HomeMy WebLinkAboutResolution 3506, Reimbursement resolution for W. Babcock
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RESOLUTION NO. 3506
RESOLUTION 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 1.150-2U)(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
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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 $4,000,000 (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 1.150-2(d)(3) of the Regulations.
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 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 11th day of February, 2002.
ATTEST:
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~~LiL~
Clerk of the Commission
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EXHIBIT A
Description of Proiects
Estimated Cost
Designing and constructing road improvements to
West Babcock Street between West Main Street and
$4,000,000
Ferguson Avenue