Loading...
HomeMy WebLinkAboutResolution 4447 RESOLUTION NO. 4447 . CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION ESTABLISHING PROCEDURES RELATING TO COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE BE IT RESOLVED by the City Council (the "Council") of the City of Mounds View, 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. (d) The City's bond counsel has advised the City that the Regulations do not apply, and hence the provisions of this Resolution are intended to have no application, to payments of City project costs first made by the City out of the proceeds of bonds issued prior to the date of such payments. 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 Clerk-Administrator or City Finance Director 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 ~ayment of the applicable project cost and shall state that the City easonably expects to reimburse itself for the expenditure out of the roceeds 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. RESOLUTION NO. 4447 PAGE 'PWO OF TWO . (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 doesn't 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 expendi t.ures . 4. Effect. This Resolution shall amend and supplement all prior eesolutions and/or procedures adopted by the City for compliance with the .(egulations (or their predecessor versions), and, henceforth, J.n the event of any inconsistency, the provisions of this Resolution shall apply and govern. Adopted this 8th day of November, 1993. ATTEST: ~~/~ .' Mayor_ ,/ (SEAL: ."," . ".. ...~ >:':', ' A" (, / . " (}-,.., '1 ( '") ~~',~ J. \/ /.. ,...:.c.0,><-.,('.9--' Ci ~y Admin1strator'-..~__ ., '. / .