HomeMy WebLinkAbout92-11
HERITAGE
1891
COMMUNITY
1991
WJ!X!JK
2Q91
RESOLUTION 92-11
A RESOLUTION ESTABLISHING PROCEDURES RELATING TO
COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS
UNDER THE INTERNAL REVENUE CODE
MOTION BY: FITZGERALD
SECONDED BY
WHITE
WHEREAS, the Internal Revenue Service has issued final Treasury
Regulations section 1.103-18 dealing with reimbursement bond
proceeds, which would include those proceeds of the City's bonds
to be used to reimburse the City for any project expenditure paid
by the City prior to the time of the issuance of those bonds; and
WHEREAS, the Regulations generally require that the City make a
prior declaration of its official intent to reimburse itself for
such prior expenditures out of the proceeds of subsequent bond
issues and that the expenditure be a capital expenditure; and
WHEREAS, the actual bonding and reimbursement allocation shall
be made from the proceeds of such bonds within one year of the
payment of the expenditure or not later than one year after the
project has been placed in service; and
WHEREAS, the City's bond counsel Briggs and Morgan has advised
the City that the Regulations do not apply to payments of City
project costs first made from bond proceeds; and
WHEREAS, the City desires to comply with the Regulations and to
establish certain procedures to ensure compliance.
NOW, THEREFORE BE IT RESOLVED, by the Mayor and City Council that
the City Finance Director is hereby authorized to make the City's
Official Intent Declarations or to delegate from time to time
that responsibility to other appropriate employees.
BE IT FURTHER RESOLVED THAT, each Declaration shall comply with
the requirements of the Regulations and are to include the
following:
(a) Each Declaration shall be made on or before the date the
City pays the applicable ~roject cost and shall state
that the city reasonably lntends and expects to reimburse
itself with the proceeds of a future borrowing.
(b) Each Declaration shall specifically contain the following
statement: "This Declaration is a Declaration of Official
intent under Treasury Regulations section 1.103-18."
(c) Each Declaration shall contain a project description and
shall identify the particular fund from which the expend-
iture to be reimbursed is paid.
(d) Each Declaration shall also contain a statement of the
maximum principal amount of debt expected to be issued
for the project.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245
(e) Each Declaration shall be made available for public
inspection at Prior Lake city Hall during normal business
hours.
BE IT FURTHER RESOLVED THAT, the Finance Director shall make the
appropriate reimbursement allocations, being generally the
transfer of the bond proceeds to reimburse the source of
temporary financing used by the City to make payment of the prior
expenditure.
Passed and adopted this 16th day of March , 1992.
YES NO
Andren X- Andren
Fitzgerald X- Fitzgerald
Kedrowski X- Kedrowski
Scott X- Scott
White X- White
{Seal}