R-06-06
R.esolut:ion No. R.-06-06
R.ESOLUTION OF OFFICIAL INTENT TO R.EIJVl:BUR.SE
EXPENDITUR.ES VVITFI PR.OCEEDS OF A BOR.R.OVVING:
"'V\TI-IE:R...EAS, the City of Fairfax" Virginia (the "'BorroVlV'"cr""'), intends to acqu.ire,
construct and equip capital improvements for its Jerman:toVVTl Road Project (the "Project''');
and
~HERE.A.S, plans for the Project have advanced and the Borrov..rer expects to
advance its OVVI1 :fun.ds 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 R.ESOLVED BY TFIE CITY COUNCIL OF TFIE CITY OF FAIR.FAX.
VIR.G:INIA:
1. The Borrovver in.__tends to u.tilize the proceeds of lease revenue bonds (the '''BondsH)
or to incu.r other debt", in an a.rn.ount not currently expected to exceed $1,800,000 to
pay the costs of the Project.
2. The BOTrovver intends that the proceeds of the Bonds be used to reimburse the
Borrovver ror Expenditures vvith respect to the Project made on or after the date
that is no more than 60 days prior to the date of this Resolution. The BOrTovver
reasonably expects on the date hereof that it vvill reimburse the Expenditures "VVith
the proceeds of the Bonds or other debt.
3. Each Expenditure vvas or vvill be,. unless otherv\Tise 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 Expenditu.re),.
(b) a cost of issuarlce vvith respect to the Bonds,. (c) a nonrecurring item that is not
customarily payable from cu.rrent revenues,. or (d) a grant to a party that is not
related to or a.n agent of the Borrovver so long as such grarlt does not impose a.ny
obligation or condition (directly or indirectly) to repay any amount to or ror the
benefit of the Borrovver.
4. The Borrovver intends to make a reimbursement allocation,. vvhich is a vvritten
allocation by the BorroV\Ter that evidences the Borro"",,"er"'s u.se of proceeds of the
Bonds to reimburse a.n Expenditure, no later tha.n 18 months after the later or the
date on -vvhich "the Expenditure is paid or the Project is placed in service or
abar:1doned", but in no event more than three years after the date on vvhich the
Expenditure is paid. The BOTrovver recognizes that exceptions are available for
certain "preliminary expenditures,."" costs or issu.ance,. certain de minimis amounts"
expenditures by "small issuers'" (based Oll the year of issuarlce and not the year of
expenditure) and expenditures ror construction of at least five years.
5. The Borro"VrrtTer intends tha"t the adoption of this resolution confirms the "official
intent"'" "VrrtTithin the meaning of Treasury Regulations Section 1.150-2 promulgated
under the Ir1temal Revenue Code or 1986,. as amended.
6. This resolution shall take effect immediately upon its passage.
~dopted JV1arch 14,2006
G\~~
~ttest:
VOTE:
Councilvvomar1 Cross
Councilman Greenfield
Councilvvoman Lyon
Councilman Rasmussen
Councilman Silverthome
Councilmember "VVinter
~ye
Aye
Aye
Aye
Aye
~ye