HomeMy WebLinkAbout14-023 Intent to Bond/� PRjQ\
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4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 14 -023
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: Morton
Second By: Souku
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, Passage of this resolution does not obligate the City to undertake any particular project; 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 2014 are $7,925,000.
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. Carriage Hills Parkway Extension
b. Rolling Oaks
c. CSAH 44 (Fish Point Road to City Limits)
d. Crest Avenue Rehabilitation
e. Stemmer Ridge Road (ROW, EAW, Design)
f. Mushtown / Maple / Panama
g. Maplewood
h. Carriage Hills Rehabilitation (CR21 to Pike Lake)
i. Maintenance Center (Membrane Roofing)
j. Well #10
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. Carriage Hills Parkway Extension - $275,000
b. Rolling Oaks - $825,000
c. CSAH 44 (Fish Point Road to City Limits) - $100,000
d. Crest Avenue Rehabilitation - $1,450,000
e. Stemmer Ridge Road (ROW, EAW, Design) - $1,500,000
f. Mushtown / Maple / Panama - $1,500,000
Maplewood - $275,000
Carriage Hills Rehabilitation (CR21 to Pike Lake) — $700,000
Maintenance Center (Membrane Roofing) - $300,000
Well #10 — $1,000,000
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.
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 10th DAY OF FEBRUARY 2014.
YES NO
Hedberg
X
Hedberg
Keeney
X
Keeney
McGuire
X
McGuire
Morton
X
Morton
Soukup
X
Soukup
Frank o ��s, t ity Manager