08-10-1994 Council Agenda - Laserfiche WebLink

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RESOLUTION ESTABLISHING PROCEDURES 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: 1. Recitals. (a) The Internal Revenue Service has issued Section 1.103 -18 of the Income Tax Regulations (the "Regulations ") dealing with the issuance of bonds, all or a portion of the proceeds of which are to be used to reimburse the City for project expenditures made by the City prior to the date of issuance. (b) The Regulations generally require that the City make a prior declaration of its official intent to reimburse itself for such prior expenditures out of the proceeds of a subsequently issued borrowing, that the borrowing occur and the reimbursement allocation be made from the proceeds of such borrowing within one year of the payment of the expenditure or, if longer, within one year of the date of the project is placed in service, and that the expenditure be a capital expenditure. (c) The City desires to comply with requirements of the Regulations and to establish certain procedures relating thereto. 2. Official Intent Declaration. The Regulations, in the situations in which they apply, require the City to have made an official declaration of its intent (the "Official Intent Declaration" or the "Declaration ") to reimburse itself for previously paid project expenditures out of the proceeds of subsequently issued debt. The Council hereby authorizes the City Administrator to make the City's Official Intent Declarations. The following procedures shall be observed in making Official Intent Declarations: (a) Each Declaration shall be made substantially in the form of the Exhibit 1 attached hereto and made a part of this Resolution. (b) The City Administrator shall maintain a file in his or her office in which all Declarations shall be kept. Upon completing a Declaration, the City Administrator shall promptly (and in any event within 30 days) place a copy in the file maintained for such purpose. Said file and each Declaration (up until the date upon which the reimbursement borrowing is made) shall be a part of the publicly available official books and records of the City, and shall be available for inspection by the general public during normal business hours. (c) The City Administrator shall endeavor to not make Declarations in cases where the City will not ultimately be issuing reimbursement bonds to provide long term financing for Page 8