RES 15-034 2015 Street Improvement Bond Reimbursement

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CITY OF SAINT ANTHONY STATE OF MINNESOTA Resolution 15-034 A RESOLUTION FOR THE 2015 STREET IMPROVEMENT BOND REIMBURSEMENT BE IT RESOLVED by the City Council of the City of St. Anthony (the "City"), as follows: 1. Recitals. (a) The Internal Revenue Service has issued Section 1.150-2 of the Income Tax Regulations (the "Regulations") dealing with the issuance of obligations, all or a portion of the proceeds of which are to be used to reimburse the City for expenditures made by the City prior to the date of issuance. (b) The Regulations generally require that the City make a prior declaration of its official intent to reimburse itself for such prior expenditures out of the proceeds of a subsequently issued borrowing no later than 60 days after payment of such expenditure, that the borrowing occur and the reimbursement allocation be made from the proceeds of such borrowing within eighteen months of the payment of the expenditure or, if longer, within eighteen months of the date the project is placed in service, but in no event more than three years after the date the original expenditure was paid and that the expenditure must either be a capital expenditure, or a cost of issuance of the obligation. 2. Official Intent Declaration. The City desires to comply with requirements of the Regulations with respect to the 2015 Street & Utility Project (the Project) in order to preserve the option of the City to finance the costs of the Project with tax-exempt obligations. The total cost of the Project is approximately $2,806,000, exclusive of financing costs and capitalized interest, and the City intends to finance a portion of the costs of the Project from proceeds of a borrowing. The maximum amount of debt to be issued for the Project is $2,675,000. The City reasonably expects to reimburse all or a portion of the expenditures made for costs of the Project out of the proceeds of an obligation, as defined in the Regulations, and the expenditures made for costs of the Project to be reimbursed will be of a type that is properly chargeable to capital account (or would be so chargeable with a proper election such as an election under Section 266 of the Code) under general federal income tax principles. 3. Budgetary Matters. As of the date hereof, there are no City funds reserved, allocated on a long term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long term basis or otherwise set aside) to provide permanent financing for the expenditures related to the Project to be financed from proceeds of a borrowing. This resolution, therefore, is determined to be consistent with the City's budgetary and financial circumstances as