HomeMy WebLinkAboutResolution 4512 Relating to financing, compliance with reimbursement bond regulations under the Internal Revenue Code 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
Resolution No.4512 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 May 5,2014 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hereof been amended or repealed.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
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following Commissioners voted in favorthereof:C r. 'Pom¢.vo!4 A rICIV AS
1�Q��w MGi1�10►� 1 GNU o Y 4- MA.!4 DY kVj L.« ; voted
against the same: -r— ; abstained from
voting thereon: — ; or were
absent:
WITNESS my hand officially this 5 day of May, 2014 < >
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Clerk b he`O _ hilssion ;
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RESOLUTION NO.4512
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, (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 1.1 50-2(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
$2,135,000 (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 1.1 50-2(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 pennanent 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 Administrative Services Director 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 5th day of May,2014
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Payor
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Attest: ,
01.
Clerk the Commissia •
2
EXHIBIT A
Description of Projects Estimated Cost
Designing and installing improvements to the City's $2,135,000.00
municipal stormwater system,to include installation of a
remediation system to prevent, impede,and diminish the
migration of gases from the City's closed landfill for the
purpose of protecting water quality and soils from
potential contamination, including, without limitation,
Bridger Creek and surrounding wetlands, and related
improvements
A-1