TC Res. No. 1998-25RESOLUTION NO. 98-25
SERIES OF 1998
A RESOLUTION TO DECLARE OFFICIAL INTENT TO REIMBURSE
CAPITAL EXPENDITURES-
WHEREAS, the Town Council of the Town of Avon has determined and hereby
determines and declares that the interest of the Town and the public interest and necessity
require that certain improvements be acquired and constructed for the Town and its
inhabitants; and
WHEREAS, the Council has determined that it is necessary to make capital
expenditures to acquire and construct such improvements prior to the time that long-term
bonds or other obligations are issued to finance the improvements; and
WHEREAS it is the Council's reasonable expectation that when such long-term
bonds or other obligations are issued, the capital expenditures will be reimbursed with the
proceeds of the long-term bonds or other obligations; and
WHEREAS, in order to comply with the provisions of the Internal Revenue Code
of 1986, as amended (the "Code"), it is the Council's desire that this resolution shall
constitute the "official intent' 'of the Council to reimburse such capital expenditures
within the meaning of Treasury Regulation' 1.150-2;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF AVON, COLORADO:
Section 1. Project Description; Maximum Principal Amount of Obligation.
The Council intends to make capital expenditures to acquire and construct a public works
maintenance facility (the "Project" The maximum principal amount of obligations
expected to be issued by the Town for the Project will be $8,350,000.
Section 2. Reasonableness of Official Intent The Council reasonably expects
that such capital expenditures will be reimbursed with the proceeds of the Obligations.
Section 3. Reimbursement Period. The reimbursement allocation with respect
to such capital expenditures will be made not later than 18 months after the later of 1) the
date the original expenditure is paid; or 2) the date the project is placed in service or
abandoned, but in no event more than 3 years after the original expenditure is paid. If the
Obligations qualify for the $5,000,000 small issuer exception contained in Section
148(f)(4)(D) of the Code, the 18 month period set forth above is changed to 3 years and
the 3 year maximum reimbursement period is disregarded.
Section 4. Anti-abuse Rules. The Town shall not use reimbursed moneys for
purposes prohibited by Treasury Regulation 1.150-2(h).
Section 5. Declaration of Official Intent. This resolution is intended to be a
declaration of "official intent" to reimburse expenditures within the meaning of Treasury
Regulation 1.150-2.
Section 6. Re en aler. All acts, orders, ordinances, resolutions, or parts thereof, of
the Town that are inconsistent or in conflict with this Resolution are hereby repealed to
the extent only of such inconsistency or conflict.
Section 7. Effective Mate. The provisions of this resolution shall take effect
immediately upon its adoption and approval.
ADOPTED AND APPROVED this 14'b day of April, 1998.
ATTEST:
S h
Town Clerk
TOWN OF AVON, COLORADO
Ja k Fawcett, Mayor
I