2003-425RESOLUTION NO. 2003-425
A Resolution authorizing interfund borrowing to provide interim funding for the
Safe Drinking Water Fund Project and to comply with requirements of the
Wisconsin Safe Drinking Water Fund Loan Program
WHEREAS, the City of Janesville has entered into an engineering agreement for engineering
services for the construction plans and specifications for an additional water pumping station
for the City of Janesville, in cooperation with Strand Associates, Inc.; and
WHEREAS, the Water Utility will make application for a Wisconsin Safe Drinking Water Fund
Loan to assist in the financing of the design and construction of said facility; and
WHEREAS, the City desires to comply in all respects with the requirements of the Wisconsin
Safe Drinking Water Fund Loan Program and to refrain from any financial activity which may
be considered impermissible arbitrage;
NOW, THEREFORE BE IT RESOLVED, by the Common Council of the City of Janesville
that it hereby sets forth as its policy compliance with all requirements of the Wisconsin Safe
Drinking Water Fund Loan Program so as to avoid impermissible arbitrage in financing and
refinancing of the water pumping station design and construction, and otherwise; and
BE IT FURTHER RESOLVED, that the City pay for services received from its Engineer prior
to the approval of any loan(s) from the Wisconsin Safe Drinking Water Fund Loan Program
(the "Program") and that such expenditures be paid from the general funds of the Utility; and
BE IT FURTHER RESOLVED, that the City has the intent to seek financing and refinancing
with the Wisconsin Safe Drinking Water Fund Loan to pay $2,700,000 of the expenditures for
the design and construction of the Water pumping station, all said financing and refinancing to
be in compliance with the Wisconsin Safe Drinking Water Fund Loan Program so that the
City may be eligible for all monies available under said program; and
BE IT FURTHER RESOLVED, that the City may pay for services provided in conjunction with
the design and construction of the water pumping station performed by independent
contractors (which may not be included in billing for engineering services provided by Strand
Associates, Inc.) from the general funds of the Utility and seek reimbursement from the
Wisconsin Safe Drinking Water Fund Loan Program; and
BE IT FURTHER RESOLVED, that this Resolution constitutes a declaration to satisfy the
"official intent requirement" of Treasury Regulation Section 1.150-2. The City reasonably
expects to be reimbursed for the expenditures described herein from proceeds of its debt
issued pursuant to the Program. The maximum principal amount of debt expected to be
issued for reimbursement of such expenditures is $2,700,000. No funds from sources other
than the debt described above are, or expected to be, reserved or allocated on a long-term
18-19582.2
basis, or otherwise set aside by the City pursuant to its budget or financial policies with
respect to the expenditures described above. This declaration of official intent is consistent
with the budgetary and financial circumstances of the City.
BE IT FURTHER RESOLVED, that the City has the intent that Safe Drinking Water Fund
Loan repayments be repaid with the revenues of the City water user charge system.
BE IT FURTHER RESOLVED, that the City Manager and his designee(s), on behalf of the
City of Janesville, is/are hereby jointly and severally authorized and empowered to negotiate,
draft, review, revise, modify, amend, execute, enter into, file and/or record additional
agreements, amendments, documents and letters of understanding concerning this matter,
and to take whatever additional other actions that the City Manager may determine in his sole
discretion, from time to time and at any time, necessary and/or desirable in the public interest
to effectuate the intent of this Resolution.
ADOPTED: December 8, 2003
APPROVED:
Steven E. v -~nager
Sheiffer, City
ATTEST:
Jean~n Wulf, City
r
~l~rk_Trea~firer
APPROVED AS TO FORM:
City Attorney' ~' z
Proposed by: Utility Director
Prepared by: Utility Director
MOTION BY: Steeber
SECOND BY: DeGarmo
COUNCILMEMBER AYE NAY PASS ABSENT
ADDLE
MURPHY
DEGARMO
STEEBER X
WILLIAMS X
BRIEN X
WELLNITZ X
18-19582.2