HomeMy WebLinkAboutResolutionRESOLUTION
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.
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"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 $3,500,000; and
(b) The Capital Expenditures to be reimbursed are for the renovation of the various
Floodwall Pump Plant Systems related expenses.
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 for the purposes described in Section 2(b).
SECTION 4. Severability. 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.
SECTION 6. Effective Date. This Resolution shall take effect from and after its passage,
as provided by law.
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:
A btr /I , 2016
Attest:
City Clerk
Adopted by the Board of Commissioners, October 11, 2016
Recorded by Tammara S. Sanderson, October 11, 2016
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CERTIFICATE
I, the undersigned City Clerk of the City of Paducah, Kentucky, certify that the foregoing is
a true copy of a Resolution adopted by the City of Paducah, Kentucky at a meeting of the City
Commission held on the day of , 2016.
I further certify that all actions taken in connection with the resolution were in compliance
with the requirements of KRS 61.810, 61.815, 61.820 and 61.825, and that said resolution is now in
full force and effect, all as appears from the official records of the City in my custody and under my
control.
Witness my hand as City Clerk of the City of Paducah, Kentucky this day of
, 2016.
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City Clerk