HomeMy WebLinkAboutResolution - 91-135 - Relating to Reimbursement of Improvement Costs - 06/04/1991 RESOLUTION RELATING TO REIMBURSEMENT OF THE CITY FOR
MONEYS ADVANCED TO PAY COSTS OF IMPROVEMENT PROJECTS IN
ANTICIPATION OF THE ISSUANCE OF IMPROVEMENT BONDS
BE IT RESOLVED by the City Council of the City of Eden
Prairie, Minnesota, as follows:
1 . The City has historically undertaken public
improvements (the "Improvements") to be financed, in whole or in
part, from the collections of special assessments to be levied on
properties specially benefited by the Improvements, and from the
proceeds of Improvement Bonds payable, in whole or in part, from
such special assessments, all in accordance with Minnesota
Statutes, Chapter 429 (the "Act") . It has been the City's
practice to finance the construction of Improvements on a
temporary basis from City funds on hand, and to issue Improvement
Bonds periodically, at such time as the market for the Improvement
Bonds is favorable, to finance a number of Improvements . This
practice has allowed the City to achieve economies of scale by
issuing one large issue, rather than a series of smaller issues.
2 . The City's bond counsel has advised the City Finance
Director/Clerk that the Internal Revenue Service has announced
that it will be issuing new regulations relating to the conditions
under which municipal issuers will be able to issue tax-exempt
obligations to reimburse themselves for prior expenditures. It is
anticipated that one of the requirements for the issuance of tax-
exempt obligations will be a preliminary resolution or other
official action of the governing body, adopted at or prior to the
time the expenditures are incurred, expressing the intent of the
municipality to issue tax-exempt obligations to reimburse prior
expenditures .
3 . The City Finance Director/Clerk has advised this
Council that there are currently Improvements ordered, under
construction or completed for which the City has advanced, or
anticipates advancing, funds in anticipation of the issuance of
Improvement Bonds, the estimated aggregate cost of which
Improvements, when fully completed, will be approximately
$oZ D, a 0 a, 0 0 s • The City Council hereby expresses its present
intent o to issue Improvement Bonds in one or more series in an
aggregate principal amount not exceeding ea , to
finance the costs of Improvements heretofore ord ed, but for
which the City has not previously issued Improvement Bonds.
4 . The City intends to continue to fund Improvements
ordered after the date hereof from City funds available for the
purpose and to reimburse itself from the proceeds of Improvement
Bonds for any costs incurred or paid after the date hereof, to the
extent such costs are allowable under the law. The City presently
•
. anticipates that it will issue Improvement Bonds for the
reimbursement of costs within one y ar from the date on which the
Improvements for which reimburs�W is to be made are completed.
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Adopted this '� ` day of , 1991.
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