20040309 r-04-14RESOLUTION NO. R-04-14
RESOLUTION OF OFFICIAL INTENT TO REIMBURSE EXPENDITURES
WITH PROCEEDS OF A BORROWING.
WHEREAS, the City of Fairfax, Virginia (the "Borrower") intends to construct a new
Regional Library or reconstruct the existing Regional Library facility (the "Project") in the
Old Town Fairfax area; and
WHEREAS, plans for the Project have advanced and the Borrower expects to
advance its own funds to pay expenditures related to the Project (the "Expenditures") prior to
incurring indebtedness and to receive reimbursement for such Expenditures from proceeds of
tax-exempt bonds or taxable debt, or both;
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FAIRFAX,
VIRGINIA:
1. The Borrower intends to utilize the proceeds of tax-exempt bonds (the
"Bonds") or to incur other debt, in an amount not currently expected to exceed $16,000,000 to
pay the costs of the Project.
2. The Borrower intends that the proceeds of the Bonds be used to reimburse the
Borrower for Expenditures with respect to the Project made on or after January 10, 2004,
which date is no more than 60 days prior to the date hereof. The Borrower reasonably expects
on the date hereof that it will reimburse the Expenditures with the proceeds of the Bonds or
other debt.
3. Each Expenditure was or will be, unless otherwise approved by bond counsel,
either (a) of a type properly chargeable to a capital account under general federal income tax
principles (determined in each case as of the date of the Expenditure), (b) a cost of issuance
with respect to the Bonds, (c) a nonrecurring item that is not customarily payable from current
revenues, or (d) a grant to a party that is not related to or an agent of the Borrower so long as
such grant does not impose any obligation or condition (directly or indirectly) to repay any
amount to or for the benefit of the Borrower.
4. The Borrower intends to make a reimbursement allocation, which is a written
allocation by the Borrower that evidences the Borrower's use of proceeds of the Bonds to
reimburse an Expenditure, no later than 18 months after the later of the date on which the
Expenditure is paid or the Project is placed in service or abandoned, but in no event more than
three years after the date on which the Expenditure is paid. The Borrower recognizes that
exceptions are available for certain "preliminary expenditures," costs of issuance, certain de
minimis amounts, expenditures by "small issuers" (based on the year of issuance and not the
year of expenditure) and expenditures for construction of at least five years.
5. The Borrower intends that the adoption of this resolution confirms the "official
intent" within the meaning of Treasury Regulations Section 1.150-2 promulgated under the
Internal Revenue Code of 1986, as amended.
6. This resolution shall take effect immediately upon its passage.
ADOPTED this 9th day of March 2004.
~'-iV~AYOR DATE
Attest:
City Clerk
VOTE:
Councilwoman Cross
Councilman Greenfield
Councilwoman Lyon
Councilman Rasmussen
Councilman Silverthorne
Councilmember Winter
Aye
Aye
Aye
Aye
Aye
Aye