HomeMy WebLinkAboutR-2008-105 FDEP Sewer Rehab Force Main Improvements RESOLUTION NO. 2008-105
A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA,
PERTAINING TO SEWER REHABILITATION FORCE MAIN
IMPROVEMENTS; AUTHORIZING DECLARATIONS OF OFFICIAL
INTENT UNDER U.S. TREASURY REGULATIONS WITH RESPECT TO
REIMBURSEMENTS FROM NOTE AND BOND PROCEEDS OF
TEMPORARY ADVANCES MADE FOR PAYMENTS PRIOR TO
ISSUANCE, AND RELATED MATTERS; PROVIDING FOR CONFLICTS;
FURTHER, PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, United States Treasury Regulations §1.150-2 (the "Reimbursement
Regulations") prescribe conditions under which proceeds of bonds, notes or other obligations
(`Bonds") used to reimburse advances made for capital and certain other expenditures ("Original
Expenditures") paid before the issuance of such Bonds will be deemed to be expended (or
properly allocated to expenditures) for purposes of Sections 103 and 141-150 of the Internal
Revenue Code of 1986, as amended (the "Code"), upon such reimbursement so that the proceeds
to be used will no longer be subject to requirements or restrictions under those sections of the
Code; and
WHEREAS, certain provisions of the Reimbursement Regulations require that there be a
Declaration of the Official intent not later than 60 days following payment of the Original
Expenditures expected to be reimbursed from proceeds of Bonds, and that the reimbursement
occur within certain prescribed time periods after an Original Expenditure is paid or after the
property resulting from that Original Expenditure is placed in service; and
WHEREAS, the City wishes to take steps to comply with the Reimbursement
Regulations, in connection with City sewer rehabilitation force main improvement;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH, FLORIDA:
Section 1. That the following definitions apply to the terms used in this Resolution:
"Authorized Officer" means the City Manager or any person designated for the purpose
by the City Manager.
"Declaration of Official Intent" means a declaration of intent, in the form, manner and
time contemplated in the Reimbursement Regulations, that the advances for expenditures
referred to therein are reasonably expected to be reimbursed from the proceeds of Bonds to be
issued after those expenditures are paid.
"Reimbursement" or "reimburse" means the restoration to the Borrower of money
temporarily advanced from its own funds and spent for Original Expenditures before the issuance
of the Bonds, evidenced in writing by an allocation on the books and records of the Borrower that
shows the use of the proceeds of the Bonds to restore the money advanced for the Original
Expenditure. "Reimbursement' or "reimburse" generally does not include the refunding or
retiring of Bonds previously issued and sold to, or borrowings from, unrelated entities.
Section 2. That each Authorized Officer is authorized to prepare and sign
Declarations of Official Intent in substantially the form attached with respect to Original
Expenditures to which the Reimbursement Regulations apply, to be made from money
temporarily advanced and that is reasonably expected to be reimbursed (in accordance with
applicable authorizations, policies and practices) from the proceeds of Bonds, to make
appropriate reimbursement and timely allocations from the proceeds of the Bonds to reimburse
such prior expenditures, and to take any other actions as may be appropriate, all at the times and
in the manner required under the Reimbursement Regulations in order for the reimbursement to
be treated as an expenditure of such proceeds for purposes of Sections 103 and 141 to 150 of the
Code. No advance from any fund or account or order for payment may be made for Original
Expenditures (other than expenditures excepted from such requirement under the Reimbursement
Regulations) that are to be reimbursed subsequently from proceeds of Bonds unless a Declaration
of Official Intent with respect thereto is made within the time required by the Reimbursement
Regulations.
2 RESOLUTION 42008-105
Section 3. That all resolutions or parts of resolutions in conflict with this Resolution
are repealed to the extent of such conflict.
Section 4. That this Resolution shall be in force and take effect immediately upon its
passage and adoption.
PASSED and ADOPTED June 10, 2008.
ALBERT C. JONES
MAYOR—COMMISSIO R
ATTESTT:,' S FIRST bry
LOUISE STILSON, CMC
CITY CLERK
APPROVED AS TO FO AID CO
BY: '
THO AS BRO
CITY AT ORNEY
3 RESOLUTION #2008-105
DECLARATION OF OFFICIAL INTENT
For Reimbursement of Expenditures from Bonds/Notes
This is a Declaration of Official Intent under U.S. Treasury Regulations for purposes of Sections
103 and 141 to 150 of the Internal Revenue Code of 1986, as amended(the "Code").
l. The undersigned, on behalf of the CITY OF DANIA BEACH (the `Borrower") declares
that the Borrower reasonably expects that the capital and other expenditures described in
paragraph 2 (the "Project')will be reimbursed with the proceeds of"bonds" (as defined in
Section 150 of the Code). The maximum principal amount of bonds expected to be issued
for the Project is $1,824,000.
2. Description of capital and other expenditures to be reimbursed.
Expenditures for (insert a general functional description of property, project, program
or purpose):
Water Pollution Control Improvements
The undersigned has been authorized by the Borrower to make and sign this Declaration on
behalf of the Borrower.
Date of Declaration: CITY OF DANIA BEACH
;U—UAIE ID , 2008 )"IK /
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(Type or print Name and Title)
Caution: This Declaration of Official Intent will not be effective unless the bonds providing
moneys for the reimbursement are issued and the reimbursement for the Project
described above is made (by an allocation on the books and records identifying the
expenditures as in paragraph 2 above) within the applicable period prescribed in the
Treasury Regulations—generally, 18 months after the later of the date of the
expenditure or the date the Project is placed in service, but in no event later than three
years after the date of the expenditure.
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INSTRUCTIONS
for
DECLARATION OF OFFICIAL INTENT
for
Reimbursement From Tax-Exempt Bonds/Notes
PURPOSE
The form to which these instructions pertain is intended for use under Treasury Regulations
§1.150-2 (the"Reimbursement Regulations") in order that capital and certain other expenditures
paid with moneys temporarily advanced from other funds that are reasonably expected to be
reimbursed from proceeds of subsequently issued notes, bonds or other obligations ("Bonds") may
qualify for such reimbursement. Failure to comply can result in the inability for federal income tax
purposes to treat proceeds of the Bonds used to reimburse the expenditures as spent for
arbitrage/rebate purposes. With certain exceptions for qualified"preliminary expenditures" and
certain de minimis expenditures, a Declaration of Official Intent must be made not later than 60
days after payment of any expenditure expected to be reimbursed from proceeds of Bonds.
Declarations of Official Intent should not be made systematically for all expenditures or in
exaggerated amounts regardless of actual expectations, but only when it is realistically expected that
the expenditure will be reimbursed from the proceeds of Bonds. In general only capital
expenditures can be reimbursed from the proceeds of Bonds. "Capital expenditures" include
(subject to any more restrictive state law) any costs related to the acquisition or construction of land
or interests in real estate, buildings, structures, additions thereto, or other permanent improvements,
and restoration or betterments made to increase the value of property or substantially prolong its
useful life, and machinery, equipment, furniture and fixtures or other property having a useful life of
at least one year or such longer period as is required by applicable state law. Costs of issuance of
the Bonds are capital expenditures. Certain other expenditures also qualify for reimbursement. The
Regulations do not apply to, and this form is not needed in connection with, the use of proceeds of
Bonds to finance expenditures paid on or after the date of issuance of the Bonds. This form also
generally is not needed in connection with the issuance of Bonds to refinance external borrowings
(taxable or tax-exempt).
INSTRUCTIONS
These instructions are based on the Reimbursement Regulations currently in effect. The
references are to the particular paragraphs on the form of Declaration of Official Intent.
Paragraph 1. Insert the anticipated maximum principal amount of Bonds expected to be
issued for the Project. The amount should include the maximum principal amount of all Bonds to
be issued for the Project(i.e., Bonds for reimbursement of prior expenditures and Bonds to finance
expenditures to be paid on or after the date of issuance of the Bonds). A Project includes any
property, project, or program (e.g., highway capital improvement program, hospital equipment
acquisition, or school building renovation).
Paragraph 2. The general description of the capital expenditures to be reimbursed may be
set forth in one of two ways -- either by a functional description of the property, project or program
for which the expenditures are made --
Examples--"highway capital improvement program"; "street and bridge improvements";
"hospital equipment acquisition"; "school buildings renovation";
or by identification of the fund or account from which the money will be advanced to pay the
expenditures that will be reimbursed subsequently from Bonds, and a statement of the general
functional purpose of that fund or account --
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Example—"parks and recreation fund,the general functional purpose of which fund or
account is recreational facility capital improvement program."
The second option concerning identification and description of the fund can be used where the fund
purpose, in effect, describes the generic purpose of the project, property or program, such as a
waterworks improvement for which money is advanced from the water utility capital improvement
fund. If the money is to be advanced from a general purpose fund such as the general fund or a
capital improvements fund that is available for any type of capital improvement, use the first option
by stating the generic function of the project,property or improvement.
501(c) Organizations. If the proceeds of the Bonds will be loaned to a 501(c)(3)
organization, either the 501(c)(3) organization or the issuer of the Bonds may make the Declaration
with respect to expenditures of the 501(c)(3) organization that are to be reimbursed.
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