HomeMy WebLinkAboutResolution 2005-052CERTIFICATION OF MINUTES RELATING TO
REIMBURSEMENT OF EXPENDITURES
Issuer: City of Lake Elmo, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting held on June 7 , 2005, at 7 :00 p.m. ,
at the City offices.
Members present: Mayor Dean Johnston
Council Members: Rita Conlin, Anne Smith, Liz Johnson, Steve DeLapp
Members absent:
i1
Documents Attached:
Minutes of said meeting (including):
RESOLUTION NO. 2005-052
RESOLUTION AUTHORIZING REIMBURSEMENT OF EXPENDITURES
I, the undersigned, being the duly qualified and acting recording officer of the public
conporation issuing the bonds referred to in the title of this certificate, certify that the documents
attached hereto, as described above, have been carefully compared with the original records of
said corporation in my legal custody, from which they have been transcribed; that said
documents are a correct and complete transcript of the minutes of a meeting of the governing
body of said corporation, and correct and complete copies of all resolutions and other actions
taken and of all documents approved by the governing body at said meeting, so far as they relate
to said bonds; and that said meeting was duly held by the governing body at the time and place
and was attended throughout by the members indicated above, pursuant to call and notice of such
meeting given as required by law.
WITNESS my hand officially as such recording officer this 7th day of June, 2005.
Councilmember DeLapp introduced the following resolution and moved its
adoption, which motion was seconded by Counciimember Johnson
RESOLUTION AUTHORIZING REIMBURSEMENT OF EXPENDITURES
BE IT RESOLVED by the City Council (the "Council ") of Lake Elmo, Minnesota (the
"City ") as follows:
1. Recitals.
(a) The Department of Treasury has promulgated final regulations governing the use of
proceeds of tax - exempt bonds, all or a portion of which are to be used to reimburse an issuer for
project expenditures made by the issuer prior to the date of issuance of such bonds. Those
regulations (Treasury Regulations, Section 1.150 -2) (the "Regulations ") require that the issuer
adopt a statement of official intent to reimburse an original expenditure not later than 60 days
after payment of the original expenditure. The Regulations also generally require that the bonds
be issued and the reimbursement allocation made from the proceeds of the bonds within 18
months after the date the expenditure is paid or the date the project is placed in service or
abandoned, but in no event more than three years after the date the expenditure is paid. The
Regulations generally permit reimbursement of capital expenditures and costs of issuance of the
bonds.
(b) The City desires to comply with requirements of the Regulations with respect to the
project hereinafter identified.
2. Official intent Declaration.
(a) The City has determined that it will undertake a project (the "Project ") comprising
certain improvements to the City's water utility system (the "System "). The cost of the Project is
presently estimated at $-4, 987 , 000
(b) Other than (i) expenditures to be paid or reimbursed from sources other than the
Bonds (as hereinafter defined), (ii) expenditures constituting preliminary expenditures within the
meaning of Section 1.150- 2(0(2) of the Regulations, or (iii) de minimis expenditures (as defined
in Section 1.150- 2(f)(1) of the Regulations), no expenditures for the Project have heretofore been
paid by the City and no expenditures will be paid by the City until after the date of this
Resolution.
(c) The City reasonably expects to issue General Obligation Water Revenue Bonds in an
estimated maximum aggregate principal amount of $4,500,000 (the "Bonds ") after the date of
payment of all or a portion of the costs of the Project. All reimbursed expenditures shall be
capital expenditures, a cost of issuance of the Bonds or other expenditures eligible for
reimbursement under Section 1.150- 2(d)(3) of the Regulations.
3. Budgetary Matters. As of the date hereof, there are no funds of the City reserved,
allocated on a long term -basis or otherwise set aside (or reasonably expected to be reserved,
allocated on a long -term basis or otherwise set aside) to provide permanent financing for the
expenditures related to the Project, other than pursuant to the issuance of the Bonds. This
resolution, therefore, is determined to be consistent with the budgetary and financial
circumstances of the City as they exist or are reasonably foreseeable on the date hereof.
4. Reimbursement Allocations. The Finance Director of the City 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 Project. Each allocation
shall be evidenced by an entry on the official books and records of the City maintained for the
Project and shall specifically identify the actual original expenditure being reimbursed.
M/S /P Johnson/Smith - to approve the June 7, 2005 City Council Agenda, as amended.
(Motion passed 5 -0).
2. MINUTES: May 17, 2005 (Postponed)
3. PUBLIC INQUIRIESANFORMATONAL:
A. Public Inquiries - NONE
B. Public Informational:
(1) Fire Department:20 Years of Service Ring Presentation
On behalf of a grateful community, Mayor Johnston handed out 20 Years of service rings
to the following firefighters: Greg Malmquist (20.5 years), John Eder (20.5 years), Jim
Sachs (25 years), Dick Sachs (29.5 years).
(2)Introduction of New Firefighters
Fire Chief Malmquist introduced the four new recruits on the Fire Department — Rick
Myeron, Marie Dufford, Maurice Butler and Ty Jacobson.
4. CONSENT AGENDA:
A. Resolution No. 2005 -051: Approving Claims
M /S /P DeLapp /Johnson - to adopt Resolution No. 2005 -051 approving claim numbers
260, 261, 262, DD431 through. DD440, 27373 through 27365 which were used for staff
payroll dated May 26, 2005; claims 27386 through 27448 in the total amount of
$138,695.23. (Motion. passed 5-0).
B. Reimbursement Resolution No. 2005 -052
The Finance Director reported in order for the City to reimburse the General Fund from
tax - exempt bond issued, the City is required to adopt a resolution authorizing the
repayment of funds. A draft resolution granting reimbursement to the General Fund for
Capital expenditures from bonds issued by the City was provided to the Council.
M /S /P DeLapp /Johnson - to adopt Resolution No. 2005 -052 granting the City to repay
expenditures made out of the General Fund from Bond Proceeds. (Motion passed 5 -0).
C. New Telephone System
The Finance Director reported that the City signed a new agreement for phone service
which allowed for the installation of a T -I line at a rate less than what the City had been
paying for analog lines. The new T -1 line provides an additional six voice lines to our
existing five lines. In order to accommodate the additional lines and upgrade the current
phone system, the City has been negotiating with several telephone vendors. Staff
recommends purchasing 3 Coin telephone equipment from VATACOM at a price not to
exceed $13,540. The replacement of the phone equipment has been scheduled on the CIP
for this year in the amount of $15,000.
M /S/P DeLapp /Johnson - to approve the purchase of 3 Corn telephone equipment from
VATACOM at a price not to exceed $13,540. (Motion passed 5 -0).
LAKE ELMO CITE' COUNCIL MINUTES June 7, 2005 2