Resolution 5244 - Bond Reimbursement - WWTP Expansionl�S(3LUTIGN NO. 5244
RESOLUTION RELATING To FINANCING OF CERTAIN PROPOSED PROJECTS;
ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS
UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the City Council of the City of Kalispell, Montana (the "City"), as
follows:
Section 1. Recitals.
1.01. The United States Department of Treasury has promulgated final regulations
governing the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to
reimburse the City for project expenditures paid by the City prior to the date of issuance of such
bonds. Those regulations (Treasury Regulations, Section 1.150-2) (the "Regulations") require
that the City adopt a statement of official intent to reimburse an original expenditure not later
than 60 days after payment of the original expenditure. The Regulations also generally require
that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds
within 18 months (or three years, if the reimbursement bond issue qualifies for the "small issuer"
exception from the arbitrage rebate requirement) after the later of (1) the date the expenditure is
paid or (ii) the date the project is placed in service or abandoned, but (unless the issue qualifies
for the "small issuer" exception from the arbitrage rebate requirement] in no event more than
three years after the date the expenditure is paid. The Regulations generally permit
reimbursement of capital expenditures and costs of issuance of the bonds.
1.02 The City desires to comply with requirements of the Regulations with respect to
certain projects hereinafter identified.
Section 2. official Intent Declaration.
2.01 The City proposes to undertake certain projects, which projects and the estimated
costs thereof are generally described on Exhibit A hereto, which is hereby incorporated herein
and made apart hereof (the "Projects").
2.02 Other than (i) expenditures to be paid or reimbursed from sources other than the
Bonds (as hereinafter defined), (ii) expenditures permitted to be reimbursed under the
transitional provision contained in Section 1.150-20)(2) of the Regulations, (ill) expenditures
constituting preliminary expenditures within the meaning of Section 1.150-2(f)(2) of the
Regulations, or (iv) expenditures in a "de rninimus" amount (as defined in Section 1. 1 50-2(f)(1)
of the Regulations), no expenditures for the Projects have heretofore been paid by the City and
no expenditures will be paid by the City until after the date of this Resolution.
2.03 The City reasonably expects to reimburse some or all of the expenditures made
for costs of the Projects out of the proceeds of debt in an estimated maximum aggregate principal
amount of $14,470,000 (the "Bonds") after the date of payment of all or a portion of the costs of
the Projects. All reimbursed expenditures shall be capital expenditures, a cost of issuance of the
Bonds or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the
Regulations.
Section 3. Budgetary Matters. As of the date hereof, there are no City funds
reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be
reserved, allocated on a longterm basis or otherwise set aside) to provide permanent financing
for the expenditures related to the Projects, other than pursuant to the issuance of the Bonds and
to pay costs of the Project in excess of the proceeds of the Bonds. The statement of intent
contained in this resolution, therefore, is determined to be consistent with the City's budgetary
and financial circumstances as they exist or are reasonably foreseeable on the date hereof.
Section 4. Reimbursement Allocations. The City Finance Officer or designee shall
be responsible for making the "reimbursement allocations" described in the Regulations, being
generally the transfer of the appropriate amount of proceeds of the Bonds to reimburse the source
of temporary financing used by the City to make prior payment of the costs of the Projects. Each
allocation shall be evidenced by an entry on the official boobs and records of the City maintained
for the Bonds or the Projects and shall specifically identify the actual original expenditure being
reimbursed.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 1ST DAY OF OCTOBER, 2007.
ATTEST:
Theresa White
City Clerk
Pamela B. K.enned
Mayor
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EXHIBIT A
Description of Projects
Estimated Cost
Expansion of the existing Kalispell Advanced $21,742,500
Wastewater Treatment Plant to increase the capacity
thereof and make related betterments. Major upgrades
include the headworks, influent pump station,
secondary treatment complex, disinfection, solids
treatment and odor control, and adding a new truck -
storage facility.
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