HomeMy WebLinkAbout25-156 - Resolution - Otter Lk Rd - BondsCITY OF LINO LAKES
RESOLUTION NO. 25-156
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 FOR THE OTTER LAKE ROAD
EXTENSION IMPROVEMENTS
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 of Lino Lakes, Minnesota (the "City") expects to incur certain
expenditures with respect to projects that may be financed temporarily from sources other
than bonds, and reimbursed from the proceeds of tax-exempt bonds; and
WHEREAS, the City has determined to make a declaration of official intent (the
"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 Lino Lakes, Minnesota that
based on the following:
1. The City proposes to issue bonds to finance costs of the Otter Lake Road
extension improvements (the "Project") in the amount of up to $9,500,000.
2. The City reasonably expects to reimburse the expenditures made for certain
costs of the Project from proceeds of one or more series of bonds in an estimated principal
amount of up to $9,500,000. 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 sixty (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 five percent (5%) of the proceeds of an issue;
or (c) "preliminary expenditures" up to an amount not in excess of twenty percent (20%) 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
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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 herein
are consistent with the City's budgetary and financial circumstances. No sources other than
proceeds of the 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 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 10th day of November, 2025.
Rob ferty, Mayor
ATTEST:
Roberta Colotti, CIVIC, City Clerk
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