HomeMy Public PortalAboutr 09:136
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No. 09 -136 Date of Adopt;o" hlP 11, ')('r:fJ
II
RESOLUTION OF THE BOROUGH OF CARTERET DECLARING ITS
OFFICIAL INTENT TO REThIDURSE EXl'ENDlTURES FOR PROJECT
COSTS FROM THE PROCEEDS OF DEBT OBLIGATIONS IN CONNECTION
WITH ITS PARTICIPATION IN THE NEW JERSEY ENVIRONMENTAL
INFRASTRUCTURE TRUST FINANCING PROGRAM
.WHEREAS, the Borough of Carteret, in the County of Middlesex, New Jersey (the
"Borrower") intends to acquire, construct, renovate and/or install the environmental
infrastructure project more fully described in Exhibit A attached hereto (the "Project");
WHEREAS, the Borrower intends to finance the Project with debt obligations of the
Borrower (the "Project Debt Obligations") but may pay for certain costs of the Project (the
"Project Costs") prior to the issuance of the Project Debt Obligations with funds of the Borrower
that are not borrowed funds;
\VHEREAS, the Borrower reasonably anticipates that obligations, the interest on which
is excluded frort:l gross income under Section 103 of the Internal Revenue Code of 1986, as
amended (the "Code"), will be issued by the New Jersey Environmental Infrastructure Trust (the
"Issuer") to finance the Project on a long-term basis by making a loan to the Borrower with the
proceeds ofthe Issuer's obligations (the "Project Bonds"); and
\VHEREAS, the Borrower 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 IT RESOL YED by the governing body of the Borrower as
follows:
Section 1. The Borrower 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
Borrower's official intent to reimburse the expenditure of Project Costs paid prior to the issuance
of the Project Debt Obligations with the proceeds ofa borrowing to be incurred by the Borrower,
in accordance with Treasury Regulations S 150-2.
Section 3. The maximum principal amount of the Project Debt Obligations expected
to be issued to finance the Project is $5,700,000.
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 ISO of the
Code.
NO. 09-136
PAGE ~
Section 5. No reimbursement allocation will employ an "abusive arbitrage device"
under Treasury Regulations ~1.148-10 to avoid the arbitrage restrictions Of to avoid the
Irestrictions under Sections 142 through 147, inclusive, of the Code. The proceeds of the Project
'Bonds used to reimburse the Borrower for Project Costs, Of 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
tenus are defined in Treasury Regulations gl.148-1), of the Project Debt Obligations or another
issue of debt obligations of the Borrower, other than amounts deposited into a "bona fide debt
service fund" (as defined in Treasury Regulations 91.148-1).
Section 6. All reimbursement allocatlons 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
91.150-2) or abandoned, but in no event more than 3 years after the expenditure is paid.
:o;echon J. 1UIS reSOLUtion shall take effect immediately.
PdJpta:! this 11th my of Jtn=, '3JJ)
am certified as a true <Xl!Y of fre
origiml on .JiJre 12, 2OJ9.
KA1HLEEN M. FARNEY, M1::
M.nic:ifal Clerk
RECORD OF COUNCIL VOTE
COUNCILMAN YES NO NY A.B. COUNCILMAN YES NO NY A.B.
BElLIN) X . KRl.M x
a:u::N x N\HES x
DIAZ x S:rD\RZ
X -Indicate Vote AB . Absent NY. Not Voting XOR - IndiL'atcs,vole 10 Overrule Veto
Adopted at a meeting of the Municipal Council
~ 11, '3JJ) ...
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EXHIBIT A
Sewer infrastructure improvements to the following:
* Roosevelt Avenue Pump Station Improvement - which includes mechanical,
structural and electrical upgrades to existing pump station.
*Turnpike Sanitary Sewer Crossing - includes installation of 850 LF new 30" sewer
interceptor parallel to the existing interceptor crossing and rehabilitation of the
existing 24" interceptor to serve as an overflow interceptor.