030-13 - Resolution - Designating Treasurer to Make Declarations of Official IntentIntroduced by: City Treasurer
Requested by: Finance Committee
Drafted by: City Treasurer
Introduced: December 10, 2013
Adopted: December 10, 2013
RESOLUTION NO. 030-13
A RESOLUTION OF THE CITY OF PORT ORCHARD,
WASHINGTON, DESIGNATING THE TREASURER AS THE
OFFICIAL AUTHORIZED ON BEHALF OF THE CITY TO MAKE
DECLARATIONS OF OFFICIAL INTENT TO REIMBURSE
CERTAIN EXPENDITURES WITH PROCEEDS OF BONDS TO
BE ISSUED BY THE CITY IN THE FUTURE.
WHEREAS, the City from time to time may reasonably expect to make
expenditures for capital projects (or certain extraordinary working capital expenditures)
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 would reasonably expect to be reimbursed for those expenditures from proceeds of
bonds or other obligations issued to finance those expenditures; and
WHEREAS, certain federal regulations (the "federal reimbursement
regulations") relating to the use of proceeds of tax exempt bonds or other obligations
("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; now, therefore
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
THAT: Designation of Official to Declare Official Intent. The Treasurer
of the City is designated to make declarations of official intent,
substantially in the form attached to this resolution as Exhibit A or in
such other form as shall be prescribed by Treasury Regulation Section
1.150-2 (as it may be amended or superseded), on behalf of the City as
may be necessary or appropriate from time to time for any purpose
under, and in compliance with, the requirements of the federal
reimbursement regulations.
Resolution No. 030-13
Page 2 of 2
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and
attested by the Clerk in authentication of such passage this 10th day of December 2013 .
... . ... ' ..... ,.~ .. " ~ _,.... . ..-""'
EXHIBIT A
[Form of)
Declaration of Official Intent to
Reimburse Expenditures from Proceeds of Bonds
I, [insert name] , am the duly appointed, qualified and acting [Finance
Director] of City of __ , Washington (the "City"), and, as such, have been designated by the City to
make declarations of official intent on behalf of the City when necessary or appropriate for any purpose
under, and in compliance with, the requirements of certain federal regulations (the "federal
reimbursement regulations") relating to the use of proceeds of tax exempt bonds or other obligations
("bonds") to reimburse the City for capital expenditures (and certain extraordinary working capital
expenditures) made by the City before the issue date of the bonds. On behalf of the City, I make the
following declaration of official intent under the federal reimbursement regulations:
1. 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, for the following project,
property, or program (the "Project"):
2. [Insert general functional description of the Project or, alternatively, identify the name
and functional purpose of the fund or account from which the expenditures will be made:]
3. Maximum Principal Amount 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 will
be$ _____ _
4. Declaration Reasonable. I have reviewed the existing and reasonably foreseeable
budgetary and financial circumstances of the City, and have 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.
5. Limitations on Uses of Reimbursement Amounts. The City will not, within 1 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.
6. Date of Declaration. This declaration of official intent is dated -------
20
CITY OF ____ ,, WASHINGTON
By ______________________________ ___
51338656.1
5
I VERSION #2 -City Council Option
CITY OF , WASHINGTON
RESOLUTION NO. ___ _
A RESOLUTION ofthe City Council ofthe City of , Washington,
declaring its official intent to reimburse capital expenditures in connection with certain
capital projects from proceeds of a future borrowing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
___ ,WASHINGTON, as follows:
Section 1. Findings.
1.1 The City of , 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 "Projects").
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 Projects is expected to be not more than $ , 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.
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 5. 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
51338656.1
6
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.
This resolution was ADOPTED by the City Council of the City of ______ _
Washington, at a regular open public meeting thereof this __ day of , 20_
[Insert City Signature Block]
51338656.1
7