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HomeMy WebLinkAbout03-040 - ADMIN Resolution - City Council - 2003/04/07RESOLUTION NO. 03-040 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 REGARDING THE ST. LOUIS PARK REC CENTER WEST ARENA HOCKEY DASHER BOARD SYSTEM 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 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 a 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"): Removal, storage and re -installation of hockey dasher board system located in the west arena at the St. Louis Park Rec Center. 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 $ 25,585.00, including tax. 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 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 $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 the 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 03-040 -2- 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 Tong -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. Approved by the City Council of the City of St. Louis Park, Minnesota this 7th day of Apnl, 2003. Reviewed for Administration: ity Manager Attest: C Clerk ted by the City Council April 7, 2003 Mayor •