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HomeMy WebLinkAboutFinance-Reimb-Adv Cap Outlays (E.I.) RESOLUTION A RESOLUTION OF THE CITY OF PADUCAH, KENTUCKY, MAKING DECLARATION OF OFFICIAL INTENT WITH RESPECT TO REIMBURSEMENT OF TEMPORARY ADVANCES MADE FOR CAPITAL EXPENDITURES TO BE MADE FROM SUBSEQUENT BORROWINGS WHEREAS, Treasury Regulation 1.150 -2 (the "Reimbursement Regulations issued pursuant to Section 150 of the Internal Revenue Code of 1986, as amended, (the "Code prescribes certain requirements by which proceeds of tax- exempt bonds, notes, certificates or other obligations included in the meaning of "bonds" under Section 150 of the Code "Obligations used to reimburse advances made for Capital Expenditures (as hereinafter defined) paid before the issuance of such Obligations may be deemed "spent" for purposes of Sections 103 and 141 to 150 of the Code and therefore, not further subject to any other requirements or restrictions under those sections of the Code; and WHEREAS, such Reimbursement Regulations require that an Issuer (as hereinafter defined) make a Declaration of Official Intent (as hereinafter defined) to reimburse any Capital Expenditure paid prior to the issuance of the Obligations intended to fund such Capital Expenditure and require that such Declaration of Official Intent be made no later than sixty (60) days after payment of the Capital Expenditure and further require that any Reimbursement Allocation (as hereinafter defined) of the proceeds of such Obligations to reimburse such Capital Expenditures occur no later than eighteen (18) months after the later of the date the Capital Expenditure was paid or the date the property acquired with the Capital Expenditure was placed in service, except that any such Reimbursement Allocation must be made no later than three years after such Capital Expenditure was paid; and WHEREAS, the City of Paducah, Kentucky wishes to ensure compliance with the Reimbursement Regulations; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1 Definitions. The following definitions apply to the terms used herein: "Allocation" means written evidence that proceeds of Obligations issued subsequent to the payment of a Capital Expenditure are to reimburse the Issuer for such payments. "To allocate" means to make such an allocation. "Capital Expenditure" means any expense for an item that is properly depreciable or amortizable or is otherwise treated as a capital expenditure for purposes of the Code, as well as any costs of issuing Reimbursement Bonds. "Declaration of Official Intent" means a written declaration that the Issuer intends to fund Capital Expenditures with an issue of Reimbursement Bonds and reasonably expects to be reimbursed from the proceeds of such an issue. "Issuer" means the City of Paducah, Kentucky. "Reimbursement" means the restoration to the Issuer of money temporarily advanced from other funds, including moneys borrowed from other sources, of the Issuer to pay for Capital Expenditures before the issuance of Obligations intended to fund such Capital Expenditures. "To reimburse" means to make such a restoration. "Reimbursement Bonds" means Obligations that are issued to reimburse the Issuer for Capital Expenditures, and for certain other expenses permitted by the Reimbursement Regulations, previously paid by or for the Issuer. "Reimbursement Regulations" means Treasury Regulation 150 -2 and any amendments thereto or superseding regulations, whether in proposed, temporary or final form, as applicable, prescribing conditions under which the proceeds of Obligations may be allocated to reimburse the Issuer for Capital Expenditures and certain other expenses paid prior to the issuance of the Obligations such that the proceeds of such Obligations will be treated as "spent" for purposes of Sections 103 and 141 to 150 of the Code. SECTION 2. Declaration of Official intent. (a) The Issuer declares that it reasonably expects that the Capital Expenditures described in Section (b), which were paid no earlier than sixty (60) days prior to the date hereof, or which will be paid prior to the issuance of any Obligations intended to fund such Capital Expenditures, will be reimbursed with the proceeds of Obligations, representing a borrowing by the Issuer in the maximum principal amount, for such Reimbursements, of $6,300,000; and (b) The Capital Expenditures to be reimbursed are for the acquisition of real estate for the Sports Park, pavilion related expenses, various FY2010 capital projects (including greenway trail, Noble Park parking lot, street resurfacing, signals, etc) as further described in the Issuers FY2010 Budget, and acquisition of the Executive Inn and related liens and demolition expenses. SECTTON '3. Reasonable Expectations. The Issuer does not expect any other funds (including the money advanced to make the Capital Expenditures that are to be reimbursed), to be reserved, allocated on a long -term basis, or otherwise set aside by the Issuer or any other entity, with respect to the Capital Expenditures for the purposes described in Section 2(b). SECTION 4. ,Severabi If any section, paragraph or provision of this Resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Resolution. SECTION 5 Open Meeting It is found and determined that all formal actions of this City Commission of the Issuer concerning and relating to the adoption of this resolution were adopted in an open meeting of this City Commission of the Issuer; and that all deliberations of this City Commission of the Issuer and of any of its committees that resulted in such formal action, were in meetings open to the public, in compliance with the law. SECTTON 6 F,ffective Date This Resolution shall take effect from and after its passage, as provided by law. 2 The undersigned has been authorized by the City Commission of the Issuer to sign this resolution on behalf of the City Commission of the Issuer. Effective date: January 7. 7010 CITY OF PADUCAH, KENTUCKY MAYOR ATTEST: j -eynyrreri.,Le t Tammara S. Brock, City Clerk Adopted by the Board of Commissioners, January 26, 2010 Recorded by Tammara S. Brock, City Clerk, January 26, 2010 ResoUFinance- Reimbrsmt- Advance Capital Outlays (E.I. Sports Park Pav etc)