HomeMy WebLinkAbout2016-31 Reimburse Expenditures from Tax-Exempt Obligations
RESOLUTION NO. 2016- ~l
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND,
OREGON DECLARING ITS INTENTION TO REIMBURSE
EXPENDITURES FROM PROCEEDS OF TAX-EXEMPT OBLIGATIONS
RECITALS:
A. The City Council of the City of Ashland, Oregon (the "Issuer") desires to finance the costs of
a new reservoir expected to service the Crowson and Granite service areas, including a pre-
design study to confirm storage requirements and evaluation of the piping to the Crowson
reservoir (the "Project"); and
B. The Issuer intends to finance costs of the Project or portions thereof with the proceeds of the
sale of obligations the interest upon which is excluded from gross income for federal income
tax purposes (the "Obligations"); and
C. Prior to the issuance of the Obligations the Issuer desires to incur certain capital expenditures
(the "Expenditures") with respect to the Project from available moneys of the Issuer; and
D. The City Council of the Issuer has determined that those moneys advanced to pay the
Expenditures prior to the issuance of the Obligations are available only for a temporary period
and it is necessary to reimburse the Issuer for the Expenditures from the proceeds of the
Obligations.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. The Issuer hereby states its intention and reasonably expects to reimburse
Expenditures of the Project paid prior to the issuance of the Obligations with proceeds of the
Obligations.
SECTION 2. The reasonably expected maximum principal amount of the Obligations is
$9,000,000.
SECTION 3. This resolution is being adopted no later than 60 days after the date on which the
Issuer paid its first Expenditure on the Project to be reimbursed from proceeds of the Obligations
(excluding certain preliminary expenditures which may have been paid before that date).
SECTION 4. The Issuer will make a reimbursement allocation, which is a written allocation that
evidences the Issuer's use of proceeds of the Obligations to reimburse an Expenditure, no later than
18 months after the later of the date on which the Expenditure is paid or the Project is placed in
service or abandoned, but in no event more than three years after the date on which the Expenditure
is paid.
SECTION 5. This resolution is adopted as official action of the Issuer in order to comply with
Treasury Regulation Section 1.150-2 and any other regulations of the Internal Revenue Service
relating to the qualification for reimbursement of Expenditures of the Issuer incurred prior to the
date of issue of the Obligations.
SECTION 6. The Finance Director of the Issuer is hereby authorized to make future declarations
of intent to reimburse under Section 1.150-2 of the Federal Income Tax Regulations, on behalf of
the Issuer and without further action by the City Council. All such future declarations shall be in
writing and the original or a certified copy of each declaration shall be maintained in the public
records of the Issuer.
SECTION 7. This resolution takes effect upon signing by the Mayor.
This resolution was duly PASSED and ADOPTED this _ day of December, 2016.
AVM4,
Aarbara Christensen, City Recorder
SIGNED and APPROVED this day of December, 2016.
J Stromberg, Mayor
Reviewed as to form:
DaviLohman, City Attorney
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