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CITY OF SAINT ANTHONY <br />STATE OF MINNESOTA <br />RESOLUTION 16 -015 <br />A RESOLUTION FOR THE 2016 STREET IMPROVEMENT <br />BOND REIMBURSEMENT <br />BE IT RESOLVED by the City Council of the City of St. Anthony (the "City "), <br />as follows: <br />1. Recitals. <br />(a) The Internal Revenue Service has issued Section 1.150 -2 of the Income <br />Tax Regulations (the "Regulations ") dealing with the issuance of obligations, all or a <br />portion of the proceeds of which are to be used to reimburse the City for expenditures <br />made by the City prior to the date of issuance. <br />(b) The Regulations generally require that the City make a prior declaration of <br />its official intent to reimburse itself for such prior expenditures out of the proceeds of a <br />subsequently issued borrowing no later than 60 days after payment of such expenditure, <br />that the borrowing occur and the reimbursement allocation be made from the proceeds of <br />such borrowing within eighteen months of the payment of the expenditure or, if longer, <br />within eighteen months of the date the project is placed in service, but in no event more <br />than three years after the date the original expenditure was paid and that the expenditure <br />must either be a capital expenditure, or a cost of issuance of the obligation. <br />2. Official Intent Declaration. <br />The City desires to comply with requirements of the Regulations with respect to <br />the 2016 Street & Utility Project (the Project) in order to preserve the option of the City to <br />finance the costs of the Project with tax- exempt obligations. The total cost of the Project is <br />approximately $3,298,000, exclusive of financing costs and capitalized interest, and the City <br />intends to finance a portion of the costs of the Project from proceeds of a borrowing. The <br />maximum amount of debt to be issued for the Project is $2,950,000. The City reasonably <br />expects to reimburse all or a portion of the expenditures made for costs of the Project out of the <br />proceeds of an obligation, as defined in the Regulations, and the expenditures made for costs of <br />the Project to be reimbursed will be of a type that is properly chargeable to capital account (or <br />would be so chargeable with a proper election such as an election under Section 266 of the Code) <br />under general federal income tax principles. <br />3. Budgetary Matters. As of the date hereof, there are no City funds reserved, <br />allocated on a long term basis or otherwise set aside (or reasonably expected to be reserved, <br />allocated on a long term basis or otherwise set aside) to provide permanent financing for the <br />expenditures related to the Project to be financed from proceeds of a borrowing. This resolution, <br />therefore, is determined to be consistent with the City's budgetary and financial circumstances as <br />