08-08 Resolution No. 11379 RESOLUTION NO. 11379
A RESOLUTION DECLARING THE OFFICIAL INTENT OF
THE CITY OF RICHFIELD TO REIMBURSE CERTAIN
EXPENDITURES FROM THE PROCEEDS OF BONDS TO
BE ISSUED BY THE CITY WITH RESPECT TO LYNDALE
AVENUE STREET RECONSTRUCTION PROJECT
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 of Richfield, Minnesota (the "City") expects to incur certain
expenditures that may be financed temporarily from sources other than bonds, and
reimbursed from the proceeds of tax-exempt bonds; and
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, MINNESOTA AS FOLLOWS:
1. The City proposes to undertake the Lyndale Avenue Street Reconstruction
Project within the City (the "Project").
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 $7,500,000. AU 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.
The foregoing resolution was moved by Council Member Howard and seconded by
Mayor Elliott.
The following voted in the affirmative: Mayor Elliott, Council Member Howard, Council
Member Trautmann, Council Member Garcia, and Council Member Regan Gonzalez.
The following voted against: None
No Council Members were absent.
Adopted by the City Council of the City of Richfield, Minnesota, this 8th day of August,
2017.
Pat Elliott, Mayor
ATTEST:
Elizabeth anHoose , City Clerk