HomeMy Public PortalAbout2023-110 Resolution Reimbursement for Property Purchase PID 0411823140004Resolution 2023-110
December 1, 2023
Member DesLauriers introduced the following resolution and moved its adoption:
CITY OF MEDINA, MINNESOTA
RESOLUTION NO. 2023-110
DECLARING THE OFFICIAL INTENT OF THE
CITY OF MEDINA TO REIMBURSE
CERTAIN EXPENDITURES FROM AVAILABLE FUNDS OR PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the
“Reimbursement Regulations”) providing that proceeds of tax-exempt bonds used to reimburse
prior expenditures will not be deemed spent unless certain requirements are met; and
WHEREAS, the City expects to incur certain expenditures that may be financed temporarily
from sources other than bonds, and reimbursed from available funds or the proceeds of a tax-exempt
bond;
WHEREAS, the City has determined to make this declaration of official intent
(“Declaration”) to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
MEDINA AS FOLLOWS:
1. The City proposes to purchase property described below (the “Project”).
Tract 2 04-118-23-14-0004 30.18 acres
2. The City reasonably expects to reimburse the expenditures made for certain costs
of the Project from an interfund loan from the water capital fund, sewer capital fund, and sewer
fund to be paid within five to seven years with 4% interest or from the proceeds of bonds in an
estimated maximum principal amount of $2,000,000. All reimbursed expenditures will be
capital expenditures, costs of issuance of the 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
bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount
not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) “preliminary expenditures”
up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues that
finance or are reasonably expected by the City to finance the project for which the preliminary
expenditures were incurred. The term “preliminary expenditures” includes architectural,
engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of
Resolution 2023-110
December 1, 2023
acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation,
and similar costs incident to commencement of construction. If the City does not issue bonds and
instead enters into a interfund loan, the City is not required to comply with the rules set forth in this
paragraph.
4. 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 bonds or the interfund loan
described in paragraph 2 are consistent with the City’s budgetary and financial circumstances.
No sources other than proceeds of bonds to be issued by the City are, or 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 Project expenditures.
5. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
Dated: December 1, 2023.
______________________________
Kathleen Martin, Mayor
ATTEST:
______________________________
Scott T. Johnson, City Administrator
The motion for the adoption of the foregoing resolution was duly seconded by member
Cavanaugh upon vote being taken thereon, the following voted in favor thereof:
Albers, Cavanaugh, DesLauriers, Martin, Reid
And the following voted against same:
None
Whereupon said resolution was declared duly passed and adopted.