135.05 REIMBURSEMENT OF CAPITAL EXPENDITURES FROM REIMBURSEMENT BONDS; DECLARATIONS OF OFFICIAL INTENT REQUIRED.

   (a)    Definitions.  As used in this section:

      (1)    "Authorized officer" means the Finance Director or any person designated for the purpose by the Mayor.

      (2)    "Bonds" means and includes bonds, notes, certificates and other obligations included in the meaning of the term "bonds" as defined in Section 150 of the Internal Revenue Code of 1986, as amended.

      (3)    "Declaration of official intent" means a declaration of intent, in the manner contemplated in the Reimbursement Regulations, as defined in this subsection, that expenditures are reasonably expected to be reimbursed from the proceeds of reimbursement bonds to be issued after the expenditure is paid.

      (4)    "Issuer" means the City of Beachwood, Ohio.

      (5)    "Public record" is as defined in Ohio R.C. 149.43.

      (6)    "Reimbursement" or "reimburse" means the restoration to the issuer or conduit borrower of money temporarily advanced from its other funds and spent for capital expenditures (including any issuance costs) before the issuance of the reimbursement bonds. The term "reimbursement" or "reimburse" does not include the refunding or retiring of bonds previously issued and sold to, or borrowings from, unrelated entities (i.e. entities not in the same "controlled group," within the meaning of the Reimbursement Regulations).

      (7)    "Reimbursement bonds" means any issue of bonds, all or part of the proceeds of which are to be used for reimbursement of capital expenditures paid before the issuance of such bonds

      (8)    "Reimbursement Regulations" means Treasury Regulations Section 1.103-18, and any amendments thereto or superseding regulations, whether in proposed, temporary or final form, as at the time applicable, prescribing conditions under which the proceeds of reimbursement bonds, when allocated or applied to a reimbursement, will be treated as "spent" for all or any purposes of Sections 103 and 141 to 150 of the Internal Revenue Code.

   (b)    Authority of Authorized Officer; Declarations.  Each authorized officer is authorized to prepare, sign and include in the public records, declarations of official intent with respect to capital expenditures (including any costs of issuance of reimbursement bonds) to be made from money temporarily available and which are reasonably expected to be reimbursed (in accordance with applicable authorizations, policies and practices) from the proceeds of reimbursement bonds; to make appropriate reimbursement and timely allocations from proceeds of reimbursement bonds to reimburse such prior capital expenditures; and to take any other actions as may be appropriate, all at the times and in the manner required under the Reimbursement Regulations, to satisfy the requirements for proceeds used for reimbursement to be treated as "spent" for purposes of Sections 103 and 141 to 150 of the Internal Revenue Code of 1986, as amended. No advance from any fund, account or order for payment may be made for expenditures that are to be reimbursed subsequently from proceeds of reimbursement bonds unless a declaration of official intent with respect thereto is first made. All declarations of official intent heretofore made on behalf of the issuer are hereby ratified and adopted.

   (c)    Public Inspection of Declarations.  Each declaration of official intent shall be treated as a public record and made available for reasonable public inspection not later than thirty days after the date of the declaration of official intent, and the same shall be available for reasonable public inspection continuously during normal business hours on every business day, up to and including the date of issuance of the reimbursement bonds.

   (d)    Declarations bv Conduit Borrowers; Public Inspections. With regard to reimbursement bonds, the proceeds of which are to be loaned or otherwise made available to a borrower for his or her purposes (conduit borrower), any declaration of official intent by the conduit borrower with respect to reimbursement of capital expenditures may be filed, at the option of the conduit borrower, with the public records for inspection by the general public as provided in subsection (c) hereof.

(Ord. 1992-40. Passed 3-16-92.)