HomeMy WebLinkAboutResolution - 2008-22 - Compliance with Reimbursement Bond Regulations - 02/12/2008 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2008-22
RESOLUTION RELATING TO FINANCING OF THAT CERTAIN
PROPOSED PROJECT TO BE UNDERTAKEN BY THE CITY;
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 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
that certain project as hereinafter identified.
2. Official Intent Declaration.
(a) The City proposes to undertake the following project and to make original
expenditures with respect thereto prior to the issuance of reimbursement bonds,
and reasonably expects to issue reimbursement bonds for such project in the
maximum principal amounts shown below:
Maximum Amount of Bonds
Project Expected to be Issued for Project
Capital Facility $1,000,000
Improvements
(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(f)(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 financial officer 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.
ADOPTED by the Eden Prairie City Council on February 12, 2008.
V &�-
ATTEST: Philip Young, Mfyor
SEAL
Ka Teen Porta, City Clerk