2097\J
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RESOLUTION NO.2097
A RESOLUTION ESTABLISHING COMPLIANCE WITH REIMBURSEMENT REGULATIONS
UNDER THE INTERNAL REVENUE CODE
Recitals:
1.The Internal Revenue Service has issued Section 1.150-2 of the Income Tax Regulations (the
"Regulations") dealing with the issuance of obligations, all or a portion of the proceeds of which
are to be used to reimburse the Lessee for project expenditures made by the Lessee prior to
the date of issuance of the obligations.
2.The Regulations generally require that the Lessee,as issuer of the obligations,make a decla
ration of its official intent to reimburse itself for such prior expenditures out of the proceeds of
a subsequently issued series of obligations within sixty (60)days after payment of the expendi
tures, that the obligations be issued and the reimbursement allocation be made from the
proceeds of such obligations within the reimbursement period (as defined in the Regulations),
and that the expenditures reimbursed be capital expenditures or costs of issuance of the
obligations.
3.The Lessee desires to comply with requirements of the Regulations with respect to certain
projects to be undertaken within the city.
Resolved:
1.The Lessee expects to make original expenditures with respect to the following described
projects priorto the issuance of reimbursement obligations,and the Lessee reasonably ex
pects to issue reimbursement obligations for such projects in the maximum principal amount
shown below:
Maximum Amount of Obligations
1998 Projects Expected to be Issued for Project
1998 Lease/Purchase Financing of $575,000
vehicles and equipment as per
1998 budget.
2.Other than (i) de minimis amounts permitted to be reimbursed pursuant to Section 1.150-2(f)(l)
of the Regulations or (ii)expenditures constituting preliminary expenditures as defined in
Section 1.150-2(d)(2)of the Regulations, the Lessee will not seek reimbursement for any
original expenditures with respect to the foregoing projects paid more than sixty (60)days prior
to the date of adoption of this resolution. All original expenditures for which reimbursement is
sought will be capital expenditures or costs of issuance of the reimbursement obligations.
3.As of the date hereof, there are no Lessee funds reserved,pledged, allocated on a long term
basis or otherwise set aside (or reasonably expected to be reserved,pledged, allocated on a
long term basis or otherwise set aside) to provide permanent financing forthe original expendi
tures related to the projects,other than pursuantto the issuance of the reimbursement obliga
tions. Consequently, it is not expected that the issuance of the reimbursement obligations will
result in the creation of any replacement proceeds.
4. The Lessee's City Manager shall be responsible for making the "reimbursement allocations"
described inthe Regulations,being generally the transferof the appropriate amount of pro
ceeds of the reimbursement obligations to reimburse the sourceof temporary financing used
by the Lessee to make payment of the original expenditures related to the projects.Each
reimbursement allocation shall be made within thirty (30) days of the date of issuance of the
reimbursement obligations,shall be evidenced by an entry on the official books and records of
the Lessee maintained for the reimbursement obligations and shall specifically identify the
original expenditures being reimbursed.
5.This resolution shall supersedeany previous resolution ofthe City Council relating to the
issuance of reimbursement obligations with respect to the projects.
Adopted by the City Council on March 24,1998.
ATTEST^Mayor
nnance Director