HomeMy WebLinkAboutRES 19-010 FOR THE 2020 STREET IMPROVEMENT BOND REIMBURSEMENTCITY OF SAINT ANTHONY
STATE OF MINNESOTA
RESOLUTION 19 -010
A RESOLUTION FOR THE 2020 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 2020 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
$2,146,900 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 $2,146,900. 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 they exist or are
reasonably foreseeable on the date hereof, all within the meaning and content of the Regulations.
Adopted this 8`h day of January, 2019.
Jerome O. Faust, Mayor
ATTEST: 'e
Nicole Miller, City Clerk
Reviewed for administration: %h " /"—
Mark Casey, City M ager
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