HomeMy WebLinkAbout21-013 - ADMIN Resolution - City Council - 2021/02/01Resolution No. 21-013
A 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
Be it resolved by the City Council (the “City Council”) of the City of St. Louis Park,
Hennepin County, Minnesota (the “City”) as follows:
1. 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.
2. The City expects to incur certain expenditures that may be financed temporarily
from sources other than bonds, and reimbursed from the pro ceeds of a tax-exempt bond.
3. 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.
4. The City proposes to provide funds for the Permanent Improvement Revolving
Fund and the Pavement Management Fund and to undertake various street, sidewalk, and trail
projects in the City (collectively, the “Project”), including the following:
(a) Louisiana Ave Project;
(b) Beltline Blvd and Wooddale Bikeway Projects; and
(c) Multiple Street Rehabilitation/Mill & Overlay Projects.
5. 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 $12,000,000. 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.
6. 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.
7. 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
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Resolution No. 21-013 2
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 circumsta nces. 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.
8. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
The motion for the adoption of the foregoing resolution was duly seconded by City Council
Member Tim Brausen, and, after full discussion thereof and upon a vote being taken thereon,
the following City Council Members voted in favor thereof: Jake Spano, Larry Kraft, Nadia
Mohamed, Margaret Rog, Lynette Dumalag, Rachel Harris, and Tim Brausen.
And the following City Council Members voted in opposition: None
Reviewed for Administration: Adopted by the City Council February 1, 2021
Thomas K. Harmening, city manager Jake Spano, mayor
Attest:
Melissa Kennedy, city clerk
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