HomeMy WebLinkAboutR - 2024-02- Resolution Declaration of Official Intent Reimburse Certain Expenditures 2024-2
DECLARATION OF OFFICIAL INTENT
OF CITY OF SOUTH BURLINGTON
TO REIMBURSE CERTAIN EXPENDITURES
FROM PROCEEDS OF INDEBTEDNESS
WHEREAS, the City of South Burlington, Vermont (the "Issuer") intends to
improve the City's water system by erecting and installing a 2.1 million gallon
water tank on land west of Dorset Street (the "Project") at a cost not to exceed Five
Million Seven Hundred Fifty Thousand and 00/100 Dollars ($5,750,000.00); and
WHEREAS the Issuer expects to pay certain capital expenditures (the
"Reimbursement Expenditures") in connection with the Project prior to the issuance
of indebtedness for the purpose of financing costs associated with the Project on a
long-term basis; and
WHEREAS the Issuer reasonably expects that for that part of the Project
consisting of Project management and construction costs, debt obligations in an
amount not expected to exceed Five Million Seven Hundred Fifty Thousand and
00/100 Dollars ($5,750,000.00) will be issued, and that certain of the proceeds of
such debt obligations will be used to reimburse the Reimbursement Expenditures;
and
WHEREAS the Issuer declares its reasonable official intent to reimburse
prior expenditures for the above-described part of the Project with proceeds of a
subsequent borrowing:
NOW THEREFORE, the Issuer declares:
Section 1. The Issuer finds and determines that the foregoing recitals are
true and correct, and that all of the capital expenditures covered by this Resolution
were or will be made no earlier than 60 days prior to the date of this Resolution.
Section 2. This declaration is made solely for the purposes of establishing
compliance with the requirements of Section 1.150-2 of the Treasury Regulations.
This declaration does not bind the Issuer to make any expenditure, incur any
indebtedness, or proceed with the Project.
Section 3. The Issuer hereby declares its official intent to use proceeds of
indebtedness to reimburse itself for Reimbursement Expenditures within 18 months
of either the date of the first expenditure of funds by Issuer for such Project or the
date that such Project is placed in service, whichever is later (but in no event more
than three years after the date of the original expenditure of Issuer funds for such
Project), and to allocate an amount not to exceed $500,000.00 of the proceeds
thereof to reimburse itself for its expenditures in connection with the Project.
Section 4. The Issuer's debt obligations for the aforementioned purpose will
not be "private activity bonds" within the meaning of Section 141 of the Internal
Revenue Code of 1986.
Section 5. All prior actions of the officials and agents of Issuer that are in
conformity with the purpose and intent of this Resolution and in furtherance of the
Project shall be and the same hereby are in all respects ratified, approved and
confirmed.
Section 6. All other resolutions of the legislative body of the Issuer, or parts
of resolutions, inconsistent with this Resolution are hereby repealed to the extent of
such inconsistency.
Section 7. It is hereby found that all discussions and deliberations of the
legislative body of the Issuer leading to the adoption of this Resolution occurred at
one or more meetings of the legislative body conducted pursuant to public notice
and open to public attendance.
Section 8. This declaration shall take effect upon its adoption.
CITY OF SOUTH BURLINGTON CITY COUNCIL
''yln / ��
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Helen Riehle, Chair MeaghaEmery, Vice Chair
/s/ Andrew Chalnick
Tim Barritt Andrew Chalnick
(„,
Larry Kupferman
The undersigned, Clerk of the Issuer, hereby certifies that the foregoing is a full,
true and correct copy of the declaration of the legislative body of said Issuer duly
made at a meeting thereof held on the date, specified below, and that said
declaration was not amended, modified or revoked.
DATE: • —S
Holly Rees, ty Clerk
SON23-004(WaterTank)NoticeDeclarelntent 2023 V2 23-12-27 BONDS.docx