HomeMy WebLinkAboutResolution - 2014-63 - Intent to Reimburse for Prior Expenditures (Eden Prairie Road Project) - 06/17/2014 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2014-63
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
Eden Prairie Road Project (just south of Riley
Creek to just south of the Eden Prairie Woods development). $3,500,000
(b) Other than (i) de minimis amounts permitted to be reimbursed pursuant to Section
1.1 50-2(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
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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 June 17, 2014.
CY ra-Vken,s0, MkYor
(Seal)
ATTEST:
thleen Porta, City Clerk
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