R-14-54 RESOLUTION NO. R-14-54
RESOLUTION OF OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH
PROCEEDS OF A BORROWING
WHEREAS, the City of Fairfax, Virginia (the "Borrower"), acquired and installed
synthetic turf at the Fairfax High School athletic field during FY2015 (the "Acquisition"); and
WHEREAS, the Borrower has advanced $659,778 of its own funds to pay for the
acquisition and installation (the "Expenditures") of the synthetic turf prior to incurring
indebtedness and plans to receive reimbursement of that amount from the proceeds of a lease
financing;
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of
Fairfax, Virginia:
1. The Borrower intends to utilize the proceeds of lease financing or to incur other
debt, in an amount not currently expected to exceed $1,586,000, to pay the costs of
the acquisition and installation of synthetic turf at the Fairfax High School athletic
field and the acquisition of replacement vehicles and equipment.
2. The Borrower intends that $659,778 of the proceeds of the lease financing be used
to reimburse the Borrower for funds expended to pay for the acquisition and
installation of the synthetic turf at the Fairfax High School athletic field during
FY2015.
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 lease, (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
lease to reimburse an Expenditure, no later than 10 months after the late of the date
on which the Expenditure is paid or the Acquisition occurs or is 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 September, 2014.
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Mayor
ATTEST:
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City Clerk
The vote on the motion to approve was recorded as follows:
VOTE:
Councilman DeMarco Aye
Councilman Greenfield Absent
Councilmember Loftus Aye
Councilman Meyer Aye
Councilmember Miller Aye
Councilmember Schmidt Aye