2024-02-01 Reimburese Expenditures with Proceeds of a Borrowing PITTSYLVANIA COUNTY BOARD OF SUPERVISORS
RESOLUTION #2024-02-01
A RESOLUTION OF OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH
PROCEEDS OF A BORROWING
VIRGINIA: The Pittsylvania County Board of Supervisors ("Board") adopted the
following Resolution at its Business Meeting on February 20, 2024:
WHEREAS, Pittsylvania County, Virginia ("County"), intends to acquire, construct,
equip,and develop capital improvements to remedy various critical infrastructure needs,including
without limitation, HVAC and window repairs and/or replacements in various County buildings
(collectively, "Project"); and
WHEREAS,plans for the Project have advanced,and the County expects to advance funds
to pay expenditures related to the Project("Expenditures")prior to incurring indebtedness and to
receive reimbursement for such Expenditures from proceeds of tax-exempt obligations or taxable
obligations, or both.
BE IT RESOLVED BY THE BOARD:
1. The County intends to utilize the proceeds of tax-exempt obligations or taxable
obligations ("Obligations") in an amount not currently expected to exceed $5,000,000 to pay or
reimburse the costs of the Project.
2. The County intends that the proceeds of the Obligations be used to reimburse the
County for Expenditures made with respect to the Project on or after the date that is no more than
sixty (60) days prior to the date of this Resolution. As of the date hereof, the County reasonably
expects that it will reimburse the Expenditures with the proceeds of the Obligations.
3. Each Expenditure was, or will be, unless otherwise approved by bond counsel,
either (a) of a type properly chargeable to a 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 Obligations, (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 County, 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 County.
4. The County intends to make a reimbursement allocation, which is a written
allocation by the County that evidences the County's use of proceeds of the Obligations to
reimburse an Expenditure, no later than eighteen (18) months after the later of(a) the date on
which the Expenditure is paid, or(b)the Project is placed in service or abandoned, but in no event
more than three(3)years after the date on which the Expenditure is paid; provided,however, that
such timing limitations are subject to the applicability of(x) Treasury Regulations Section 1.150-
2(d)(2)(ii), related to expenditures by "small issuers" (based on the year of issuance and not the
year of expenditure), and (y) Treasury Regulations Section 1.150-(d)(2)(iii), related to
expenditures for"long-term"construction projects requiring at least five years to complete.
5. The County recognizes that the limitations set forth in the foregoing Paragraphs 2
and 4 do not apply to reimbursements to pay:
(a) "preliminary expenditures" (as such term is used in Treasury Regulations Section
1.150-2(0(2))up to an amount not in excess of twenty percent(20%)of the aggregate issue
price of the Obligations that finance or are reasonably expected to finance the Project for
which the preliminary expenditures were incurred;
(b) costs of issuance of any Obligations; and
(c) "de minimis" amounts (which shall not in the aggregate exceed the lesser of
$100,000 or five percent (5%)of the proceeds of the Obligations).
6. The County intends that the adoption of this resolution confirms the"official intent"
within the meaning of Treasury Regulations Section 1.150-2 promulgated under the Internal
Revenue Code of 1986, as amended.
7. This Resolution shall take effect immediately upon its passage.
Given under my hand this 20th day of February, 2024.
arrell W. Dalton, Cha an
County Board of Supervisors
A/3'"..�'�,
Stuart J. Turte, Jr., Clerk
Pittsylvania County Board of Supervisors
VOTE
.;^ ==.:, ,;. _ Darrell W. Dalton, Chairman Yes
r " ^ �f%' Robert W. Tucker, Jr., Vice-Chairman Yesy = Timothy W. Dudley Yes
__ - /6-4� William V. ("Vic") Ingram Yes
y.''r_�`~ - - ` Kenneth L. Bowman
-`v _"- Yes
� Eddie L. Hite, Jr. Yes
- - Murray W. Whittle Yes
Ayes 7 Nays 0 Abstentions 0