Fort Walton Beach Resolution — 2010-26 - US Treasury Regulations — reading text

we RESOLUTION 2010-26 A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, AUTHORIZING DECLARATIONS OF OFFICIAL INTENT UNDER U.S. TREASURY REGULATIONS WITH RESPECT TO REIMBURSEMENTS FROM NOTE AND BOND PROCEEDS OF TEMPORARY ADVANCES MADE FOR PAYMENTS PRIOR TO ISSUANCE, AND RELATED MATTERS. WHEREAS, United States Treasury Regulations 1.150-2 (the “Reimbursement Regulations”) prescribe conditions under which proceeds of bonds, notes or other obligations (“Bonds’’) used to reimburse advances made for capital and certain other expenditures (“Original Expenditures”) paid before the issuance of such bonds will be deemed to be expended (or properly allocated to expenditures) for purposes of Sections 103 and 141-150 of the Internal Revenue Code of 1986, as amended (the “Code’’), upon such reimbursement so that the proceeds so used will no longer be subject to requirements or restrictions under those sections of the Code; and WHEREAS, certain provisions of the Reimbursement Regulations require that there be a Declaration of Official Intent not later than 60 days following payment of the Original Expenditures expected to be reimbursed from proceeds of Bonds, and that the retmbursement occur within certain prescribed time periods after an Original Expenditure is paid or after the property resulting from that Original Expenditure is placed in service; and WHEREAS, the CITY OF FORT WALTON BEACH wishes to take steps to comply with the Reimbursement Regulations: NOW, THEREFORE, be it resolved by the City Council of the CITY OF FORT WALTON BEACH (the “Borrower’”) as follows: ‘ey Section 1. Definitions The following definitions apply to the terms used herein: “Authorized Officer’ means the Mayor of the City of Fort Walton Beach or any person designated for the purpose by the Mayor of the City of Fort Walton Beach. ‘Declaration of Official Intent” means a declaration of intent, in the form, manner and time contemplated in the Reimbursement Regulations, that the advances for expenditures referred to therein are reasonably expected to be reimbursed from the proceeds of Bonds to be issued after those expenditures are paid. “Reimbursement” or “reimburse” means the restoration to the Borrower of money temporarily advanced from its own funds and spent for Original Expenditures before the issuance of the Bonds, evidenced in writing by an allocation of the books and records of the Borrower that shows the use of the proceeds of the Bonds to restore the money advanced for the Omginal Expenditure. “Reimbursement” or “reimburse” generally does not include the refunding or retiring of Bonds previously issued and sold to, or borrowings from, unrelated entities. Section 2. Authorizat{ ow and Requirement_of Declarations o1 Official Intent. Each Authorized Officer is authorized to prepare and sign Declarations of Official Intent in substantially the form attached with respect to Original Expenditures to which the Reimbursement Regulations apply, to be made from money temporarily advanced and that is reasonably expected to be reimbursed (in accordance with applicable authorizations, policies and practices) from the proceeds of Bonds, to make appropriate reimbursement and timely allocations from the proceeds of the Bonds to rermburse such prior expenditures, and to take any other actions as may be appropriate, all at the times and in the manner required under the Reimbursement Regulations in order for the re1mbursement to be treated as an expenditure of such proceeds for purposes of Sections 103 and 141 to 150 of the Code. No advance from any fund or account or order for payment may be made for Original Expenditures (other than expenditures excepted from such requirement under the Reimbursement Regulations) that are to be reimbursed subsequently from proceeds of Bonds unless a Declaration of Official Intent with respect thereto is made within the time required by the Reimbursement Regulations. Section 3. This resolution shall take effect upon approval by City Council and signature by the Mayor. ADOPTED: uc 4, F010 mayor: Mths Aide MIKE ANDERSON ATTEST: HELEN SPENCER, CITY CLERK Approved as to form and legal sufficiency. one Od, TONI L. CRAIG, CITY ATTORNEY