1996-058 Council Resolution - Laserfiche WebLink

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Council Member Neal resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 96-58 introduced the following RESOLUTION RELATING TO FINANCING OF THE ELEVATED WATER STORAGE TANK NO. 2 TO BE UNDERTAKEN BY THE CITY OF LINO LAKES; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE WHEREAS, The City of Lino Lakes is in the practice of constructing certain improvements and in some instances reimbursing itself for the cost of any portion of the improvements with bond proceeds, and WHEREAS, the Internal Revenue Service has issued proposed Treasury Regulations Section 1.103-17 (as proposed and/or finally adopted, the "Regulations") dealing with the issuance of bonds where all or a portion of the proceeds are to be used to reimburse the City for any project costs paid by the City prior to the time of the issuance of the bonds, and WHEREAS, the Regulations generally required 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 taxable or tax exempt borrowing, that such declaration generally be made prior to but not more than two years before the time the expenditure is actually paid, 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 the project is placed in service, and the expenditures relate to property having a reasonably expected economic life of at least one year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Anoka County, Minnesota, that: 1. Official Intent - The City desires to comply with requirements of the Regulations with respect to a certain project hereinafter identified. a. The City proposes to undertake the following project: Elevated Water Storage Tank No. 2. b. Other than costs to be paid or reimbursed from sources other than a tax- exempt borrowing or costs permitted to be reimbursed pursuant to the transaction provision of Section 1.103-17 (1) of the Regulations, none of the costs of the foregoing project estimated to total $1,500,000.00, all of which is to be reimbursed from Bond Proceeds, has heretofore been paid by the City and none of the costs will be paid by the City until after the date to this Resolution. The project and costs related thereto, constitutes property having a useful life of at least one year.