1994 058 Ordinance - Laserfiche WebLink

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? (Rev. 6/93) aNST'RUCTIONS fOZ DECLARAT:ON OF OFFICIAL INTENT For Reimbursemenc Frcm Tax-Exemnt Bonds/Notes PURPOSE 'I'he form to which these insuuctions penain is intended for use under Treasury Regulazions § 1.150-2 (the Regulations) in order chaz aa ezpenditure chaz is paid wich moneys temporarily advanccd from ocher fuads aad is reasonably ezpecced to be reimbursed from proceeds af subsequendy issued noces or bonds may qualify for such reimbursemenc. Failure co comply caa result in serious consequences. With cercain ezceptions far qualified "preiiminary ezpendinues" and cenain de minimis ezpenditures, a Declaration of Official Intenc must be made noc later than 60 days after payment of t?e capual ezpendirure ezpected to be reimbursed from proceeds of obligations. The "reasonable ezpeccation" test will be failed if the Issuer merely syscematically malces the dezlarazion for all ezpenditures or m ezaggerased amounts regardless of real ezpectanons. In general "capital expenditures" include (subject to aay more restricrive staze law) any cosu related to the acquisition or construcuoa of laad or interesu ia real estau. buildings, structures, additions thereto, or ocher permanent improvements, aad ratoration or betterments made co increase che value of property or substantially prolang ics useful Iife, aad also of machinery, equipment, fiunicure and fixtures having a useful life of at least one year or such longer period as is required by applicable state law. Costs of issuance also are capital expenditures for this purpose. Certain other expendinues also qualify for reimbursement. The Regulations do not apply to and this form is not to be used in conneccion with use of proceeds of obligacions co finance expenditures paid on or after the date of issuance of the obligations, and this form generally does noc apply to abligations for che refinancing of ezternal borrowings (tazable or caz-exempt) such as by issuance of rcaewal noces or refunding bonds. INSTRUCTIONS These instructions are based on the Regutations published in The Federal Resister on June 18, 1993. The instructions refer to the pazticulaz lines on Ehe form of Deciaration o ici tenc. Line 1. Insert the ezpected maximum principal amount of obligations ezpected to be issued for the project wiiff respect to which the capical ezpendinires co be reimbursed reiate. The amount entered on line 1. should inciude the maximum principal amounc of all obligations to be issued for the project, (i.e., obligations to be issued for reimbursemeat of prior ezpendicures and obiigations to finaace expenditures to be paid on or after the dau of issuance of the obligations). A'project inciudes any properry, project, or program (e.g., highway capital improvemenc program, hospical equipmenc acquisition, or sehool buUding renovation). Line 2. The general description of the capital ezpenditures to be reimbursed may be set forth in one of two ways -- either (A) by a functional descripcion of the properry, project or program for wiuch the ezpenditure is made - Ezamples- "highway capital improvement program": "street and bridge improvements"; "hospital ' equipmenc acqwsiuon"; 'schaol buildings renovation"; or (B) by identification of the fund or account from which the money will be advanccd to pay che ezpenditures tTat will be reimbursed subsequencly from borrowed money, and a statement of the general fuactional purpose of that fund or account - Example- "pazks and recreation fund, the general functional purpose of which fund or account is recreational iacilirv canical imnrovement proeram". 'I'he (B) option, conceraing identification and description of the fund can be used where che fund purgose, m effect, describes the generic purpose of the project, property or program, such as a waterworks improvement for which money is advanced from the water uulity fund. If the money is to be advanced from a general purpose fund such as the general fund or a capital improvements fund which is available for any rype of capital improvement, use option (A) by stating the generic function of the project, property or improvement. 501(c) Oreanizations. If the reimbursement obligations will constitute qualified 501(c)(3) bonds, the proceeds ot whic wil e Loaned to a 501(c)(3) organization, the 501(c)(3) organizaEion, can make the Declazacion with respect to its expendi[ures and its name can be inserted on the "Name of Issuer" line, and its oificer can sign the Declaration. Accordingly, in these Instructions. "Issuer" means the issuer of the reimbursemenc bonds, ezcept thaz in the case of a'loan" of procecds of the bonds to a 501(c)(3) organization for which the 501(c)(3) organization has elected to make the Declaracion, "Issuer" meaas the 501(c)(3) organization.