HomeMy WebLinkAbout1840Resolution No. 1840
(Amending or Repealing Resolutions)
CFN = 104 -Finance
Passed-2/15/2011
Resolution 75th Avenue
RESOLUTION NO. ____,_J~,S'--f_I/_{_1 _
A RESOLUTION of the City Council of the
City of Kent, Washington, declaring its official
intent to reimburse capital expenditures in
connection with the drainage improvements on 76th
Avenue from proceeds of a future borrowing.
RECITALS
A. The City intends to construct storm drainage improvements to
alleviate flooding on 76th Avenue (the "Project").
B. The City intends to make expenditures for· the Project fr·om
funds that ar·e available but that ar·e not (and are not reasonably expected
to be) reserved, allocated on a long-term basis, or otherwise set aside for
those expenditures, and reasonably expects to be reimbursed for those
expenditures from pr-oceeds of tax-exempt bonds or other obligations
("bonds") issued to finance those expenditures; and
C. When issuing bonds and appr·oving part of the bond proceeds
to expenditur-es made before the bond issue date, certain federal
regulations (the "federal reimbursement regulations") require, among
other· things, that not later than 60 days after payment of the original
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76'h Avenue
expenditure, the City (or any person designated by the City to do so on its
behalf) declare a reasonable official intent to reimbur-se those expenditures
from the bond pr-oceeds;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF I<ENT,
WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS:
RESOLUTION
SECTION 1. -Description of Proiect for which 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 it reasonably
expects to reimburse itself for those expenditures from tax-exempt bond
proceeds, for the following project, property, or progr-am (the "Project"):
The construction of storm drainage improvements to alleviate
flooding on 75th Avenue, Kent, Washington,
SECTION 2. -Maximym Principal Amount of Obligation EKpected to
be Issued for the Project, The City expects that the maximum principal
amount of bonds that will be issued to finance the Project will be
$7,500,000,
SECTION 3. -Declaration ReasonC!ble, The city council has
reviewed its existing and r-easonable foreseeable budgetary and financial
circumstances and has determined that the City r-easonably expects to
reimburse itself for expenditures for the Project from pr-oceeds of bonds
because the City has no funds available that already are, or ar·e reasonable
expected to be, r-eserved, allocated on a long-ter-m basis, or otherwise set
aside by the City for those expenditures on the Project.
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76"' Avenue
SECTION 4_. -Limitations on Uses of Reimbursement Amounts .
The City will not, within one year after the expected reimbursement, use
amounts corresponding to proceeds received from bonds issued in the
futLwe to reimburse the City for previously paid expenditures fo1· the Project
in any manner that results in those amounts being treated as replacement
proceeds of any tax-exempt bonds, i.e., as a result of being deposited in a
reserve fund, pledged fund, sinking fund or similar fund (other than a bona
fide debt service fund) that is expected to be used to pay principal of or
interest on tax exempt bonds. Nor will the City use those amounts in any
manner that employs an abusive arbitrage device to avoid arbitrage
restrictions.
SECTION 5. -$everCibJ/itv. If any section, subsection, paragraph,
sentence, clause or phrase of this resolution is declared unconstitutional m
invalid for any reason, such decision shall not affect the validity of the
remaining portions of this 1·esolution.
SECHQN 6. -Ratification_. Any act consistent with the authority
and prior to the effective date of this resolution is hereby ratified and
affirmed.
SECTION 7. -Effe_ctive Date. This 1·esolution shall take effect and
be in force immediately upon its passage.
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76'h Avenue
PASSED at a r·egular open pubjic meeting by the City Council of the
;)Aj
City of Kent, Washington, this ---"CC=L~ day of
CONCURRED in by the Mayor of the City of Kent this
,"•,. r ;!,"_,,,,~=~'-----' 2011.
ATIEST:
APPROVED AS TO FORM:
~\ . . li -l. /') I _-/.cL·~ )vi _ t>l L '-~
TO 1 BRUBAKER, CrTY ATIORNEY
'2011.
day of
I hereby certify that this is a true and correct copy of Resolution No.
/.'5·)5<:. passed by the City Council of the City of Kent, Washington, the
_/"i ___ day of 'k:Jct>t.uA t"t-, 2011.
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P!\Civll\Resolutlon\76th Avenue Intent to Reimburse Caplcal Expcnses.docx
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76"' Avenue