HomeMy Public PortalAboutr 18-096� of #4P P orough of Tartniet, �K- I
No. 18-96 Date of Adoptio ft 3, 2018
RESOLUTION AUTHORIZING REIMBURSEMENT OF CPAC EXPENSES
WHEREAS, the Borough of Carteret, in the County of Middlesex (the `Borough ")
intends to undertake a project consisting of the design, financing and construction of a
Performing Arts Center and associated infrastructure in the downtown area of the
Borough (the "Project "); and
WHEREAS, the Borough may finance the Project, or a portion thereof, with debt
obligations of the Borough (the "Project Debt Obligations "), the interest on which may be
excluded from gross income under Section 103 of the Internal Revenue Code of 1986, as
amended (the "Code "), on a temporary and/or permanent basis; and
WHEREAS, the Borough may pay for certain costs of the Project (the "Project Costs ")
prior to the issuance of the Project Debt Obligations with funds of the Borough that are
not borrowed funds; and
WHEREAS, the Borough desires to preserve its right to treat an allocation of proceeds
of the Project Debt Obligations to the reimbursement of Project Costs paid prior to the
issuance of the Project Debt Obligations as an expenditure for such Project Costs to be
reimbursed for purposes of Sections 103 and 141 through 150, inclusive, of the Code.
NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED by the Mayor and
Council of Borough of Carteret, in the County of Middlesex and the State of New Jersey,
as follows:
Section 1. The Borough reasonably expects to reimburse its expenditure of
Project Costs paid prior to the issuance of the Project Debt
Obligations with proceeds of its Project Debt Obligations.
Section 2. This resolution is intended to be and hereby is a declaration of the
Borough's official intent to reimburse the expenditure of Project
Costs paid prior to the issuance of the Project Debt Obligations
with the proceeds of a borrowing to be incurred by the Borough, in
accordance with Treasury Regulations §150 -2.
Section 3. The maximum principal amount of the Project Debt Obligations
expected to be issued to finance the Project is, in the aggregate,
$10 million dollars.
Section 4. The Project Costs to be reimbursed with the proceeds of the
Project Debt Obligations will be "capital expenditures" in
accordance with the meaning of Section 150 of the Code.
Section 5. No reimbursement allocation will employ an "abusive arbitrage
device" under Treasury Regulations §1.148 -10 to avoid the
arbitrage restrictions or to avoid the restrictions under Sections 142
through 147, inclusive, of the Code. The proceeds of the Project
Debt Obligations used to reimburse the Borough for Project Costs,
or funds corresponding to such amounts, will not be used in a
manner that results in the creation of "replacement proceeds ",
including "sinking funds ", "pledged funds" or funds subject to a
"negative pledge" (as such terms are defined in Treasury
Regulations §1.148 -1), of the Project Debt Obligations or another
issue of debt obligations of the Borough, other than amounts
deposited into a "bona fide debt service fund" (as defined in
Treasury Regulations §1.148-1).
NO. 18-96
PAGE
Section 6. All reimbursement allocations will occur not later than 18 months
after the later of (i) the date the expenditure from a source other
than the Project Debt Obligations is paid, or (ii) the date the
Project is "placed in service" (within the meaning of Treasury
Regulations §1.150-2) or abandoned, but in no event more than 3
years after the expenditure is paid.
Section 7. This resolution shall take effect immediately.
Adopted this 3r day of May, 2018
and certified as a true copy of the
original on May 4, 2018.
KATHLEEN M. BARNEY, MMC
Municipal Clerk
CARMELA POGORZELSKI
Assistant Municipal
RECORD OF COUNCIL VOTE
COUNCILMAN
YES
NO
NV
A.B.
COUNCILMAN
YES
NO
NV
A.B.
BE l BD
X
JG-1AL
X
DIAZ
X
XRLN
X
DIA'Ia=
X
NAPLES
X
X - Indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Overrule Veto
Adopted at a meeting of the Municipal Council
_ 3
2019
CLERK