HomeMy WebLinkAboutResolution 3460 Reimbursement for library costs from bond proceeds
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RESOLUTION NO. 3460
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 1.150-20)(2) of the Regulations, (ii
i) expenditures
constituting preliminary expenditures within the meaning of Section I .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
$4,000,000 (the "Bonds") after the date of payment of all or a portion of the costs
of the Projects.
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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. Budgetary 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.
Adopted this 30th day of July, 200 I.
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MARCIA B. YOUNGMAN, Mayor
Attest:
r21:J p~
ROBIN L. SULLIVAN
Clerk of the Commission
APPROVED AS TO FORM:
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EXHIBIT A
Description ofProiects
Estimated Cost
Acquiring land for and designing, constructing and
$4,000,000
equipping either a new public library or designing,
constructing and equipping an expansion of the existing library
A-I