06-9793r
RESOLUTION NO. 9793
DECLARING THE OFFICIAL INTENT OF THE
CITY OF RICHFIELD TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. ~ 1.150-2
(the "Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to
reimburse prior expenditures will not be deemed spent unless certain requirements are met; and
WHEREAS, the City expects to incur certain expenditures that may be financed
temporarily from sources other than bonds, and reimbursed from the proceeds of a tax-exempt
bond;
WHEREAS, the City has determined to make this declaration of official intent (the
"Declaration") to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RICHFIELD AS FOLLOWS:
1. The City proposes to undertake the following project (the "Project").
Richfield Lake Improvements
2. The City reasonably expects to reimburse the expenditures made for certain costs
of the Project from the proceeds of bonds in an estimated maximum principal amount of
$657,000. All reimbursed expenditures will be capital expenditures, costs of issuance of the
bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the
Reimbursement Regulations.
3. This Declaration has been made not later than 60 days after payment of any
original expenditure to be subject to a reimbursement allocation with respect to the proceeds
of bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an
amount not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) "preliminary
expenditures" up to an amount not in excess of 20 percent of the aggregate issue price of the
issue or issues that finance or are reasonably expected by the City to finance the project for
which the preliminary expenditures were incurred. The term "preliminary expenditures" includes
architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to
commencement of acquisition, construction or rehabilitation of a project, other than land
acquisition, site preparation, and similar costs incident to commencement of construction.
4. This Declaration is an expression of the reasonable expectations of the City
based on the facts and circumstances known to the City as of the date hereof. The
anticipated original expenditures for the Project and the principal amount of the bonds
described in paragraph 2 are consistent with the City's budgetary and financial
circumstances. No sources other than proceeds of bonds to be issued by the City are, or are
reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside
pursuant to the City's budget or financial policies to pay such Project expenditures.
5. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
Approved by the City Council of the City of Richfield this 11th day of July, 2006.
ATTEST:
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