HomeMy WebLinkAboutResolution 08-2000 ., t .� c
RESOLUTION NO. 8-00
RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED PROJECTS
TO BE UNDERTAKEN BY THE CITY; ESTABLISHING COMPLIANCE WITH
REINIBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE
CODE
BE IT RESOLVED by the City Council of the City of Brookings, South Dakota
(the "City"), as follows:
1. Recitals.
(a) The Internal Revenue Service has issued Section 1.150-2 of the Income
Tax Regulations (the "Regulations") dealing with the issuance of bonds, all or a portion of
the proceeds of which are to be used to reimburse the City for project expenditures made
by the City prior to the date of issuance.
(b) The Regulations generally require that the City make a declaration of its
official intent to reimburse itself for such prior expenditures out of the proceeds of a
subsequently issued series of bonds within 60 days after payment of the expenditures, that
the bonds be issued and the reimbursement allocation be made from the proceeds of such
bonds within the reimbursement period (as defined in the Regulations), and that the
expenditures reimbursed be capital expenditures or costs of issuance of the bonds.
(c) 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 the following project or projects and to make
original expenditures with respect thereto prior to the issuance of reimbursement bonds, and
reasonably expects to issue reimbursement bonds for such project or projects in the maximum
principal amounts shown below:
Project Maximum Amount of Bonds
Exvected to be Issued for Project
Phase II MultiPlex $3,964,480.00
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(b) Other than (i) de minimis amounts pernutted to be reimbursed pursuant to
Section 1.150-2(�(1) of the Regulations or(ii) expenditures constituting preliminary expenditures
as defined in Section 1.150-2(�(2) of the Regulations, the City will not seek reimbursement for
any original expenditures with respect to the foregoing projects paid more than 60 days prior to
the date of adoption of this resolution. All original expenditures for which reimbursement is
sought will be capital expenditures or costs of issuance of the reimbursement bonds.
3. Budgetary Matters. As of the date hereof, there are no City funds reserved,
pledged, allocated on a long term basis or otherwise set aside (or reasonably expected to be
reserved, pledged, allocated on a long term basis or otherwise set aside)to provide permanent
financing for the original expenditures related to the projects, other than pursuant to the issuance
of the reimbursement bonds. Consequently, it is not expected that the issuance of the
reimbursement bonds will result in the creation of any replacement proceeds.
4. Reimbursement Allocations. The City Manager sha11 be responsible for making
the "reimbursement allocations" described in the Regulations, being generally the transfer of the
appropriate amount of proceeds of the reimbursement bonds to reimburse the source of
temporary financing used by the City to make payment of the original expenditures relating to the
projects. Each reimbursement allocation shall be made within 30 days of the date of issuance of
the reimbursement bonds, shall be evidenced by an entry on the official books and records of the
City maintained for the reimbursement bonds and shall specifically identify the original
expenditures being reimbursed.
Passed and Approved this 14�` day of February, 2000.
Mayor
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City Clerk
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