HomeMy WebLinkAbout2005-198 Council ResolutionCITY OF LINO LAKES, MINNESOTA
RESOLUTION NO. 198
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 the Lois Lane Utility Extension.
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 $395,762.50.
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,
2
• 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.
Approved by the City Council of the City of Lino Lakes this 12th day of December, 2005.
Attest:
•
•
ell, City Clerk
CITY OF LINO LAKES, MINNESOTA
AGENDA ITEM 6Eii
STAFF ORIGINATOR: James E. Studenski, City Engineer
COUNCIL MEETING DATE: December 12, 2005
TOPIC: Resolution No. 05 — 198, Declaring Official Intent to Reimburse Certain
Expenditures from the Proceeds of Bonds to be Issued by the City, Lois
Lane Utility Extension
VOTE REQUIRED: Simple Majority
BACKGROUND:
The City is required to declare its 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. The Lois Lane Utility Extension may
be financed through bond proceeds.
4110 OPTIONS:
1. Return to staff for further review.
2. Adopt Resolution Number 05 — 198 Declaring Official Intent to Reimburse Certain
Expenditures from the Proceeds of Bonds to be Issued by the City for the Lois Lane
Utility Extension.
3. Not adopt Resolution No. 05 — 198.
RECOMMENDATION:
Option No. 2 - Staff recommends that Resolution Number 05 — 198 be adopted.