HomeMy WebLinkAboutRDA RES 291ReSOLUTION NO. 291
A R$SOLUTIOId OF TH$ PALIri DgS$RT R$DSVSLOPMENT
AGSNCY AUTFIORIZING AND DSSIC,i IATING P$RSONS TO
DSCLARS OFFICIAL INTSNT ON BSHALF OF Ti
AGSNCY--• PUR3UANT TO TRSA3URY RSt ULATION
S$CTION 1.150-Z PROMULGATED PUR3UANT TO THS
INTSRNAI. RSVSNUS CODS OF 1986, AS AI+ ND$D
THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDER5 AS FOLLOWS:
Section 1. Treasury Regulation Section 1.150-2 (the
' Regulation"j was promulgated pursuant to the Internal revenue Code
of 1986, as amended. The Regulation governs the issuance of a
reimbursement bond. A reimbursement bond is the portion of an
issue of bonds allocated to reimburse an original expenditure
(i.e., an expenditure for a governmental purpose that is originally
paid from a source other than a reimbursement bond) that was paid
before the date of issue of such bonds. The Regulation provides
rules to determine when an allocation of bond proceeds to reimburse
an original expenditure will be treated as an expenditure of those
bond proceeds.
Section 2. In order for such an allocation of bond
proceeds to be treated as an expenditure of the bond proceeds, the
issuer of the bonds must, in accordance with the Regulation, adopt
an official intent for the original expenditure. The adoption of
official intent is a declaration of intention by the issuer to
reimburse the original expenditure with proceeds of an issue of
bonds or other obligations. The Regulation provides that the
official intent may be made by action of a person authorized or
designated by the issuer to declare official intent on behalf of
the issuer.
Section 3. The Agency hereby authorizes and designates
the Executive Director and the Finance Director of the Agency, or
either of them, to declare official intent on behalf of the Agency
in accordance with the Regulation. Such declaration of official
intent shall comply with all of the following requirements:
A. Time of Declaration. Except as set forth in Section 4
hereof, the official intent shall be declared not later than 60
days after payment of the original expenditure.
B. Proiect Description in Official Intent. The declaration
of official intent shall generally describe the project for which
the original expenditure is paid and state the max3mum principal
amount of bonds or other obligations expected to be issued for the
project. A project description shall be sufficient if it
identifies, by name and functional purpose, the fund or account
from which the original expenditure is paid. Deviations between a
project described in a declaration of official intent and the
actual project financed with reimbursement bonds will not
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R$SOLUTION NO. 291
invalidate the official intent to the extent that the actual
project is reasonably related in function to the described project.
C. Reasonableness of Official Intent. On the date of the
declaration of official intent, there must be a reasonable
expectation that the Agency will reimburse the original expenditure
with proceeds of an issue of bonds or other obligations. An
expectation shall be deemed reasonable if a prudent person in the
same circumstances as the Agency would have those same expectations
based on all the objective facts and circumstances. Official
intent shall not be declared as a matter of course or in amounts
substantially in excess of the amounts expected to be necessary for
the project.
Section 4. Paragraph A of Section 3 hereof does not
apply to the following:
A. Costs of issuance of any bond or other obligation or an
amount not in excess of the lesser of �100,000 or 5 percent of the
proceeds of the issue of bonds; or
B. Any preltminary expenditures up to an amount not in
excess of 20 percent of the aggregate issue price of the issue or
issues of bonds or other obliqations that finance or are reasonably
expected by the Agency to finance the project for which the
preliminary expenditures were incurred. Preliminary expenditures
include architectural, engineering, surveyfng, soil testing,
reimbursement bond issuance, and similar costs that are incurred
prior to commencement of acquisition, construction, or
rehabilitation of a project, other than land acquisition, site
preparation, and similar costs incident to commencement of
construction.
� PASSED, APPROVED AND ADOPTED this 27th day of January,
1994.
AYES: BENSON, CRITES, KELLY, SNYDER, WILSON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
, " ,\ ,
AT'�'iEST : � j / j" �
�,
�� Sheila�R,/Gilligan,/, Secretary
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