HomeMy WebLinkAboutR-2025-143 Resolution authorizing the City Manager and/or the Director of Finance & Budget to issue statements of official intent for reimbursing certain capital project expenses with future tax-exempt bond proceedsA RESOLUTION
RESOLUTION NO. R-2025-143
of the City of Yakima, Washington, appointing the City Manager and/or the
Director of Finance & Budget for the purpose of designating certain
expenditures for reimbursement from tax-exempt bonds that may be
authorized and approved by the City for issuance in the future.
WHEREAS, the City of Yakima, Washington (the "City") issues tax-exempt obligations,
including bonds, notes, and leases from time to time for the purpose of financing its governmental.
activities; and
WHEREAS, the United States Department of the Treasury has promulgated Regulations
limiting the ability of the City to use the proceeds of tax-exempt obligations for reimbursement of
prior expenditures; and
WHEREAS, Section 1.150-2 of the Regulations permits the City to appoint one or more
officials for the purpose of identifying and qualifying capital projects for reimbursement purposes;
and
WHEREAS, any such declaration of official intent to reimburse must not be made as a
matter of course or in an amount substantially in excess of the amount expected to be necessary
for the proposed project; and
WHEREAS, authorization and approval of such bonds shall be made by separate
ordinance of the City Council prior to issuance; now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Council hereby appoints and designates the City Manager (the "City Manager) and/or
the Director of Finance & Budget (the "Director of Finance & Budget" and together with the City
Manager, each an "Authorized Representative") as the officials responsible for issuing statements
of official intent in compliance with Treasury Regulation Section 1.150-2. Upon a determination
by the Authorized Representative that the costs of a particular capital project may be reimbursed
from the proceeds of tax-exempt obligations of the City, the Authorized Representative is
authorized and directed to execute a certificate of official intent, substantially in the form attached
hereto as Exhibit A. The signature of one Authorized Representative shall be sufficient. Each
certificate so executed shall become a part of the official records of the City available for public
inspection and review.
ADOPTED BY THE CITY COUNCIL this 16th day of September, 2025.
Patricia Byer,, Mayor
EXHIBIT A
FORM OF OFFICIAL INTENT CERTIFICATE
Pursuant to Resolution No. of the City Council of the City of Yakima, Washington
(the "City"), the undersigned, Authorized Representative of the City hereby states as follows:
Section 1. The City reasonably expects to reimburse the expenditures described herein
with the proceeds of tax-exempt debt to be incurred by the City (the "Reimbursement Bonds").
Section 2. The maximum principal amount of Reimbursement Bonds expected to be issued
is $ [STATE THE MAXIMUM AMOUNT OF THE TAX-EXEMPT BONDS EXPECTED
TO BE ISSUED AND/OR USED TO REIMBURSE THE CITY].
Section 3. The expenditures with respect to which the City reasonably expects to be
reimbursed from the proceeds of Reimbursement Bonds will be made from the City's
Fund [STATE WHICH FUND WILL BE USED TO INITIALLY PAY FOR
THE PROJECT] for project costs related to the City's
PROJECT].
Dated this day of , 20
[DESCRIBE
, Authorized
Representative
Item No. 9.C.
For Meeting of: September 16, 2025
ITEM TITLE:Resolution authorizing the City Manager and/or the Director of
Finance & Budget to issue statements of official intent for reimbursing
certain capital project expenses with future tax-exempt bond proceeds
SUBMITTED BY:Craig Warner, Director of Finance & Budget
Kimberly Domine, Financial Services Manager
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
SUMMARY EXPLANATION:
The City of Yakima appoints the City Manager and/or Director of Finance & Budget as authorized
officials to issue statements of official intent for reimbursing certain capital project expenses with future
tax-exempt bond proceeds. This action ensures compliance with U.S. Treasury Regulation Section
1.150-2, which governs the reimbursement of prior expenditures from tax-exempt obligations. When a
capital project’s costs are expected to be reimbursed through such bonds, the designated official will sign
an Official Intent Certificate (see Exhibit A) documenting the project, funding source, and maximum bond
amount.
Approval to issue the actual bonds will occur separately by ordinance. Signed certificates will be
maintained as public records.
ITEM BUDGETED: N/A
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION: Adopt Resolution.
ATTACHMENTS:
Resolution_2025 reimbursement delegation-City of Yakima
Summary of Reimbursement Rules.pdf