HomeMy Public PortalAbout2010-022 Resolution Declaring Official Intent of City to Reimburse Certain ExpendituresMember Smith introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION NO. 2010-22
DECLARING THE OFFICIAL INTENT OF THE CITY OF
MEDINA, MINNESOTA, TO REIMBURSE CERTAIN
EXPENDITURES FROM THE PROCEEDS OF EQUIPMENT
CERTIFICATES
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 may be
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 acquisition of multiple police squads including set
up, and public works motorized equipment and accessories, including but not limited to detailing.
2. The City reasonably expects to reimburse the expenditures made for certain costs of the
acquisitions from the proceeds of tax-exempt obligations to be issued in an estimated maximum
principal amount of $750,000. All reimbursed expenditures will be capital expenditures, costs of
issuance of the tax-exempt obligations 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
acquisitions for which the expenditures were incurred.
Resolution No. 2010-22
April 6, 2010
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 acquisitions 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: April 6, 2010.
T.M. Crosby, Jr., o
Attest:
ZL
Chad M. Adams, City Administrator - Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member Johnson and
upon vote being taken thereon, the following voted in favor thereof:
Smith, Johnson, Crosby, Siitari, Weir
And the following voted against same:
None
Whereupon said resolution was declared duly passed and adopted.
Resolution No. 2010-22 2
April 6, 2010