HomeMy WebLinkAbout2007-028 Council Resolution•
Council Member stol tz introduced the following resolution and moved its adoption:
CITY OF LINO LAKES, MINNESOTA
RESOLUTION NO. 07 -28
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 (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 THE CITY
OF LINO LAKES AS FOLLOWS:
1. The City proposes to undertake improvements to the Interstate
35W /Lake Drive interchange (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 $6,000,000. 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 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 the lesser 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.
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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 Tong -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.
ne Bartell, Ci y Cle
CITY • - NO LAKES, MINNESOTA
A&A/4.1
John Beri- so "Mayor
Adopted by the Lino Lakes City Council this 12th day of February, 2007.
The motion for the adoption of the foregoing resolution was duly seconded by Council
Member RP;,,Pi -,- and upon vote being taken thereon, the following voted in favor
thereof:
Stoltz, Reinert, O'Donnell, Carlson, Bergeson
The following voted against same:
none
Whereupon said resolution was declared duly passed and adopted.
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STAFF ORIGINATOR:
CITY COUNCIL
MEETING DATE:
TOPIC:
VOTE REQUIRED:
BACKGROUND:
AGENDA ITEM 6C
Michael Grochala
February 12, 2007
Consideration of Resolution No. 07 -28,
Declare Intent to Bond. 35W /Lake Drive
Improvement Project
3/5 - simple majority
Reconstruction of the 35W /Lake Drive Interchange is planned to commence in the
spring of 2007. The total estimated project cost is approximately $10,300,000.
Funding for the project is being shared by the City of Lino Lakes, County of Anoka and
the Minnesota Department of Transportation. The project will, in part, be financed by
bond proceeds.
The Internal Revenue Code requires Cities 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.
RECOMMENDATION
Staff is recommending adoption of Resolution No. 07 -28.
ATTACHMENTS
1. Resolution No. 07 -28