92-7850R2
RESOLUTION NO. 7850
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 AND RESCINDING RESOLUTION 7791
WHEREAS, the Internal Revenue Service has issued Tres. Reg.
1.103-18 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
which may be financed temporarily from sources other than bonds,
and reimbursed from the proceeds of a bond; and
WHEREAS, the reimbursement rules apply to bonds issued after
March 2, 1992;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Richfield (the "City") as follows:
1. The City reasonably intends to make expenditures for the
project described in Exhibit A (the "Project"), and reasonably
intends to reimburse itself for such expenditures from the
proceeds of debt to be issued by the City in the maximum
principal amount described in Exhibit A.
2. The City Manager is authorized to designate appropriate
additions to Exhibit A in circumstances where time is of the
essence, and any such designation shall be reported to the
Council at the earliest practicable date and shall be filed with
the official books and records of the City as provided in Section
3.
3. This resolution shall be maintained as part of the books
and records of the City at the main administrative office of the
City, and shall be continuously available during normal business
hours of the City on every business day of the period beginning
not more than 30 days after adoption of this resolution and
ending on the last date of issue of any bonds issued to reimburse
expenditures described in Exhibit A.
4. This resolution 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
reimbursements set forth at Exhibit A 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. The City
has not adopted any allocation, budget, or restriction of moneys
or adoption of a requirement or policy to reimburse a fund, the
primary purpose of which is to prevent moneys from being
available to pay an expenditure the City intends to reimburse
with proceeds of a borrowing.
Resolution No. 7850
Page 2
5. This resolution is
of official intent for purp<
successor law, regulation, c
City of Richfield is hereby
intended to constitute a declaration
ses of Tres. Reg. 1.103-18 and any
r ruling. Resolution No. 7791 of the
rescinded.
6. The allocation of ~roceeds of the bonds to be issued to
any Project expenditures described in Exhibit A will be made not
later than the later of one year after the expenditure was paid
or one year after the property was placed in service.
7. The Project expenditures described in Exhibit A are
capital expenditures as defned in Tres. Reg. 1.150-1(h),
including costs of issuance of the bonds to be issued in order to
reimburse the Project expenditures.
8. Proceeds of the bo
expenditures described in E
when (1) an allocation entr
the City with respect to th
actual expenditure to be re
described as a fund or acco
the expenditure was paid; a
relieve the bond proceeds f
under applicable documents
ds issued to reimburse the Project
hibit A will be deemed spent only
is made on the books or records of
bonds; (2) the entry identifies an
mbursed, or where the Project is
nt, the fund or account from which
d (3) the allocation is effective to
om restrictions on unspent proceeds
nd state laws.
9. No entity or entit
of the following discretion
respect to the City: power
controlling portion of the
disapprove a controlling po
determine the City's budget
funds or assets for the oth
disapprove, or prevent the
City.
es possess simultaneously two or more
ry and non-ministerial powers with
to (1) remove without cause a
ity Council; (2) select, approve, or
tion of the City Council; (3)
or require the use of the City's.
r entity's purpose; or (4) approve,
ssuance of debt obligations of the
10. None of the proceeds of the bonds issued to reimburse
the City for the Project expenditures described in Exhibit A will
be used within one year of the allocation (i) to refund another
governmental obligation or ('ii) to create or increase the balance
in a sinking fund or replace funds used for such purpose, or
(iii) to create or increase 'the balance in a reserve or
replacement fund or replace'~,funds used for such purposes; or will
be used at any time to reimburse any person or entity (other than
the City) for expenditures originally paid with the proceeds of a
City obligation (excluding a City inter-fund borrowing); unless
(i) such amounts are deposited in a bona fide debt service fund
or are used to pay debt service in the next one-year period on
any City obligation other than the reimbursement bond, or (ii)
the original issue was not reasonably expected to be used to
finance the expenditure. '~,
Resolution 7850
Page 3
11. No action or inaction by the City with respect to the
allocation of bond proceeds to reimbursement of Project
expenditures will be an artifice or device to avoid, in whole or
in part, arbitrage yield restrictions or arbitrage rebate
requirements.
12. The procedures described in this resolution shall cease
to apply to the extent not required by Tres. Reg. 1.103-18 or any
successor law, regulation, or ruling.
Approved by the City Council of the City of Richfield this
9th day of March, 1992.
j
Martin J. 'rs Mayor
ATTEST:
~'~~ U ~ ~~G1.~
Thomas P. Ferber, City Clerk