07-12-2000 Council Agenda - Laserfiche WebLink

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RESOLUTION DECLARING INTENT RELATING TO COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE BE IT RESOLVED by the City Council (the "Council ") of the City of Little Canada, Minnesota (the "City "), as follows: Recitals. (a) The Internal Revenue Service has issued Treasury Regulations, Section 1.150 -2 (as the same may be amended or supplemented, the "Regulations "), dealing with "reimbursement bond" proceeds of the City's bonds used to reimburse the City for any project expenditure paid by the City prior to the time of the issuance of those bonds. (b) The Regulations generally require that the City make a declaration of intent to reimburse itself for such prior expenditures out of the proceeds of subsequently issued bonds, that such declaration be made not later than 60 days after the expenditure is actually paid, and that the bonding occur and the written reimbursement allocation be made from the proceeds of such bonds within 18 months after the later of (1) the date of payment of the expenditure or (2) the date the project is placed in service (but in no event more than 3 years after actual payment). 2. Official Intent Declaration. (a) This Declaration relates to the following project, property or program (the "Project ") and the costs thereof to be financed: Little Canada Road Reconstruction with Amenities. (b) The City reasonably expects to reimburse itself for the payment of certain costs of the Project out of the proceeds of a bond issue or similar borrowing (the "Bonds ") to be issued by the City after the date of payment of such costs. As of the date hereof, the City reasonably expects that $750,000 is the maximum principal amount of the Bonds that will be issued to finance the Project. (c) Each expenditure to be reimbursed from the Bonds is or will be a capital expenditure or a cost of issuance, or any of the other types of expenditures described in Section 1.150- 2(d)(3) of the Regulations. (d) As of the date hereof, the statements and expectations contained in this Declaration are believed to be reasonable and accurate. Attest: Adopted this 12°i day of July, 2000. City Administrator Mayor Page 25