shall not reduce and may exceed the amount of bonded indebtedness authorized herein. 6. The City Council hereby sets December 5, 2023, at 7:00 p.m., at the City of Dublin Civic Center Council Chambers located at 100 Civic Plaza, Dublin, California 94568, as the time and place for a hearing by the City Council on the proposed bond issue. At that time and place any persons interested, including any persons owning property in the CFD, will be heard. 7. The City Clerk is hereby directed to cause notice of said public hearing to be given by one-time publication in a newspaper of general circulation circulated within the CFD. The publication of said notice shall be completed at least 7 days before the date herein set for said public hearing. Such notice shall be substantially in the form specified in Section 53346 of the Act, with the form summarizing the provisions hereof hereby specifically approved. 8. This Resolution shall take effect from and after its adoption. {Signatures on the following page} DocuSign Envelope ID: 504F8FEF-55B2-444E-AC31-81655F27BDD6 Reso. No. 112-23, Item 7.1, Adopted 10/17/2023 Page 3 of 3 PASSED, APPROVED AND ADOPTED this 17th day of October 2023, by the following vote: AYES: Councilmembers Hu, Josey, and Mayor Hernandez NOES: Councilmembers McCorriston and Qaadri ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk DocuSign Envelope ID: 504F8FEF-55B2-444E-AC31-81655F27BDD6