Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Relating To A Debt Financing To Fund Certain Capital Improvement Projects Contained In The Proposed FY 2015 - FY 2019 Capital Improvement Program, Authorizing A Declaration Of Official Intent Under U.S. Treasury Regulations With Respect To Reimbursements From The Proceeds Of The Debt Financing For The Temporary Advances Made For Payment Prior To Issuance, And Related Matters.
Body
Staff Recommends: Approval of the Attached Resolution
Explanation:
United States Treasury Regulations at §1.150-2 (the "Reimbursement Regulations") prescribe conditions under which the proceeds of a debt financing may be used to reimburse the City of advances made for certain expenditures ("Original Expenditures") paid before the issuance of the debt financing will be deemed to be expended (or properly allocated to expenditures) for purposes of §§103, 140 through 150 of the Internal Revenue Code of 1986, as amended (the "Code"), upon such reimbursements so that the proceeds of the debt financing so used will no longer be subject to the requirements or restrictions under the previously identified sections of the code.
Certain provisions of the Reimbursement Regulations require that there be a Declaration of Official Intent no later than sixty (60) days following the payment of the Original Expenditures expected to be reimbursed from the proceeds of the debt financing, and that the reimbursement occur within certain prescribed time periods after an Original Expenditure is paid or after the property resulting from that Original Expenditure is placed into service.
The City of Hollywood, Florida (the "Borrower") wishes to take steps to comply with the Reimbursement Regulations referenced previously.
Recommended for inclusion on the agenda by:
Cathy Swanson-Rivenbark, City Manager
Matthew Lalla, Director of Financial Services