HomeMy WebLinkAboutResolution 4920 SRF Loan Reimbursement for Front Street Interceptor RESOLUTION NO. 4920
RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED PROJECTS;
ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS
UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the City Commission of the City of Bozeman, Montana(the
"City"), as follows:
1. Recitals.
(a) The United States Department of Treasury has promulgated final regulations
governing the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to
reimburse the City for project expenditures paid by the City prior to the date of issuance of such
bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the "Regulations")require
that the City adopt a statement of official intent to reimburse an original expenditure not later
than 60 days after payment of the original expenditure. The Regulations also generally require
that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds
within 18 months (or three years, if the reimbursement bond issue qualifies for the "small issuer"
exception from the arbitrage rebate requirement) after the later of(i)the date the expenditure is
paid or (ii)the date the project is placed in service or abandoned, but(unless the issue qualifies
for the "small issuer" exception from the arbitrage rebate requirement) in no event more than
three years after the date the expenditure is paid. The Regulations generally permit
reimbursement of capital expenditures and costs of issuance of the bonds.
(b) The City desires to comply with requirements of the Regulations with respect to
certain projects hereinafter identified.
2. Official Intent Declaration.
(a) The City proposes to undertake certain projects, which projects and the estimated
costs thereof are generally described on Exhibit A hereto,which is hereby incorporated herein
and made a part hereof(the"Projects").
(b) Other than(i) expenditures to be paid or reimbursed from sources other than the
Bonds (as hereinafter defined), (ii) expenditures permitted to be reimbursed under the
transitional provision contained in Section 1.150-20)(2) of the Regulations, (iii) expenditures
constituting preliminary expenditures within the meaning of Section 1.15 0-2(f)(2) of the
Regulations, or (iv) expenditures in a"de minimus" amount (as defined in Section 1.150-2(f)(1)
of the Regulations), no expenditures for the Projects have heretofore been paid by the City and
no expenditures will be paid by the City until after the date of this Resolution.
(b) The City reasonably expects to reimburse the expenditures made for costs of the
Projects out of the proceeds of debt in an estimated maximum aggregate principal amount of
$2,200,000 (the"Bonds") after the date of payment of all or a portion of the costs of the Projects.
All reimbursed expenditures shall be capital expenditures, a cost of issuance of the Bonds or
other expenditures eligible for reimbursement under Section 1.1 50-2(d)(3) of the Regulations.
3. Budgetary Matters. As of the date hereof,there are no City funds reserved, allocated
on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a
long-term basis or otherwise set aside)to provide permanent financing for the expenditures
related to the Projects, other than pursuant to the issuance of the Bonds. The statement of intent
contained in this resolution,therefore, is determined to be consistent with the City's budgetary
and financial circumstances as they exist or are reasonably foreseeable on the date hereof.
4. Reimbursement Allocations. The City Finance Director shall be responsible for
making the"reimbursement allocations" described in the Regulations,being generally the
transfer of the appropriate amount of proceeds of the Bonds to reimburse the source of temporary
financing used by the City to make prior payment of the costs of the Projects. Each allocation
shall be evidenced by an entry on the official books and records of the City maintained for the
Bonds or the Projects and shall specifically identify the actual original expenditure being
reimbursed.
Adopted this 23rd day of July, 2018.
'C L. RU
Mayor
ATTEST: < <'�ov; °:;"t y
ROBIN CROUGH A > ,'; V
City Clerk -
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APPR V Z
FORM:
G IVAN
City X11torney
EXHIBIT A
Description of Projects Estimated Cost
Designing and installing improvements to the City's $2,200,000.00
municipal sewer system, to include installation of sewer
pipe in conjunction with wastewater interceptor
development to increase the capacity of the trunk sewer
and allow for infill and new development along East
Main Street, Haggerty Lane, and Bozeman Deaconess
Hospital and lands to the south, and related
improvements.
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CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of
Bozeman, Montana (the "City"), hereby certify that the attached resolution is a true copy of
Resolution No. 4920 entitled: "RESOLUTION RELATING TO FINANCING OF CERTAIN
PROPOSED PROJECTS;ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND
REGULATIONS UNDER THE INTERNAL REVENUE CODE" (the "Resolution"), on file in
the original records of the City in my legal custody; that the Resolution was duly adopted by the
City Commission of the City at a meeting on July 23,2018 and that the meeting was duly held by
the City Commission and was attended throughout by a quorum, pursuant to call and notice of
such meeting given as required by law; and that the Resolution has not as of the date hereof been
amended or repealed.
I further certify that, upon vote being taken on the Resolution at said meeting, the
following Commissioners voted in favor thereof: K/La Oc Pwidm�s , Qfja AN �_Py O&J41
^L o✓'STtMvn1z (QUS-ST-Zi4A L l n6�6aL voted
against the same: ; abstained from
voting thereon: or were
absent: 07
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WITNESS my hand officially this N*-day of J ) 2018.
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Robin Crough, City Cler
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