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MUNICIPAL ORDER NO. 697
A MUNICIPAL ORDER OF THE CITY OF PADUCAH, KENTUCKY,
DECLARING OFFICIAL INTENT WITH RESPECT TO REIMBURSEMENT OF
TEMPORARY ADVANCES MADE FOR CAPITAL EXPENDITURES TO BE MADE
FROM SUBSEQUENT BORROWINGS
WHEREAS, Treasury Regulations Sec. 1.150-2 (the
"Reimbursement Regulations"), issues 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
the Issuer (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 the 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 Allocation must be made no
later than three years after such Capital Expenditure was paid;
and
WHEREAS, the City of Paducah, Kentucky (the "Issuer")
wishes to ensure compliance with the Reimbursement Regulations;
BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY, AS
FOLLOWS:
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 effect the reimbursement of the Issuer for
such payments.
"Capital Expenditures" means any expense for an item
that is properly depreciable or amortizable or is otherwise
treated as a capital expenditure for the 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 a Capital
Expenditure with an issue of Reimbursement Bonds and reasonably
expects to be reimbursed from the proceeds of such an issue.
l "Issuer" means the City of Paducah, Kentucky.
"Reimbursement" means the restoration to the Issuer
of money temporarily advanced from other funds 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
previously paid by or for the Issuer.
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"Reimbursement Regulations" means Treasury
Regulations Sec. 1.150-2 and any amendments thereto or
superseding regulations, whether in proposed, temporary or
final form, as applicable, prescribing conditions under which
the proceeds of Obligations when allocated or applied to a
reimbursement 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 on the dates indicated, 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
$1,100,000; and
(b) The Capital Expenditures to be reimbursed are to
be used for the acquisition, construction and installation of
various improvements, including stormwater and sanitary sewer
lines, lift stations and related appurtenances, which will
constitute a part of the Issuer's municipally owned and
operated stormwater and sewer system (the "System").
SECTION 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 described in 2(b).
SECTION 4. Open Meeting. It is found and determined
that all formal actions of the Board of Commissioners of the
Issuer concerning and relating to the adoption of this
Municipal Order were adopted in an open meeting of the Board of
Commissioners; and that all deliberations of the Board of
Commissioners and of any of its committees that resulted in
such formal action, were in meetings open to the public, in
compliance with the law.
SECTION 5. Effective Date. This Municipal Order
shall be in full force and effect from and after the date of
its adoption.
ATTEST:
ity Clerk
Adopted by the Board of Commissioners December 20, 1994
Recorded by Lenita Smith, City Clerk, December 20, 1994
CERTIFICATE
I, the undersigned, City Clerk of the City of
Paducah, Kentucky, do hereby certify that the foregoing
Municipal Order is a true and complete copy of a certain
Municipal Order duly adopted by the Board of Commissioners of
said City at a lawfully convened meeting of the Board of
Commissioners held on December 20, 1994, that all actions
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taken in connection with such resolution were in compliance
with the requirements of KRS 61.810, 61.815, 61.820, and
61.825, and that such Municipal Order has not been amended,
modified, superseded or repealed and that same remains in full
force and effect as of the date of this Certificate.
WITNESS my hand as of this 20th day of December,
1994.
�y
eni a Smit City Clerk
City of Paducah, Kentucky
Mc'Zborrow
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