Res 53-05
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RESOLUTION No. 53-05
DECLARATION OF OFFICIAL INTENT WITH RESPECT TO
REIMBURSEMENT OF TEMPORARY ADVANCES MADE FOR
CAP IT AL 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 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
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 maximum principal
amount, for such Reimbursements, of $487,977; and
(b) The Capital Expenditures to be reimbursed are to be used for: 133 LAPTOPS
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 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 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 2nd day of August, 2005.
2 Resoluuon No. 53-05
(' " /'",\
1
CITY OF DELRA Y BEACH
By: ~l«
Mayor
Attested by: ~~h:()p Do .)
Acting City Clerk
I
3 Resolution No. 53-05
MEMORANDUM
To: City Commission
From: (J// David T. Harden, City Manager
Subject: Resolution # 53-05
Date: July 29,2005
Resolution #53-05 authorizes the reimbursement of original expenditures with proceeds
of lease purchase financing of 133 laptops totalling $487,977.
Tax law requires a reimbursement resolution for expenses that will be reimbursed by
borrowed proceeds after 60 days or more. The closing on the lease purchase
agreement will be 60 days past the payment to proSys for the equipment requiring the
passing of the attached resolution.
I recommend approval of Resolution# 53-05.
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~~
MEMORANDUM
To: David T. Harden, City Manager
~
From~ R.S. O'Connor, Treasurer
-~
Thru. ~ Joseph M. Safford, Director of Finance
Subject: Resolution # 53-05
Date: July 29, 2005
Resolution #53-05 authorizes the reimbursement of original expenditures with proceeds
of lease purchase financing of 133 laptops totalling $487,977.
Tax law requires a reimbursement resolution for expenses that will be reimbursed by
borrowed proceeds after 60 days or more. The closing on the lease purchase
agreement will be 60 days past the payment to ProSys for the equipment requiring the
passing of the attached resolution.
I recommend approval of Resolution# 53-05.
-----
RESOLUTION No. 53-05
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
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 (50) 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
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 maximum principal
amount, for such Reimbursements, of $487,977; and
(b) The Capital Expenditures to be reimbursed are to be used for: 133 LAPTOPS
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 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 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 2nd day of August, 2005.
CITY OF DELRAY BEACH
By:
Mayor
Attested by:
City Clerk
2
. AGENDA ITEM NUMBER: a ~
AGENDA REQUEST
Date: 7/27/05
Request to be placed on:
-L Consent Agenda Special Agenda Workshop Agenda
When: 8/2105
Description of agenda Item: Approve Resolution# 53-05 authorizing the reimbursement
of original expenditures with proceeds of lease purchase financing of 133 laptops totalling
$487,977.
ORDINANCE/RESOLUTION REQUIRED: X YES NO
Draft of Resolution Attached: X YES NO
Recommendation: Recommend the approval of Resolution# 53-05.
Department Heed Signature: G §~
. "
Determination of Consistency with Comprehensive Plan:
City Attorney Review/Recommendation (if applicable):
Budget Director Review
(required on all items involving expenditure of funds):
Funding available: ~ ~ Yes ~} fJt- GS' No
Funding alternatives (if applicable):
Account Number: n/a
Account Description:
Account Balance:
City Manager Review:
Approved for Agenda: GJ ~I!.. No
Hold Until:
Agenda Coordinator Review:
Received:
Action: Approved: Disapproved:
P.O. #