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HomeMy WebLinkAbout1991-07-22 91-301 ORDERcounca Date 7/22/91nOn Item NO. pl_3p_— Item/Subject: Declaration of Offical Intent foereimburse exepnlitures from tax-exempt bonds and notes per IRS proposed regulation 1.103-17 Responsible Department: Finance Commentary: The IRS bas issued a proposed regulation which requires the issuers of tax-exempt bonds and notes to declare thler intent to issue bonds and notes and to part or all of the proceeds to reimburse expenditures made by the tax empt issue prior to the issuance of the bonds or notes. Christ Record. bond counsel at Pie Le, Atwood faxed the attached delaration to meet the IRS requirements for the issuance of band and notes which have either been approved by the Council or the voters, or which willare anticipated to be presented to the Council for approval. This action is nota authorization for the i r of bonds o notes. and e does act takthe place of a bond order or therequirements for holding public hearings before the adoption of a band order as required by Charter. This i a public statement for IRS compliance Of the city]s intent, which f y or may not follow through with. 1; as xmA Manager's Comments: 1 Gry MmvFor Associated Information: Budget Approval: Allace —DICCIII Legal Approval City Solicimr Introduced For OPassage ❑-First Reading _ Page — of— ❑Referral geared to CgmcBw Cohen 91-301 CITY OF BANGOR (TITLE.) (®rbBrf Rec.h. n ofofEifal rent to eimburee Expendit s from.. rax -exempt pa _ bonds and notes per ffi5 proposed regulations 1.103-17. By W My Cpyaeit of As CRY of Dagger: ORDERED, TnT the attached declatatltnn of official intent prepared by Christopher Howard, Pierce, ground, City Bond Counsel is hereby adopted including exhibits A, B. C, and D. In City Council July 22.1991 Suspension of the Rules Passed Order Passed MEN!il. /7� 91-301 ORDER Title, Declaration of official intent to ...................................... Reimburse expenditures from tax -exempt bonds and dd]notes per IRS proposed regulotions 1.103 - As®gned to ...................................... Covncilman DECLARATION OP OPPICIAL IMTERT UURSUANT TO PROPOSED TRSASURy REGULATION f 1.103-3T RHEREASr the City of Bangor, Maine (the '"issuer") Currently intends to proceed with the following projects (the "projects"): 1. Construction/renovation of the Garland Street Middle School; 2. ReconstruCtion and improvement of sewer and stormwater drainage facilities to address Combined sewer Overflow requirements and sewer construction, reconstruction and improvement at Meadowbrook III, Blanchard DOW TxUCKP Old Capehart and Everett Street; 3. Improvements to the Issuer's Nursing Facility; 6. Capital improvements to be made at Hass Park: and 5. Expansion of Ua Issuer's airport terminal.. MMMSfesr the Issuer intends to finance the costs of the projects through the issuance of tax-exempt bonds and notes in anticipation thereof; and NHERHAS, Proposed Treasury Regulation $1.103-17 requires that an Issuer declare its official intent to reimburse expenditures with proceeds of tax-exempt obligations prior to the date of expendituret PDR, THEREFORE, the Issuer does hereby declare itsofficial intent as follows: 1. paQlargtion of Intent. The Issuer intends to reimburse expenditures made on the Projects prior to the issuance of either bonds or notes therefor with the proceeds of tax-exempt obligations to be issued by the Issuer. 2. gral DZscription Of 2ronertV to which'mb t Relates. The following is a reasonably accurate general functional description of the type and use of the property with respect to which reimbursements will be made (state expected size, cost or quantity of the property): a. Construction of improvements to and renovation of the Garland Street Middle School at a cost of approximately $61695,000, as approved by the State Of Maine Board of 'Sducation by Certificate of Approval for School Construction Aid dated Tune 13, 1991: b. Reconstruction and improvement of sewer and stormwater drainage facilities to address combined sewer overflow requirements and sewer construction, reconstruction and improvement at Meadow brook III, Blanchard, Dow Truck, Old Capehart and Everett Street: all as more particularly reflected in the description of sewer projects attached as Exhibit A hereto and at a total combined cost of approximately $3,365,000; c. Improvements to the Issuer's Nursing Facility as more particularly described in Exhibit B at a cost of approxim d. Capital improvements to Ibe made at Bass Park consisting of those improvements listed in Exhibit C attached hereto with a total combined cost of approximately $1,000,000. a. Expansion of the Issuer's airport terminal as more particularly described in Exhibit D at a cost of approximately $10,750,000, of which $5,730,000 is expected to be bonded. 3 'Tdeptif catiop of Source of Funds, Expanditures made prior to the issuance of bonds and/or notes to finance such Costa shall be funded with moneys from the following sources; ProProis= 12Urce I t i F d a. Garland Street Middle School General Fund b. sewer Sewer User Charge Revenues c. Nursing Facility Facility Revenues d. Bass Park Park Revenues and, to the Extent Necessary, Issuer General Fund a. Airport Terminal Airport Revenues The source of funds to be used to pay debt service on the proposed bonds and/or notes are. - f a. Garland Street Middle School b. sewer* c. Nursing Facility* d. ease Park* e. Airport Terminal -2- source Debt Servicm Payment All Unrestricted Issuer Revenue and state School Construction Aid sewer User Charges and Associated Fees Revenues Facility Revenues Park Revenues Airport Revenues *The bonds/notes for each of these projects will be general obligation bonds/ notes of the Issuer payable from all unrestricted tax and other revenue of the Issuer. Internally such obligations shell be payable first from the sources indicated above and only from general revenues to the extent of any deficiency. q• =atus of Bond and/or Notes. Tha bonds and/or notes to be issued to finance the costs of the Projects described above are intended to be tax-exempt obligations as described in Section 103(x) of the Internal Revenue Code of 1986, as amended. 5. public AmailabilitVo' 'al forest- This Declaration of official Intent shall be maintain" as a public record of the Issuer and shall be maintained and otherwise supervised by its Clark on behalf of the Issuer. This D@CIaratimn of official Intent shall be continuously available for public inspection during normal business hours of the Issuer on every business day of the period beginning the earlier of ten days after the date hereof or the date of issue of the bonds anal/or notes contemplated hereby and ending on, and including, the Hate of issue of such bands or notes at the office of the Clerk. 6. Authority for peolion.This declaration is adopted by order of the municipal officers of the Issuer. -3- 7122191 Project descripti was Exhibit A: Sewer and stormater drainage facilities: combined sewer separation Projects, per council Drder 91-113 and in response to the Consent Decree between the City of Bangor and the OSA BPA, and Maine DBP. Exhibit E: nursing Facility: renovation of space to add five rams which will canmadate ten beds. Five beds will be added when the project i complete, and an additional live will be added two years later. Exhibit C Bass Park:—recreation of spaces within the auditorium and Civic Center buildings, additional of equipment and equipage and certain improvements to the raceway. Included are: repair of the auditorium floor and bleachers; improvements to the kitchen, lockers r , rostrums, concession mp areas and lecture room; relaing parking lots and roadways .and the auditorium interior lighting; improvements to the parking lot and other improv see Six. Exhibit D: Airport Terminal: addition of.iB S square feet and the renovation of 4$9Lb including arems feet of apace in the domestic andinternationalarrivals buildings, gates, Office space, Custom area, waiting and concession areas.