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HomeMy WebLinkAboutResolution 3072 Establishing reimbursement for landfill liner COMMISSION RESOLUTION NO. 3072 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONT ANA, RELATING TO THE FINANCING OF THE LINING OF THE EXPANSION CEll AT THE BOZEMAN lANDFill; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE. NOW, THEREFORE, BE IT RESOLVED by the City Commission (the "Commission) of the City of Bozeman, Montana (the "City"), as follows: Section 1 Recitals. (a) The United States Department of Treasury has promulgated final regulations governing the use of proceeds of tax-exempt bonds, such as the 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 the 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 be made from the proceeds of the Bonds within 18 months (or three years, if the reimbursement bond issue qualifies for the "small issuer" exception for 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. Section 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(j)(2) of the Regulations, (iii) expenditures constituting preliminary expenditures within the meaning of Section 1. 150-2(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 Project have heretofore been paid by the City and no expenditures will be paid by the City until after the date of this Resolution. (c) The City reasonably expects to reimburse the expenditures made for costs of the Project out of the proceeds of debt in an estimated maximum aggregate principal amount of $2,000,000 (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. Section 3 Budaetarv 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 thereof. Section 4 Reimbursement Allocations. The City's financial officer 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 cost of the Projects. Each allocation shall be evidenced by any 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. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 17th day of July 1995. ATTEST: c-_~~ ~Jk ROBIN L. SULLIVAN Clerk of the Commission APPROVED AS TO FORM: - 2 - -- EXHIBIT A DescriPtion of Proiect Estimated Cost Construction and installation of a $ 2,200,000.00 geosynthetic liner and leachate collection system for an existing subexcavated 15.7-acre expansion cell at the Bozeman Landfill. - 3 - ...- -.