Resolution No. 11-35 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
RESOLUTION NO. 11- 35-
A RESOLUTION AUTHORIZING THE REIMBURSEMENT OF EXPENDITURES WITH
REIMBURSEMENT OBLIGATION PROCEEDS
WHEREAS,the City of Tigard (the"City") has made and expects to make expenditures from its
available funds to finance improvements to the City's eater system,including but not limited to,
water facilities included in the Water Rate Study adopted by the City Council on November 9,2010
in Resolution No. 10-58 (the"Public Improvements");and
WHEREAS, the City reasonably expects to issue bonds,bond anticipation notes,or other
obligations as described in Ordinance No. 10-19 adopted by the City Council on December 28,2010
(the"Reimbursement Obligations") and to use the proceeds of the Reimbursement Obligations to
reimburse the City for the expenditures it makes from its available funds for the Public
Improvement;and
WHEREAS,to permit interest on the Reimbursement Obligations to be excludable from gross
income, the Internal Revenue Code of the United States requires that the City declare its intent to
reimburse itself from Reimbursement Obligation proceeds within 60 days after the expenditures are
made;and
WHEREAS,the City expects that the principal amount of the Reimbursement Obligations will not
exceed one hundred and sixty million dollars ($160,000,000) as authorized by Ordinance No. 10-19
adopted by the City Council on December 28,2010;and
WHEREAS, the City understands that the use of proceeds of the Reimbursement Obligations to
reimburse an expenditure may occur no later than the later of(a) 18 months after the date of such
expenditure or (b) 18 months after completion of the projects to which such expenditure relates, and
in any event no later than three years after the date of such expenditure. Furthermore,proceeds of
the Reimbursement Obligations generally may not be used to reimburse expenditures paid earlier
than sixty (60) days prior to the date of the adoption of this resolution. Preliminary expenditures in
an amount not exceeding 20 percent of the Reimbursement Obligation proceeds are not subject to
these limitations. Preliminary expenditures include: architectural,engineering, surveying, soil testing
and similar costs incurred prior to commencement of acquisition, construction or rehabilitation of
the projects,other than land acquisition, site preparation and similar costs incident to
commencement of construction. In addition,de minimus expenditures (the smaller of$100,000 or
five percent of the Reimbursement Obligation proceeds) of any kind are not subject to the
reimbursement rules.
NOVI,THEREFORE,BE IT RESOLVED by the Tigard City Council that:
RESOLUTION NO. 11- 3 .
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SECTION 1. DECLARATION OF INTENT TO REIMBURSE. The City hereby declares its
official intent pursuant to Section 1.150-2 of the Federal Income Tax Regulations to
reimburse itself for expenditures it makes for the public improvements with the
proceeds of the Reimbursement Obligations.
SECTION 2. DELEGATION. The city manager or the financial and information services
director 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 City
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 City.
SECTION 3. EFFECTIVE DATE. This res lution is effective upon its adoption.
PASSED: This day 2011.
Z�/5r
Mayor- City of Tigar
ATTEST:
City Recorder-City of Tigard
RESOLUTION NO. 11-
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