HomeMy WebLinkAboutResolutions 2026-51 - THE PURCHASE OF A SIDE-LOAD REFUSE TRUCK FOR SOLID WASTE; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONSRESOLUTION 2026-51
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING
TO THE FINANCING OF EXPENDITURES INCURRED FROM THE PURCHASE OF A SIDE-LOAD
REFUSE TRUCK FOR SOLID WASTE; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND
REGULATIONS UNDER THE INTERNAL REVENUE CODE
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman,
Montana, to wit:
SECTION 1
Recitals.
1.01. 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 bonds be issued and the reimbursement allocation be made from the proceeds of such
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.
1.02. The City desires to comply with requirements of the Regulations with respect to
certain projects and costs hereinafter identified.
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Section 2
Official Intent Declaration.
2.01. The City proposes to expend funds related to the purchase of a side-load refuse
truck for the Solid Waste Department (the “Project”).
2.02. 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 1.150-2(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.
2.03. The City reasonably expects to reimburse some or all of the expenditures made
for costs of the Project out of proceeds of bonds, in one or more series, in an estimated
maximum aggregate principal amount of approximately $500,000 (the “Bonds”) after the date
of payment of all or a portion of the costs of the Project. All reimbursed expenditures shall be
capital expenditures or extraordinary working capital expenditures, a cost of issuance of the
Bonds or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the
Regulations.
2.04. 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 portion of the Project
expected to be financed, 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.
2.05. The City Finance Director shall be responsible for making the “reimbursement
allocations” described in the Regulations, being generally the transfer of the appropriate
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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 Project. Each allocation shall be evidenced by an
entry on the official books and records of the City maintained for the Bonds or the Project and
shall specifically identify the actual original expenditure being reimbursed.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman,
Montana, at a regular session thereof held on the 23rd day of June, 2026.
___________________________________
JOEY MORRISON
Mayor
ATTEST:
___________________________________
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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