HomeMy WebLinkAbout03-030 - ADMIN Resolution - City Council - 2003/03/17CITY OF ST. LOUIS PARK
RESOLUTION NO. 03-030
DECLARING THE OFFICIAL INTENT OF THE
CITY OF ST. LOUIS PARK 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
poor expenditures will not be deemed spent unless certain requirements are met; and
WHEREAS, the City of St. Louis Park ("City") expects to incur certain expenditures that
may be financed temporarily from sources other than bonds, and reimbursed from the proceeds
of the tax-exempt bond,
WHEREAS, the City has determined to make this declaration of official intent
("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 ST. LOUIS PARK AS FOLLOWS.
1 The City proposes to undertake the following projects (the "Project")
Recreation Center Roof Replacement 2003 3140
Ballfield Lights/Skippy Field (Carpenter Park) 2004 4200
Trail Improvements 2002 2002 0200
Trail Improvements 2001 1999 0800
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 pnncipal
amount of $2,501,369. 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 60 days after payment of any
onginal 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 5 percent of the
proceeds of an issue; or (c) "preliminary expenditures" up to an amount not in
excess of 20 percent of aggregate issue pnce 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, engineenng, surveying, bond issuance, and similar costs
that are incurred pnor 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. 03-030 -2-,
4. This Declaration is an expression of the reasonable expectations of the City based
on the facts and circumstance known to the City as of the date hereof. The
anticipated original expenditures for the Project and the principal amount of the
bonds descnbed 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. The Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
Reviewed for Administration• Ad
City Manager lf-.
Attest:
d by the City Council March 17, 2003
Clerk