RESOLUTION #09-08

 

A RESOLUTION

 

TO EXPRESS THE INTENTION OF THE COUNTY COUNCIL OF NEWBERRY COUNTY, SOUTH CAROLINA, TO CAUSE NEWBERRY COUNTY TO BE REIMBURSED FOR CERTAIN COSTS FOR THE ACQUISITION OF EQUIPMENT WITH THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS.

 

            WHEREAS, the Internal Revenue Service and the U.S. Treasury Department have promulgated Section 1.150-2 of the Treasury Regulations (the “Regulations”) which authorizes an issuer to reimburse itself for expenditures made with respect to projects prior to the issuance of tax-exempt obligations for such projects; and

 

            WHEREAS, the County Council of Newberry County (the “County Council”), the governing body of Newberry County, South Carolina (the “County”), is adopting this Resolution to recite certain facts and intentions prior to the incurrence of certain expenditures and the issuance of tax-exempt obligations; and

 

            WHEREAS, the Regulations require that the governing body of the County or a person designated by the County Council declare an official intent to reimburse an expenditure prior to the incurrence of the expenditure; and

 

            WHEREAS, the County anticipates incurring certain expenditures with respect to the acquisition of a bulldozer (the “Project”), prior to the issuance of tax-exempt obligations for such purpose and for the acquisition of various other items of equipment in an aggregate principal amount of approximately $1,622,500 (the “Obligations”);

 

            NOW, THEREFORE, BE IT RESOLVED by the County Council of Newberry County, South Carolina, as follows:

 

            Section 1.  The County Council hereby declares its official intent pursuant to Regulation Section 1.150-2 to be reimbursed from the proceeds of the Obligations for expenditures with respect to the Project which may occur prior to the issuance of the Obligations.

 

            Section 2.  To be eligible for reimbursement of any expenditures, the County will allocate the proceeds of any tax-exempt obligations to reimburse such expenditures not later than 18 months after the later of (a) the date on which the original expenditures were paid or (b) the date the Project was placed in service or abandoned, but in no event more than three (3) years after the original expenditures were paid. Expenditures, for purposes of the declaration of official intent and the reimbursement allocation, do not apply to any preliminary expenditures for a project, up to an amount not in excess of 20 percent of the aggregate issue price of the tax-exempt obligations. Preliminary expenditures include architectural, engineering, surveying, soil testing, reimbursement bond issuance, and similar costs that were incurred prior to the commencement of acquisition, construction or rehabilitation of any project, other than land acquisition, site preparation, and similar costs incident to commencement of construction.

 

            Section 3.  Within one year of any allocation made pursuant to Section 2 of this Resolution, funds corresponding to the proceeds of the Obligations will not be used in a manner that results in the creation of replacement proceeds, as defined in Regulation Section 1.148-1, of any tax-exempt obligations. The preceding sentence does not apply to amounts deposited in a bona fide debt service fund, as defined in Regulation Section 1.148-1.

 

            Section 4.  The allocation described in Section 2 of this Resolution will not employ an abusive arbitrage device under Regulation Section 1.148-10.

 

            Section 5.  Any expenditures to be reimbursed from proceeds of the Obligations will be incurred solely to acquire, construct, or rehabilitate property having a reasonably expected economic life of at least one year.

 

            Section 6.  The source of funds for any initial expenditures with respect to the Project will be capital improvement or reserve funds of the County.  Any Obligations issued will be paid from revenues of the County or taxes levied to pay debt service on such Obligations.

 

            Section 7.  This Resolution does not obligate the County to issue the Obligations if it determines that such issuance is not in the interests of the County.

 

            Done in meeting duly assembled this 12th day of June, 2008.

 

 

                                                                        NEWBERRY COUNTY, SOUTH CAROLINA

 

 

                                                                        /s/ Henry B. Summer                                               

                                                                        Henry B. Summer, Chairman of County Council

                                                                        Newberry County, South Carolina

                                                                       

ATTEST:

 

 

/s/ Susan C. Fellers                         

Susan C. Fellers, Clerk to County Council

Newberry County, South Carolina

STATE OF SOUTH CAROLINA                        )

                        )                        CERTIFICATE OF RESOLUTION

COUNTY OF NEWBERRY                        )

 

 

            I, the undersigned Clerk to County Council (the “County Council”) of Newberry County, South Carolina, do hereby certify as follows:

 

            Attached hereto is a full, true and correct copy of the resolution duly adopted by the County Council at a meeting thereof duly held on June 12, 2008, which resolution has not been amended, altered or repealed but the same and each and every part thereof is in full force and effect at the date hereof.

 

 

            WITNESS my official signature this 12th day of June, 2008.

 

 

                                                                        NEWBERRY COUNTY, SOUTH CAROLINA

 

 

                                                                                                                                               

                        Susan C. Fellers, Clerk to County Council

                        Newberry County, South Carolina