Resolution 2022-21
A RESOLUTION TO REIMBURSE ITSELF FROM THE PROCEEDS OF TAX-EXEMPT FINANCING FOR CERTAIN EXPENDITURES MADE
WHEREAS, the Town of Churubusco (“Town”) is a political subdivision organized and existing under the laws of the state of Indiana, pursuant to Indiana Code 36-5 et seq.
WHEREAS, the Town has paid, beginning no earlier than August 27, 2022 and will pay, on and after the date hereof, certain expenditures (the “Expenditures”) in connection with the project.
WHEREAS, the Town Council of the Town has determined that the money previously advanced since August 27, 2022 and to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the Town for Expenditures from the proceeds of the issue of the tax-exempt bond issued to the Indiana Finance authority in connection with the project (“Bond”).
NOW THEREFORE, be it resolved, by the Town Council of the Town of Churubusco:
1. The Council hereby declares the Town’s intent, pursuant to Treas. Reg. § 1.150-2 (the “Regulation”), to reimburse the Town with the proceeds of the Bond for the Expenditures with respect to the project made on and after August 27, 2022, which date is no more than 60 days prior to the date hereof. The Town reasonably expects that it will reimburse the Expenditures with the proceeds of the Bond;
2. Each Expenditure was and will be (a) of a type properly chargeable to capital account under general federal income tax principles (determined in each case as of the date of the Expenditure) and (b) complies with all applicable requirements of the Indiana Finance Authority’s State Revolving Fund Loan Program;
3. The cost of the Expenditures if expected to be $100,000;
4. The maximum cost of the project is expected to be approximately $4,500,000;
5. The Town will make a reimbursement allocation, which is a written allocation by the Town that evidences the Town’s use of proceeds of the Bond to reimburse an Expenditure as soon as Bond funds are available, but no later than 18 months after the later of the date on which the Expenditure is paid or the project is placed in service, and in no event more than 3 years after the date on which the Expenditure is paid;
6. Nothing contained in this resolution shall prohibit the Town from reimbursing itself, outside the guidelines of this resolution, for any other costs associated with the project that are not subject to the Regulation; and
7. This resolution shall take effect immediately upon its passage.
Upon motion duly made and seconded, the foregoing Resolution was adopted this 26th day of October, 2022.
__________________________________ Devin Keener, Council President
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Nathan Van Horn, Council Member
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Mark Pepple, Council Member
ATTEST:
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Madalyn Sade-Bartl, Clerk-Treasurer
