HomeMy WebLinkAbout09-044 Bond Proceedsr ' ~ PRIp
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~ESO~P RESOLUTION 09-044
A RESOLUTION DECLARING THE OFFICIAL INTENT OF THE CITY OF PRIOR LAKE TO
REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY
THE CITY
Motion By: Millar
Second By: Hedbe
WHEREAS, The Internal Revenue Service has issued Treasury 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 later reimbursed from the proceeds of tax-exempt
bonds; and
WHEREAS, The City has determined to make this declaration of official intent ("Declaration") to
reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement regulations; and
WHEREAS, The total estimated general obligation bonds for 2009 are $1,674,000.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City proposes to undertake the following projects (the "Projects"):
a. Brooksville Hills Phase 2 Street Reconstruction (including Blind Lake
Overlay)
b. Maple Glen 2"d Addition
c. CR 21 Franklin Trail to Adelmann Street Reconstruction
3. The City reasonably expects to reimburse the expenditures made for certain costs of the Projects
from the proceeds of bonds in an estimated maximum principal amount of the following:
a. Brooksville Hills Phase 2 - $1,161,000
b. Maple Glen 2"d Addition - $138,200
c. CR 21 Franklin Trail to Fish Pt. Road - $375,000
The City may declare other separate statements of reimbursement intent in connection with specific
public improvements projects as they are initiated under Minnesota Statutes, Chapters 429 and
444, or for other capital projects, with the understanding that such additional declarations of
reimbursement intent will supplement this resolution. 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.
4. This Declaration has been made no 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 five 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 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. www.cityofpriorlake.com
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5. This Declaration is an expression of the reasonable expectations of the City based on the facts and
circumstances known to the City as the date hereof. The anticipated original expenditures for the
Projects and the principal amount of the bonds described in paragraph 3 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.
6. This Declaration is intended to constitute a declaration of the official intent for the purposes of the
Reimbursement Regulations.
PASSED AND ADOPTED THIS 6th DAY OF APRIL 2009.
YES NO
Hau en X Hau en
Hedber X Hedber
Erickson Absent Erickson
LeMair X LeMair
Millar x Millar
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Frank Bo ,City Manager
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