HomeMy WebLinkAbout08-034 - ADMIN Resolution - City Council - 2008/03/03RESOLUTION NO. 08-034
RESOLUTION 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 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 LET IT BE 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"):
Project Segment
Potential Costs
Fire Station Construction
$10,000,000
Site Acquisition
4,000,000
Utility Department Relocation
2,000,000
Park Reconstruction
1,000,000
Total Costs
$17,000,000
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 $17,000,000. 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 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, bond
issuance, and similar costs that are 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.
Resolution No. 08-034 -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 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
Reimbursement Regulations.
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Attest:
City Clerk
Adopted by the City Council March 3, 2008
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