HomeMy WebLinkAboutR-02-0041J-02-070
1/7/02
RESOLUTION NO. ki_ 41-
A
-x-
A RESOLUTION OF THE MIAMI CITY COMMISSION
DECLARING THE CITY OF MIAMI'S OFFICIAL
INTENT, PURSUANT TO UNITED STATES TREASURY
REGULATION §1.150-2, TO ISSUE LIMITED
AD VALOREM TAX BONDS, A PORTION OF THE
PROCEEDS OF WHICH WILL TO THE EXTENT
PERMISSIBLE UNDER THE CODE OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED, BE USED TO
REIMBURSE THE CITY FOR FUNDS ADVANCED BY IT
FOR ORIGINAL EXPENDITURES INCURRED AND TO BE
INCURRED WITH RESPECT TO THE ACQUISITION,
CONSTRUCTION, AND EQUIPPING OF CERTAIN
HOMELAND DEFENSE/NEIGHBORHOOD IMPROVEMENTS
PROJECTS, IN THE EXPECTED MAXIMUM PRINCIPLE
AMOUNT OF $30,000,000; DIRECTING THE CITY
MANAGER AND THE CITY ATTORNEY TO TAKE SUCH
ACTIONS AS MAY BE NECESSARY TO CARRY OUT THE
PURPOSE OF THIS RESOLUTION; FURTHER
DIRECTING AND AUTHORIZING THE CITY MANAGER
TO EXECUTE ALL NECESSARY DOCUMENTS, IN A
FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR
SAID PURPOSE.
WHEREAS, the United States Treasury Regulations §1.150-2
(the "Reimbursement Regulations") prescribe conditions under
which proceeds of bonds, notes or other obligations ("Bonds")
used to reimburse advances made for capital and certain other
expenditures ("Original Expenditures") paid before the issuance
of such Bonds will be deemed to be expended (or property
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allocated to expenditures) for purposes of Sections 103 and
141-150 of the Internal Revenue Code of 1986, as amended, and
the regulations promulgated thereunder (collectively, the
"Code") upon such reimbursement so that all the proceeds so used
will no longer be subject to requirements or restrictions under
those sections of the Code; and
WHEREAS, certain provisions of the Reimbursement
Regulations require that there be a declaration of official
intent not later than 60 days following payment of the Original
Expenditures expected to be reimbursed from proceeds of such
Bonds, and that the reimbursement occur within certain
prescribed time periods after the Original Expenditure is paid
or after the property resulting from that Original. Expenditure
is placed in service; and
WHEREAS, the Commission of the City of Miami, Florida,
expects to provide for the issuance by the City of its Limited
Ad Valorem Tax Bonds in a principal amount not to exceed
$30,000,000 (the "Limited Ad Valorem Tax Bonds") for the purpose
of financing the cost of acquisition, construction and equipping
of certain homeland defense/neighborhood capital improvements
(the "Homeland Defense/Neighborhood Improvements Projects"); and
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WHEREAS, in connection with the acquisition, construction,
and equipping of Homeland Defense/Neighborhood Improvements
Projects to be financed with the proceeds of Limited Ad Valorem
Tax Bonds, the City expects to make Original Expenditures for
which the City will advance certain of its own funds;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are adopted by reference and
incorporated as if fully set forth in this Section.
Section 2. The City of Miami's official intent is
declared, pursuant to United States Treasury Regulation §1.150-2,
to issue Limited Ad Valorem Tax Bonds, a portion of the proceeds
of which will to the extent permissible under the Code, be used
to reimburse the City for funds advanced by it for original
expenditures incurred and to be incurred with respect to the
acquisition, construction, and equipping of certain Homeland
Defense/Neighborhood Improvements Projects, in the expected
maximum principle amount of $30,000,000.
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Section 3. For purposes of this Resolution,
following definitions shall apply to the terms used herein:
"Reimbursement" or "reimburse" shall mean the
restoration to the City of money temporarily advanced
from its own funds and spent for Original Expenditures
before the issuance of the Limited Ad Valorem Tax
Bonds, evidenced in writing by an allocation on the
books and records of the City that shows the use of
the proceeds of the Limited Ad Valorem Tax Bonds to
restore the money advanced for the Original
Expenditures. "Reimbursement" or "reimburse"
generally does not include the refunding or retiring
of Bonds previously issued and sold to, or borrowings
from, unrelated entities.
the
Section 4. The City Manager and the City Attorney are
directed to take such actions as may be necessary to carry out
the purpose of this Resolution.
Section 5. The City Manager is directed and authorized!'
to execute all necessary documents, in a form acceptable to the
City Attorney, for said purpose.
i� The herein authorization is further subject to compliance with all
requirements that may be imposed by the City Attorney, including but not
limited to those prescribed by applicable City Charter and Code
provisions.
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Section 5. This Resolution shall become effective
immediately upon its adoption and signature of the Mayoral
PASSED AND ADOPTED this 10th
ALTER J�l
CITY CLI�Rt;'
day of Januar- 2002.
*MANUEL6ADIAZ','
R
THE S S :16
a/ if the Mayor does not sign this Resolution., it shall become effective at
the end of ten calendar days from the date it was passed and adopted. If
the Mayor vetoes this Resolution, it shall become effective immediately
upon override of the veto by the City Commission.
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19 0 CITY OF MIAMI, FLORIDA M
INTER -OFFICE MEMORANDUM
TO The Honorable Mayor and
Members of the City Commission
FROM: Carlos Gimenez
City Manager
DATE : JAld T 2 2.302 FILE:
SUBJECT : Reimbursement Resolutions
REFERENCES:
ENCLOSURES:
Administrative Recommendation
The Administration recommends that the City Commission adopt this resolution allowing
for the reimbursement of capital funds expended on bond issue projects to be reimbursed
from the issuance of the first series of bonds.
Background
The Internal Revenue Code provides for a process under which funds expended for
capital purposes may be reimbursed from the proceeds of debt issued for such projects.
The process entails the declaration by the governing body of its Official Intent to issue
the associated debt. This resolution will allow for the reimbursement of expenditures
made in advance for projects contained in the bonds approved in November. This
resolution also provides for the issuance of not more than $30 million in this first series
of bonds
CAGIRJN