The Dillon County Council passed a resolution relating to the Declaration of Intent by Dillon County, South Carolina, to reimburse certain expenditures made prior to the issuance of federally tax-exempt general obligation bonds or other obligations by the county at their December meeting. The resolution reads as follows:
WHEREAS,the Internal Revenue Service and U.S. Treasury Department have promulgated Section 1.150-2 of the Treasury Regulations (the “Regulations”) that authorizes an issuer to reimburse itself for expenditures made with respect to projects prior to the issuance of tax-exempt bonds for such projects; and
WHEREAS, the Regulations require that the governing body of the political subdivision declare an official intent to reimburse an expenditure not later than sixty (60) days after the payment of the expenditure; and
WHEREAS, Dillon County, South Carolina (the “County”) anticipates incurring certain expenditures in an approximate amount of $2,200,000 (the “Expenditures”) with respect to the acquisition of certain real property for subsequent conveyance thereof to the South Carolina Ports Authority for construction and operation of an inland port facility (the “Project”), prior to the issuance by the County of tax-exempt general obligation bonds or other obligations for such purposes.
NOW THEREFORE, BE IT RESOLVED, by the County Council of Dillon County, South Carolina, as follows:
Section 1. The County hereby declares that this Resolution shall constitute its declaration of official intent pursuant to Regulation 1.150-2 to reimburse the county from the proceeds of tax-exempt debt in the form of general obligation bonds of the County to be issued pursuant to Title 4, Chapter 15 of the Code of Laws of South Carolina, 1976, as amended, or other tax-exempt obligations for Expenditures with respect to the Project.
Section 2. The County understands that Expenditures which may be reimbursed are limited to Expenditures which are (a) properly chargeable to capital account (or would be so chargeable with a proper election or with the application of the definition of placed in service under Regulation 1.150-2) under general federal income tax principles; or (2) certain de minimis amounts or preliminary expenditures satisfying the requirements of Regulation 1.150-2(f).
Section 3. To be eligible for reimbursement of the Expenditures, the reimbursement allocation must be made not later than 18 months after the later of (a) the date on which the Expenditures were paid, or (b) the dates the respective Projects were placed in service, but in no event more than three (3) years after the original Expenditures.
Section 4. The source of funds for the Expenditures with respect to the Projects will be fund balance in the County’s general fund.
Section 5. This Resolution shall be in full force and effect from and after its adoption as provided by law. This Resolution shall be made available for inspection during normal business hours by the general public at the office of the Clerk of the County Council.
