Agenda - Council - 08/13/1991 - Laserfiche WebLink

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~ALI~ 12 '91 15:4.~ HOLMFS ~ GRAVEI'~ P.iO III. The Reimbursement Rules - Governmental Bonds and 50I(CX3~ Bonds A. Beginning with governmental and 501(eX3) bonds issued after September ?, 1991,.if bond proceeds are used to reimburse au expenditure made before the bonds were issued, the bond proceeds will not be considered "spent" unless tour basic requ{~ments are met: 1. Declaration of Intent. (a) General. The issuer, or a person or entity authorized to act on its behalf, declares an intent to reimbu~'se an expenditure with bond proceeds. (b) Public Availabiltt_~. The declaration of intent to reimburse must be publicly available in the offieial books, records or proceedings o[ the issuer which must be continuously available for inspection by the general public at the main administrative office or customary location of public records, during normal business hours on every business day of the issue being 10 days after official intent is deetared and ending on the date of issue of the bonds. must: Content of Declaration of Intent. The official intent (1) state that the issuer intends to reimburse the expenditure by incurring taxable or tax-exempt debt (not just '"debt"); (ii) contain a reasonably accurate genera[ functional description of the type and use of the property, so that a person not familiar with the properpty would generally understand the nature of the property. The description must identify general character, type or purpose (e.g. law enforcement equipment, hospital equipment, administration building), state anticipated size, quantity or cost (e.g., 20 police ears, law enforcement equipment costing $400,000, five x-ray machines, $50,000 - square foot admiuistration building); and (iii) identify the reasonably expected source of funds to be used to pay the expenditure and the reasonably expected source of funds to pay debt service on the Bonds. 2. Official Intent Period. The official intent must be declared not more than two years before the date of reimbursement. (a) Emergency Exoenditures - If the expenditure was not reasonably foreseeable more than :15 days before its payment (e.g., a fire desWoys equipment), the official inten~ must be declared within 30 day~ after the expenditure is made.