008-97
RESOLUTION OF THE BOARD OF SUPERVISORS
OF THE COUNTY OF FREDERICK, VIRGINIA DECLARING ITS INTENTION TO
REIMBURSE ITSELF FROM THE PROCEEDS OF ONE OR MORE TAX-EXEMPT
FINANCINGS FOR CERTAIN EXPENDITURES MADE AND/OR TO BE MADE IN
CONNECTION WITH THE ACQUISITION, CONSTRUCTION AND EQUIPPING
OF CERTAIN CAPITAL IMPROVEMENTS FOR SCHOOL PROJECTS
WHEREAS, the County of Frederick, Virginia (the "Issuer") is
a political subdivision organized and existing under the laws of
the Commonwealth of Virginia; and
WHEREAS, the Board of Supervisors of the Issuer (the
"Board") expects to pay, after the date hereof, certain
expenditures (the "Expenditures") in connection with the
acquisition, construction and/or equipping of capital
improvements for school projects, including the acquisition of
land and the construction, expansion, renovation, improvement and
equipping of various school facilities, consisting of additions
to the Armel Elementary School and the Middletown Elementary
School (the "Projects"); and
WHEREAS, the Board has determined that any moneys previously
advanced no more than 60 days prior to the date hereof (and any
moneys previously advanced and subject to an exception as
described in Section 4) and those moneys 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
Issuer or the School Board for the Expenditures from the proceeds
of one or more issues of tax-exempt bonds (the "Bonds");
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS
OF THE COUNTY OF FREDERICK, VIRGINIA AS FOLLOWS:
Section 1. The Board hereby declares its intent to
reimburse itself or the School Board with the proceeds of the
Bonds for the Expenditures with respect to the Project made on
and after that date which is no more than 60 days prior to the
date hereof (or which are subject to an exception). The Board
reasonably expects on the date hereof that it will reimburse the
Expenditures with the proceeds of the Bonds.
Section 2. Each Expenditure will be either (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), (b) a cost of issuance with respect to the
Bonds, (c) a nonrecurring item that is not customarily payable
from current revenues, or (d) a grant to a party that is not
related to or an agent of the Issuer so long as such grant does
not impose any obligation or condition (directly or indirectly)
to repay any amount to or for the benefit of the Issuer.
Section 3. The maximum principal amount of the Bonds
expected to be issued for the Projects is $3,000,000.
Section 4. The Issuer will make a reimbursement' allocation,
which is a written allocation by the Issuer that evidences the
Issuer's use of proceeds of the Bonds to reimburse an
Expenditure, no later than 18 months after the later of the date
on which the Expenditure is paid or the applicable Project is
placed in service or abandoned, but in no event more than three
years after the date on which the Expenditure is paid. The
Issuer recognizes that exceptions are available for certain
"preliminary expenditures," costs of issuance, certain de minimis
amounts, expenditures by "small issuers" (based on the year of
issuance and not the year of expenditure) and expenditures for
construction projects of at least 5 years.
Section 5. This resolution shall take effect immediately
upon its passage.
ADOPTED this 24th day of September, 1997.
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Resolution No.: 008-97