HomeMy WebLinkAbout2013-07-08 13-243 RESOLVECOUNCIL ACTION
Item No. 13-243
Date: July 8, 2013
Item/Subject: Resolve, Declaration of Official Intent to Reimburse Expenditures on the BIA
Terminal Renovation Project from the proceeds of Tax -Exempt Obligations
Responsible Department: Finance
Commentary:
In anticipation of issuing bonds to partially finance the renovation of the BIA domestic terminal, the
City may incur costs prior to the actual bond issue. In order to pay for the incurred expenses, the
City must be on record with its intent to reimburse for these incurred expenses within 60 days of the
expenditures occurring.
City staff will be working with our bond counsel to determine what if any portion of the debt could
be issued as either tax-exempt or AMT debt. In the end, the bond issue could be wholly taxable.
This process will take time, but in order to ensure that the City can reimburse itself from bond
proceeds, the attached order needs to be adopted.
Manager's Comments:
This item was reviewed by the Finance Committee on 7/1/13
and recommended for approval.
Associated Information: Resolve
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
Department Head
l City Manager
Z& 1 �� " 2 -
Fi nce Director
Page _of_
Solicitor
13-243
t JULY 89 2013
Assigned to Councilor Longo
CITY OF BANGOR
(TITLE.) Resolve, Declaration of Official Intent to Reimburse Expenditures on the BIA
Terminal Renovation Project from the Proceeds of Tax -Exempt Obligations
WHEREAS, the City of Bangor, Maine (the "Issuer'o currently intends to proceed with the
renovation of the BIA Terminal (the "Project'; and
WHEREAS, the Issuer intends to finance the costs of the Project through the issuance of tax-
exempt and/or taxable bonds, to the extent other funds are not available therefore;
and
WHEREAS, the Issuer is not certain at this time how much of the Project may be financed with
tax-exempt bonds and how much will need to be financed with taxable bonds; and
WHEREAS, Treasury Regulation § 1.150-2 requires that an Issuer declare its official intent to
reimburse expenditures with proceeds of tax-exempt prior to the date of such
expenditures;
Now, therefore, by the City Council of the City of Bangor be it hereby RESOL VEP.
1. Declaration of Intent. The Issuer intends to reimburse itself from the proceeds
of such tax-exempt obligations issued by the Issuer for the Project, which tax-exempt
obligations are expected to be issued in an amount not to exceed $1,800,000 for expenditures
made or incurred by it on the Project prior to the issuance of such tax-exempt.
2. General Description of Property to Which Reimbursement Relates. Set forth
above is a reasonably accurate general functional description of the Project with respect to
which reimbursements will be made; provided that the Issuer reserves the right to make such
changes, substitutions, additions, and deletions as are necessary for the efficient operation of
the Issuer and the completion of the Project.
3. Identification of Source of Funds. Expenditures made prior to the issuance of
tax-exempt obligations issued to finance such costs of the Project are expected to be funded
with other funding sources of the Issuer.
4. Public Availability of Official Intent. This Declaration of Official Intent shall be
maintained as a public record of the Issuer.
(W3760713.1)
IN CITY COUNCIL
July 8, 2013
Notion made and seconded for Passage
Passed
CITY CL