10-10405rRESOLUTION 10405
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 of Richfield expects to incur certain expenditures that may
be financed temporarily from sources other than bonds, and reimbursed from the
proceeds of tax-exempt bonds;
WHEREAS, the City has determined to make this declaration of official intent
("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 acquired certain propert~r by condemnation for the Lyndale
Avenue Bridge improvement project and the 66" and Portland Avenue improvement
project. The City entered into a settlement agreement with regard to the condemnation
of property related to the Lyndale Avenue Bridge improvement project. The City also
anticipates paying certain costs of condemnation related to the 66th and Portland
Avenue improvement project within the City (either pursuant to an award or a negotiated
settlement). These payments to be made by the City in order to obtain clean title to the
properties improved for such street improvement projects are collectively referred to
herein as 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 $1,030,000. 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.
Adopted by the City Council of the City of Richfield, Minnesota this 14th .day of
September, 2010.
ebbie Goettel, Mayor
ATTEST:
Nancy Gibbs, ~ty Clerk