Example
City begins constructing a project on October 1 , 2016 . City adopts an reimbursement resolution on January 15 , 2017 , stating its intent to issue a maximum of $ 5,000,000 of bonds for the project . The project is placed into service on March 1 , 2019 . All invoices relating to the project are paid by June 1 , 2019 .
City issues $ 7,000,000 of tax-exempt bonds on December 1 , 2019 . On the issue date of the bonds , the City may properly reimburse from bond proceeds :
• Preliminary expenditures relating to the project , regardless of the date the expenditure was paid , so long as the total amount of the preliminary expenditures reimbursed does not exceed $ 1,400,000 ( i . e ., 20 % of $ 7,000,000 ).
• Construction expenditures for the project paid on or after December 1 , 2016 , that are not in excess of $ 5,000,000 . Although the “ 60-day lookback ” suggests that any amounts paid on or after November 15 , 2016 , would be eligible for reimbursement , the reimbursement period requirement provides that an allocation must be made no later than three years after the date of the original expenditure . Furthermore , construction amounts may only be reimbursed within the limit authorized under the reimbursement resolution .
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