HomeMy WebLinkAboutResolution 5448 to Establish Compliance with IRS Reimbursement Bond Regulations 1
RESOLUTION NO. 5448
RESOLUTION RELATING TO THE FINANCING OF EXPENDITURES INCURRED
FROM FACILITIES INFRASTRUCTURE IMPROVEMENT PROJECTS AND
WASTEWATER INFRASTRUCTURE IMPROVEMENT PROJECTS; ESTABLISHING
COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE
INTERNAL REVENUE CODE
BE IT RESOLVED by the City Commission (the “Commission”) of the City of
Bozeman, Montana (the “City”), as follows:
Section 1
Recitals.
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 bonds be issued and the reimbursement allocation
be made from the proceeds of such 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.
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1.01. The City desires to comply with requirements of the Regulations with respect to
certain projects and costs hereinafter identified.
Section 2
Official Intent Declaration.
2.01. The City intends to expend funds related to design and construction of facilities
infrastructure projects and wastewater infrastructure projects, including renovations at the Swim
Center, Westside Campus facilities and the construction of the Riverside Lift Station and Force
Main and related sewer improvements. (collectively, the “Projects”).
2.02. 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 1.150-2(j)(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.
2.03. The City reasonably expects to reimburse some or all of the expenditures made
for costs of the Projects out of proceeds of bonds, in one or more series, in an estimated
maximum aggregate principal amount of $8 million (the “Bonds”) after the date of payment of
all or a portion of the costs of the Project. All reimbursed expenditures shall be capital
expenditures or extraordinary working 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.
2.04. 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 portion of the Projects
expected to be financed, 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.
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2.05. The City Finance 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.
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PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 25th day of October, 2022.
___________________________________
CYNTHIA ANDRUS
Mayor
ATTEST:
___________________________________
MIKE MAAS
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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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.
5448 entitled: “RESOLUTION RELATING TO THE FINANCING OF EXPENDITURES
INCURRED FROM FACILITIES INFRASTRUCTURE IMPROVEMENT PROJECTS
AND WASTEWATER INFRASTRUCTURE IMPROVEMENT 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 regular meeting on October 25, 2022, 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
Commission members voted in favor thereof:
; voted against the same:
; abstained from voting thereon: ; or
were absent: .
WITNESS my hand and seal officially this ____ day of ___________, 20__.
(SEAL)
__________________________________
MIKE MAAS
City Clerk
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