HomeMy WebLinkAbout2012-021 Council Resolution•
O'Donnell
Council Member introduced the following resolution and moved its adoption:
CITY OF LINO LAKES, MINNESOTA
RESOLUTION NO. 12-21
DECLARING THE OFFICIAL INTENT OF THE
CITY OF LINO LAKES TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150 -2 (the
"Reimbursement Regulations ") providing that proceeds of tax- exempt bonds used to reimburse
prior expenditures will not be deemed spent unless certain requirements are met; and
WHEREAS, the City expects to incur certain expenditures that may be financed temporarily
from sources other than bonds, and reimbursed from the proceeds of a tax- exempt bond;
WHEREAS, the City has determined to make this declaration of official intent
( "Declaration ") to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LINO LAKES AS FOLLOWS:
1. The City proposes to undertake improvements to the certain street
intersections within the City (the "Project ").
2. The City reasonably expects to reimburse the expenditures made for certain
costs of the Project from the proceeds of bonds in an estimated maximum principal amount
of $1,840,000. All reimbursed expenditures will be capital expenditures, costs of issuance
of the bonds, or other expenditures eligible for reimbursement under Section 1.150- 2(d)(3)
of the Reimbursement Regulations.
3. This Declaration has been made not later than 60 days after payment of any
original expenditure to be subject to a reimbursement allocation with respect to the proceeds of
bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an
amount not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) "preliminary
expenditures" up to an amount not in excess of 20 percent of the aggregate issue price of the issue
or issues that finance or are reasonably expected by the City to finance the project for which the
preliminary expenditures were incurred. The term "preliminary expenditures" includes
architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to
commencement of acquisition, construction or rehabilitation of a project, other than land
acquisition, site preparation, and similar costs incident to commencement of construction.
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4. This Declaration is an expression of the reasonable expectations of the City based
on the facts and circumstances known to the City as of the date hereof. The anticipated original
expenditures for the Project and the principal amount of the bonds described in paragraph 2 are
consistent with the City's budgetary and financial circumstances. No sources other than proceeds
of bonds to be issued by the City are, or are reasonably expected to be, reserved, allocated on a
long -term basis, or otherwise set aside pursuant to the City's budget or financial policies to pay
such Project expenditures.
5. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
CITY , MINNESOTA
Jeff Reine , . or
Attest:
Adopted by the Lino Lakes City Council this 27th day of February, 2012.
The motion for the adoption of the foregoing resolution was duly seconded by Council Member
and upon vote being taken thereon, the following voted in favor thereof: Roeser
O'Donnell, Roeser, Rafferty, Stoesz, Reinert
The following voted against same:
none
Whereupon said resolution was declared duly passed and adopted.
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STAFF ORIGINATOR:
MEETING DATE:
TOPIC:
CITY COUNCIL
AGENDA ITEM 6C
Michael Grochala
February 27, 2012
Consideration of Resolution No. 12 -21,
Declare Intent to Bond. 2012 Intersection
Improvements
VOTE REQUIRED: 3/5
INTRODUCTION:
Signal
The installation of traffic signals and associated improvements to the Lake /Main and Birch/Ware
street intersections is planned to commence in summer of 2012. The Internal Revenue Code
requires cities to declare their intent to reimburse project costs from bond proceeds prior to
encumbering project costs. This is a non - binding declaration that must take place in order to
finance projects in this manner.
BACKGROUND:
In November of 2010 City residents approved the ballot question supporting these improvements.
The estimated total project cost is approximately $2,593,000. Funding for the project is being
shared by the City of Lino Lakes, and the County of Anoka. The City's estimated share of the
project, $1,840,000, will be financed by bond proceeds.
RECOMMENDATION
Staff is recommending adoption of Resolution No. 12 -21.
ATTACHMENTS
1. Resolution No. 12 -21
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