HomeMy Public PortalAbout2018-073 Resolution Declaring the Official Intent of the City of Medina to Reimburse Expenditures From Proceeds of Bonds to be Issued by CityCITY OF MEDINA, MINNESOTA
RESOLUTION NO.2018-73
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 Brockton Lane and Hickory Drive
Street Reconstruction 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 $1,700,000. 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 the lesser
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.
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.
Resolution No. 2018-73
November 7, 2018
Dated: November 7, 2018.
Kathleen Martin, Mayor
Attest:
Jodi lup, City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member Cousineau
and upon vote being taken thereon, the following voted in favor thereof
Anderson, Cousineau, DesLauriers, Martin, Pederson
And the following voted against same:
None
Whereupon said resolution was declared duly passed and adopted.
Resolution No. 2018-73 2
November 7, 2018