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HomeMy WebLinkAboutRes 1702 - Intent to Reimburse Capital Expenditures y 1908 Cl of u la Washington Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DECLARING ITS OFFICIAL INTENT TO REIMBURSE CAPITAL EXPENDITURES IN CONNECTION WITH 1) THE COSTS OF THE SOUTHCENTER PARKWAY CONSTRUCTION AND REALIGNMENT IN THE TUKWILA SOUTH ANNEXATION AREA, TOGETHER WITH RELATED IMPROVEMENTS; 2) COSTS OF RIGHT -OF -WAY ACQUISITION, ARTERIAL IMPROVEMENTS, EXTENSION OF STRANDER BOULEVARD AND RAILROAD CROSSING, TOGETHER WITH RELATED IMPROVEMENTS; AND 3) THE COSTS OF FLOOD CONTROL FACILITIES, EQUIPMENT, MATERIALS AND SUPPLIES FROM PROCEEDS OF A FUTURE BORROWING. WHEREAS, the City of Tukwila, Washington (the "City intends to make expenditures for the Project (identified below) from funds that are available but that are not (and are not reasonably expected to be) reserved, allocated on a long -term basis, or otherwise set aside for those expenditures, and reasonably expects to be reimbursed for those expenditures from proceeds of bonds or other obligations "bonds issued to finance those expenditures; and WHEREAS, certain federal regulations (the "federal reimbursement regulations relating to the use of proceeds of tax exempt bonds to reimburse the issuer of the bonds for expenditures made before the issue date of the bonds require, among other things, that not later than 60 days after payment of the original expenditure the City (or any person designated by the City to do so on its behalf) declare a reasonable official intent to reimburse those expenditures from proceeds of bonds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Description of Project for which Expenditures are to be Made. The City intends to make (and/or, not more than 60 days before the date of this declaration, has made) expenditures and reasonably expects to reimburse itself for those expenditures from proceeds of bonds for the following project, property, or program (the "Project 1) Costs of Southcenter Parkway construction and realignment in the Tukwila South annexation area, together with related improvements; and 2) Costs of right -of -way acquisition, arterial improvements, extension of Strander Boulevard and railroad crossing, together with related improvements; and 3) Costs of flood control facilities, equipment, materials and supplies. Section 2. Maximum Principal Amount of Obligations Expected to be Issued for the Project. The City expects the maximum principal amount of bonds that will be issued to finance the Project will be $15,500,000. Section 3. Declaration Reasonable. The City Council has reviewed its existing and reasonably foreseeable budgetary and financial circumstances and has determined the City reasonably expects to reimburse itself for expenditures for the Project from W: \Word Processing \Resolutions \Bond Reimbursement.doc sH:ksn 12/02/2009 Page 1 of 2 proceeds of bonds because the City has no funds available that already are or are reasonably expected to be reserved, allocated on a long -term basis or otherwise set aside by the City for those expenditures on the Project. Section 4. Limitations on Uses of Reimbursement Amounts. The City will not, within one year after the expected reimbursement, use amounts corresponding to proceeds received from bonds issued in the future to reimburse the City for previously paid expenditures for the Project in any manner that results in those amounts being treated as replacement proceeds of any tax exempt bonds, i.e., as a result of being deposited in a reserve fund, pledged fund, sinking fund or similar fund (other than a bona fide debt service fund) that is expected to be used to pay principal of or interest on tax exempt bonds. Nor will the City use those amounts in any manner that employs an abusive arbitrage device to avoid arbitrage restrictions. Section 5. Date of Declaration. This declaration of official intent shall be dated as of the date of adoption of this resolution. Section 6. Ratification and Confirmation. Any actions of the City or its officers prior to the date thereof and consistent with the terms of this resolution are ratified and confirmed. PASSED BY THE CITY COUNCIL OF THE CITY OFUKWILA, WASHINGTON, at a Regular Meeting thereof this 9TH day of 1) 0 0 2009. ATTEST/ AUTHENTICATED: JoSr�Hernandez, Council President` Christy`6'Flaher fq, CMC, City Clerk APPROVED A7J, FORM BY: Filed with the City Clerk: )-0 Passed by the City Council: I 9 Officecof qt At6ney Resolution Number: W: \Word Processing \Resolutions \Bond Reimbursement.doc SH:ksn 12/02/2009 Page 2 of 2