Res 46-10RI~SOLU'I'ION NO. 4G-10
DI?C].~1It~~TION O1~ OI~I~ICL11, INl'ENI' WITH RESPh,CI' '1'O
RI~;IMBIJRSEMI~N'I' O1~ "1'I~.MPOR~IRY 11DVANCES MADh, I~'OR
C~1PI'TAL EZPI?NDI"I'URI?S "1'O BI? MAllI? hROM SUBSEQUEN"1'
BORROWINGS.
WHEREAS, "Treasury Regulation '1 1.15(1-? (the "Reimbursement Regulations"), issued pursuant to
Section 150 of the Internal Revenue Code of 19HG, as amended, (the "Code") prescribes certain requirements
by which proceeds of tat-exempt bonds, notes, certiEcates or other obligations included ui the meaning of
"bonds" under Section 150 of the Codc ("Obligations") used to reimburse advances made for Capital
1 ~;xpenditures (as hereinafter defined) paid before the issuance of such Obligations may be deemed "spent" for
pui-hoses of Sections 103 and 141 to 150 of the Codc and therefore, not further subject to any other
reyuiretnents 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 L?xpenditurc and require that such Declaration of
Official Intent be made no latex than silty (GO) days after payment of the Capital Ixpenditure and further
require that any Reimbursement l~llocation (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 I ~;xpenditure was paid or the date the property acquired with the Capital Expenditure was placed in
service, except that any such Reimbursement Alk>cation must be made no later than three years 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 b}' the Commission of the Issuer that:
Section 1. Definitions. The following definitions apply to the terms used herein:
"~~llocation" means written evidence that proceeds of Obligations issued subsequent to the payment of
a Capital 1xpenditure arc to reimburse the Issuer for such payments. "To allocate" means to make such an
allocation.
"C:apital Lxpenditure" 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
I~xpenditures 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 SOI (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 l ;spenditures. "'1'o reimburse" means to make such a
rCStoI"atlOtl.
"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 lssucr.
"Reimbursement Regulations" means "1'rcasury 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 Ubligations may be allocated to reimburse the Issuer for Capital l~;xpenditures
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) "1'he Issuer declares that it reasonably expects that the Capital I~.xpenditures described in Section
(b), which were paid no earlier than silty (GU) days prior to the date hereof, or which will be paid prior to the
issuance of any Obligations intended to fund such Capital 1?xpcnditures, will be reimbursed with the proceeds
of Obligations, representing a borrowing by the Issuer in the approximate principal amount, for such
Rcunburscments, of $1,000,000; and
(b) "1'he Capital la.xpeuditures to be reimbursed arc to be used for the purchase of Police and 1~'ire
Department software and hardware. "I'he Police llcpartmcnt software will integrate their separate systems
including data entry, C~1D (dispatch), mobile data, field reporting, records and parking citations. The Fire
llcpartmcnt software will include computer aided dispatch and field management reporting.
Section 3. Reasonable Expectations. The Issuer does not expect any other funds (including the
money advanced to make the Capital 1 ~.xpenditures that arc to be reimbursed), to be reserved, allocated on a
long-term basis, or otherwise set aside by the Issuer or any other entity, with respect to the Capital
1?xpenditures 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 ~
Res No. 46-10
committees that resulted in such formal action, were in meetings open to the public, in compliance with the
law.
"1'he undersigned has been authorized b~~ Commission of the Issuer to sign this resolution on behalf of
the Commission of the Issuer.
Passed and adopted in regular session on this 7`~' day of September, ?010.
.1"I"1'1 ~:S"1':
~ ~~~~
Ciri' Clerk
,'~IAYC I
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Kcs No. 4G-10
Page 1 of 1
MEMORANDUM
TO: Mayor and City Commissioners
FROM: Rebecca S. O'Connor, Treasurer
Joseph Safford, Finance Director
THROUGH: David T. Harden, City Manager
DATE: August 26, 2010
SUBJECT: AGENDA ITEM B.C. -REGULAR COMMISSION MEETING OF SEPTEMBER 7, 2010
RESOLUTION N0.46-10/REIMBURSEMENT RESOLUTION
ITEM BEFORE COMMISSION
Reimbursement Resolution No. 46-10.
BACKGROUND
Resolution No. 46-10 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 Police and Fire hardware and software from a proposed Lease Purchase
Agreement. 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.
RECOMMENDATION
The Finance Department recommends approval of Resolution No. 46-10.
http://miweb001/AgendasBluesheet.aspx?ItemID=3689&MeetingID=269 9/8/2010
RESOLUTION No. 46-10
DECLARATION OF OFFIQAL 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 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 Expendit~ue
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 Expenditrire 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
WHEREAS, the CITY OF DELRAY BEACH (the "Issuer') wishes to ensure
compliance with the Reimbursement Regulations;
NOW, THEREFORE, be it resolved by the Corruri`s.5ion 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 expei~se for an item that is properly depreciable or
amortizable or is otherwise treated as a capital expalditure 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 twit 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 Reimbumsement Regulations,
previously paid by or for the Issuer.
"Reimbursement Regulations" means Treasury Regulation ~ 150-2 and any amendrnellts
thereto or superseding regtilations, 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 $1,000,000; and
(b) The Capital E xpendittrres to be reimbursed are to be used for the purchase of Police
and Fire Deparhrrent software and hardware. The Police Department software will provide for
Computer Aided Dispatch, Records Management, and Mobile Field Reporting. The Fire
Department software will provide for Records Management and Mobile Reporting/Inspections.
Section 3. Reasonable Expectations. The Issuer does not expect any other funds
(incltxiing the money advanced to make the Capital Expenditures that are to be reimbtused), to be
reserved, allocated on a long term basis, or otherwise set 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 detem~irred 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 Corrunission 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
2
Res No. 46-10
The undersigned has been authorized by Commission of the Issuer to sign this resolution on
behalf of the Coiniris~sion of the Issuer.
Passed and adopted in regular session on this 7`'' day of September, 2010.
MAYOR
ATTEST:
City Clerk
Res No. 46-10