BOARD OF COUNTY COMMISSIONERS OF

FRANKLIN COUNTY, KANSAS

RESOLUTION NO: 09-060

A RESOLUTION OF INTENT OF FRANKLIN COUNTY, KANSAS, TO FINANCE A JUVENILE DETENTION FACILITY WITH THE ISSUANCE OF FEDERALLY TAX-EXEMPT DEBT.

WHEREAS, the Internal Revenue Service has issued Section 1.103‑18 of the Treasury Regulations (the "Reimbursement Regulations") which prescribe procedures applicable to Franklin County, Kansas (the "County"), for issuing bonds, all or a portion of the proceeds of which are to be used to reimburse the County for project expenditures made by the County before the date the bonds are issued; and

WHEREAS, the Reimbursement Regulations generally require the County to make a declaration of official intent to reimburse itself for previous expenditures out of the proceeds of subsequently issued bonds or other tax‑exempt borrowing, that the borrowing occur and the reimbursement be made within a specified period of time after the payment of the expenditure or after the project in question is placed in service, and that a reimbursed expenditure be a capital expenditure; and

WHEREAS, the Board of County Commissioners of the County has determined it is necessary and desirable to acquire, construct and equip a juvenile detention facility (the “Project”) at an estimated cost of $4,000,000; and

WHEREAS, the County anticipates using bonds, notes or other tax-exempt obligations to finance all or a portion of the cost of the Project;

NOW, THEREFORE, BE IT RESOLVED, BY THE BOARD OF COUNTY COMMISSIONERS OF FRANKLIN COUNTY, KANSAS, AS FOLLOWS:

Section 1.  In order to comply with the requirement of the Reimbursement Regulations concerning declarations of official intent to reimburse the County for previously paid project expenditures from the proceeds of subsequently issued debt, the Board of County Commissioners of the County hereby indicates its intent to reimburse the County with the proceeds of bonds, notes or other obligations of the County, the interest on which is expected to be exempt from federal income taxation, for costs of the Project in an amount not to exceed $4,000,000.

Section 2.  This Resolution shall be in full force and effect from and after its adoption.

ADOPTED AND PASSED by the Board of County Commissioners of Franklin County, Kansas, on December 23, 2009.

FRANKLIN COUNTY, KANSAS

(Seal)                                                               /s/ John E Taylor

Chairman

ATTEST:

/s/ Shari Perry

County Clerk