96-21Councilmember Ron Black introduced the following resolution and moved its adoption:
RESOLUTION NO. %-21
RESOLUTION DECLARING THE OFFICIAL INTENT OF THE
CITY OF OTSEGO TO REIMBURSE CERTAIN
EXPENDITURES FROM THE PROCEEDS OF BONDS
TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. 1.150-2
providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not
be deemed spent unless certain requirements are met; and
WHEREAS, the City expects to incur certain expenditures which may be financed
temporarily from sources other than bonds, and reimbursed from the proceeds of a bond;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OTSEGO (THE "CITY") AS FOLLOWS:
1. The City reasonably intends to make expenditures for the project described
in Exhibit A (the "Project"), and reasonably intends to reimburse itself for such
expenditures from the proceeds of debt to be issued by the City in the maximum principal
amount described in Exhibit A.
2. The City Finance Director is authorized to designate appropriate additions
to Exhibit A in circumstances where time is of the essence, and any such designation shall
be reported to the Council at the earliest practicable date and shall be filed with the official
books and records of the City as provided in Section 3.
3. This resolution is intended to constitute a declaration of official intent for
purposes of Treas. Reg. 1.150-2 and any successor law, regulation, or ruling.
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember Suzanne Ackerman and upon vote being taken thereon, the following
voted in favor thereof. Mayor Norman F. Freske, Councilmembers Ackerman, Black,
Fournier and Heidner and the following voted against the same: none whereupon said
resolution was passed this 8th day of July 1996.
CA
Norman F. Freske, Mayor
A ST:
Elaine Beatty, City Clerk/Zoning dmin.
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