HomeMy WebLinkAboutResolution 97-049 declaring intent for federal reimbursement of the marana water system and CMID water system capital improvementsMARANA RESOLUTION NO. 97-49
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF MARANA,
ARIZONA, DECLARING FOR PURPOSES OF SECTION 1.150-2 OF THE FEDERAL
TREASURY REGULATIONS OFFICIAL INTENT TO BE REIMBURSED IN CONNECTION
WITH CERTAIN CAPITAL EXPENDITURES AND DECLARING AN EMERGENCY.
WHEREAS, the Town of Marsha, Arizona, a municipality of the State of Arizona (the
"TowW), is authorized and empowered pursuant to law to issue or cause to be issued obligations
to finance the costs of various capital facilities owned or to be owned by the Town; and
WHEREAS, it is contemplated that certain expenditures made by the Town with regard
to capital facilities owned or to be owned by the Town will be reimbursed from the proceeds of
the sale of obligations to be issued in the future by or on behalf of the Town.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of
Marsha, Arizona, as follows:
Section 1. The following terms shall have the meanings assigned thereto as follows:
'Official intent' means a declaration of intent of the Town to
reimburse an original expenditure with proceeds of an obligation.
"Original expenditure" means an expenditure for a governmental
purpose that is originally paid from a source other than a
reimbursement bond.
"Reimbursement bond" means the portion of an issue of obligations
allocated to reimburse an original expenditure that was paid before
the issue date of such issue.
Section 2.
This Resolution is official intent relating to reimbursement for the original
expenditures indicated in Exhibit A hereto which are capital expenditures (being
any cost of a type that is properly chargeable to a capital account [or would be so
chargeable with a proper election] under general federal income tax principles).
Section 3.
The project for which such original expenditures are to be paid are for the
acquisition and expansion of certain water systems, and the maximum principal
amount of obligations (including the reimbursement bonds for such purposes) to
be issued for such project shall not exceed $927,000.00.
Section 4.
On the date of this Resolution, the Town has a reasonable expectation (being that
a prudent person in the same circumstances as the Town would have based on all
the objective facts and circumstances) that it will reimburse such original
expenditures with proceeds of such obligations. (Official intents have not been
Maram, Adzova Reaolution No. 97-49 Page 1 of 2
Section 5.
Section 6.
Section 7.
declared by the Town as a matter of course or in amounts substantially in excess
of the amounts expected to be necessary for such project. Moreover, the Town
does not have a pattern [other than in extraordinary circumstances ] of failure to
reimburse actual original expenditures covered by official intents.)
This Resolution shall be included as of the date hereof in the publicly available
official records of the Town, such records being maintained and supenfsed by the
Clerk of the Town, being the main administrative office of the Town, and shall
remain available for public inspection on a reasonable basis.
All resolution or ordinances, or parts thereof, in conflict with the provisions of this
Resolution are, to the extent of such conflict, hereby repealed.
The mediate operation of this Resolution is necessary of the preservation of the
public peace, health and safety, and an emergency is hereby declared to exist, and
this Resolution shall be in full force and effect from and after its passage, adoption
and approval by the Mayor and Council of the Town, as required by law, and it
is hereby exempt from the referendum provisions of the Constitution and the laws
of the State of Arizona.
PASSg. D AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona,
this 10th day of June, 1997.
Daniel J. Hochu~
Town Attorney
Marana, Arizona Resolution No. 9749 Page 2 of 2
EXHIBIT A
ORIGINAL EXPENDITURES INTENDED TO BE REIMBURSED
Description of Original Expenditure
Purchase of Marana Water System
Purchase of CMID Water System
Date of Amount of
Original Original
Expenditure Expenditure
5/2/97 $327,000
6/30/97 $600,000
Total $927,000