HomeMy WebLinkAbout14-051 - ADMIN Resolution - City Council - 2014/04/07RESOLUTION NO. 14-051
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 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 (the
"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 a project consisting of the construction of a
multiphase expansion to the City's sidewalks and trails, along with associated utility
improvements, designated as Project Number 40140000 (the "Project"). The City will construct
the Project over a period of approximately ten years.
2. The City reasonably expects to reimburse the expenditures made for certain costs
of the Project from the proceeds of one or more series of bonds in an estimated maximum
aggregate principal amount of $30,000,000. 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, engineenng, 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.
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.
Resolution No. 14-051
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5. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
Ap • ed this 7th day of April, 2014, by the City Council of the City of St. Louis Park,
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Review - or administration:
Adopt-... the City Council April 7, 2014
City 'ag
Attest:
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City Clerk
Mayor
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