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Res 14-08~ `. '1 RESOLUTION NO.1408 DECLARATION OF OFFICIAL INTENT WITH RESPECT TO REIMBURSEMENT OF TEMPORARY ADVANCES MADE FOR CAPITAL EXPENDITURES TO BE MADE FROM SUBSEQUENT BORROWINGS WHEREAS, Treasury Regulation ~ 1.150-2 (the "Reimbursement Regulations"), issued pursuant to Section 150 of the Internal Revenue Code of 1986, as amended, (the "Code") prescribes certain requirements by which proceeds of tax-exempt bonds, notes, certificates or other obligations included in the meaning of "bonds" under Section 150 of the Code ("Obligations") used to reimburse advances made fox Capital Expenditures (as hereinafter defined) paid before the issuance of such Obligations may be deemed "spent" for purposes of Sections 103 and 141 to 150 of the Code and therefore, not further subject to any other requirements ox restrictions under those sections of the Code; and WHEREAS, such Reimbursement Regulations require that an Issuer (as hereinafter defined) make a Declaration of Official Intent (as hereinafter defined) to reimburse any Capital Expenditure paid prior to the issuance of the Obligations intended to fund such Capital Expenditure and require that such Declaration of Official Intent be made no later than sixty (60) days after payment of the Capital Expenditure and further require that any Reimbursement Allocation (as hereinafter defined) of the proceeds of such Obligations to reimburse such Capital Expenditures occur no later than eighteen (18) months after the later of the date the Capital Expenditure was paid or the date the property acquired with the Capital Expenditure was placed in service, except that any such Reimbursement Allocation must be made no later than three yeazs after such Capital Expenditure was paid; and WHEREAS, the CITY OF DELRAY BEACH (the "Issuer") wishes to ensure compliance with the Reimbursement Regulations; NOW, THEREFORE, be it resolved by the Commission of the Issuer that: Section 1. Definitions. The following definitions apply to the terms used herein: "Allocation' means written evidence that proceeds of Obligations issued subsequent to the payment of a Capital Expenditure aze to reimburse the Issuer fox such payments. "To allocate" means to make such an allocation. "Capital Expenditure" means any expense for an item that is properly depreciable or amortizable ox is otherwise treated as a capital expenditure for purposes of the Code, as well as any costs of issuing Reitbursement Bonds. "Declaration of Official Intent" means a written declaration that the Issuer intends to fund Capital Expenditures with an issue of Reimbursement Bonds and reasonably expects to be reimbursed from the proceeds of such an issue. "Issuer" means either a governmental unit that is reasonably expected to issue Obligations, ox any governmental entity ox 501(c)(3) organization that is reasonably expected to borrow funds from the actual issuer of the Obligations. "Reimbursement" means the restoration to the Issuer of money temporarily advanced from other funds, including moneys borrowed fzom other sources, of the Issuer to pay for Capital Expenditures before the issuance of Obligations intended to fund such Capital Expenditures. "To reimburse" means to make such a restoration. "Reimbursement Bonds" means Obligations that aze issued to reimburse the Issuer for Capital Expenditures, and for certain other expenses permitted by the Reimbursement Regulations, previously paid by ox fox the Issuer. "Reimbursement Regulations" means Treasury Regulation § 150-2 and any amendments thereto ox superseding regulations, whether in proposed, temporary or final form, as applicable, prescribing conditions under which the proceeds of Obligations may be allocated to reimburse the Issuer for Capital Expenditures and certain other expenses paid prior to the issuance of the Obligations such that the proceeds of such Obligations will be treated as "spent" for purposes of Sections 103 and 141 to 150 of the Code. Section 2. Declaration of Official Intent. (a) The Issuer declares that it reasonably expects that the Capital Expenditures described in Section (b), which were paid no eazlier than sixty (60) days prior to the date hereof, or which will be paid prior to the issuance of any Obligations intended to fund such Capital Expenditures, will be reimbursed with the proceeds of Obligations, representing a borrowing by the Issuer in the approximate principal amount for such Reimbursements of approximately $250,000; and (b) The Capital Expenditures to be reimbursed aze to be used for: 15 LUKE Multi- space Pay Stations and 250 POM Single Space Parking Meters and ancillary costs to make the equipment operational. Section 3. Reasonable Expectations. The Issuer does not expect any other funds (including the money advanced to make the Capital Expenditures that are to be reimbursed), to be reserved, allocated on a long-term basis, ox otherwise set aside by the Issuer or any other entity, with respect to the Capital Expenditures fox the purposes described in Section 2(b). RES NO. 1408 /` '1 Section 4. Open Meeting. It is found and determined that all formal actions of this Commission of the Issuer concerning and relating to the adoption of this resolution were adopted in an open meeting of this Commission of the Issuer; and that all deliberations of this Commission of the Issuer and of any of its committees that resulted in such formal action, were in meetings open to the public, in compliance with the law. The undersigned has been authorized by Commission of the Issuer to sign this resolution on behalf of the Cotmission of the Issuer. Passed and adopted in regular session on this 6th day of May, 2008. CITY OF DELRAY BEACH ~,~a ~~ MAYOR ATTEST: Ct,IIX/l V Ac g Deputy City Clerk 3 RES NO. 14-08 MEMORANDUM TO: Mayor and City Commissioners FROM: Rebecca S. O'Connor, Treasurer Joseph M. Safford, Director of Finance THROUGH: David T. Harden, City Manager DATE: Apri129, 2008 SUBJECT: AGENDA ITEM 8.G. -REGULAR COMMISSION. MEETING OF MAY 6, 2008 RESOLUTION NO. 14-08 ITEM BEFORE COMMISSION '~ Reimbursement Resolution No. 14-08. BACKGROUND Resolution No. 14-08 declares an official intent with respect to reimbursement of temporary advances made for capital expenditures to be made from a subsequent borrowing. The City will be reimbursing expenses relative to parking meter equipment. The City is required by the IRS to issue a Declaration of Intent if expenses are incurred for capital projects prior to receiving funding. Tax law requires that a declaration be made within 60 days of the first expense relative to a project or asset. This declaration falls within the 60 day period and, therefore, provides for compliance. FUNDING SOURCE N/A RECOMMENDATION Finance recommends approval of Resolution No. 14-08. r"^ RESOLUTION No. 14-OS DECLARATION OF OFFICIAL INTENT WITH RESPECT TO REIMBURSEMENT OF TEMPORARY ADVANCES MADE FOR CAPITAL EXPENDITURES TO BE MADE FROM SUBSEQUENT BORROWINGS WHEREAS, Treasury Regulation § 1.150-2 (the "Reimbursement Regulations"), issued pursuant to Section 150 of the Internal Revenue Code of 1986, as amended, (the "Cade") prescribes certain requirements by which proceeds of tax-exempt bonds, notes, certificates or other obligations included in the meaning of "bonds" under Section 150 of the Code ("Obligations") used to reimburse advances made for Capital Expenditures (as hereinafter defined) paid before the issuance of such Obligations may be deemed "spent" for purposes of Sections 103 and 141 to 150 of the Code and therefore, not further subject to any other requirements or restrictions under those sections of the Code; and WHEREAS, such Reimbursement Regulations require that an Issuer (as hereinafter defined) make a Declaration of Official Intent (as hereinafter defined) to reimburse any Capital Expenditure paid prior to the issuance of the Obligations intended to fund such Capital Expenditure and require that such Declaration of Official Intent be made no later than sixty (60) days after payment of the Capital Expenditure and further require that any Reimbursement Allocation (as hereinafter defined) of the proceeds of such Obligations to reimburse such Capital Expenditures occur no later than eighteen (18) months after the later of the date the Capital Expenditure was paid or the date the property acquired with the Capital Expenditure was placed in service, except that any such Reimbursement Allocation must be made no later than three years after such Capital Expenditure was paid; and i~-- WHEREAS, the CITY OF DELRAY BEACH (the "Issuer") wishes to ensure compliance with the Reimbursement Regulations; NOW, THEREFORE, be it resolved by the Commission of the Issuer that: Section 1. Definitions. The following definitions apply to the terms used herein: "Allocation" means written evidence that proceeds of Obligations issued subsequent to the payment of a Capital Expenditure are to reimburse the Issuer for such payments. "To allocate" means to make such an allocation. "Capital Expenditure" means any expense for an item that is properly depreciable or amortizable or is otherwise treated as a capital expenditure for purposes of the Code, as well as any costs of issuing Reimbursement Bonds. "Declaration of Official Intent" means a written declaration that the Issuer intends to fund Capital Expenditures with an issue of Reimbursement Bonds and reasonably expects to be reimbursed from the proceeds of such an issue. "Issuer" means either a governmental unit that is reasonably expected to issue Obligations, or any governmental entity or 501(c)(3) organization that is reasonably expected to borrow funds from the actual issuer of the Obligations. "Reimbursement" means the restoration to the Issuer of money temporarily advanced from other funds, including moneys borrowed from other sources, of the Issuer to pay for Capital Expenditures before the issuance of Obligations intended to fund such Capital Expenditures. "To reimburse" means to make such a restoration. "Reimbursement Bonds' means Obligations that are issued to reimburse the Issuer for Capital Expenditures, and for certain other expenses permitted by the Reimbursement Regulations, previously paid by or for the Issuer. "Reimbursement Regulations" means Treasury Regulation § 150-2 and any amendments thereto or superseding regulations, whether in proposed, temporary or final form, as applicable, prescribing conditions under which the proceeds of Obligations may be allocated to reimburse the Issuer for Capital Expenditures and certain other expenses paid prior to the issuance of the Obligations such that the proceeds of such Obligations will be treated as "spent" for purposes of Sections 103 and 141 to 150 of the Code. Section 2. Declaration of Official Intent. (a) The Issuer declares that it reasonably expects that the Capital Expenditures described in Section (b), which were paid no earlier than sixty (60) days prior to the date hereof, or which will be paid prior to the issuance of any Obligations intended to fund such Capital Expenditures, will be reimbursed with the proceeds of Obligations, representing a borrowing by the Issuer in the approximate principal amount for such Reimbursements of approximately $250,000; and (b) The Capital Expenditures to be reimbursed are to be used for: 15 LUKE Multi- space Pay Stations and 250 POM Single Space Parking Meters and ancillary costs to make the equipment operational. Section 3. Reasonable Expectations. The Issuer does not expect any other funds (including the money advanced to make the Capital Expenditures that are to be reimbursed), to be reserved, allocated on a long-term basis, or otherwise se[ aside by the Issuer or any other entity, with respect to the Capital Expenditures for the purposes described in Section 2(b). Section 4. Open Meeting. It is found and determined that all formal actions of this Commission of the Issuer concerning and relating to the adoption of this resolution were adopted in an open meeting of this Commission of the Issuer; and that all deliberations of this Commission of the Issuer and of any of its committees that resulted in such formal action, were in meetings open to the public, in compliance with the law. The undersigned has been authorized by Commission of the Issuer to sign this resolution on behalf of the Commission of the Issuer. Passed and adopted in regular session on this 6th day of May, 2008. CITY OF DELRAY BEACH By: Mayor Attested by: City Clerk Page 2 Res. No. 14-08