HomeMy WebLinkAboutCity Council Resolution 1998-455CITY OF PLYMOUTH
RESOLUTION NO. 98-455
RESOLUTION RELATING TO FINANCING OF CERTAIN PROJECTS
AND ESTABLISHING COMPLIANCE WITH REIMBURSEMENT
BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the City Council (the "Council") of the City of Plymouth (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 of the bonds.
(b) The Regulations generally require that the City, as issuer of the bonds,
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 to be undertaken within the City.
2. Official Intent Declaration.
(a) The City expects to make original expenditures with respect to the following
described projects prior to the issuance of reimbursement bonds, and the City reasonably expects
to issue reimbursement bonds for such projects in the maximum principal amount shown below:
Project
Activity Center and Field House
Maximum Amount of Bonds
Expected to be Issued for Project
$4,500,000
(b) Other than (i) de minimus 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 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.
Res. 98-455
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3. Budgetary Matters. As of the date hereof, there are no City fiends 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'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 City Council on August 5, 1998
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