HomeMy Public PortalAboutResolutions-2015-019 (2)Tiffin / 436989-11 / RRR
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RESOLUTION NO. 2015-019
Resolution Relating to Financing cf Proposed Project to be Undertaken by -the.
City of Tiffin,, Iowa; Establishing, Compliance with Reimbursement Regulations
3 Under the Internal Revenue Code
BE IT RESOLVED'by the City Council (the "Council") of the City of,Tiffin, Iowa (the
"City"), as follows;
:Section 1. 'Recitals. -
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(a) The Internal Revenue` Service has •issued- Section 1.150'2 of the Income
t Tdx 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 thetity 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
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(c) The City desires to comply with 'requirements of the Regulations with
respect to a certain project hereinafter identified.,
Section 2. Official. Intent Declaration.
• (a) The City proposes to undertake the following project and to make original
expenditures with respect thereto prior to the issuance of bonds, notes or other obligations
(the `Bonds") and'reasonably expecis to issue the Bonds, for such project in the maximum
principal amount shown below:
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e, Maximum Amount of Bonds
Project Expected to be Issued for Project
ke Sanitary and Storm Sewer $1,000,000 T ,
Improvements
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Tiffin / 436989-11 ! RRR A'
(b) x. Other than (i) expenditures to be paid or "reimbursed from sources other
than the Bonds or (ii) expenditures made no earlier than; sixty days prior to the dateof
- 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 Cityfor which the City will seek reimbursement from ,the
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proceeds of the Bonds. Y
(c) This declaration is a Ydeclaration- of official 'intent adopted pursuant to
Section 1.150-2 of the Regulations.
Section 3. Budgetary Matters. ,
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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'Ahe 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.
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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 experiditure 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.
Section 5. Repealer.
All, resolutions, parts of resolutions, or actions of the council in conflict herewith are,
hereby repealed, to the,extent of such conflict.
Passed and approved February 11, 2015. /
Mayor- ,
Attest:
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Deputy Cit er
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