HomeMy WebLinkAbout1996-061 Council ResolutionCouncil Member Neal
resolution and moved its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 96-61
introduced the following
RESOLUTION RELATING TO FINANCING OF THE CEDAR STREET LIFT STATION
TO BE UNDERTAKEN BY THE CITY OF LINO LAKES; ESTABLISHING
COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE
INTERNAL REVENUE CODE
WHEREAS, The City of Lino Lakes is in the practice of constructing certain
improvements and in some instances reimbursing itself for the cost of any portion of the
improvements with bond proceeds, and
WHEREAS, the Internal Revenue Service has issued proposed Treasury
Regulations Section 1.103-17 (as proposed and/or finally adopted, the "Regulations")
dealing with the issuance of bonds where all or a portion of the proceeds are to be used
to reimburse the City for any project costs paid by the City prior to the time of the
issuance of the bonds, and
WHEREAS, the Regulations generally required that the City make a prior
declaration of its official intent to reimburse itself for such prior expenditures out of the
proceeds of a subsequently issued taxable or tax exempt borrowing, that such
declaration generally be made prior to but not more than two years before the time the
expenditure is actually paid, that the borrowing occur and the reimbursement allocation
be made from the proceeds of such borrowing within one year of the payment of the
expenditure or, if longer, within one year of the date the project is placed in service, and
the expenditures relate to property having a reasonably expected economic life of at
least one year.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes,
Anoka County, Minnesota, that:
1. Official Intent - The City desires to comply with requirements of the Regulations
with respect to a certain project hereinafter identified.
a. The City proposes to undertake the following project: Cedar Street Lift
Station.
b. Other than costs to be paid or reimbursed from sources other than a tax-
exempt borrowing or costs permitted to be reimbursed pursuant to the
transaction provision of Section 1.103-17 (1) of the Regulations, none of
the costs of the foregoing project estimated to total $400,000.00, all of
which is to be reimbursed from Bond Proceeds, has heretofore been
paid by the City and none of the costs will be paid by the City until after
the date to this Resolution. The project and costs related thereto,
constitutes property having a useful life of at least one year.
c. The City intends to reimburse itself for the payment of the designated
project costs out of the proceeds of a tax exempt bond issue, debt or
similar borrowing (the "Bonds") to be issued by the City after the date of
payment of all or a portion of the costs. Pending the issuance of the
Bonds, the City reasonably expects to pay and temporarily finance the
costs from the Area and Unit Fund.
d. The Bonds are proposed to be issued by the City pursuant to the
provisions of Minnesota Statutes, Chapter 475, and other applicable
statutory authority. The reasonably expected sources of funds to be
used by the City to pay the debt service on the Bonds is the Area and
Unit Fund, in the amount of $400,000.00.
2. Budgetary Matters - As of the date hereof, there are no City funds reserved or
otherwise allocated pursuant to the City's budget (or expected to be reserved or
allocated pursuant to the City's budget) to provide permanent financing for the
bonding portion of the project costs, other than pursuant to the issuance of the
Bonds. Furthermore, there has been no allocation, budgeting, or restriction of
moneys (or the adoption of a requirement or policy to reimburse a fund) as part
of the City's budgetary process, the primary purpose of which is to prevent
moneys from said sources from being available for the permanent financing of
the costs of the projects. This resolution, therefore, is determined to be
consistent with the City's budgetary and financial circumstances as they exist or
are foreseeable on the date hereof, all within the meaning and content of the
Regulations.
3. Filing - This resolution shall be filed in the publicly available official books,
records, or proceedings of the City, which shall be continuously available for
inspection by the general public. This resolution shall be available for inspection
at City Hall during normal business hours of the City on every business day the
period beginning on the earlier of 10 days after the adoption hereof or the date of
issuance of the reimbursement bonds and ending on the day after the issuance
of such bonds.
4. Reimbursement Allocation - The City's financial officer shall be responsible for
making the "reimbursement allocations" described in the Regulations, being
generally the transfer of the appropriate amount of proceeds of the Bonds to
reimburse the source of temporary financing used by the City to make payment
of the prior costs of the projects. Each allocation shall be evidenced by an entry
on the official books and records of the City maintained for the Bonds, shall
specifically identify the actual prior expenditure being reimbursed, and shall be
effective to relieve the proceeds of the Bonds from any restriction under the
bond resolution or other relevant legal documents for the Bonds, and under any
applicable state or federal statute, which would apply to the unspent proceeds of
such bond issue.
Adopted by the City Council this 10th day of June, 1996.
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Marilyn G. Anderson
Clerk -Treasurer
o 'n L. Landers, ayor
The motion for adoption of the foregoing resolution was duly seconded by Council
Member Lyden
and upon vote being
taken thereon, the following voted in favor thereof:- Bergeson, Kuether, Lyden, Neal,
Landers.
The following voted against same: None.
Whereupon said resolution was declared passed and adopted.
CERTIFICATION
I hereby certify that the above is a correct copy of a resolution duly passed, adopted
and approved by the City Council on June 10, 1996.
Marilyn G
Anderson, Clerk -Treasurer