HomeMy Public PortalAbout2016-096 Resolution Declaring the Official Intent of the City of Medina to Reimburse Certain Expenditures from the Proceeds of Bonds to be issued by the City of MedinaMember Pederson introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION NO.2016-96
DECLARING THE OFFICIAL INTENT OF THE
CITY OF MEDINA TO REIMBURSE
CERTAIN EXPENDITURES FROM THE 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 of Medina, Minnesota (the "City") expects to incur certain
expenditures that may be financed temporarily from sources other than bonds, and reimbursed from
the proceeds of a tax-exempt bond;
WHEREAS, the City has determined to make this declaration of official intent (the
"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, MINNESOTA AS FOLLOWS:
1. The City proposes to undertake the construction of the Deerhill Preserve Road
Improvement Project (the "Project").
2. The City reasonably expects to reimburse the expenditures made for certain costs of
the Project from the proceeds of bonds in an estimated maximum principal amount of $1,400,000.
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 sixty (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 five percent (5%) of the proceeds of an issue; or (c)
"preliminary expenditures" up to an amount not in excess of twenty percent (20%) 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 acquisition, construction or rehabilitation of a project, other than land
acquisition, site preparation, and similar costs incident to commencement of construction.
Resolution No. 2016-96
December 6, 2016
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 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.
2016.
Approved by the City Council of the City of Medina, Minnesota this 6th day of December,
Bob Mitchell, Mayor
Attest:
at,
Jodi M. Gallup, City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member Anderson
and upon vote being taken thereon, the following voted in favor thereof:
Anderson, Cousineau, Martin, Mitchell, Pederson
And the following voted against same:
None
Whereupon said resolution was declared duly passed and adopted.
Resolution No. 2016-96 2
December 6, 2016