RES 2009-01 REIMBURSE CAPITAL EXPENDITURES IN CONNECTION WITH THE WWTP5 RESOLUTION No, 2009-01
A. RESOLUTION of the City Council of 'the City of. Bainbridge:
Island,' Washington, declaring its official. intent to: r i burse
capital expenditures ,in connection with the Winslow Waste Water
Treatment Plant Upgrade Project from proceeds of a future
borrowing.
WHEREAS, the .Cit y' of .Bainbridge Island, Washington the "fit " intends to make
expenditures. for the Prof ect identified.,bel r ; from funds that. are. available but .that are not' (and
f are not reasonably expected to be) reserved, allocated on a long-term basis, or otherwise set aside
for those expenditures, and reasonably expects to be� reimbursed for those expenditures from the
proceeds of bonds, short terra obligations, loans, notes, or other obligations (collectively referred
to herein as `bonds") issued to finance those expenditures; and
WHEREAS, certai.n. federal, regulations (the "federal reimbursement- regulations"
relating to the use of proceeds of tak exempt bonds to 'reir ur the issuer of t o bonds for
expenditures made before the.issue date . of the bonds require, among other .things, . that net later
than sixty days after paym' nt of the' original expenditure the Cityr .airy person designated
by the City to do so on its behalf) declare a reasonable official intent to reimburse those
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enditres from . proceeds' f bonds;..now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL of THE CITY OF BAINBRIDGE
ISLAND, WASHINGTON, ASFOLLOWS:
Acton 1. Descri tion of Pro' et for rich Expenditures are to be Made. The fit
intends to snare (and/or, not more than sixty days before the date of this declaration, : has
made) expenditures, and reasonably expects to reimburse itself for those expenditures �.:from
proceeds of beads, for the purchase of equipment and construction improvements for the
Winslow Waste Water Treatment Plant (the "Project").
Section 2. Maximum um PrInciDal Amount of obli ations: xt)ected "to be Issued for the
Project, The City expects that the maximum principal amount of bonds that will be issued to
finance the juste Water Treatment Plant Upgrade Project is expected to be not more than
$71P001000.
Section 3. Declaration Reasonable. The City Council has reviewed its existing and
reasonably foreseeable budgetary and financial circumstances and has determined that the City
reasonably expects to reimburse itself -for expenditures for the Project from pro seeds of bonds
because the City has no funds available that already are, or are reasonably expected to be,
reserved, allocated on a long-terxrr basis, or otherwise set aside by the City for those expenditures
n the Project.
Section 4. Limitations on Uses of Reimbursement Amounts. The City will not, within
one year after the expected reimbursement,, use amounts corresponding to proceeds received
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I CAPI'T'AL EXPENDITU E 1 E BURSE iENT APPROVED 1409.DOC
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from bonds issued in the future to re-imburse the City for. previously paid expenditures for the
Project in any manner that results in those amounts being treated as replacement proeeeds of any
tax exempt bonds, i.e., as a result of being deposited in a reserve fund, pledged furiid, sinking
fund or similar fund (other than a bona,:fide d bt - servic fund). that is expected -to be used to pay
principal of or interest on - tax exempt -bonds.. Nor will -the City use those amounts -in afiy manner
that employs an- abusive .rbitrage device to: avoid arbitrage . restrictions, .
Section 5. Date of Declaration. This declaration of official intent shall be. dated as of the
date of adoption of this resolution.
Section .Ratification: and Confirmation, 'Any actions of the City or its officers ' prion to
the date thereof and ,consistent .th lhe- tens of this' reslntin are ratified and confirmed.
Section Effective fate: This resolution shall be in full force and effect from" and after
its adoption and approval.
PASSED by the pity Council this 1 �' day of January, 2009.
APPROVED b the Mayor. this 15th day'' f a ar , .2009.
Darlene Kordonowy, Mayor
ATTEST:
Rosalind lind . Lassoff, CMCJ .pity Clerk
FILED WITH THE CITY CLERK: January 6, 200
P SSBI �BY THE CITY COUNCIL: January 14, Zoo
RESOLUTION leo. .200 9-01 -
1 CAPITAL, XP NDITUR REIl 4BURSPMENT APPRo' r 1409.DOC