HomeMy WebLinkAbout16-071 - ADMIN Resolution - City Council - 2016/05/16RESOLUTION NO. 16-071
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 a multi -use
recreation facility to include without limitation an ice arena and public multipurpose space
(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 $10,000,000. 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.
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 -teen basis, or otherwise set aside pursuant to the City's
budget or financial policies to pay such Project expenditures.
Resolution No. 16-071 -2-
Declaration is intended to constitute a declaration of official intent for purposes of
.eimbursement Regulations.
City Council May 16, 2016
K. flafilnening, City Manager
Attest:
L
Melis a Kenned , Cit Clerk