HomeMy WebLinkAbout19-065 - ADMIN Resolution - City Council - 2019/06/17Resolution No. 19-065
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 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
improvements to its municipal water and storm water facilities (the “Project”).
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 $6,400,000. 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 projec t 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.
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.
DocuSign Envelope ID: CF183422-191A-4E4E-8473-89AF694093F0
Resolution No. 19-065 2
5. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
Reviewed for Administration: Adopted by the City Council June 17, 2019
Thomas K. Harmening, City Manager Jake Spano, Mayor
Attest:
Melissa Kennedy, City Clerk
DocuSign Envelope ID: CF183422-191A-4E4E-8473-89AF694093F0