HomeMy WebLinkAboutResolution 9251RESOLUTION NO. 9251
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
upgrading water treatment plants 1, 2, 3, and the booster station (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 $5,500,000. 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 23rd day of March, 2020.
&. �zw, l ,''
Carol A. Mueller, M yor
ATTEST:
Nyle ikmu , City Administrator
(SE=AL)