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HomeMy WebLinkAbout2001-363 /' ~ RESOLUTION NO. 2001-363 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE CITY OF SAN BERNARDINO RELATING TO FINANCING OF CERTAIN PROJECTS ESTABLISHING COMPLIANCE WITH REIMBURSEMENT REGULATIONS UNDER THE INTERNAL REVENUE CODE. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION I Recitals: The Internal Revenue Services 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. The Regulations generally require that the Lessee, as issuer of the obligations, make a declaration of its official intent to reimburse itself for such prior expenditures out of the proceeds of a subsequently issued series of obligations within 60 days after payment of the expenditures, 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. The Lessee desires to comply with requirements of the Regulations with respect to certain projects to be undertaken within the City of San Bernardino. SECTION 2 Official Intent Declaration: The Lessee expects to make original expenditures with respect to the following described projects prior to the issuance of reimbursement obligations, and the Lessee reasonably expects to issue reimbursement obligations for such projects in the maximum principal amount shown below: 200112002 Proiects Maximum Amount of Obligations Exnected to be Issued for Proiect Purchase of 4 fire trucks $935,449.95 '. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2001-363 RESOLUTION OF THE CITY OF SAN BERNARDINO RELATING TO FINANCING OF CERTAIN PROJECTS ESTABLISHING COMPLIANCE WITH REIMBURSEMENT REGULATIONS UNDER THE INTERNAL REVENUE CODE. Other than (i) de minimis amounts permitted to be reimbursed pursuant to Section 1.150 (1)(1) 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 60 days prior to the date of adoptions of this resolution, All original expenditures for which reimbursement is sought will be capital expenditures or costs of issuance of the reimbursement obligations. SECTION 3 Budgetarv Matters: 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 for the original expenditures related to the projects, other than pursuant to the issuance of the reimbursement obligations. Consequently, it is not expected that the issuance of the reimbursement obligations will result in the creation of any replacement proceeds. SECTION 4 Reimbursement Allocations: The Lessee's Director of Finance or her designee, shall be responsible for making "reimbursement allocations;" described in the regulations, being generally the transfer of the appropriate amount of proceeds of the reimbursement obligations to reimburse the source of temporary financing used by the 24 Lessee to make payment of the original expenditures related to the projects, Each 25 26 27 28 reimbursement allocation shall be made within 30 days of the date of issuance of the reimbursement obligations, shall be evidenced by an entry on the official books and 2 .' 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2001-363 RESOLUTION OF THE CITY OF SAN BERNARDINO RELATING TO FINANCING OF CERTAIN PROJECTS ESTABLISHING COMPLIANCE WITH REIMBURSEMENT REGULATIONS UNDER THE INTERNAL REVENUE CODE. records of the Lessee maintained for the reimbursement obligation and shall specifically identify the original expenditures being reimbursed. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a joint regular meeting thereof, held on the ~ day of December, 2001, by the following vote, to wit: COUNCILMEMBERS AYES NAYS ABSTAIN ABSENT ESTRADA X LIEN X MCGINNIS X SCHNETZ X SUAREZ X ANDERSON X MC CAMMACK X ~k.~ Rac Clark, City Clerk day of December, 2001. The foregoing resolution is hereby approved this I ~?L . . /._____ ufith Valles, Mayor Cfty of San Bernardino ) Approved as to form and legal content: JAMES F. PENMAN City Attorney BY: ~ }~~ () 3