FINAL ALLOCATION OF BOND PROCEEDS
MEMO TO FILE
Sent to Financing & Treasury on ___
The financed project is a [DESCRIPTION OF PROJECT] (the "Project"), located at CSU [CAMPUS],
facility # ___. The total costs of the Project is approximately $[AMOUNT], of which $[AMOUNT]
was financed with tax-exempt bond proceeds and/or commercial paper, and the remainder was
financed with [DONATIONS/INTERNAL SOURCES/TAXABLE BORROWINGS] (collectively,
"Equity") in the approximate amount of $[AMOUNT]. The Project [was completed and placed in
service on [MONTH/DAY/YEAR].
As of _______, approximately [NUMBER] square feet of the Project are expected to have
private use, due to a [LEASE/CONTRACT] with [VENDOR] (the "Vendor[S]"), to provide
[FOOD/DINING/RETAIL] services. The total usable or assignable square footage of the Project is
[NUMBER] square feet, and the construction cost per square foot for the Project is
approximately equal.
According to the timelines permitted under the rules relating to tax-exempt debt,1 we are
allocating Equity to the area of the Project used by the Vendor[S] and, therefore, allocating all
proceeds of tax-exempt borrowings to areas of the Project not used by the Vendor[S].
Attached is a spreadsheet which details the expenditures. It is recognized that the campus will
maintain records supporting such expenditures and the project contract including construction
and related use of the facility for the life of the bonds plus five years. It is further recognized
that the use of tax-exempt financed facilities is limited by the Internal Revenue Service.
[NAME OF CAMPUS]:
SIGNATURE:
DATE:
NAME OF SIGNATORY:
1
A final allocation of bond proceeds and other amounts, such as an allocation of private business uses to area
financed with equity (i.e., non-bond proceeds), must be made no later than 18 months after the later of the date
the expenditure is paid or the date the project is placed in service, but in no event later than 5 years after the date
of issuance of the bond issue. For commercial paper that is later paid off with long-term bonds, it is common that
the project is still under construction when the commercial paper is paid off. In such circumstance, it is reasonable
to apply the timing rule for final allocation to the bond issue.