HomeMy WebLinkAbout24-021 - ADMIN Resolution - City Council - 2024/02/05
Resolution No. 24-021
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 proceeds 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 undertake the reconstruction of portions of Louisiana Ave. and
Cedar Lake Rd. (Project Nos. 4023-1100 and 4024-1100) (the “project”).
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 $4,100,000. 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 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.
8. This declaration is intended to constitute a declaration of official intent for purposes of
the Reimbursement Regulations.
DocuSign Envelope ID: 777B4DC3-44CA-48D5-BEFE-39366E503B53
Reviewed for administration: Adopted by the city council February 5, 2024
Cindy Walsh, deputy city manager Nadia Mohamed , mayor
Attest:
Melissa Kennedy, city clerk
DocuSign Envelope ID: 777B4DC3-44CA-48D5-BEFE-39366E503B53