HomeMy WebLinkAbout11-029 Declaration of Intent to Bond
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 1 1 - 029
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: Erickson Second By: Soukup
WHEREAS, The Internal Revenue Servi ce 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 expec ts to incur certain expenditures in connection with City improvement
p rojects that it will finance temporarily from sources other than proceeds from bonds
issued for the p rojects; and
WHEREAS, Once the City receives the proceeds from the tax - exempt bonds it will reimburse the
appropriate City fund for the previously paid expenditures; and
WHEREAS, The City has determined to make this D eclaration of O fficial I ntent (“Declaration”) to
reimburse certain costs from proceeds of bonds in accordance with the Reimbursem ent
R egulations; and
WHEREAS, The City anticipates issuing an estimated $2,600,000 in G eneral O bligation B onds in
201 1 .
NOW THEREFORE , BE IT HEREBY RESOLVE D BY THE CITY COUNCI L OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are inc orporated herein.
2. The City proposes to undertak e the following projects (the “p rojects”):
1. Rutgers/Watersedge/Grayling Circle Streets Reconstruction
2. CR 21 / Arcadia Intersection
3. The City reasonably expects to reimburse the expenditures made for certain co sts of the Projects from
the proceeds of bonds in an estimated maximum principal amount of the following:
1. Rutgers/Watersedge/Grayling Circle Streets Reconstruction - $1, 69 0,000
2. CR 21 / Arcadia Intersection - $910,000
The City may declare other separate sta tements 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 reimbu rsement
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 d eclaration 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 a n 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 fin ance 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.
5. This d eclaration is an expression of the reasonable expectations of the City based on the facts and
circumstances k nown to the City as the date hereof. The anticipated original expenditures for the
p rojects 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 proceed s 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 p roject expenditures.
6. This Declaration is intended to constitute a Declaration of O fficial I ntent for the purposes of the
Treasury Regulation 1.150 - 2, Reimbursement Regulations , issued by the Internal Revenue Service.
PASSED AND ADOPTED THIS 7 DAY OF MARCH , 201 1 .
th
YES NO
Myser X Myser
Erickson X Er ickson
Hedberg X Hedberg
Keeney X Keeney
Soukup X Soukup
______________________________
Frank Boyles, City Manager