HomeMy WebLinkAboutResolution 3698 Reimbursement resolution, SID 674
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COMMISSION RESOLUTION NO. 3698
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, RELATING TO REIMBURSEMENT OF APPROPRIATE COSTS FOR
CITY OF BOZEMAN SPECIAL IMPROVEMENT DISTRICT NO. 674.
WHEREAS, the Internal Revenue Service has issued Section 1.150-2 of the Treasury
Regulation (the "Regulations") dealing with the issuance of owner or issuer tax-exempt bonds, all or a
portion of the proceeds of which are to be used to reimburse the owner or issuer for project expenditures
made by the owner or issuer prior to the date of issuance of such bonds; and
WHEREAS, the Regulations generally require that the owner or issuer make a declaration (no
later than 60 days after payment of the original expenditures) of its official intent to reimburse itself for such
expenditures out of the proceeds of a subsequently issued borrowing, that the borrowing occur and the
reimbursement allocation be made from the proceeds of such borrowing within eighteen months of the
original expenditure or the date the project is placed in service, and that the expenditure be a capital
expenditure or cost of issuance; and
WHEREAS, the city of Bozeman, Montana, (the "City") as an issuer desires to comply with
requirements of the Regulations with respect to its capital cost to construct water, wastewater, storm water
and paving improvements to benefit property within the City of Bozeman Special Improvement District No.
674, (the "Project").
NOW, THEREFORE BE IT RESOLVED, by the City that other than (i) expenditures to be paid
or reimbursed from sources other than the anticipated tax-exempt financing or (ii) expenditures constituting
preliminary expenditures as defined in Section 1.150-2(f)(2) of the Regulations, no expenditures for the
Project will be made by the City unless as contemplated by this Resolution; and,
BE IT FURTHER RESOLVED, the City anticipates the issuance of approximately $494,000 of
tax-exempt bonds to finance the Project pursuant to Title 7, Chapter 12, Parts 41 and 42 and Title 75
Chapter 5, Part 11 and Title 75, Chapter 6, Part 2 of the Montana Code Annotated. The City expects to
reimburse some expenditures made for the Project from the proceeds of the Bonds. All reimbursed
expenditures shall be expenditures authorized to be reimbursed by Section 1.150-2; and
BE IT FINALLY RESOLVED, that the City Finance Director shall be responsible for making
"reimbursement allocations" described in the Regulations, being generally the transfer of the appropriate
amount of the Bond proceeds to reimburse the source of the original expenditure. Each allocation shall
be evidenced by an entry on the official books and records of the City maintained for the Bonds, shall
specifically identify the actual prior expenditure being reimbursed or, in the case of reimbursement of a
fund or account, the fund or account from which the expenditure was paid, and shall be effective to relieve
the proceeds of the Bonds from any restriction under the bond resolution or other relevant legal documents
for the Bonds, and under any applicable state statute, which would apply to the unspent proceeds of the
Bonds.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular
session thereof held on the 28th day of June 2004.
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ATTEST:
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R IN L. SULLIVAN
Clerk of the Commission
AS TO FORM: