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HomeMy WebLinkAboutResolution 2007-010CITY OF LAKE ELMO WASHINGTON COUNTY, MINNESOTA RESOLUTION NO. 2007 -010 RESOLUTION ESTABLISHING PROCEDURES RELATING TO COMPLIANCE WITH REIMBURSEMENT BOLD REGULATIONS UNDER THE IN'T'ERNAL REVENUE CODE BE IT RESOLVED by the City Council (the "Council ") of the City of Lake Elmo, Minnesota (the "City "), as follows: 1. Recitals. (a) The Internal Revenue Service has issued Treasury Regulations, Section 1.150 -2 (as the same may be amended or supplemented, the "Regulations "), dealing with "reimbursement bond" proceeds, being proceeds of the City's bonds used to reimburse the City for any project expenditure paid by the City prior to the time of the issuance of those bonds. (b) The Regulations generally require that the City make a declaration of intent to reimburse itself for such prior expenditures out of the proceeds of subsequently issued bonds, that such declaration be made not later than 60 days after the expenditure is actually paid, and that the bonding occur and the written reimbursement allocation be made from the proceeds of such bonds within 18 months after the later of (1) the date of payment of the expenditure or (2) the date the project is placed in service (but in no event more than 3 years after actual payment). (c) The City heretofore implemented procedures for compliance with the predecessor versions of the Regulations and desires to amend and supplement those procedures to ensure compliance with the Regulations. 2. Official Intent Declaration. The Regulations, in the situations in which they apply, require the City to have declared an official intent (the "Declaration ") to reimburse itself for previously paid project expenditures out of the proceeds of subsequently issued bonds. The Council hereby authorizes the City of Lake Elmo to make the City's Declarations or to delegate from time to time that responsibility to other appropriate City employees. Each Declaration shall comply with the requirements of the Regulations, including without limitation the following: (a) Each Declaration shall be made not later than 60 days after payment of the applicable project cost and shall state that the City reasonably expects to reimburse itself for the expenditure out of the proceeds of a bond issue or similar borrowing. Each Declaration may be made substantially in the form of the Exhibit A which is attached to and made a part of this Resolution, or in any other format which may at the time comply with the Regulations. (b) Each Declaration shall (1) contain a reasonably accurate description of the "Project," as defined in the Regulations (which may include the property or program to be financed, as applicable), to which the expenditure relates and (2) state the maximum principal amount of bonding expected to be issued for that project. (c) Care shall be taken so that the City, or its authorized representatives under this Resolution, not make Declarations in cases where the City does not reasonably expect to issue reimbursement bonds to finance the subject project costs, and the City officials are hereby authorized to consult with bond counsel to the City concerning the requirements of the Regulations and their application in particular circumstances. (d) The Council shall be advised from time to time on the desirability and timing of the issuance of reimbursement bonds relating to project expenditures for which the City has made Declarations. 3. Reimbursement Allocations. The designated City officials shall also be responsible for making the "reimbursement allocations" described in the Regulations, being generally written allocations that evidence the City's use of the applicable bond proceeds to reimburse the original expenditures. 4. Effect. This Resolution shall amend and supplement all prior resolutions and /or procedures. adopted by the City for compliance with the Regulations (or their predecessor versions), and, henceforth, in the event of any inconsistency, the provisions of this Resolution shall apply and govern. Adopted this 6th day of February 2007 by the City C ATTEST: Thomas Bouthilet, Interim City Administrator 2 EXHIBIT A Declaration of Official Intent The undersigned, being the duly appointed and acting City of the City of , Minnesota (the "City "), pursuant to and for purposes of compliance with Treasury Regulations, Section 1.150 -2 (the "Regulations "), under the Internal Revenue Code of 1986, as amended, hereby states and certifies on behalf of the City as follows: I. The undersigned has been and is on the date hereof duly authorized by the City Council to make and execute this Declaration. of Official Intent (the "Declaration ") for and on behalf of the City. 2. This Declaration relates to the following project, property or program (the "Project ") and the costs thereof to be financed: 3. The City reasonably expects to reimburse itself for the payment of certain costs of the Project out of the proceeds of a bond issue or similar borrowing (the "Bonds ") to be issued by the City after the date of payment of such costs. As of the date hereof, the City reasonably expects that $ is the maximum principal amount of the Bonds which will be issued to finance the Project. 4. Each expenditure to be reimbursed from the Bonds is or will be a capital expenditure or a cost of issuance, or any of the other types of expenditures described in Section 1.150- 2(d)(3) of the Regulations. 5. As of the date hereof, the statements and expectations contained in this Declaration are believed to be reasonable and accurate. Date: A..I City City of , Minnesota CERTIFICATION The undersigned, being the duly qualified and acting City of , Minnesota, hereby certifies the following: of the City The foregoing is a true and correct copy of a Resolution on file and of official, publicly available record in the offices of the City, which Resolution relates to procedures of the City for compliance with certain IRS Regulations on reimbursement bonds. Said Resolution was duly adopted by the governing body of the City (the "Council ") at a regular or special meeting of the Council held on Said meeting was duly called, regularly held, open to the public, and held at the place at which meetings of the Council are regularly held. Council Member seconded by Council Member moved the adoption of the Resolution, which motion was A vote being taken on the motion, the following members of the Council voted in favor of the motion to adopt the Resolution: and the following voted against the same: Whereupon said Resolution was declared duly passed and adopted. The Resolution is in full force and effect and no action has been taken by the Council which would in any way alter or amend the Resolution. no WITNESS MY HAND officially as the City Minnesota, this day of City — City of CADocurnents and Settings�slumby \Local Scttinl s \Temporary Internet Files\OLKMesoJ tit ion 2007 -010 Reimb Res Am of the City Minnesota