065-23 - Resolution - Reimbursement ResolutionDocuSign Envelope ID: 4D6FEF55-E997-4328-A022-8A4EF4D14C08
RESOLUTION NO. 065-23
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, DECLARING ITS
OFFICIAL INTENT TO REIMBURSE CAPITAL EXPENDITURES IN CONNECTION
WITH CERTAIN CAPITAL PROJECTS FROM PROCEEDS OF A FUTURE
BORROWING.
WHEREAS; The Port Orchard City Hall facility was constructed in 1999. Through the years,
weather, normal wear and tear, and increased staffing have triggered a need to update and
renovate the building; and
WHEREAS; The City Council approved a construction contract at the June 13,2023
meeting for the City Hall Construction; and
WHEREAS; The City intends on financing the project costs by issuing debt and intend on
using city funds to cash flow the project until the debt can be issued; now therefore
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES
AS FOLLOWS:
THAT:
Section 1. Findings.
1.1 The City of Port Orchard, Washington (the "City") intends to make expenditures for
the Project (identified below) from funds that are available but that are not (and are not
reasonably expected to be) reserved, allocated on a long-term basis, or otherwise set aside for
those expenditures, and reasonably expects to be reimbursed for those expenditures from
proceeds of bonds or other obligations ("bonds") issued to finance those expenditures.
1.2 Certain federal regulations (the "federal reimbursement regulations") relating to
the use of proceeds of tax exempt bonds to reimburse the issuer of the bonds for expenditures
made before the issue date of the bonds require, among other things, that not later than 60 days
after payment of the original expenditure the City (or any person designated by the City to do so
on its behalf) declare a reasonable official intent to reimburse those expenditures from proceeds
of bonds.
Section 2. Description of Project for Which Expenditures are to be Made. The City intends
to make (and/or, not more than 60 days before the date of this declaration, has made)
expenditures, and reasonably expects to reimburse itself for those expenditures from proceeds of
bonds, to fund the City Hall Renovations Project designed to replace siding, windows, HVAC
system and minor interior renovations, and a solar array (the "Project").
Section 3. Maximum Principal Amount and Authorization of Obligations Expected to be
Issued for the Project. The City expects that the maximum principal amount of bonds that will be
issued to finance the Project is expected to be not more than $11,000,000 plus costs of issuance of
the bonds and such principal amount is authorized to be issued pursuant to a bond ordinance to
be presented to the City Council on a date deemed appropriate by the Finance Director, in
consultation with the Finance Committee. This resolution authorizes the preparation of all
necessary bond documents and constitutes due authorization of the bonds to the extent necessary
to authorize expenditures of available funds of the City in anticipation of the receipt of bond
proceeds.
DocuSign Envelope ID: 4D6FEF55-E997-4328-A022-8A4EF4D14C08
Resolution No. 065-23
Page 2 of 2
Section 4. Declaration Reasonable. The City Council has reviewed its existing and
reasonably foreseeable budgetary and financial circumstances and has determined that the City
reasonably expects to reimburse itself for expenditures for the Project from proceeds of bonds
because the City has no funds available that already are, or are reasonably expected to be,
reserved, allocated on a long-term basis, or otherwise set aside by the City for those expenditures
on the Project.
Section S. Limitations on Uses of Reimbursement Amounts. The City will not, within one
year after the expected reimbursement, use amounts corresponding to proceeds received from
bonds issued in the future to reimburse the City for previously paid expenditures for the Project in
any manner that results in those amounts being treated as replacement proceeds of any tax
exempt bonds, i.e., as a result of being deposited in a reserve fund, pledged fund, sinking fund or
similar fund (other than a bona fide debt service fund) that is expected to be used to pay principal
of or interest on tax exempt bonds. Nor will the City use those amounts in any manner that
employs an abusive arbitrage device to avoid arbitrage restrictions.
Section 6. Date of Declaration. This declaration of official intent shall be dated as of the
date of adoption of this resolution.
Section 7. Ratification and Confirmation. Any actions of the City or its officers prior to the
date thereof and consistent with the terms of this resolution are ratified and confirmed.
Section 8. Effective Date. This resolution shall be in full force and effect from and after its
adoption and approval.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the City Clerk in authentication of such passage this 27t" day of June 2023.
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DocuSigned by:
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Robert Putaansuu, Mayor
9Z�igned by:
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Brandy Wallace, MMC, City Clerk