HomeMy Public PortalAbout2007-042 Resolution Declaring Official Intent of City to Reimburse Certain ExpendituresMember Weir introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION NO.2007-42
DECLARING THE OFFICIAL INTENT OF THE CITY OF MEDINA,
MINNESOTA, TO REIMBURSE CERTAIN EXPENDITURES FROM THE
PROCEEDS OF A WATER CAPITAL IMPROVEMENT PROJECT
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the
"Reimbursement Regulations") providing that proceeds of tax-exempt obligations used to reimburse
prior expenditures will not be deemed spent unless certain requirements are met; and
WHEREAS, the City of Medina (the "City") expects to incur certain expenditures that maybe
financed temporarily from sources other than tax-exempt obligations, and reimbursed from the
proceeds of a tax-exempt obligation;
WHEREAS, the City has determined to make this declaration of official intent ("Declaration")
to reimburse certain costs from proceeds of tax-exempt obligations 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 undertake the following project: construction of a raw water line,
improvements to pumphouse number five, improvements to well number seven, improvements to well
number six, acquisition of land for a new water tower, construction of a new water tower, and other
capital improvements to the water system (the "Project").
2. The City reasonably expects to reimburse the expenditures made for certain costs of the
Project from the proceeds of tax-exempt obligations to be issued in an estimated maximum principal
amount of $5,000,000. All reimbursed expenditures will be capital expenditures, costs of issuance of
the tax-exempt obligations (including obligations such as the water capital improvement project the
City is proposing), 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 tax-exempt
obligations, except for the following expenditures: (a) costs of issuance of tax-exempt obligations; (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 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, tax-exempt obligation issuance, and similar costs that are
Resolution 2007-42
August 21, 2007
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 tax-exempt obligations described in
paragraph 2 are consistent with the City's budgetary and financial circumstances. No sources other
than proceeds of tax-exempt obligations 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: August 21, 2007
T.M. Crosby, Jr., Ma
Attest:
(.17(
Chad M. Adams, City Administrator - Clerk
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:
Crosby, Weir, Cavanaugh, Johnson
And the following voted against same: (Absent: Smith)
None
Whereupon said resolution was declared duly passed and adopted.
Resolution 2007-42
August 21, 2007
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