HomeMy WebLinkAboutResolutions 2026-66 - FINANCING OF EXPENDITURES INCURRED FROM THE CONSTRUCTION OF THE WATER RECLAMATION FACILITY BASE HYDRAULIC PHASE I PROJEC
RESOLUTION 2026-36
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING
TO THE FINANCING OF EXPENDITURES INCURRED FROM THE CONSTRUCTION OF THE WATER
RECLAMATION FACILITY BASE HYDRAULIC PHASE I PROJECT AND DESIGN FOR THE PUBLIC
WORKS SHOPS COMPLEX PROJECT; 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.
Docusign Envelope ID: F6D13A79-906D-8023-81AF-EC6DE60C0307
Section 2
Official Intent Declaration.
2.01. The City proposes to undertake the construction of the Water Reclamation
Facility Base Hydraulic Phase I for the Utilities Department and design of the Public Works
Shops Complex Project (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 minimis” 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 $23,300,000 (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, 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 expenditures related to
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
Docusign Envelope ID: F6D13A79-906D-8023-81AF-EC6DE60C0307
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 18th day of August, 2026.
JOEY MORRISON
Mayor
ATTEST:
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
GREG SULLIVAN
City Attorney
Docusign Envelope ID: F6D13A79-906D-8023-81AF-EC6DE60C0307