HomeMy WebLinkAboutResolution 24-085MY01241061"N
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(2024 Water Treatment Plant)
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the
"Reimbursement Regulations") providing that proceeds of tax-exempt obligations 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 tax-exempt obligations, and reimbursed from the proceeds of a tax-exempt
obligations;
WHEREAS,, the City has determined to make this declaration of official intent ("Declaration")
to reimburse certain costs from proceeds of a note provided by the Minnesota Public Facilities
Authorities in accordance with the Reimbursement Regulations.
NOW, THEREFORE,, BE IT RESOLVED by the City Council of Lino Lakes, Minnesota that:
1. The City proposes to undertake the building of a Water Treatment Plant (the
"Project").
2. The City reasonably expects to reimburse the expenditures made for certain costs
of the Project from the proceeds of a loan from the Minnesota Public Facilities Authority in an
estimated maximum principal amount of $18,000,000.00. 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)costsin 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 City Council of the City of Lino Lakes this 24t" day of June, 2024.
4q_l�
Rob Ra4rty, Mayor
ATTEST:
Roberta Colotti, City Clerk