Loading...
HomeMy WebLinkAbout99-180 RESOLUTION 99-180 AUTHORIZING DECLARATIONS OF OFFICIAL INTENT UNDER U.S. TREASURY REGULATIONS WITH RESPECT TO REIMBURSEMENTS FROM BOND PROCEEDS OF TEMPORARY ADVANCES MADE FOR PAYMENTS PRIOR TO ISSUANCE, AND RELATED MATTERS. WHEREAS, United States Treasury Regulations prescribe conditions under which proceeds of bonds, notes or other obligations used to reimburse advances made for certain expenditures paid before the issuance of such obligations, will be deemed to be expended (or properly allocated to expenditures) for purposes of Sections 103 and 141-150 of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code") so that upon such reimbursement the proceeds so used will not further be subject to requirements or restrictions under those sections of the Internal Revenue Code; and WHEREAS, certain provisions of those Regulations require that there be a Declaration of Official Intent not later than 60 days following payment of the expenditure expected to be reimbursed from proceeds of such obligations, and that the reimbursement occur within prescribed time periods after the expenditure is paid or after the property is placed in service; and WHEREAS, Arizona Revised Statutes Sections 11-251 et seq., 11-254 and 11-254.04 provide that the Board of Supervisors of Mohave County has the authority to engage in economic development activities such as any project, assistance, undertaking, program or study, whether within or outside the boundaries of the county, including acquisition, improvement, leasing or conveyance of real or personal property or other activity, that the board of supervisors has found and determined will assist in the creation or retention of jobs or will otherwise improve or enhance the economic welfare of the inhabitants of the comity; and WHEREAS, the Mohave County Board of Supervisors wishes to take steps for compliance with those Regulations; NOW, THEREFORE, be it resolved by the Board of Supervisors of Mohave County (the "Issuer") as follows: Section 1. Definitions. The following definitions apply to the terms used herein: "Authorized Official" means the Chairman of the Board or the County Manager of the Issuer or any person designated for the purpose by the Board. "Board" means the Board of Supervisors of the Issuer. "Bonds" means and includes bonds, notes, certificates and other obligations included in the meaning of "bonds" under Section 150 of the Internal Revenue Code. "Declaration of Official Intent" means a declaration of intent, in the form and manner and time contemplated in the Reimbursement Regulations, that the advances for expenditures referred to therein are reasonably expected to be reimbursed from the proceeds of Reimbursement Bonds to be issued after those expenditures are paid. "Reimbursement" or "reimburse" means the restoration to the Issuer of money temporarily advanced from its other funds and spent for capital expenditures (and certain other types of expenditures qualifying under the Reimbursement Regulations, including any issuance costs for Reimbursement Bonds) before the issuance of the Reimbursement Bonds, evidenced in writing by an allocation on the books and records of the Issuer that shows the use of the proceeds of the Reimbursement Bonds to restore the money advanced for the original expenditure. "Reimbursement" or "reimburse" generally does not include the refunding or retiring of Bonds previously issued and sold to, or borrowing from, unrelated entities. "Reimbursement Bonds" means Bonds the proceeds of which are to be used for reimbursement of such capital or other qualifying expenditures paid before issuance of the Bonds. "Reimbursement Regulations" means Treasury Regulations Section 1.150-2 and any amendments thereto or superseding regulations, whether in proposed, temporary or final form, as at the time applicable, prescribing conditions under which the proceeds of Reimbursement Bonds when allocated or applied to a reimbursement will be treated as expended for all or any purposes of Sections 103 and 141 to 150 of the Internal Revenue Code. Section 2. Authorization and Requirement of Declarations of Official Intent. Each Authorized Official is authorized, individually, to prepare and sign Declarations of Official Intent with respect to capital and other expenditures to which the Reimbursement Regulations apply (and including any costs of issuance of the Reimbursement Bonds) to be made from money temporarily available and which are reasonably expected to be reimbursed (in accordance with applicable authorizations, policies and practices) from the proceeds of Reimbursement Bonds, to make appropriate reimbursement and timely allocations from the proceeds of the Reimbursement Bonds to reimburse such prior expenditures, and to take any other actions as may be appropriate, all at the times and in the manner required under the Reimbursement Regulations to satisfy the requirements for the reimbursement to be treated as an expenditure of such proceeds for purposes of Sections 103 and 141 to 150 of the Internal Revenue Code. No advance from any fund of account or order for payment may be made for expenditures (other than expenditures excepted from such requirement under the Reimbursement Regulations) that are to be reimbursed subsequently from proceeds of Reimbursement Bonds unless a Declaration of Official Intent with respect thereto is made within the time required by the Reimbursement Regulations. All Declarations of Official Intent heretofore made on behalf of the Issuer are hereby ratified and adopted. Section 3. Open Meeting. This Board finds and determines that all formal actions of this Board concerning and relating to the adoption of this Resolution were taken in an open meeting of this Board and that all deliberations of this Board and of any committees that resulted in those formal actions were in meetings open to the public in compliance with the law. PASSED AND ADOPTED this 26th day of April, 1999. MOItAVE~~RVISORS ~~j~rm~ 'theBo~d DECLARATION OF OFFICIAL INTENT For Reimbursement of Expenditures from Bonds This is a Declaration of Official Intent under U.S. Treasury Regulations for the purposes of Sections 103 and 141 to 150 of the Internal Revenue Code of i986, as amended (the "Internal Revenue Code"). 1. The Mohave County Board of Supervisors (the "Issuer") declares that it reasonably expects that the expenditm'es described in Section 2 will be reimbursed with the proceeds of bonds (as defined in Section 150 of the Internal Revenues Code). The maximum principal mnount of the bonds expected to be issued for the project, property, progran~ or purpose toward which the expenditures in Section 2 are being made is $10,000,000. 2. Description of capital expenditures to be reimbursed. Expenditures for the design, engineering, procuring, and construction of a water supply system to serve industrial development in the 1-40 Con'idor. The undersigned has been authorized by the Issuer to make and sign this Declaration on behalf of the Issuer. Date of Declaration: Apr±l 26 ,1999 M O HAVE~ i~UP ERVISO RS By: ~xfit, ~