Res 11-94 RESOLUTION NO. 11-94
A RESOLUTION OF TKB CITY COJJHIBBION OFT HE CITY OF DEl, RAY
BEECH, FLORIDA, DECLARING THE CITY OF DELRAY BEACH'S
OFFZCZALZ~TB~FTTO SEEK RBZMBURSEKEHTFOR CERTAIN CAPITAL
EZPENDITURES KADB WITH RESPECT TO THE &CQUISITION,
CONSTRUCTION AND EQUIPPING OF THE PHASE II PRO3ECT FOR
THE DE1.RAY BEECH TENNIS CENTER MdD WITH RESPECT TO
REHABILITATION MfD RECONSTRUCTION OF THE CITY'S POMPEY
PARK POOLFROHTHB PROCEEDS OF ITS NOT TO EZCEED $810,000
UTILITIES TAX REVENUE NOTES, SUBORDINATE SERIES 1993 AND
PROVIDING FOR Mf EFFECTIVE DATE.
NHEREAS, the City Commission of the City of Delray Beach,
Florida (herein, the "City Commission"), adopted, on October 12,
1993, Resolution No. 98-93, which resolution was amended and
restated by Resolution No. 103-93, adopted on December 7, 1993
(collectively, the "Note Resolution"); and
NHER~, pursuant to the Note Resolution, the City is
authorized to borrow up to $810,000 pursuant to a line of credit
agreement with SunBank/South Florida, N.A. (the "Bank"), to finance
the cost of certain capital costs relating to phase II of the
Delray Beach Tennis Center and the City's Pompey Park Pool
(collectively, the "Project"); and
NHEREA~, such borrowing from the Bank is to be evidenced by
the City's Utilities Tax Revenue Notes, Subordinate Series 1993,
issued in the aggregate principal amount of not exceeding $810,000
(herein the "Notes") pursuant to the terms and provisions of the
Note Resolution; and
NHEREAS, the City is now ready, willing and able to issue the
Notes; and
NHEREAS, it was necessary for the City to incur within the
last 60 days certain capital expenditures ("Prior Expenditures")
with respect to the Project; and
NHERE~B, the City incurred the Prior Expenditures with the
expectation of seeking reimbursement from the proceeds of the
Notes; and
WHEREAS, the Internal Revenue Code of 1986, as amended, and
the regulations promulgated thereunder, permit the reimbursement of
prior incurred capital expenditures from the proceeds of tax-exempt
obligations if the issuer, among other things, declares its
official intent regarding such reimbursement; and
C:~DA?A~D~[-RAY%MATT36~-]U~S Res. No. 11-94
NHEREA~, it is intended by the CoMmission that this Resolution
constitutes such official intent with respect to the reimbursement
of the Prior Expenditures from a portion of the proceeds of the
Notes; and
NOW THEREFORE, be it resolved by the Commission of the City of
Delray Beach, Florida, as follows:
SECTION 1. The recitals set forth above are adopted by the
Commission as the findings of the City and are incorporated herein.
SECTION 2. This Resolution constitutes the "official intent"
with respect to the reimbursement of the Prior Expenditures from a
portion of the proceeds of the Notes.
SECTION 3. The City will, upon receipt of the proceeds of
the Notes, allocate in writing the amount of proceeds used to
reimburse the Prior Expenditures. Such allocation will be
accomplished within 18 months from the earliest date such Prior
Expenditures were incurred.
BECTION 4. EFFECTIV~ DATE. This Resolution shall be
effective immediately upon its adoption.
PASSED AND ADOPTED in regular session on this 25th day of
January, 1994.
Attest: ~~
Czty'Clel~k '
The foregoing resolution is hereby approved by me as to form,
language and execution this 25th day of January, ~.~~~~
City Attor~
Res. No. 11-94
MEMORANDUM
TO: David T. Harden
City Manager
FROM: Joseph M. af~or~
Director o
DATE: January 20, 1994
SUBJECT: Resolution #11-94
The purpose of this Resolution is to state the City's intent to reimburse
non-startup costs from proceeds of the Tennis Center Phase II Line of Credit.
This is a requirement of the new IRS Regulations. The purpose of this
Regulation is to prevent municipalities from borrowing to pay back an expense
that may not have occurred within a reasonable time and which could result in
surplus funds to the municipality.
Due to the fact that we have been waiting until a substantial amount has been
expensed before executing the Line of Credit and that the first draw on the Line
of Credit will constitute a reimbursement, this Resolution is necessary to meet
IRS guidelines.
JMS/slh
cc: Rebecca S. O'Connor, Treasurer
MUDGE ROSE GUTHRIE ALEXANDER ~
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TORANOMON 37 MORI BUILDING
S-I TORANONION 3-CHO~IE~ MINATO-KU
TOKYO IO5, JAPAN
January 20, 1994
Alison McGregor-Harty
City Clerk
City of Delray Beach
100 N.W. 1st Avenue
Delray Beach, Florida 33444
Re: Resolution No. 11-94
(Reimbursement Resolution)
Dear Alison:
Enclosed are ten (10) copies of Resolution No. 11-94
relating to the City's pending Utilities Tax Revenue Notes,
Subordinate Series 1993, issue. It is my understanding that the
enclosed resolution will be considered for adoption on January 25,
1994.
If you should have any questions, please do not hesitate
to call.
Very truly yours,
Stephen D. Sanford
SDS/emi
Encs.
cc. Susan Ruby, ESq.