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HomeMy WebLinkAbout1992-049 Council ResolutionCouncil member Elliott introduced the following resolution and move its adoption: CITY OF LINO LAKES RESOLUTION NO. 92 - 49 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 Tres Reg. 1.103-18 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 which may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of a bond; and WHEREAS, the reimbursement rules apply to bonds issued after March 2, 1992; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES (THE "CITY") AS FOLLOWS: 1. The City reasonably intends to make expenditures for the project described in Exhibit A (the "Project") and reasonably intends to reimburse itself for such expenditures from the proceeds of debt to be issued by the City in the maximum principal amount described in Exhibit A. 2. The City Administrator is authorized to designate appropriate additions to Exhibit A in circumstances where time is of essence, and any such designation shall be reported to the Council at the earliest practical date and shall be filed with the official books and records of the City as provided in Section 3. 3. This resolution shall be maintained as part of the books and records of the City at the main administrative office of the City, and shall be continuously available during normal business hours of the City on every business day of the period beginning not more than 30 days after adoption of this resolution and ending on the last date of issue of any bonds issued to reimburse expenditures described in Exhibit A. 4. This resolution 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 reimbursements set forth at Exhibit A are consistent with the City's budgetary and financial circumstances. 1 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. The City has not adopted any allocation, budget, or restriction of monies or adoption of a requirement or policy to reimburse a fund, the primary purpose of which is to prevent monies from being available to pay an expenditure the City intends to reimburse with proceeds of a borrowing. 5. This resolution is intended to constitute a declaration of official intent for purposes of Tres. Reg. 1.103-18 and any successor law, regulation, or ruling. 6. The allocation of proceeds of the bonds to be issued to any Project expenditures described in Exhibit A will be made not later than the later of one year after the expenditure was paid or one year after the property was placed in service. 7. The Project expenditures described in Exhibit A are capital expenditures as defined in Tres. Reg. 1.150-1(h), including costs of issuance of the bonds to be issued in order to reimburse the Project expenditures. 8. Proceeds of the bonds issued to reimburse the Project expenditures described in Exhibit A will be deemed spent only when (1) an allocation entry is made on the books or records of the City with respect to the bonds; (2) the entry identifies an actual expenditure to be reimbursed, or where the Project is described as a fund or account, the fund or account from which the expenditure was paid; and (3) the allocation is effective to relieve the bond proceeds from restrictions on unspent proceeds under applicable documents and state laws. 9. No entity or entities possess simultaneously two or more of the following discretionary and non -ministerial powers with respect to the City: power to (1) remove without a cause a controlling portion of the City Council; (2) select, approve, or disapprove a controlling portion of the City Council; (3) determine the City's budget or require the use of the City's funds or assets for the other entity's purpose; or (4) approve, disapprove, or prevent the issuance of debt obligations of the City. 10. None of the proceeds of the bonds issued to reimburse the City for the Project expenditures described in Exhibit A will be used within one year of the allocation (i) to refund another governmental obligation or (ii) to create or increase the balance in a sinking fund or replace funds used for such purpose, or (iii) to create or increase the balance in a reserve or replacement fund or replace funds used for such purposes; 2 or will be used at any time to reimburse any person or entity (other than the City) for expenditures originally paid with the proceeds of a City obligation (excluding a City inter -fund borrowing); unless (i) such amounts are deposited in a bona fide debt service fund or are used to pay debt service in the next one year period on any City obligation other than the reimbursement bond, or (ii) the original issue was not reasonably expected to be used to finance the expenditure. 11. No action or inaction by the City with respect to the allocation of bond proceeds to reimbursement of Project expenditures will be an artifice or device to avoid, in whole or in part, arbitrage yield restrictions or arbitrage rebate requirements. 12. The procedures described in this resolution shall cease to apply to the extent not required by Tres. Reg. 1.103-18 or any successor law, regulation, or ruling. Adopted by the City Council of Lino Lakes this 23rd day of March, 1992. .., r ly Vernon F. Reinert - Mayor G. Anderson, Clerk Treasurer The motion for the adoption of the foregoing resolution was duly seconded by Council Member Kuether and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Elliott. The following voted against same: None, Mayor Reinert was absent. Where upon said resolution was declared duly passed and adopted: 3 EXHIBIT A TO OFFICIAL INTENT RESOLUTION ADOPTED MARCH 23RD, 1992 Maximum Principal Amount of Debt Date of to Reimburse Declaration Description of Project Project Costs March 23, 1992 Water Tower Construction $1,060,000