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RESOLUTION NO. 2001-363
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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
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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
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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
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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
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Rac Clark, City Clerk
day of December,
2001.
The foregoing resolution is hereby approved this
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ufith Valles, Mayor
Cfty of San Bernardino
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Approved as to form
and legal content:
JAMES F. PENMAN
City Attorney
BY: ~ }~~
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