RESOLUTION OF OFFICIAL
INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF A BORROWING
Albemarle County Board of Supervisors, Virginia (the “Borrower”), intends to
acquire, construct and equip the items and projects set forth in Exhibit A
hereto (collectively, the “Project”); and
for the Project have advanced and the Borrower expects to advance its own funds
to pay expenditures related to the Project (the “Expenditures”) prior to
incurring indebtedness and to receive reimbursement for such Expenditures from
proceeds of tax-exempt bonds or taxable debt, or both;
NOW, THEREFORE, BE IT RESOLVED
by the Albemarle County
Board of Supervisors that:
1. The Borrower
intends to utilize the proceeds of tax-exempt bonds (the “Bonds”) or to incur
other debt, to pay the costs of the Project in an amount not currently expected
to exceed $53,070,424.
2. The Borrower
intends that the proceeds of the Bonds be used to reimburse the Borrower for
Expenditures with respect to the Project made on or after the date that is no
more than 60 days prior to the date of this Resolution. The Borrower reasonably
expects on the date hereof that it will reimburse the Expenditures with the
proceeds of the Bonds or other debt.
3. Each Expenditure
was or will be, unless otherwise approved by bond counsel, either (a) of a type
properly chargeable to a capital account under general federal income tax
principles (determined in each case as of the date of the Expenditure), (b) a
cost of issuance with respect to the Bonds, (c) a nonrecurring item that is not
customarily payable from current revenues, or (d) a grant to a party that is not
related to or an agent of the Borrower so long as such grant does not impose any
obligation or condition (directly or indirectly) to repay any amount to or for
the benefit of the Borrower.
4. The Borrower
intends to make a reimbursement allocation, which is a written allocation by the
Borrower that evidences the Borrower’s use of proceeds of the Bonds to reimburse
an Expenditure, no later than 18 months after the later of the date on which the
Expenditure is paid or the Project is placed in service or abandoned, but in no
event more than three years after the date on which the Expenditure is paid.
The Borrower recognizes that exceptions are available for certain “preliminary
expenditures,” costs of issuance, certain de minimis amounts,
expenditures by “small issuers” (based on the year of issuance and not the year
of expenditure) and expenditures for construction of at least five years.
5. The Borrower
intends that the adoption of this resolution confirms the “official intent”
within the meaning of Treasury Regulations Section 1.150-2 promulgated under the
Internal Revenue Code of 1986, as amended.
6. This resolution
shall take effect immediately upon its passage.
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