HomeMy WebLinkAboutReimbursement of Capital Expenditures (2)
Augusta Richmond GA
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DOCUMENT TYPE: r;) J I .
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YEAR: ) 90l!
BOX NUMBER: J
FILE NUMBER: ) ;) 7 L/ 0
NUMBER OF PAGES:
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RESOLUTION DECLARING OFFICIAL INTENT OF
REIMBURSEMENT OF CAPITAL EXPENDITURES
BE IT RESOLVED by the Augusta-Richmond County Cormnission-
Council (the "Governing Body") of Augusta-Richmond County (the
"Governmental Unit"), as follows:
Section 1. Recitals. (a) The Internal Revenue Service has
issued Section 1.150-2 of the Income Tax Regulations (the
"Regulations") dealing with the issuance of obligations, all or a
portion of the proceeds of which are to be used to reimburse the
Governmental Unit for proj ect expenditures made by the Governmental
Unit prior to the date of issuance of the obligations.
(b) The Regulations generally require that the Governmental
Unit make a declaration of its official intent to reimburse itself
for such prior expenditures out of the proceeds of a subsequently
issued borrowing, that the borrowing occur and the reimbursement
allocation be made from the proceeds of such borrowing within 18
months of the payment of the expenditure or, if longer, within 18
months of the date the project is placed in service or abandoned
but in no event more than three years after the expenditure is
paid, and that the expenditure be a capital expenditure.
(c) This Governing Body has determined that it is necessary
and in the best interests of the Governmental Unit to acquire
certain (1996 Sheriff's Department Vehicles) described on Schedule
A hereto (the "Equipment). The Governmental Unit intends to
finance all or a portion of such Equipment cost through the
entering into of a lease-purchase agreement, the interest on which
is intended to be excludable from the gross income of the recipient
for federal income tax purposes (the "Lease"). The Governmental
Unit expects to make expenditures for costs relating to the
Equipment after the date of this resolution (or has made such
expenditure no longer than 60 days prior to the date of this
resolution) and prior to the entering into of such Lease.
Section 2. Official Intent Declaration. The Governmental
Unit reasonably expects to reimburse the expenditures it will make
or has made in the last 60 days for costs of the acquisition of
Equipment out of the proceeds of the Lease to be incurred by the
Governmental Unit in a maximum principal amount of $2,069,273.95
after the date of payment of all or a portion of such acquisition
costs. All reimbursed expenditures shall be capital expenditures
as defined in Section 1.150-1(h) of the Regulations.
......
Section 3. Reimbursement Allocations. The Governmental
Unit's financial officer shall be responsible for making a written
reimbursement allocation described in the Regulations, being
generally the transfer of the appropriate amount of proceeds of the
Lease to reimburse the source of temporary financing used by the
Governmental Unit to make payment of the prior costs of the
Equipment. Each allocation shall be evidenced by an entry on the
official books and records of the Governmental Unit maintained for
the Lease, shall specifically identify the actual prior expenditure
being reimbursed or, in the case of reimbursement of a fund or
account in accordance with Section 1.150-2, the fund or account
from which the expenditure was paid. Such allocation shall be made
within 30 days of the issuance of the Lease.
Adopted this ~ day of , 1996.
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