HomeMy WebLinkAboutResolution - 2012-105 - Reimburse City for Prior Bond Expenditures - 07/17/2012 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2012-105
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:
Project Maximum Amount of Bonds
Expected to be Issued for Project
North Segment Shady Oak Road Project $12,500,000
(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 1.1 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 July 17, 2012.
c ra- k yor
(Seal)
ATTEST:
iA�/
Ka Teen Porta, City Clerk