Title
Entering into a Reimbursment Resolution for CONXX
Body
BE IT RESOLVED, that the Board of Commissioners of Lackawanna County does hereby enter into a Reimbursment Resolution for CONXX,
WHEREAS, the County of Lackawanna, Pennsylvania (the "County"), a county organized under the laws of the Commonwealth of Pennsylvania, intends to finance with the proceeds of a tax-exempt borrowing (the "Debt"), a project (the "Project"), consisting of funding all or any of the following: (1) design, acquisition, construction, rehabilitation, improvement, installation, furnishing and equipping of capital projects within the County, including but not limited to, information technology improvements and enhancements within the County; (2) purchase of capital equipment for use by the County; (3) design, acquisition, construction, renovation, improvement, and installation, furnishing and equipping of other capital projects of the County as approved by the Board of County Commissioners of the County (the "Board"); and (4) funding contingencies and paying the costs and expenses of issuance of the Debt; and
WHEREAS, design, acquisition, engineering and construction of the Project may commence prior to the issuance of the Debt and the County desires to pay for certain of the costs of the Project (the "Expenditures") from general funds of the County which do not constitute proceeds of tax-exempt obligations; and
WHEREAS, the County has determined that the funds that have been or are to be advanced to pay Expenditures are or will be available only for a temporary period and it is necessary to reimburse the County for Expenditures with respect to the Project from the proceeds of a tax-exempt borrowing represented by the Debt; and
WHEREAS, as of the date hereof, there are no funds from sources other than the Debt that are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside by the County or any member of the same controlled group as the County to pay the Expenditures; and
WHEREAS, the County, in compliance with Section 1.150-2 of the United States Treasury Regulations, reasonably expects to reimburse the Expenditures made by it for the Project with proceeds of the Debt.
NOW, THEREFORE, BE IT RESOLVED, that the Board, in lawful session duly assembled, hereby declares the intent of the County as follows:
1. The County reasonably expects to reimburse itself for original Expenditures paid or to be paid by the County from general funds of the County in connection with the Project with the proceeds of the Debt.
2. This Resolution constitutes a declaration of official intent intended to comply with the requirements of Section 1.150-2(e) of the United States Treasury Regulations, as amended.
3. The maximum amount of debt expected to be issued to finance the Project is $5,500,000.
4. The Expenditures are or will be "capital expenditures" as defined in Treasury Regulation Section 1.150-2(d)(3).
5. No reimbursement allocation will employ an “abusive arbitrage device” under Treasury Regulations Section 1.148-10 to avoid the arbitrage restrictions or to avoid the restrictions under Sections 142 through 147 of the Code. The proceeds of the Debt used to reimburse the County for costs of the Project, or funds corresponding to such amounts, will not be used, within one year after the reimbursement allocation, in a manner that results in the creation of “replacement proceeds,” including “sinking funds,” “pledged funds,” or funds subject to a “negative pledge” (as such terms are defined in Treasury Regulations Section 1.148-1) of the Debt or another issue of debt obligations of the County, other than amounts deposited into a “bona fide debt service fund” (as defined in Treasury Regulations Section 1.148-1).
6. All reimbursement allocations will occur not later than eighteen (18) months after the later of: (i) the date the expenditure from a source other than the Debt is paid, or (ii) the date the Project is “placed in service” (within the meaning of Treasury Regulations Section 1.150-2) or abandoned, but in no event more than three (3) years after the expenditure is paid.
7. The adoption of this Resolution is consistent with the budgetary and financial circumstances of the County.
8. The Resolution shall become effective immediately.
9. Proper officers of the County are authorized and directed to do such things as may be necessary to carry out the intent and purpose of this Resolution, specifically including, but not limited to, the making of timely reimbursement allocations upon the issuance of the Debt.
10. In the event any provision, section, sentence, clause or part of this Resolution shall be held invalid, such invalidity shall not affect or impair any remaining provision, section, sentence, clause or part of this Resolution, it being the intent of the County that such remainder shall be and shall remain in full force and effect.
ADOPTED at a regular meeting of the Board of Commissioners of Lackawanna County held on March 10, 2010.
COUNTY OF LACKAWANNA
________________________
MICHAEL J. WASHO
________________________
COREY D. O'BRIEN
________________________
A.J. MUNCHAK
ATTEST:
_____________________________
MARIA ELKINS
CHIEF OF STAFF
Approved as to form and legality:
_____________________________
JOHN R. O'BRIEN, ESQUIRE
COUNTY SOLICITOR