Loading...
HomeMy WebLinkAbout1996-067 Council ResolutionCouncil Member Neal introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 96-67 RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED PROJECTS 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 certain projects hereinafter identified. a. The City proposed to undertake the following projects: 1) Pheasant Hills 7th Addition Street and Utility Improvements; 2) Centennial Middle School Street and Utility Improvements; and 3) Otter Lake Road Re -alignment project, which is further described on Exhibit A attached hereto. 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 projects as identified on Exhibit A 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. Each of the projects and costs related thereto, constitutes property having a useful life of at least one year. Resolution 96-67 Page 2 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 following source of sources of funds identified on Exhibit A. 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 are identified on Exhibit A. 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 cots 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. Resolution 96-67 Page 3 Adopted by the City Council this 24th day of June, 1996. ii/ CIAZie7-v Marilyn . Anderson Clerk -Treasurer John L. L.' ders, Mayor 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: none, Council Member Bergeson was absent. The following voted against same: 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 24, 1996. M ilyn �i. Anderson INTENT TO BOND RESOLUTION NO. 96 - 67 EXHIBIT A Estimated Cost to be Reimbursed Project Total from Bond Source of Interim Source of Funds to Pay Bonds Description Cost Proceeds Funding Source Amount Pheasant Hills 7th Addition Street & Utility Project $400,000 $400,000 Assessments $400,000 Centennial Middle School Street and Utility Improvements $1,600,000 $1,600,000 Area & Unit Fund Assessments $1,600,000 Otter Lake Road Re- alignment $1,300,000 $1,300,000 Bond Proceeds Assessments $1,300,000 TOTAL $3,300,000 $3,300,000 $3,300,000