2005-183 Council Resolution - Laserfiche WebLink

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• • • Section 3. Preliminary Approval. The City hereby gives preliminary approval to the issuance of the Notes in the original aggregate principal amount not to exceed $3,000,000 to finance all or a portion of the costs of the Project, subject to final approval following the preparation of note documents, and subject to final determination by the City that the financing of the Project and the issuance of the Notes are in the best interest of the City. City staff, Kennedy & Graven, Chartered, acting as Bond Counsel, and other agents and consultants of the City are hereby authorized and directed to do all things and take all actions as may be necessary or appropriate to prepare and review necessary documents relating to the Project and the Notes to be issued in connection therewith. The Administrator and other officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. Section 4. Reimbursement of Costs under the Code. 4.1. The United States Department of the Treasury has promulgated final regulations governing the use of the proceeds of tax - exempt notes, such as the Notes, all or a portion of which are to be used to reimburse the City or a borrower from the City for project expenditures paid prior to the date of issuance of such Notes. Those regulations, Treasury Regulations, Section 1.150 -2 (the "Regulations "), require that the City adopt a statement of official intent to reimburse an original expenditure not later than sixty (60) days after payment of the original expenditure. The Regulations also generally require that the Notes be issued and the reimbursement allocation made from the proceeds of the Notes occur within eighteen (18) months after the later of: (i) the date the expenditure is paid; or (ii) the date the Project is placed in service or abandoned, but in no event more than three (3) years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the Notes. 4.2. To the extent any portion of the proceeds of the Notes will be applied to expenditures with respect to the Project, the City reasonably expects to reimburse itself or the Borrower for the expenditures made for costs of the Project from the proceeds of the Notes after the date of payment of all or a portion of such expenditures. All reimbursed expenditures shall be capital expenditures, a cost of issuance of the Notes, or other expenditures eligible for reimbursement under Section 1.150- 2(d)(3) of the Regulations and also qualifying expenditures under the Act. Based on representations by the Borrower, other than (i) expenditures to be paid or reimbursed from sources other than the Notes; (ii) expenditures constituting preliminary expenditures within the meaning of Section 1.150- 2(f)(2) of the Regulations; or (iii) expenditures in a "de minimus" amount (as defined in Section 1.150- 2(f)(1) of the Regulations), no expenditures with respect to the Project (that are proposed to be financed with the proceeds of the Notes) have been made by the Borrower or the City more than sixty (60) days before the date of adoption of this resolution. 4.3. Based on representations by the Borrower, as of the date hereof, there are no funds of the Borrower reserved, allocated on a long term -basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long -term basis or otherwise set aside) to provide permanent financing for the expenditures related to the Project, other than proceeds of the Notes issued by the City together with an equity contribution of the Borrower in an amount up to approximately $4,300,000 to construct the Project. This resolution, therefore, is determined to be consistent with the budgetary and financial circumstances of the Borrower as it exists or is reasonably foreseeable on the date hereof.