60-91 Ordinance
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ORDINANCE NO. 60 -91
AUTHORIZING DECLARATIONS OF OFFICIAL INTENT WITH
RESPECT TO REIMBURSEMENTS FROM NOTE AND BOND
PROCEEDS OF TEMPORARY ADVANCES MADE FOR CAPITAL
EXPENDITURES, AND RELATED MATTERS, AND DECLARING AN
EMERGENCY.
WHEREAS, the Internal Revenue Service (IRS) has proposed regulations
pertaining to whether proceeds of bonds, notes or other obligations (bonds)
will be deemed "spent" for purposes of Sections 103 and 141 to 150 of the
Internal Revenue Code of 1986 (the Code) when used to reimburse advances made
for expenditures paid before the issuance of such bonds, so that the proceeds
so used will not further be subj ect to requirements or restrictions under
those sections of the Code; and
WHEREAS, certain provisions of the proposed regulations would apply
to expenditures currently being paid or to be paid before September 8 if they
are to be reimbursed from the proceeds of bonds issued after September 7,
1991, and all of the provisions will apply to expenditures paid after
September 7, 1991 which are to be reimbursed from governmental use bonds or
qualified 501(c)(3) bonds issued after the expenditure is paid; and
WHEREAS, although the provisions of the proposed regulations may be
altered in some respects before they become final, it is deemed advisable that
steps be taken to prepare to comply with the proposed regulations in the event
that they are ultimately adopted by IRS;
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin,
Franklin, Union and Delaware Counties, Ohio, that:
Section 1. Definitions. In addition to the definitions stated in
the preamble, the following definitions apply to the terms used herein:
"Authorized Officer" means the Director of Finance and any person
with authority at the time to exercise functions of that office.
"Bonds" means and includes bonds, notes, certificates and other
obligations included in the meaning of "bonds" under Section 150 of the Code.
"Declaration of Official Intent" the declaration of official ,
means
intent, as contemplated in the Reimbursement Regulations, that an expenditure
is expected to be reimbursed from the proceeds of Reimbursement Bonds to be
issued after the expenditure is paid.
"Public Records" means files maintained by the Director of Finance
which are required to be available for reasonable public inspection.
"Reimbursement" means the restoration to the issuer or conduit
borrower of money temporarily advanced from its other funds and spent, before
the issuance of the Reimbursement Bonds, on property having a reasonably
expected economic life of one year or more. "Reimbursement" does not include
the refunding or retiring of Bonds previously issued and sold to, or
borrowings from, unrelated entities (ent it ies not in the same "controlled
group" , as defined in the Reimbursement Regulations).
"Reimbursement Bonds" means any issue of bonds all or part of the
proceeds of which are to be used for reimbursement of an expenditure paid
before issuance of the bonds.
"Reimbursement Regulations" means Treasury Regulations, whether in
proposed, temporary or final form, as at the time and as may be applicable,
prescribing conditions under which the proceeds of bonds when allocated or
applied to a reimbursement will be treated as "spent" for purposes of Sections
103 and 141 to 150 of the Code, including the Proposed Treasury Regulations
(Sections 1. 103-17 and 1.103-18 (FI-59-89)) .
Section 2. Authorization of Declarations of Intent. The Authorized
Officer is authorized to prepare, sign, and file in the Public Records,
Declarations of Official Intent at the appropriate times and in appropriate
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, form, consistent with the Reimbursement Regulations, with respect to
expenditures to be made from money temporarily available and which is to be
reimbursed (in accordance with applicable authorizations, policies and
practices) from the proceeds of Reimbursement Bonds, to make appropriate
reimbursement allocations, and to take any other actions as may be appropriate
under the Reimbursement Regulations to qualify proceeds used for reimbursement
as "spent" for purposes of Section 103 and Sections 141 to 150 of the Code.
Section 3. Filing and Public Inspection. Each Declaration of
Off icial Intent shall be filed in the Public Records not later than the
1""""- earlier of (i) ten days after the date of the Declaration of Official Intent
or (ii) the date of issuance of the Reimbursement Bonds pertinent to such
Declaration of Official Intent, and shall be available for public inspection
continuously during normal business hours on every business day to and
including the date of issuance of the Reimbursement Bonds.
Section 4. Conduit Issues. With regard to Reimbursement Bonds any
portion of the proceeds of which are to be loaned to a borrower for its
purposes (conduit borrower), any Declaration of Official Intent by the conduit
borrower with respect to reimbursement of prior expenditures may be filed, at
the option of the conduit borrower, with the Public Records for inspection by
the general public as provided in Section 3.
Section 5. Emergency. This ordinance is declared to be an emergency
measure necessary for the inunediate preservation of the public peace, health,
safety or welfare of this City and for the further reason that this ordinanc~
is required to be inunediately effective in order to enable the City to comply
with the IRS regulations proposed to take effect on September 7, 1991;
wherefore, this ordinance shall be in full force and effect inunediately upon
its passage.
Attest: VV
Passed: ~d , 1991
,
Effective: ~ I~ , 1991
I hereby certify that ~I)"'I'< d t'" ."r"""'-~/Rp~o!ution were posted in the
City of Dublin in aWl ',. . - " 131.2: of the Ohio Revised Code.
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