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HomeMy WebLinkAboutResolution - 91-213 - Establishing Compliance with Reimbursement Bond Regulations Under Internal Revenue Code - 09/03/1991 L •o 09/03/91 14:25 FAX 612 349 6718 LPG MARK JOHNSON Qo02 r RESOLUTION NO. 91-213 RESOLUTION RELATING TO FINANCING, OF CERTAIN PROPOSER PROJECTS TO BE UNDERTARHN BY THE CITY OF E,DEN PRAIRIE; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE BE IT RESOLVED by the City Council (the "Council." ) of the City of Eden prairie, Minnesota, (the "City) , as follows: 1. Recitals. (a.) The Internal Revenue Service has issued proposed Treasury Regulations section 1.103-17 (as proposed and/or finally adopted, the "Regulations" ) dealing with the issuance of bonds, all or a portion of the proceeds of which are to be used to reim- burse the City for any project casts paid by the City prior to the time of the issuance of the bonds . (b) 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 a subsequently issued taxable or tax exempt borrowing, that such declaration generally be made prior to but not more than two years before the time the expenditure is actually paid, that the borrowing occur and the reimbursement allooation be made from the proceeds of such borrowing within one year of the payment of the expenditure or, if longer , within one year of the date the project is placed in service, and that the expenditure relate to property having a reasonably expected economic life of at least one year. (c) The City desires to comply with requirements of the regulations with respect to certain projects herinafter identified. 2. official Intent Declaration. (a) The City proposes to undertake the following projects described on Exhibit A attached, hereto. (b) Other than costs to be paid or reimbursed from sources other than a tax-exempt borrowing or costs permitted to be reim- bursed pursuant to the transition provision of Section 1.103-17(1) of the regulations , none of the casts of the foregoing projects as identified on Exhibit. A has heretofore been paid by the City and none of the costs will be paid by the City until after the date of this Resolution. Each of the projects, and costs related thereto, constitutes property having a useful life of at least one year. -1- 09/03/91 14:25 FAX 612 349 6718 'LPG MARK JOHNSON IM003 (c) The City intends to reimburse itself for the payment of the designated project costs oiat of the proceeds of a tax exempt bond issue, debt or similar borrowing (the "Bonds") to be issued by the City after the date of payment of all or a portion of the costs. Pending the issuance of the Bonds, the City reasonably expects to pay and temporarily finance the costs from the following source or sources of funds identified on Exhibit A. (d) The Bands are proposed to be issued by the City pursuant to the provisions of Minnesota Statutes, Chapter 475, and other applicable statutory authority. The reasonably expected sources of funds to be used by the City to pay the debt service on the Bands are described on Exhibit A. 3. Budgetary Matters. As of the date hereof, there are no City funds reserved or otherwise allocated pursuant to the City's budget (or expected to be reserved or allocated pursuant to the City's budget) to provide permanent financing for the costs of the projects, other than pursuant to the issuance of the bonds. Furthermore, there has been no allocation, budgeting, or restric- tion of moneys (or the adopting of a requirement or policy to reimburse a fund) as part of the City's budgetary process, the primary purpose of which is to prevent moneys from said sources from being available for the permanent financing of the costs of the projects. This resolution, therefore, is determined to be consistent with the City's budgetary and financial circumstances as they exist or are foreseeable on the date hereof, all within the meaning and content of the Regulations . 4. Filing. This resolution shall be filed in the publicly available official books , records, or proceedings of the City, which shall be continuously available for inspection by the general public. This resolution shall be available for inspec- tion at City Ball during normal burin'ess hours of the City can every business day during the period beginning on the earlier of 10 days after the adoption hereof,- the date of issuance of the reimbursement bands, or as otherwise provided by law, and ending on the day after the issuance of such bonds. 5. Reimbursement Allocations. The City Finance Director shall be responsible for making the "reimbursement allocations" described in the regulations , being generally the transfer of the appropriate amount of proceeds of the Bonds to ' reimburse the source of temporary financing used by the City to make payment of the prior costs of the projects. Each allocation shall be evi- denced by an entry on the official books and records of the City maintained for the songs, shall specifically identify the actual prior expenditure being reimbursed, and shall be effective to relieve the proceeds of the Bonds from any restriction under the band resolution or other relevant legal documents for the Bonds, -2- n r• ' '09/03/91 14:26 FAX 612 349 6718 LPG MARK JOHNSON 0 004 and under any applicable state or federal statute, which would apply to the unspent proceeds of - bond issued. ADOPT'2D by the Eden Prairie C'ty unci on Se temb 3 -1931,-_ Mayor ATTEST: Cz rk RESOL.Z -3- r EXHIBIT ►►A" Estimated Cost Source to be Reimbursed Source of Funds to Pay Project Description (1) From Bond Proceeds (2) Interim Financing (3) Bonds (4) a-2-150 Medcom Blvd. $ 145,000 Investment Fund Assessments, Improvements Takes 52-160 Dell/Scenic $4,100,000 Investment Fund Assessments, Heights Street & Municipal State Utility Improvements Aid, Taxes 52-126 Dell Road Street $1,410,000 Investment Fund Assessments, & Utility Improve- Municipal State ments - TH 5 to Aid, Taxes Twilight Trail 52-130 Columbine Road $1,026,000 Investment Fund Assessments, between Fountain Taxes Place & Prairie Center Drive 52-229 Prairie Center $ 49,000 Investment Fund Assessments Drive Median Opening 52-199 Bennett/Nelson $ 146,000 Investment Fund Assessments Street & Utilities 52-067 Rowland Royal/ $1,246,000 Investment Fund Assessments, Old Shady Oak Road Municipal State Street & Utilities Aid, Taxes 52-194 White Tail $ 215,000 Investment Fund Assessments Crossing Area Street & Utility Improvements 52-189 Braxton Drive $ 620,000 Investment Fund Assessments, Street & Utility Taxes Improvements 52-157 Riverview Read $ 490,000 Investment Fund Assessments, Street & Utility Municipal State Improvements - Aid, Taxes Section 36 (1) Include description of character or type of project, as well as estimated quantity or size. For example, "40,000 square foot public works garage" or "5 police cars" or "street reconstruction from Oak Street to 3rd Avenue" (2) Include hard construction or acquisition, plus engineering/architectural/legal/ fiscal/etc. �(3) Identify funds from which costs will be paid pending issuance of bonds, such as general fund, trunk sewer fund, etc. (4) Identify funds to be used to pay debt service on bonds, such as property taxes, water revenues, sewer revenues, tax increments, special assessments, etc.