HomeMy WebLinkAboutCouncil Resolution 1086Ir? ';~~J:: r•
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RESOLUTION NO. ~ O Lo
A RESOLUTION AUTHORIZING THE REIMBURSEMENT OF
EXPENDITURES WITH REIMBURSEMENT OBLIGATION PROCEEDS
WHEREAS, the City Council of the City of Central Point, Oregon (the "City") finds:
A. The City has made and anticipates making expenditures from available
funds to finance improvements to the City's water system, including financing water storage,
purchasing additional water rights, distribution water lines and related costs (the "Public
Improvements").
B. The City reasonably expects to issue bonds, bond anticipation notes, or
other obligations (the "Reimbursement Obligations") and to use the proceeds of the
Reimbursement Obligations to reimburse the City for the expenditures it makes from its
available funds for the Public Improvements.
C. To permit interest on the Reimbursement Obligations to be excludable
from gross income, the Internal Revenue Code of the United States requires that the City declaze
its intent to reimburse itself from Reimbursement Obligation proceeds within 60 days after the
expenditures are made.
D. The City expects that the principal amount of the Reimbursement
Obligations will not exceed Four Million, Seven Hundred Thousand dollars ($4,700,000.00).
E. The City understands that the use of proceeds of the Reimbursement
Obligations to reimburse an expenditure may occur no later than the later of (a) 18 months after
the date of such expenditure or (b) 18 months after completion of the projects to which such
expenditure relates, and in any event no later than three years after the date of such expenditure;
and may occur no eazlier than sixty (60) days prior to the date of the adoption of this resolution.
Preliminary expenditures in an amount not exceeding 20% of the Reimbursement Obligation
proceeds are not subject to these limitations. Preliminary expenditures include: azchitectural,
engineering, surveying, soil testing and similaz costs incurred prior to commencement of
acquisition, construction or rehabilitation of the projects, other than land acquisition, site
preparation and similaz costs incident to commencement of construction. In addition, de
minimus expenditures (the smaller of $100,000 or five percent of the Reimbursement Obligation
proceeds) of any kind, aze not subject to the reimbursement rules
NOW, THEREFORE, BE IT RESOLVED, by the City Council that the City hereby
declazes its official intent pursuant to Section 1.150-2 of the Federal Income Tax Regulations to
reimburse itself for expenditures it makes for the Public Improvements with the proceeds of the
Reimbursement Obligations.
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BE IT FURTHER RESOLVED that the City Finance Director is hereby authorized to
make future declarations of intent to reimburse under Section 1.150-2 of the Federal Income Tax
Regulations, on behalf of the City and without further action by the City Council. All such future
declarations shall be in writing and the original or a certified copy of each declaration shall be
maintained in the public records of the City.
Passed by the Council and signed by me in authentication of its passage this ~~~y of
December, 2005.
City of Central Point
Jackson County, Oregon
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Mayor Hank Williams
ATTEST:
City Recorder
Approved by me this ~~y of December, 2005.
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