HomeMy WebLinkAboutResolution 8566 RESOLUTION NO. 8566
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION DECLARING THE OFFICIAL INTENT OF THE CITY OF
MOUNDS VIEW, MINNESOTA, TO REIMBURSE CERTAIN CAPITAL
EXPENDITURES OF A PROJECT FROM THE PROCEEDS OF TAX-
EXEMPT BONDS
WHEREAS, the Internal Revenue Service has issued Treasury Regulations,
Section 1.150-2 (the "Reimbursement Regulations") under the Internal Revenue Code of
1986, as amended (the "Code"), providing that proceeds of tax-exempt bonds used to
reimburse prior capital expenditures will not be deemed spent unless certain requirements
are met; and
WHEREAS, the City of Mounds View, Minnesota, municipal corporation and a
political subdivision of the State of Minnesota (the "City"), expects to incur certain
expenditures that may be financed temporarily from sources other than tax-exempt bonds,
and later reimbursed from the proceeds of tax-exempt bonds; and
WHEREAS, the City has determined to make a declaration of its official intent (the
"Declaration") to reimburse certain capital costs from the proceeds derived from the sale of
tax-exempt bonds issued by the City or another political subdivision in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF MOUNDS VIEW, MINNESOTA AS FOLLOWS:
1. The City may incur certain capital expenditures in connection with a public
works facility (collectively, the "Project")
2. The City reasonably expects to reimburse the expenditures made for certain
costs of the Project from the proceeds of tax-exempt bonds in a principal amount currently
estimated not to exceed $5,000,000. All reimbursed expenditures related to the Project
will be capital expenditures, costs of issuance of the tax-exempt bonds or other
expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the
Reimbursement Regulations.
3. This Declaration has been made not later than 60 days after payment of any
original expenditure to be subject to a reimbursement allocation with respect to the
proceeds of tax-exempt bonds, except for the following expenditures: (a) costs of issuance
of tax-exempt bonds; (b) costs in an amount not in excess of the lesser of$100,000 or 5%
of the proceeds of the tax-exempt bonds; or (c) "preliminary expenditures" up to an
amount not in excess of 20% of the aggregate issue price of the tax-exempt bonds that
are reasonably expected by the City to finance the Project. The term "preliminary
expenditures" includes architectural, engineering, surveying, soil testing, bond issuance
and similar costs that are incurred prior to commencement of acquisition, construction, or
rehabilitation of the Project, excluding land acquisition, site preparation, and similar costs
incident to commencement of construction.
4. A reimbursement allocation with respect to tax-exempt bonds will be made
not later than 18 months after the later of: (i) the date the original expenditure is paid; or
(ii) the date the Project is placed in service or abandoned, but in no event more than 3
years after the original expenditure.
5. This Declaration is an expression of the reasonable expectations of the City
based on the facts and circumstances known to the City as of the date hereof. The
anticipated original expenditures for the Project and the principal amount of the tax-exempt
bonds described in paragraph 2 are consistent with the City's budgetary and financial
circumstances. No sources other than proceeds of tax-exempt bonds are reasonably
expected to be reserved, allocated on a long-term basis, or otherwise set aside pursuant
to the City's budget or financial policies to pay such expenditures for which bonds are
issued.
6. The action is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
Adopted this 9th day of May, 2016
i /
"v '
e Flaherty, ' . or
ATTEST:
j-F4/1/Llk fez- .---
James Ericson, City Administrator
(SEAL)