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Home My WebLink AboutRESOLUTION NO. 2022-29Fairtax / 419915-34 / RRR RESOLUTION NO. 2022-29 RESOLUTION RELATING TO THE FINANCING OF PROPOSED PROJECTS TO BE UNDERTAKEN BY THE CITY OF FAIRFAX, IOWA; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE BE IT RESOLVED by the City Council (the "Council") of the City of Fairfax, Iowa (the "City"), as follows: Section l. Recitals. (a) The Internal Revenue Service has issued Section 1.150-2 of the Income Tax Regulations (the "Regulations") dealing with the issuance of bonds, all or a portion of the proceeds of which are to be used to reimburse the City for project expenditures made by the City prior to the date of issuance. (b) The Regulations generally require that the City make a prior declaration of its official intent to reimburse itself for such prior expenditui•es out of the proceeds of a subsequently issued borrowing and that the borrowing occur and the reiinbursement allocation be inade froin the proceeds of such borrowing within a certain period after the payment of the expenditure or the date the project is placed in service; and (c) The City desires to comply with requirements of the Regulations with respect to a certain project hereinafter identified. Section 2. Official Intent Declaration. (a) The City proposes to undertake the following projects and to make original expenditures with respect thereto prior to the issuance of bonds, notes or other obligations (the "Bonds") and reasonably expects to issue the Bonds for such project in the maximum principal amount shown below: Pro�ects Maximum Amount of Bonds Expected to be Issued for Project Street, water utility system, sanitary $2,300,000 sewer utility systein and storm water drainage and recreation trail iinproveinents (b) Other than (i) expenditures to be paid or reimbursed from sources other than the Bonds or (ii) expenditures inade not earlier than sixty days prior to the date of this Resolution or (iii) expenditures amounting to the lesser of $100,000 or 5% of the proceeds of the Bonds or (iv) expenditures constituting preliininary expenditures as defined in Section 1.150-2( fl(2) of the Regulations, no -3- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Fairfax / 419915-34 / RRR expenditures for the project have heretofore been made by the City for which the City will seek reiinburseinent froin the proceeds of the Bonds. (c) This declaration is a declaration of official intent adopted pursuant to Section 1.150-2 of the Regulations. Section 3. Budgetary Matters. As of the date hereof, there are no City funds reserved, allocated on a long term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long tenn basis or otherwise set aside) to provide permanent financing for the expenditures related to the project, other than pursuant to the issuance of the Bonds. This resolution, therefore, is detennined to be consistent with the City's budgetary and financial circuinstances as they exist or are reasonably foreseeable on the date hereof, all within the meaning and content of the Regulations. Section 4. Reiinbursement Allocations. The City's financial officer shall be responsible for making the "reiinbursement allocations" described in the Regulations, being generally the transfer of the appropriate ainount of proceeds of the Bonds to reiinburse the source of temporary financing used by the City to �nake payment of the prior costs of the project. Each allocation shall be evidenced by an entry on the official books and t-ecords of the City maintained for the Bonds, shall specifically identify the actual prior expenditure being reiinbursed or, in the case of reitnbursement of a fund or account, the fund or account from which the expenditure was paid, and shall be effective to relieve the proceeds of the Bonds fi-oin any restriction under the bond resolution or other relevant legal documents for the Bonds, and under any applicable state statute, which would apply to the unspent proceeds of the Bonds. Section 5. Repealer. All resolutions, parts of resolutions, or actions of the City Council in conflict herewith are hereby repealed, to the extent of such conflict. Passed and approved March 8, 2022. ��...�--�� -��. ��. Burnell G. Frieden, Mayor Attest: / - / � 1F/1�. , (t/' ��V� tl�,/�(� � �/ ..�''�� R� �(1, r Cy thia K. Stiinson, City Clerk/Treasurer ti�b�,a�}✓ � 1 4 i / { r -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Fairt<1x / 419915-34 / RRR ATTESTATION CERTIFICATE: STATE OF IOWA LINN COUNTY SS: CITY OF FAIRFAX I, the undersigned, City Clerk of the City of Fairfax, Iowa, hereby certify that the attached is a true, con-ect and coinplete transcript of the proceedings had and action taken by the City Council in connection with reimbursement bond regulations, including a true, correct and complete copy of the t�esolution refen•ed to in such ininutes. WITNESS MY HAND this 9t�' day of March, 2022. I�/,/1'_c>__,_V(,'C ��-L %j�, l�,l. �� i V�1�,'! u"'L-,. Cy�thia K. Stimson, City Clerk/Treasurer -5- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA