89-7514R75
RESOLUTION NO. 7514
RESOLUTION ELECTING TO DESIGNATE
CERTAIN BONDS ISSUED IN 1986
AS ".QUALIFIED TAX-EXEMPT. OBLIGATIONS"
BE IT RESOLVED by the City Council of the City of Richfield,
Hennepin County, Minnesota (Issuer) as follows:
Section 1. Findings.
1..01. The Issuer issued its $2,525,000 General Obligation
Storm Sewer Revenue Bonds, Series 1986A, dated March 1, 1986 (the
"Bonds") while the Federal Tax Reform Act of 1986 was pending
with a retroactive effective date, specifically. on or after
January 1, 1986, and on or before August 7, 1986; and
1.02. When the Bonds were issued, the Issuer made a
designation that it intended or otherwise declared its intent to
qualify the Bonds under Section 802(e)(3) of H.R. 3838 of the
99th Congress as passed by the House of Representatives; and
1.03. The Issuer covenanted to take such actions as are
necessary to effectuate such attempted designation; and
1.04. For the Bonds to receive the benefit of being
designated as "qualified tax-exempt obligations" under Section
265(b)(3) of the Federal Internal Revenue Code of 1986, as
amended (the "Code"), it is necessary that the Issuer make an
election under subparagraphs (C) of Section 1009(b)(3) of the
Federal Technical and .Miscellaneous Revenue Act of 1988 ("TAMRA")
and designate the Bonds pursuant to subparagraphs (B) of Section
1009(b)(3) of TAMRA and Section 265(b)(3) of the Code; and
1.05 The Bonds qualify for such designation because they
are not private activity bonds (or, if private activity bonds,
are qualified 501(c)(3) bonds, or refunded bonds which were not
industrial development bonds or private loan bonds); the Issuer
with respect to bonds issued in 1986 is a "qualified small
issuer" of $10,000,000 or less of bonds; and not more than
$10,000,000 of bonds issued in 1986 have been designated:
Section 2. Election: Designation.
2.01. .Election. The Issuer hereby makes an election with
respect to the Bonds under Section 1009(b)(3)(C) of the Federal
Technical and Miscellaneous Revenue Act of 1988.
2.02. Designation of Oualified Tax-Exempt Obligations. In
order to qualify the Bonds as "qualified tax-exempt obligations"
within the meaning of Section 265(b)(3) of the Code, the Issuer
hereby makes the following factual statements and
representations:
(a) the Bonds are treated as issued on August 8, 1986,
because:
(i) the Bonds were issued on or after January 1,
1986, and on or before August 7, 1986, and
(ii) when t~lhe Bonds were issued, the Issuer made
a designation or otherwise declared that it
inten ed to qualify the Bonds under Section
802(e)(3) of H.R. 3838 of the 99th Congress
as passed by the House of Representatives,
and
(iii) the Issuer, in paragraph 1 above, has made
an election under Section 1009(b)(3)(C) of
TAMRA; and
(b) the Bonds are not "private activity bonds" as
defined in Se tion 141 of the Code, or, if private
activity bonds, they are:
(i) qualified 501(c)(3) bonds as defined in
Sectiol~n 145 of the Code, or
(ii) obligations issued to refund (or which are
(c) the Issuer hereby designates the Bonds as
"qualified ta~c-exempt obligations" for purposes of
Section 265(b)(3) of the. Code; and
(d) at the time t
tax-exempt ob
activity bond
as not being
been and were
(and all enti
Issuer, and a
during calend
expected to e
part of a series of obligations issued to
refund) obligations issued before August 8,
1986, hick were not industrial development
bonds (as defined in Section 103(b)(2) of
the Federal Internal Revenue Code of 1954,
as amei~nded, as in effect on the day before
the date of the enactment of the Federal
Tax Reform Act of 1986) or a private loan
bond (as defined in Section 103(0)(2)(A) as
so in leffect, but without regard to any
exemption from such definition other than
Sectio 103(0)(2)(A)); and
ie Bonds were issued, the amount of
Ligations (other than private
~, treating qualified 501(c)(3) bonds
private activity bonds) which had
to be issued in 1986 by the Issuer
aes treated as one issuer with the
Ll subordinate entities thereof)
~r year 1986 was not reasonably
cceed $10,000,000; and
(e) not more than $10,000,000 of obligations issued by
the Issuer during calendar year 1986 have been
designated for purposes of Section 265(b)(3) of
the Code.
Adopted by the City Council of the City of Richfield,
Minnesota this 10th day of April, 1^°^
ATTEST:
Thomas P. Ferber City Clerk