R-07-24
RESOL TITION NO_ R.-07-24
RESOLUTION OF OFFICIAL INTENT TO REIlVIBTIR.SE EX:PENDITURES ~ITH
PR.OCEEDS OF A BOR.R.O~ING
""HERE-AS, the City of Fairfax, Virginia (the ""Borro-vver"")". intends to acquire the Eleven
Oaks School property (the Acquisition); and
""HEREAS., plans for the Eleven Oaks School property acquisition have advanced and the
Borrovv-er expects to advance its ovvn funds to pay acquisition costs related to
the Acquisition (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 CITY COUNCIL OF THE CITY OF FAIR.FAX:,
VIR.GINIA:
1. The BorroV\Ter intends to utilize the proceeds of tax-exempt bonds or taxable debt (the
'''Bonds''') or to incur other debt, iI1 an amount not currently expected to exceed
$4,000,000 to pay the costs of the Acquisition.
2. The Borrovver intends that the proceeds of the Bonds be used to reimburse the
Borrovver for Expenditures V\Tith respect to the Acquisition made on or after the date
that is no more than 60 days prior to the date of this Resoh..:ltion_ The Borrovver
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, nnless 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 Expenditure), (b) a cost of
issuance vvith 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 Borro'V'Ver so long as such grant does not impose any obligation or
condi"tion (directly or indirectly) to repay any amount to or for the benefit of the
Borrovver.
4_ The BorroV\Ter intends to make a reimbursement allocation, vvhich is a vv-ritten
allocation by the Borrovver ilia"t evidences "the Borrovver's use of proceeds of the Bonds
to reimburse an Expenditure, no later than 18 months after the later of the date on
vvhich the Expenditure is paid or the Acquisition occurs or is abandoned, but in no
event more than three years after t:he date on vvhich the Expenditure is paid. The
Borrovver recognizes that exceptions are available for certain ....preliminary
expendit:ures,'" costs of issuance., certain de minimis amoUI1ts, 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 Borrovver intends that the adoption of this resolution confirms the ....official intent"''''
vvithin the meaning of Treasury Regulations Section 1 _ 150-2 promulgated under the
Intemal Revenue Code of 1986., as amended.
6. This resolution shall take effect immediately upon its passage_
Adopted June 12,2007
Attest:
Vote:
Councilwoman Cross
Councilman Greenfield
Councilwoman Lyon
Councilman Rasmussen
Councilman Silverthorne
Councilwoman Winter
Aye
Aye
Aye
Aye
Aye
Aye
~
Mayor ~