HomeMy Public PortalAbout2011-055 Resolution Declaring the Official Intent of City to Reimburse Certain ExpendituresMember Martinson introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION NO.2011-55
DECLARING THE OFFICIAL INTENT OF THE CITY OF
MEDINA, MINNESOTA, TO REIMBURSE CERTAIN
EXPENDITURES FROM THE PROCEEDS OF BOND SALE
OF GO BONDS RELATING TO THE CONSTRUCTION OF A
PUBLIC WORKS FACILITY AND CITY HALL
IMPROVEMENTS
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 land, design and construction of a
public works facility and improvements to city hall (the "Projects").
2. The City reasonably expects to reimburse the expenditures made for certain costs of
the Projects from the proceeds of tax-exempt obligations to be issued in an estimated maximum
principal amount of $8,700,000. 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. 2011-55
June 21, 2011
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 Projects 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: June 21, 2011.
Eli eth Weir, Acting Mayor
Attest:
Douglas S. Reeder 1f riy Administrator - Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member Pederson
and upon vote being taken thereon, the following voted in favor thereof:
Martinson, Pederson, Weir
And the following voted against same: (Absent: Crosby, Siitari)
None
Whereupon said resolution was declared duly passed and adopted.
Resolution No. 2011-55 2
June 21, 2011