HomeMy WebLinkAbout2015-023 Council Resolution• CITY OF LINO LAKES, MINNESOTA
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RESOLUTION NO. 15-23
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 acquire certain capital equipment for its public safety building,
which items of equipment are provided in EXHIBIT A attached hereto (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
$1,000,000.00. All reimbursed expenditures will be capital expenditures, costs of issuance of the
bonds, or other expenditures eligible for reimbursement under Section L150 -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 9th day of March, 2015.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Kusterman and was duly seconded by Council Member Roeser and upon vote being taken
thereon, the following voted in favor thereof:
Kusterman, Roeser, Rafferty, Reinert
The following voted against same:
none (absent — Stoesz)
ATTEST:
2
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EXHIBIT A
LIST OF EQUIPMENT
En Pumper
$15.000.00
Engine Loose Equipment
98,310.00
Engine/Pumper
15,000.00
Engine Loose Equipment
98,310.00
Total
S226_620.00
A-1
STAFF ORIGINATOR:
MEETING DATE:
TOPIC:
VO I E REQUIRED:
INTRODUCTION
CITY COUNCIL
AGENDA ITEM 1D
Al Rolek
March 9, 2015
Consider Resolution 15-23 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
3/5
Staff is seeking City Council approval on Resolution 15-23 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.
BACKGROUND
On February 9, 2015 the City Council approved the purchase of two engine/pumper trucks
from the City of Woodbury at a total cost of $30,000.00. The Council also approved the
purchase of loose equipment for each engine/pumper at a total cost of approximately
$196,620.00. The total amount of equipment purchases will be approximately $226,620.00.
The City intends to pay for this equipment and future equipment purchases through the
issuance of certificates of indebtedness. However, these certificates of indebtedness will not be
issued until later this year. In anticipation of this future financing, staff has prepared
Resolution 15-23 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. If approved by the City
Council the resolution would allow the city to reimburse itself for the cost of the equipment
from the proceeds of the certificates. Until the certificates are issued the equipment will be
financed through temporary loans from other funds.
RECOMMENDATION
Staff recommends the City Council approve Resolution 15-23.
ATTACHMENTS
Resolution 15-23