HomeMy WebLinkAbout[FYI] Resolution 2009-025: Equipment PurchaseFYI
RESOLUTION No. 2009-025
RELATING TO FINANCING OF A PROPOSED EQUIPMENT PURCHASE TO BE UNDERTAKEN BY
THE CITY OF ST. JOSEPH; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS
UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the City of St. Joseph (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 of capital 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 origins!
expenditures with respect thereto prior to the issuance of reimbursement bonds, and
reasonably expects to issue reimbursement bonds for such projector projects in the
maximum principal amounts shown below:
Proiect Maximum Amount of Bonds
Expected to be Issued for Proiect
Used Plow Truck $23,000
(b) Other than (i) de minimis amounts permitted to be reimbursed pursuant to Section 1.150-
2(f)(1) of the Regulations or (ii) expenditures constituting preliminary expenditures as
defined in Section 1.150-2(f)(2) of the Regulations, the City will not seek reimbursement for
any original expenditures with respect to 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.
FYI
4. Reimbursement Allocations. The City's financial officer shall 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.
ADOPTED BY THE ST. JOSEPH CITY COUNCIL THIS DAY OF , 2009.
Alan Rassier, Mayor
Judy Weyrens, Administrator