HomeMy WebLinkAboutResolution - 2008-114 - Establishing Compliance with IRS Reimbursement bond Regulations for Certain Projects - 12/16/2008 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2008-114
RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED
PROJECTS TO BE UNDERTAKEN BY THE CITY; 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 certain projects hereinafter identified.
2. Official Intent Declaration.
(a) The City proposes to undertake the following project or projects 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 or projects in the maximum
principal amounts shown below:
Protect Maximum Amount of Bonds
Expected to be Issued for Pr6ect
Phase II Energy Improvements $664,000
Police and Fire All-in-One Solution $2,100,000
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(b) Other than(i) de minimis amounts permitted to be reimbursed pursuant to
Section 1.150-2(0(1)of the Regulations or(ii) expenditures constituting preliminary
expenditures as defined in Section 1.1 50-2(f)(2) of the Regulations, the City will not seek
reimbursement for any original expenditures with respect to the foregoing projects 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 projects, 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 projects. 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 City Council on December 16, 2008.
P ' Young, Mayor
ATTEST:
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K hleen Porta,City Clerk
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