HomeMy WebLinkAboutResolution 6246
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RESOLUTION NO. 6246
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
DECLARATION OF OFFICAL INTENT FOR THE SALE OF BONDS TO
REIMBURSE THE CITY FOR THE COSTS OF THE 2003 STREET
IMPROVEMENT PROJECT, PHASE I
WHEREAS, 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
bonds used to reimburse the City for any project expenditure paid by the City prior
to the time of the issuance of those bonds; and
WHEREAS, the Regulations generally require that the City (as the issuer of
or the primary obligor under the bonds) make a declaration of intent to reimburse
itself for such prior expenditures out of the proceeds of subsequent 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 place in
service (but in no event more than 3 years after actual payment); and
WHEREAS, 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; and
WHEREAS, the City's bond counsel has advised the City that the
Regulations do not apply, and hence the provisions of the 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.
NOW THEREFORE, BE IT RESOLVED, that the City Council hereby
makes the declaration of official intent for the sale of bonds to reimburse the City
for the costs of the project in compliance with reimbursement bond regulations
under the Internal Revenue Code for the project described as follows:
The 2003 Street Improvement Project - Phase I consists of roadway major
maintenance to said street segments and minor utility and storm sewer
upgrades pursuant to Minnesota Statutes, Section 429.011 to 429.111. The
project includes street segments located south of County Highway 10, west
of Long Lake Road, north of County Road H2, and east of the City's west
property line. The proposed project excludes Pleasant View Drive, Spring
Lake Road, Silver Lake Road and County Road I. In addition, the City
seeks the installation of a pedestrian sidewalk to be located on Groveland
Road from County Road I to County Highway 10.
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BE IT FURTHER RESOLVED, that the City reasonably expects to
reimburse itself for the payment of certain costs of the project out of proceeds of a
bond issue to be issued after the date of payment of such costs. As of the date
hereof, the City reasonably expects that $2,178,054.46 is the maximum principal
amount of the Bonds which will be issued to finance the project.
BE IT FURTHER RESOLVED, that 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.
Adopted this 10th day of May 2004.
ATTEST:
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Kurt Ulrich, City Administrator
(SEAL)