HomeMy WebLinkAbout1706Resolution No. 1706
CFN=104-Finance
Passed -8/2/05
["Beginning August 1, 2004"]
Project Reimbursement for Funds Advanced -Finance Director Discretion
RESOLUTION NO. /7£?,
A RESOLUTION of the City Council of the City of
Kent, Washington, designating the Finance Director as the
official authorized to make declarations of official intent to
reimburse certain funds advanced for projects on behalf of
the City, and repealing any prior declarations.
RECITALS
A. The City of Kent ("City") may, from time to time, make expenditures for
capital projects or may make certain extraordinary working capital expenditures from
funds that are available but that are not (and are not reasonably expected to be) reserved,
allocated on a long-term basis, or otherwise set aside for those expenditures. Under these
circumstances, the City would expect to be reimbursed for those expenditures from
proceeds of tax exempt bonds or other obligations ("bonds") issued to finance those
expenditures.
B. The "federal reimbursement regulations" relating to the use of proceeds
of bonds to reimburse the issuer of the bonds for expenditures made before the issue
date of the bonds require, among other things, that not later than 60 days after payment
of the original expenditure the City (or any person designated by the City to do so on
its behalf) declare a reasonable official intent to reimburse those expenditures from the
proceeds of the bonds.
Project Reimbursement for
Funds AJivturced-Finance Director Discretion
NOW THEREFORE. THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS:
RESOLUTION
SECTION 1. -Designation of Official to Declare Official Intent. The Finance
Director of the City is designated to make declarations of official intent, substantially in
the form attached to this resolution as Exhibit A or in such other form as shall be
prescribed by Treasury Regulation Section 1.103-18, on behalf of the City as may be
necessary or appropriate from time to time for any purpose under, and in compliance
with, the requirements of the federal reimbursement regulations.
SECTION 2. -Ratification and Confirmation. Any actions of the City or its
officers prior to the date thereof and consistent with the terms of this resolution are
ratified and confirmed.
SEfTION 3.-Repealer. Any prior designations of City officials authorized
to make declarations of intent pursuant to the federal reimbursement regulations are
repealed. Declarations previously made by them shall stand.
SECTION 4. -Severakilitv. If any section, subsection, paragraph, sentence,
clause or phrase of this resolution is declared unconstitutional or invalid for any
reason, such decision shall not affect the validity of the remaining portions of this
resolution.
SECTION 5. -Effective Date. This resolution shall take effect and be in force
immediately upon its passage.
PASS ED at a regular open public meeting by the City Council of the City of
Kent, Washington, this ,;!. ~ day of lk;J"~ , 2005.
2 Project Reimbursement for
Funds Advanced-Finance Director Discretion
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CONCURRED in by the Mayor of the City of Kent this .gNf day of
a~.r . ,Jlmo~ .
A'ITEST:
ER & SHEFLEMAN PLLC
Bond Counsel to the City
3 Project Reimbursement for
FIIIU/s Advanced-Finance Director Discretion
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EXHIBIT A
Dec!aratjon of Official Intent to Reimburse
Expenditures from Proceeds ofBon!ls
I, the undersigned, Robert Na.chlinger, am the duly appointed, qualified and acting Finance Director of the City
of Kent, Washington (the "City"), and, as such, have been designated by the City to make declarations of official intent
on behalf of the City when necessary or appropriate for any purpose under, and in compliance with, the requirements of
certain federal regulations (the "federal reimbursement regulations") relating to the use of proceeds of tax exempt bonds
or other obligations (''bonds") to reimburse the City for capital expenditures (and certain extraordinary working capital
expenditures) made by the City before the issue date of the bonds. On behalf of the City, I make the following
declaration of official intent under the federal Jeimbursement regulations:
1 Desqiption of Project for Wbich Expenditures are to be Made· The City intends to make (and/or, not
more than 60 days before the date of this declaration, has made) expenditures, and reasonably expects to reimburse itself
for those expenditures from proceeds of bonds, for the following project, property, or program (the "Project") described
as [insert description]:
2. Maximum Principal .Amount of Obliptjons Expected to be Issued for the Project The City exj>ects
that the maxunum principal amount of bonds that will be issued to finance the Project Will be $ ______ _
3. Declaration Reasonable. I have reviewed the existing and reasonably foreseeable budgetary and
financial circumstances of the City, and have determined that the City reasonably expects to reimburse 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 basis, or otherwise set aside by the City for those
expenditures on the Project
4. Limitations on Uses of Reimbursem.ent Amounts· The City will not, within one year after the
expected reimbursement, use amounts corresponding to proceeds received from bonds issued in the future to reimburse
the City for previously paid expenditures for the Project in any manner that results m those amounts being treated as
replacement proceeds of any tax exempt bonds, i.e., as a result of being deposited in a reserve fund, pledged fund,
sinking fund, or similar fund (other than a bona fide debt service fund) that is expected to be used to pay principal of or
interest on tax exempt bonds. The City will use those amounts in any manner that employs an abusive arbitrage device
to avoid arbitrage restrictions.
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Date of Declaration. This declaration of official intent is dated ______ 200 .
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CITY OF KENT, WASHINGTON
~~~~~-=--~-----------Robert Nachlinger, Finance Director
4 Exhibit A-
Project Reimbursement for
Fruuls AJiwmeed-Fimmce Director Discretion
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CERTIFICATION
I, the undersigned, City Clerk of the City of Kent, Washington (the "City"), hereby
certify as follows:
1. The attached copy of Resolution No./7o6 (the "Resolution") is a full, true and
correct copy of a resolution duly adopted at a regular meeting of the City Council of the City
held at the regular meeting place thereof on July_, 2005, as that Resolution appears on the
minute book of the City; and the Resolution will be in full force and effect following its approval
and adoption; and
2. A quorum of the members of the City Council was present throughout the meeting
and a majority of those members present voted in the proper manner for the adoption of the
Resolution.
IN WI1NESS WHEREOF, I have hereunto set my hand this_!_ day of~ 2005.
CITY OF KENT, WASHINGTON
5 Project Reimbursement for
Funds Advanced-Finance Director Discretion