HomeMy WebLinkAbout1998-224'rX { ~ ~
RESOLUTION NO. 224
RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED
PROJECTS TO BE UNDERTAKEN BY THE CITY OF STILLWATER;
ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND
REGULATIONS UNDER THE INTERNAL REVENUE CODE
Be it Resolved by the City Council (the Council) of the City of Stillwater, Minnesota (the City) as
follows:
1. Recitals.
a. The Internal Revenue Service has issued Section 1.103-18 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 time for the issuance of the bonds.
b. The Regulations generally require that the City make a prior declaration of its official
intent to reimburse itself for such prior expenditures out of the proceeds of subsequently
issued borrowing, that the borrowing occur and the reimbursement allocation be made
from the proceeds of such borrowing within one year of the payment of the expenditure
or, if longer, within one year of the date the project is placed in service, and that the
expenditure be a capital expenditure.
c. The City desires to comply with requirements of the Regulations with respect to certain
projects hereinafter identified.
2. Official Intent Declaxation.
a. The City proposes to undertake the following projects described on Exhibit A attached
hereto.
b. Other than (i) expenditures to be paid or reimbursed from sources other than a borrowing
or (ii) expenditures permitted to be reimbursed pursuant to the transition provision of
Section 1.103-18(1)(2) of the Regulations or (iii) expenditures constituting of preliminary
expenditures as defined in Section 1.103-18 (i)(2) of the Regulations, no expenditures for
the foregoing projects as identified on Exhibit A have heretofore been made by the City
and no expenditures will be made by the City until after the date of this Resolution.
c. The City reasonably expects to reimburse the expenditures made for the costs of the
designated projects out of the proceeds of the debt (the Bonds) to be incurred by the City
after the date of payment of all or a portion of the costs. All reimbursed expenditures
shall be capital expenditures as defined in section 1.150-1(h) of the Regulations.
d. This declaration is a declaration of official intent adopted pursuant to Section 1.103-18 of
the Regulations.
3. Bud~etary Matters. As of the date hereof, there are no City funds reserved, allocated on a long
term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long. term
basis or otherwise set aside) to provide permanent financing for the expenditures related to the
projects other than pursuant to the issuance of the Bond. This resolution, therefore, is
determined to be consistent with the City's budgetary and financial circumstances as they exist
or are reasonably foreseeable on the date hereof, all within the meaning and content of the
Regulations.
4. Fil ina• This resolution shall be filed within 30 days of its adoption in the publicly available
official books and records of the City. This resolution shall be available for inspection at the
office of the city clerk at the City Hall (which is the main administrative office of the City)
during the normal business hours of the City on every business day until the date of issuance of
the bonds.
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 for proceeds of the Bonds to reimburse the source of temporary financing
used by the City to make payment of the prior costs of the projects. Each allocation shall be
evidenced by an entry on the official books and records of the City maintained for the bonds,
shall specifically identify the actual prior expenditure being reimbursed or, in the case of
reimbursement of a fund or account in accordance with Section 1.103-18, the fund or account
from which the expenditure was paid, and shall be effective to relieve the proceeds of the bonds
from any restriction under the bond resolution or other relevant legal documents for the Bonds,
and under any applicable state statue, which would apply to the unspent proceeds of the Bonds.
Adopted this ~~ day of ~ 98.
Mayo
Attest:
City Clerk
EXHIBIT A
1998 Streets and Curve Crest Boulevard $985,000