HomeMy WebLinkAboutDocumentation_Regular_Tab 29_8/13/2020Agenda Item #29.
Regular Council
STAFF MEMO �
Meeting: Regular Council -Aug 13 2020
Staff Contact: Hugh Dunkley, Finance Director Department: Finance
RESOLUTION 24-20, A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA EXPRESSING ITS INTENT TO ISSUE TAX-EXEMPT DEBT TO ACQUIRE,
DESIGN, PERMIT AND CONSTRUCT (1) A COMMUNITY CENTER AND ASSOCIATED
RECREATIONAL FACILITIES, (11) STORMWATER DRAINAGE IMPROVEMENTS, AND (III) ROAD
AND STREET IMPROVEMENTS; EXPRESSING THE INTENT FOR PURPOSES OF COMPLIANCE
WITH UNITED STATES TREASURY REGULATION SECTION 1.150-(2)(E) TO REIMBURSE WITH
THE PROCEEDS OF SUCH TAX EXEMPT FINANCING, EXPENDITURES MADE WITH RESPECT
TO THE ACQUISITION, DESIGN, PERMITTING AND CONSTRUCTION OF SUCH PROJECTS;
PROVIDING FOR THE ISSUANCE BY THE VILLAGE OF NOTES, BONDS OR OTHER
OBLIGATIONS IN ONE OR MORE SERIES IN AN AGGREGATE PRINCIPAL AMOUNT NOT
EXCEEDING $7,000,000 TO PAY THE COST OF SUCH PROJECTS; AND PROVIDING AN
EFFECTIVE DATE; AND FOR OTHER PURPOSES..
Pursuant to IRS guidelines, before staff can actively seek financing for the construction of the projects that
have been identified in the Village's Capital Improvement Plan (namely, the Community Center as well as
other recreational and public works improvements), the Village Council must formally adopt a resolution
authorizing the issuance of tax-exempt debt. This resolution also serves the purpose of allowing the Village
Council to make an official declaration of its intent to reimburse itself from the proceeds of the future debt
issue expenditures that are typically incurred prior to the issuance of the debt, i.e., architectural and
engineering, lot clearing and the like. The total amount of the debt issue will not exceed $7,000,000.
• • • - • - 1 •
Approval of borrowing authorization for a principal amount not to exceed $7,000,000.
COMM CTR BORROWING AUTHORIZATION ADA
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Agenda Item #29.
RESOLUTION 24-20
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA EXPRESSING ITS INTENT TO ISSUE TAX-
EXEMPT DEBT TO ACQUIRE, DESIGN, PERMIT AND CONSTRUCT (1)
A COMMUNITY CENTER AND ASSOCIATED RECREATIONAL
FACILITIES, (11) STORMWATER DRAINAGE IMPROVEMENTS, AND
(III) ROAD AND STREET IMPROVEMENTS; EXPRESSING THE
INTENT FOR PURPOSES OF COMPLIANCE WITH UNITED STATES
TREASURY REGULATION SECTION 1.150-(2)(E) TO REIMBURSE
WITH THE PROCEEDS OF SUCH TAX-EXEMPT FINANCING,
EXPENDITURES MADE WITH RESPECT TO THE ACQUISITION,
DESIGN, PERMITTING AND CONSTRUCTION OF SUCH PROJECTS;
PROVIDING FOR THE ISSUANCE BY THE VILLAGE OF NOTES,
BONDS OR OTHER OBLIGATIONS IN ONE OR MORE SERIES IN AN
AGGREGATE PRINCIPAL AMOUNT NOT EXCEEDING $7,000,000 TO
PAY THE COST OF SUCH PROJECTS; AND PROVIDING AN
EFFECTIVE DATE; AND FOR OTHER PURPOSES..
WHEREAS, Village of Tequesta, Florida (the "Village") is initiating the process to
undertake the acquisition, design, permit and construction of a community center and
associated recreational facilities, stormwater drainage improvements and road and
street improvements (the "Projects") in accordance with Chapter 166, Florida Statutes
and other applicable law (the "Act"); and
WHEREAS, the Village intends to finance the costs of such Projects with the
proceeds of its revenue bonds, notes or other obligations to be issued in the future in
one or more series the interest on which is intended to be excludable from gross income
for federal income tax purposes (the "Tax Exempt Financing"); and
WHEREAS, the Village expects to initially pay certain costs of the Projects with
funds other than proceeds of the Tax Exempt Financing (the "Advanced Funds") and to
reimburse itself for such expenditures with proceeds from the Tax Exempt Financing.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, THAT:
SECTION 1. AUTHORITY. This Resolution is adopted pursuant to the Act,
Section 1.150-(2)(e) of the United States treasury regulations and other applicable
provisions of law.
SECTION 2. FINDINGS. The members of the Village Council hereby find,
determine and declare as follows:
A. The Village is authorized under law, including, without limitation, the Act,
to issue the Tax Exempt Financing for the valid public purpose of paying the cost of the
Projects.
Page 445 of 451
Agenda Item #29.
B. It is necessary, desirable, convenient and in the interest of the Village that
the Projects be designed, permitted, constructed and financed as contemplated in this
Resolution.
C. The Village intends to finance certain of the costs of the design,
permitting, construction and installation of the Projects with the proceeds of its Tax
Exempt Financing to be issued in the future.
D. The Village expects to pay certain costs of the Projects with Advanced
Funds before the issuance of the Tax Exempt Financing.
SECTION 3. EXPRESSION OF INTENT. The Village reasonably expects to use
the proceeds of the Tax Exempt Financing to reimburse itself for expenditures
described herein made with the Advanced Funds. This Resolution is a declaration of
the official intent of the Village in that regard, within the contemplation of Section 1.150-
(2)(e) of the Income Tax Regulations promulgated by the United States Department of
the Treasury.
SECTION 4. MAXIMUM AMOUNT OF DEBT. The maximum principal amount
of the Tax Exempt Financing reasonably expected to be issued to finance the cost of
the Project is $7,000,000.
SECTION 5. FURTHER ACTION. The officers and employees of the Village are
hereby authorized as are its legal and financial consultants, to do all acts and things
required of them by this Resolution, including but not limited to engaging underwriters or
lenders, and financial advisor(s), for the Tax Exempt Financing for the full, punctual and
complete performance of all the terms, covenants and agreements contained herein or
necessary or convenient to the issuance of the Tax Exempt Financing as provided
herein.
SECTION 6. EFFECTIVE DATE. This Resolution shall take effect immediately
upon its adoption.
Page 446 of 451