HomeMy WebLinkAboutResolution 3612 Reimbursement resolution for Valley Center, 19th SID
COMMISSION RESOLUTION NO. 3612
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, 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 1.150-2(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
---. - ..---.-
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 $5,500,000 (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 1.150-2(d)(3) of the Regulations.
3. Budqetarv 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 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 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.
PASSED AND ADOPTED by the City Commission of the City of Bozeman at a regular session
thereof held on the 11 th day of August, 2003.
ATTEST: ST4 ~F:, ~r -
~/~
ROBIN L. SULLIVAN
Clerk of the Commission
EXHIBIT A
Description of Proiect Estimated Cost
Designing and constructing road improvements to
Valley Center Road between North 19th Avenue and
North 27th Avenue and to North 19th Avenue between
Valley Center Road and Baxter Lane $5,500,000
____...___ . n___.. __..". -.----
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 a Resolution 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 August 11, 2003, 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: Commissioner Younaman,
Commissioner Hietala.
Commissioner Brown. Commissioner Cetraro and Mavor Kirchhoff
; voted against the same:
None ; abstained from voting thereon:
None ; or were absent: None
WITNESS my hand officially this
12th day of AUQust ,2003.
c~c!:~