HomeMy WebLinkAboutResolution - 2007-133 - Reimbursement for Prior Expenditures out of Bonds - 12/18/2007 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2007-133
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF GENERAL
OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS,
SERIES 2008; ESTABLISHING COMPLIANCE WITH REIMBURSEMENT
BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota(the
"City"), as follows:
1. Recitals.
(a) The Internal Revenue Service has issued Section 1.150-2 of the Income Tax
Regulations (the"Regulations") dealing with the issuance of bonds all or a portion of the
proceeds of which are to be used to reimburse the City for project expenditures made by the
City prior to the date of issuance.
(b) The Regulations generally require that the City make a declaration of its
official intent to reimburse itself for such prior expenditures out of the proceeds of a
subsequently issued series of bonds within 60 days after payment of the expenditures,
that the bonds be issued and the reimbursement allocation be made from the proceeds of
such bonds within the reimbursement period (as defined in the Regulations), and that the
expenditures reimbursed be capital expenditures or costs of issuance of the bonds.
(c) The City desires to comply with requirements of the Regulations with
respect to the projects hereinafter identified.
2. Official Intent Declaration.
(a) The City proposes to undertake a project consisting of the acquisition of
public safety communication equipment (collectively, the "Project"), and to make
original expenditures with respect thereto prior to the issuance of reimbursement bonds,
and reasonably expects to issue reimbursement bonds for the Project, in one or more
series, in an amount not to exceed $1,300,000.
(b) Other than(i) de minimis amounts permitted to be reimbursed pursuant to
Section 1.150-2(f)(1) of the Regulations or(ii) expenditures constituting preliminary
expenditures as defined in Section 1.150-2(0(2) of the Regulations, the City will not seek
reimbursement for any original expenditures with respect to the foregoing Project paid
more than 60 days prior to the date of adoption of this resolution. All original
expenditures for which reimbursement is sought will be capital expenditures or costs of
issuance of the reimbursement bonds.
3. Budgetary Matters. As of the date hereof, there are no City funds reserved,
pledged, allocated on a long term basis or otherwise set aside (or reasonably expected to
be reserved, pledged, allocated on a long term basis or otherwise set aside) to provide
permanent financing for the original expenditures related to the Project, other than
pursuant to the issuance of the reimbursement bonds. Consequently, it is not expected
that the issuance of the reimbursement bonds will result in the creation of any
replacement proceeds.
4. Reimbursement Allocations. The City's Manager of Finance shall be
responsible for making the "reimbursement allocations"described in the Regulations,
being generally the transfer of the appropriate amount of proceeds of the reimbursement
bonds to reimburse the source of temporary financing used by the City to make payment
of the original expenditures relating to the Project. Each reimbursement allocation shall
be made within 30 days of the date of issuance of the reimbursement bonds, shall be
evidenced by an entry on the official books and records of the City maintained for the
reimbursement bonds and shall specifically identify the original expenditures being
reimbursed.
5. Authorization of Bond Issuance. It is hereby determined to be in the best
interests of the City to issue its General Obligation Equipment Certificates of
Indebtedness, Series 2008, in the principal amount not to exceed $1,300,000 (the
"Bonds"), pursuant to Minnesota Statutes, Section 412.301 and Chapter 475, to finance
the Project. Pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph
(9),Northland Securities, Inc. is authorized to solicit proposals for the Bonds on behalf of
the City on a competitive basis without regard to the public sale requirements of Chapter
475. The Mayor and the City Manager(or, in the event of their absence or disability, the
acting Mayor or the acting City Manager, respectively) are hereby authorized and
directed to execute and deliver, as applicable, a purchase agreement for the Bonds in the
name of and on behalf of the City. This Council shall meet at the time and place shown
in the terms of proposal for the Bonds, for the purpose of taking such further action
thereon as may be in the best interests of the City.
Adopted this 18t" day of December, 2007.
Phil Young, Mayo
(Seal)
ATTEST:
Ka Teen Porta, City Clerk
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