HomeMy WebLinkAboutA005 - Resolution No. 94-397 adopted September 13, 1994 FOR YOUR RECORDS
' Ames/419370-14/Reimb Reg Reso
RESOLUTION NO. 94-397
RESOLUTION RELATING TO FINANCING OF A PROPOSED
PROJECT TO BE UNDERTAKEN BY THE CITY OF AMES, IOWA;
ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND
REGULATIONS UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the City Council (the "Council") of the City of Ames,
Iowa (the "City"), as follows:
Section 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.
(b) The Regulations generally require that the City make a
prior declaration of its official intent to reimburse itself for such prior
expenditures out of the proceeds of a subsequently issued borrowing
and that the borrowing occur and the reimbursement allocation be
made from the proceeds of such borrowing within a certain period after
the payment of the expenditure or the date the project is placed in
service; and
(c) The City desires to comply with requirements of the
Regulations with respect to a certain project hereinafter identified (the
"Project").
Section 2. Official Intent Declaration.
(a) The City proposes to undertake the Project and to make
original expenditures with respect thereto prior to the issuance of
bonds (the "Bonds") and reasonably expects to issue the Bonds for the
Project in the maximum principal amount shown below:
Maximum Amount of Bonds
Project Expected to be Issued for Project
Southeast Fifth Street Project $ 402,385.67
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DORSEY & WHITNEY, ATTORNEYS, DES MOINES, IOWA
i
Ames/419370-14/Reimb Reg Reso
(b) Other than (i) expenditures to be paid or reimbursed from
sources other than the Bonds (as hereafter defined) or (ii) expenditures
made not earlier than sixty days prior to the date of this Resolution or
(iii) expenditures amounting to the lesser of $100,000 or 5% of the
proceeds of the Bonds or (iv) expenditures constituting preliminary
expenditures as defined in Section 1.150-2(f)(2) of the Regulations, no
expenditures for the Project have heretofore been made by the City and
no expenditures will be made by the City until after the date of this
resolution.
(c) This declaration is a declaration of official intent adopted
pursuant to Section 1.150-2 of the Regulations.
Section 3. Budgetary Matters.
As of the date hereof, there are no City funds reserved, allocated on a long
term basis or otherwise set aside (or reasonably expected to be reserved, allocated on
a long term basis or otherwise set aside) to provide permanent financing for the
expenditures related to the Project, other than pursuant to the issuance of the
Bonds. This resolution, therefore, is determined to be consistent with the City's
budgetary and financial circumstances as they exist or are reasonably foreseeable on
the date hereof, all within the meaning and content of the Regulations.
Section 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 Bonds to reimburse the source
of temporary financing used by the City to make payment of the prior costs of the
Project. Each allocation shall be evidenced by an entry on the official books and
records of the City maintained for the Bonds, shall specifically identify the actual
prior expenditure being reimbursed or, in the case of reimbursement of a fund or
account, the fund or account from which the expenditure was paid, and shall be
effective to relieve the proceeds of the Bonds from any restriction under the bond
resolution or other relevant legal documents for the Bonds, and under any
applicable state statute, which would apply to the unspent proceeds of the Bonds.
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DORSEY & WHITNEY, ATTORNEYS, DES MOINES, IOWA
Ames/419370-14/Reimb Reg Reso
Passed and September 13, 1994.
Mayor
Attest:
City Clerk
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DORSEY & WHITNEY, ATTORNEYS, DES MOINES, IOWA