CCR1997115e COMMON COUNCIL - CITY OF MUSKEG0
RESOLUTION #115-97
AUTHORIZED TO DECLARE OFFICIAL INTENT UNDER
RESOLUTION DESIGNATING OFFICIALS
REIMBURSEMENT BOND REGULATIONS
WHEREAS, on January 27, 1992, the Department of the Treasury
issued final regulations (26 CFR Section 1.103-18)(the
"Reimbursement Bond Regulations") that, for the purpose of
determining whether interest on certain obligations of a state or
tax purposes, permit the use of the proceeds of tax-exempt
local government is excluded from gross income for federal income
date such obligations are issued only if the state or local
obligations to reimburse capital expenditures made prior to the
government, prior to the date of expenditure, declares its
official intent to reimburse the expenditure with proceeds of a
borrowing; and
WHEREAS, the Reimbursement Bond Regulations apply to tax-exempt
obligations issued after March 2, 1992, except that the
requirements of the Reimbursement Bond regulations do not apply
to preliminary expenditures (such as architectural, engineering,
surveying, soil testing and other similar costs but not including
land acquisition, site preparation and similar costs incident to
project or program so long as such preliminary expenditures are
less than 20% of the issue price of the obligations issued for
such property, project or program; and
WHEREAS, the Reimbursement Bond Regulations require that if a
current expenditure is to be permanently financed by a later
declare its intention to reimburse itself for the expenditure
issue of tax-exempt obligations a state or local government must
from proceeds of a borrowing before the expenditure is made (the
"Declaration of Official Intent"); and
WHEREAS, the Reimbursement Bond Regulations permit a state or
local government to designate an official or employee to make a
Declaration of Official Intent on its behalf; and
WHEREAS, the Common Council (the "Governing Body") of the City of
Muskego, Wisconsin (the "Issuer") deems it necessary, desirable
and in the best interest of the Issuer to authorize officials or
employees of the Issuer to make a Declaration of Official Intent
on its behalf when the Issuer reasonably expects to reimburse
itself from the proceeds of a borrowing for capital expenditures
for a specific property, project or program which it pays from
other funds prior to the receipt of the proceeds of the borrowing
with respect to such expenditures; and
0 the commencement of construction) for a specific property,
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Resolution #115-97
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WHEREAS, the Governing Body hereby finds and determines that
designating officials or employees with the authority to make a
Declaration of Official Intent will facilitate compliance with
the Reimbursement Bond Regulations.
NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the
Issuer, pursuant to Internal Revenue Code Regulation Section
1.103-18(f), that:
Section 1. Authorization to Declare Official Intent. The Mayor
make Declarations of Official Intent pursuant to the
and Finance Director of Issuer are authorized and designated to
above-referenced Reimbursement Bond Regulations.
Official Intent shall be made in substantially the form attached
Section 2. Form of Declaration. Any such Declaration of
hereto.
Section 3. Public Availability. Any Declaration of Official
Intent shall be maintained in the files of the Issuer and shall
be made available for public inspection in compliance with
applicable State law governing the availability of records of
official acts of the Governing Body including Subchapter I1 of
Chapter 19 of the Wisconsin Statutes (the "Public Records Law")
Section 4. Further Authorizations. The Mayor and Finance
Director are further authorized to take such other actions as may
be necessary or desirable to comply or evidence compliance with
the Reimbursement Bond Regulations.
Section 5. Effective Date. This Resolution shall take effect
immediately upon its adoption.
DATED THIS 27th DAY OF MAY , 1997.
SPONSORED BY:
FINANCE COMMITTEE
Ald. Domonic R. D'Acquisto
Ald. David J. Sanders
Ald. Nancy C. Salentine
This is to certify that this is a true and accurate copy of
City of Muskego.
Resolution #115-97 which was adopted by the Common Council of the
5/97 jmb
NO.
DECLARATION OF OFFICIAL INTENT
City of Muskego, Wisconsin (the "Issuer") to reimburse an
This is a Declaration of Official Intent of the
expenditure with proceeds of a borrowing or borrowings
authorized by the Issuer. This Declaration is made under and
pursuant to Income Tax Regulation Section 1.103-18. The
undersigned has been designated as an official or employee
authorized by the Issuer to make this Declaration of Official
Declaration of Official Intent is a public record maintained in
Intent pursuant to a Resolution adopted on May 27, 1997. This
pursuant to Subchapter I1 of Chapter 19 of the Wisconsin
the files of the Issuer and is available for public inspection
Statutes.
The undersigned hereby declares that it is the reasonable
expectation of the Issuer to use proceeds of a borrowing or
borrowings to be incurred by the Issuer to reimburse
below from the funds(s)/account(s) described below:
expenditures for the property, project or program described
1. Project' description:
2. Identify fund(s)/account(s):
borrowings to be incurred to reimburse expenditures for the
The maximum principal amount of the borrowing or
above-described purposes is reasonably expected, on the date
hereof, to be $
The Issuer intends to reimburse itself from borrowed funds
within (1) one year after the expenditure is made or (2) one
year after the facility is placed in service, whichever is
later.
No money from sources other than the anticipated borrowing
or borrowings is, or is reasonably expected to be, reserved,
allocated on a long-term basis, or otherwise set aside by the
budgetary and financial circumstances of the Issuer as of the
Issuer with respect to the expenditure, pursuant to the
date of this Declaration.
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type that is properly chargeable to capital account (or would be
so chargeable with a proper election) under general federal
income tax principles. Capital expenditures include costs
incurred to acquire, construct or improve land, buildings and
equipment and exclude current operating expenses.
'Each of the expenditures described must be a cost of the
Dated this day of , 19 .
By:
Title: Mayor
By :
Title: Finance Director