HomeMy WebLinkAbout15-029 Declaration of Intent to Bond
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 15-029
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: KEENEY Second By: MORTON
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 2015 are $12,450,000.
NOWTHEREFORE, 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.Mushtown / Maple / Panama
b.TH13 / 150 Street
th
c.Stemmer Ridge
d.Duluth Avenue
e.Credit River Road
f.2015 Reconstruction Projects
g.Maintenance Center (Membrane Roofing)
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.Mushtown / Maple / Panama - $1,250,000
b.TH13 / 150 Street - $2,250,000
th
c.Stemmer Ridge - $3,650,000
d.Duluth Avenue - $800,000
e.Credit River Road - $1,100,000
f.2015 Reconstruction Projects - $2,800,000
g.Maintenance Center (Membrane Roofing) - $600,000
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 23RD DAY OF FEBRUARY 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye
☒☒☒☒☒
Nay
☐☐☐☐☐
Abstain
☐☐☐☐☐
Absent
☐☐☐☐☐
______________________________
Frank Boyles, City Manager
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