Loading...
HomeMy WebLinkAbout2076 RESOLUTION NO. 2076 A RESOLUTION of the City Council of the City of Kent, Washington, appointing the City's Finance Director as the agent authorized to designate certain expenditures for reimbursement from future tax-exempt obligations, including bonds, that may be authorized and approved by the City Council in the future for issuance. RECITALS A. The City of Kent, Washington (the "City") issues tax-exempt obligations, including bonds, notes, and leases from time to time for the purpose of financing its governmental activities. B. The United States Department of the Treasury has promulgated Regulations limiting the ability of the City to use the proceeds of tax-exempt obligations for reimbursement of prior expenditures. However, Section 1.150- 2 of the Regulations permits the City to appoint one or more officials for the purpose of identifying and qualifying capital projects for reimbursement purposes. C. Any such declaration of official intent to reimburse must not be made as a matter of course or in an amount substantially in excess of the amount expected to be necessary for the proposed project. Issuance of an official declaration of intent to reimburse does not commit the City to issuing any tax-exempt obligations, which remain subject to authorization only 1 Resolution - Delegating Authority to Designate Costs for Bond Reimbursement through subsequent action of the City Council by its adoption of an authorizing ordinance prior to issuance. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: RESOLUTION SECTION 1. - Finance Director as Designated Official. The City Council hereby appoints and designates the City Finance Director (the "Finance Director") as the official responsible for issuing statements of official intent in compliance with Treasury Regulation Section 1.150-2. SECTION 2. - Authorization to Execute. Upon a determination by the Finance Director that the costs of a particular capital project may be reimbursed from the proceeds of tax-exempt obligations of the City, the Finance Director is authorized and directed to execute a certificate of official intent, substantially in the form attached hereto as Exhibit A. Each certificate so executed shall become a part of the official records of the City available for public inspection and review. SECTION 3. - Severability. If any one or more section, subsection, or sentence of this resolution is held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this resolution and the same shall remain in full force and effect. SECTION 4. - Corrections by City Clerk. Upon approval of the city attorney, the city clerk is authorized to make necessary corrections to this resolution, including the correction of clerical errors; resolution, section, or subsection numbering; or references to other local, state, or federal laws, codes, rules, or regulations. 2 Resolution - Delegating Authority to Designate Costs for Bond Reimbursement SECTIONS. - Effective Date. This resolution shall take effect and be in force immediately upon its passage. September 17, 2024 DANA RALPH, MAYOR Date Approved ATTEST: w kA• September 17, 2024 KIMBERLEY A. MOTO, CITY CLERK Date Adopted AP ROV D AS TO FORM: i T HITE, CITY ATTORNEY • a •^, 7 r. 1 •s . �e rt a '� I� • . 4i F ee• r�i'�F� ,4r Y L r 3 Resolution - Delegating Authority to Designate Costs for Bond Reimbursement EXHIBIT A FORM OF OFFICIAL INTENT CERTIFICATE Pursuant to Resolution No. 2076 of the City Council of the City of Kent, Washington (the 'City"), adopted on September 17, 2024, the undersigned Finance Director of the City hereby states as follows: Section 1. The City reasonably expects to reimburse the expenditures described herein with the proceeds of debt to be incurred by the City (the "Reimbursement Bonds"). Section 2. The maximum principal amount of Reimbursement Bonds expected to be issued is $ [STATE THE MAXIMUM AMOUNT OF THE TAX-EXEMPT BONDS EXPECTED TO BE ISSUED AND/OR USED TO REIMBURSE THE CITY]. Section 3. The expenditures with respect to which the City reasonably expects to be reimbursed from the proceeds of Reimbursement Bonds will be made from the City's Fund [STATE WHICH FUND WILL BE USED TO INITIALLY PAY FOR THE PROJECT] for project costs related to the City's [DESCRIBE PROJECT]. Dated this day of , 20 Finance Director 4 Exhibit A to Resolution - Form of Official Intent Certificate