Spokane Municipal Code

Title 07 Finance

Chapter 07.16 Public/Private Partnership Agreement Requirements

Section 07.16.020 Certification of Structural Requirements for Tax-exempt Financing

1. In all transactions involving the issuance of bonds or other securities for the acquisition of public infrastructure, facilities, etc., the City will appropriately investigate that, in accordance with Internal Revenue Code (IRC) Section 141 (b)(2), no more than ten percent of bond proceeds will accrue to the benefit of private parties.

2. Pursuant to IRS Revenue Procedure 82.66, governing transactions under Federal Revenue Ruling 63.20, the City will certify through a resolution of the city council that any private foundation created to operate or issue debt for public projects to be acquired “on behalf of” the City is organized and will be operated in the public interest, and that at least eighty percent of the members of the governing board of such foundation will be appointed by the mayor and approved by a majority vote of the Spokane city council.

3. Consistent with the purposes of Federal Revenue Ruling 63-20 that private, not for profit corporations issuing debt for public projects being acquired “on behalf of” public agencies be primarily engaged in activities that benefit the public interest, the city clerk shall certify that any corporation so authorized has filed with the city clerk a:

1. 1. letter from the federal Internal Revenue Service certifying that the corporation has been granted federal tax exempt status pursuant to IRC Section 501 (c)(3), or;

1. 2. pending Form 1023 application to the federal Internal Revenue Service for Tax Exempt Status under IRC Section 501 (c)(3).

Date Passed: Monday, March 12, 2012

Effective Date: Sunday, April 15, 2012

ORD C34838 Section 3