Ord. No. 22-91-1487ORDINANCE NO.22-91-1487
AN ORDINANCE OP THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI,FLORIDA;AUTHORIZING THE EXECUTION
AND FILING OF DECLARATIONS OF OFFICIAL INTENT WITH
RESPECT TO REIMBURSEMENTS FROM NOTE AND BOND PROCEEDS
OF TEMPORARY ADVANCES MADE FOR CAPITAL EXPENDITURES
AND RELATED MATTERS;PROVIDING FOR SEVERABILITY;PROV
IDING FOR ORDINANCES IN CONFLICT:AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS,the Internal Revenue Service (IRS)hasproposed
regulations pertaining to whether proceeds of bonds,notes or
other obligations (bonds)will be deemed "spent"for purposes of
Sections 103and141to150ofthe Internal Revenue Code of1986
("the Code")when usedto reimburse advances made for
expenditurespaidbeforetheissuanceofsuchbonds,sothatthe
proceedssousedwillnotfurtherbesubjecttorequirementsor
restrictionsunderthosesectionsoftheCode;-and
WHEREAS,certainprovisions of theproposedregulations
would apply to expenditures currently being paid or to be paid
before September 3 if theyareto be reimbursedfromthe proceeds
ofbondsissuedafterSeptember 7,1991,andallofthe
provisions will applyto expenditures paidafter September 7,
1991 which aretobe reimbursed from governmental use bonds or
qualified 501 (c)(3)bonds issued aftertheexpenditure is
paid;and
WHEREAS,althoughtheprovisionsoftheproposedregulations
maybealtered in somerespectsbeforetheybecome final,it is
deemed advisable that stepsbetaken to prepare tocomplywith
the proposed regulations in the event that theyare ultimately
adopted by IRS;
NOW,THEREFORE,BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI,FLORIDA:
Section 1.Definitions.In addition to the definitions
stated in the preamble,the following definitions applyto the
terms used herein:
"Authorized Officer"means the Finance Director of the Citv
and any person with authority at the time to exercise functions
ofthatoffice,orthecity Manager and any person with
authority atthetimeto exercise functions ofthatoffice,or
the chieffinancialofficerofanyCitydepartmentofagencywith
authority to make or authorize the expenditure tobe advanced.
"Bonds"means and includes bonds,notes,certificates and
other obligations includedinthe meaning of "bonds"under
Section 150 of the Code.
"Declaration of Official Intent"means the declaration of
official intent,as contemplated in the Reimbursement
regulations,that an expenditure is expected tobe reimbursed
from the proceeds of Reimbursement Bonds tobe issued after the
expenditure is paid.
"Public Records"meansthe records keptbythe Clerk ofthe
Commission,which are required tobe available for reasonable
public inspection.
"Reimbursement"means the restoration to the issuer or
conduit borrower of money temporarily advanced from its other
fundsandspent,beforetheissuanceofthe Reimbursement bonds,
on property having a reasonably expected economic life ofone
yearormore."Reimbursement"doesnot include the refunding or
retiringofbonds previously issuedandsold to,or borrowing
from,unrelated entities (entities not in the same "controlled
group",as defined inthe Reimbursement Regulations).
"ReimbursementBonds"meansany issue ofbondsallorpart
of the proceeds of which are tobe used for reimbursement of an
expenditure paid before issuance of the bonds.
"ReimbursementRegulations"meansTreasuryRegulations,
whetherin proposed,temporary orfinalform,asatthetimeand
as may be applicable,prescribing conditions under which the
proceeds of bonds when allocated or applied toa reimbursement
willbe treated as "spent"for purDoses of Sections 103and141
to150oftheCode,includingtheProposed Treasury Regulations
(Sections 1.103-17 and 1.103-18 (FI-59-89).
Section 2.Authorization of Declarations of Intent.
TheAuthorizedOfficer is authorizedtoprepare,signandfile in
the Public Records,Declarations of Official Intent atthe
appropriate timesandin appropriate form,consistent withthe
ReimbursementRegulations,withrespecttoexpenditurestobe
madefrom money temporarily available and which istobe
reimbursed (in accordance with applicable authorizations,
policiesandpractices)fromtheproceedsof Reimbursement
Bonds,to make appropriate reimbursement allocations,and to take
any other actions asmaybe appropriate under the Reimbursement
Regulations to qualify proceeds used for reimbursement as "spent"
for purposesofSections103andSections141to150oftheCode.
Section 3.Filing and Public Inspection.Each Declaration
ofOfficialIntentshallbefiledinthe Public Recordsnotlater
thantheearlierof (i)ten daysafterthedateof the
DeclarationofOfficialintentor (ii)thedateofissuanceof
theReimbursementBondspertinenttosuchDeclarationofOfficial
Intent,and shall be available for public inspection continuously
during normal business hours on every business day to and
includingthedateofissuanceofthe Reimbursement Bonds.
Section 4.Conduit Issues.With regard to Reimbursement
Bondsanyportionoftheproceedsofwhicharetobeloanedtoa
borrower for its purposes (conduit borrower),any Declaration of
Official Intent by the conduit borrower with respect to
reimbursement of prior expenditures may be filed,at the option
of the conduit borrower,with the Public Records for inspection
bythe general public as provided in Section 3.
Section Li.Severability.if any section,clause,
sentence,or phrase of this Ordinance is held to be invalid or
unconstitutional by any court of competent iurisdiction,then
said holding shall in no way affect the validity of the remaining
-
portions of this Ordinance.
Section 6.Conflict.All Ordinances or parts of
Ordinancesin conflict herewith beandthesameare hereby
repealed.
Section 7.Effective Date.This Ordinance shall take
effect immediately atthetimeofits passage.
PASSED AND ADOPTED this 3th day of September 1991.
APPROVED:
gL-d.
ATTE
READ AND APPROVED AS TO FORM:
CITY ATTORNEY