Title
Declaration of official intent with respect to reimbursement of temporary advances made for capital expenditures to be made from subsequent borrowings, with respect to various sewer construction projects of the Lexington-Fayette Urban County Government. [Div. of Finance, O'Mara]
Summary
Authorization for a Reimbursement Resolution to allow approved spending on the attached list of Capital Improvement Sewer revenue Bond Projects which was Budgeted and approved in the FY2020 Budget. This Resolution provides a mechanism for the projects to move forward prior to the sale of the bonds. Expenses incurred by the Bond Projects will be paid from the Sewer Fund. Upon the sale of the bonds later this fiscal year, the Sewer Fund will be reimbursed. The practice of approval of a reimbursement Resolution is consistent with prior practice and is a generally accepted mechanism in the accounting community. The anticipated debt service is $960,000 for FY 2020. The annual debt service in following years is $3,800,000. (L0663-19)(O'Mara)
Budgetary Implications [select]: Yes
Advance Document Review:
Law: Yes, Completed by Dave Barberie, June 10, 2019
Risk Management: N/A
Fully Budgeted [select]: Yes
Account Number: 4002-141401-1680-78401
This Fiscal Year Impact: $960,000.00
Annual Impact: $
Project:
Activity:
Budget Reference:
Current Balance: $1,420,000.00
Body
WHEREAS, Treasury Regulation ? 1.150-2 (the "Reimbursement Regulations"), issued pursuant to Section 150 of the Internal Revenue Code of 1986, as amended, (the "Code") prescribes certain requirements by which proceeds of tax-exempt bonds, notes, certificates or other obligations included in the meaning of "bonds" under Section 150 of the Code ("Obligations") used to reimburse advances made for Capital Expenditures (as hereinafter defined) paid before the issuance of such Obligations may be deemed "spent" for purposes of Sections 103 and 141 to 150 of the Code and therefore, not further subject to ...
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