HomeMy Public PortalAboutResolutions-2015-019Tiffin / 436989-11 / RRR
RESOLUTION NO. 2015-019
Resolution Relating to Financing of Proposed Project to be Undertaken by the
City of Tiffin, Iowa; Establishing Compliance with Reimbursement Regulations
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.
(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.
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 expects to issue the Bonds for such project in the maximum
principal amount shown below:
Maximum Amount of Bonds
Project Expected to be Issued for Project
Sanitary and Storm Sewer $1,000,000
Improvements
Tiffin / 436989-11 / RRR
(b) 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 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 for which the City will seek reimbursement from the
proceeds of the Bonds.
(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.
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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