HomeMy WebLinkAbout1732Resolution No. 1732
CFN = 1305 -Event Center
Passed -8/15/2006
Event Center-Reimbursement Resolution
RESOLUTION NO . ....£.1_7L......;;;..3_d.... __
A RESOLUTION of the city council of the c1ty of
Kent, Washington, declanng 1ts off1c1al mtent to
reimburse cap1tal expenditures 1n connection w1th
bu1ld1ng an events center from proceeds of a future
borrowing.
RECITALS
A. The City of Kent, Washmgton (the "City") mtends to make
expenditures for the ProJect (1dent1f1ed below) from funds that are available but
that are not (and are not reasonably expected to be) reserved, allocated on a
long-term bas1s, or otherw1se set as1de for those expenditures, and reasonably
expects to be reimbursed for those expenditures from proceeds of bonds or other
obl1gat1ons ("bonds") 1ssued to fmance those expenditures.
B. Certain federal regulations (the "federal reimbursement
regulations") relatmg to the use of proceeds of tax exempt bonds to re1mburse the
1ssuer of the bonds for expenditures made before the 1ssue date of the bonds
requ1re, among other thmgs, that not later than 60 days after payment of the
ongmal expenditure the City (or any person designated by the City to do so on 1ts
behalf) declare a reasonable off1c1al mtent to reimburse those expenditures from
proceeds of bonds.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS:
RESOLUTION
SECTION 1. Descnpt10n of Prozect for Whtch Expenditures are to be Made.
The City mtends to make (and/or, not more than 60 days before the date of th1s
1 Event Center-
Reimbursement Resolution
declaration, has made) expenditures, and reasonably expects to re1mburse 1tself
for those expenditures from proceeds of bonds, for the follow1ng proJect, property,
or program (the "ProJect").
The acqu1s1t1on of property for and construction of a multi-purpose
events center.
SECTION 2. Maximum Principal Amount of Obligations Expected to be
Issued for the Prozect. The City expects that the max1mum pnnc1pal amount of
bonds that w1ll be 1ssued to fmance the ProJect w1ll not exceed $50,000,000.
SECTION 3. DeclaratiOn Reasonable. The c1ty council has rev1ewed 1ts
ex1stmg and reasonably foreseeable budgetary and fmanc1al Circumstances and
has determmed that the City reasonably expects to re1mburse Itself for
expenditures for the ProJect from proceeds of bonds because the City has no funds
available that already are, or are reasonably expected to be, reserved, allocated
on a long-term bas1s, or otherw1se set as1de by the City for those expenditures on
the ProJect.
SECTION 4. Limitattons on Uses of Reimbursement Amounts. The City
will not, w1thm one year after the expected reimbursement, use amounts
correspondmg to proceeds rece1ved from bonds 1ssued m the future to reimburse
the City for prev1ously pa1d expenditures for the ProJect m any manner that results
m those amounts bemg treated as replacement proceeds of any tax exempt bonds,
i.e., as a result of bemg deposited m a reserve fund, pledged fund, s1nk1ng fund or
s1m1lar fund (other than a bona f1de debt serv1ce fund) that IS expected to be used
to pay pnnc1pal of or mterest on tax exempt bonds. Nor w1ll the City use those
amounts m any manner that employs an abus1ve arbitrage dev1ce to avo1d
arbitrage restnct1ons.
SECTION 5. Date of DeclaratiOn. Th1s declaration of off1c1al mtent shall be
dated as of the date of adopt1on of th1s resolution.
SECTION 6. Ratification and Confirmation. Any act1ons of the City or 1ts
officers pnor to the date thereof and consistent w1th the terms of th1s resolution
are rat1f1ed and confirmed.
2 Event Center -
Reimbursement Resolution
SECTION 7. Effective Date. Th1s resolution shall be in full force and effect
from and after 1ts adopt1on and approval.
PASSED at a regular open public meet1ng by the c1ty council of the c1ty of
Kent, Washmgton, th1s /.£: day of August, 2006.
CONCURRED in by the mayor of the c1ty of Kent th1s IS day of August,
2006.
ATTEST:
APPROVED AS TO FORM:
~KER~A~R~ .-
I hereby cert1fy that th1s 1s a true and correct copy of Resolution No.
/2;' CL passed by the City council of the c1ty of Kent, Washmgton, the /~ · day
of August, 2006.
BRENDA JACOBER, CI
P \Civii\ResolutJon\EventCenterRelmbursementResolutlon DOC
3
.
. :;.. -. --.......
. ~ ... --
Event Center -
Reimbursement Resolution