HomeMy WebLinkAbout2021-006 Council ResolutionCITY OF LINO LAKES, MINNESOTA
RESOLUTION NO. 21-06
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
(2021 Street Improvement Project)
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 certain street=reconstruction and surface water
management improvements on 4th Avenue (Main Street to Pine Street), Joyer Lane, Karth Road,
Talle Lane, Canfield Road and Gaage Lane, as more fully described in the City's 2020-2024 Street
Reconstruction Plan (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
$2,600,000.00. 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.
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.
Adopted by the Council of the City of Lino Lakes this 8th day of February, 2021.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Lyden and was duly seconded by Council Member Stoesz and
upon vote being taken thereon, the following voted in favor thereof:
Cavegn, Lyden, Stoesz, Rafferty
The following voted against same: None (Absent - Ruhland)
AT 1'EST:
Document comparison by Workshare 10.0 on Monday, January 4, 2021 9:13:27
AM
Input:
Document 1 ID
Powerpocs://DOCSOPEN/695982/1
Description
DOCSOPEN-#695982-v1-Reimbursement_Resolution _-
_2021 _Street_I m provement_Project
Document 2 ID
PowerDocs://DOCSOPEN/695982/2
Description
DOCSOPEN-#695982-v2-Reimbursement_Resolution _-
_2021_Street Improvement_Project
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