HomeMy WebLinkAbout15-166 - ADMIN Resolution - City Council - 2015/10/19RESOLUTION NO. 15-166
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 expects to incur certain expenditures that may be financed
temporanly 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 potentially undertake projects consisting of the construction
of City infrastructure improvements in connection with the construction of the Southwest Light
Rail Transit line, along with associated utility improvements (the "Projects"). The City will
construct the Projects over a period of approximately ten years.
2. The City reasonably expects to reimburse the expenditures made for certain costs
of the Projects in the years 2015 through 2018 from the proceeds of one or more senes of bonds
in an estimated maximum aggregate principal amount of $39,750,000. 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
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 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, engineering, 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.
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 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
Resolution No. 15-166 -2-
5. This Declaration is intended to constitute a declaration of official intent for
oses of the Reimbursement Regulations.
Appr•ved this 19th day of October, 2015, by the City Council of the City of St. Louis Park,
Minnesota.
Revivg d \sr Administration
Cit
Attest:
AJO
City Clerk
Adopted by the City Council October 19, 2015