Loading...
2024-11-12 Resolution 12267RC145-770-987262.v2 CITY OF RICHFIELD, MINNESOTA RESOLUTION NO. 12267 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION SALES TAX BONDS, SERIES 2024A, IN THE PROPOSED AGGREGATE PRINCIPAL AMOUNT OF $10,000,000 BE IT RESOLVED By the City Council of the City of Richfield, Minnesota (the “City”) as follows: Section 1. Authorization. It is hereby determined that: (a)The City is authorized to finance the construction of the Wood Lake Nature Center building in the City (the “Project”), among other projects, through the issuance of general obligation bonds in accordance with Minnesota Statutes, Chapter 475, as amended (the “Act”), and Laws of Minnesota 2023, Chapter 64, Article 10, Section 44 (the “Special Law”). (b)The Special Law provided that general obligation bonds may be issued in a principal amount of up to $11,000,000, plus associated bonding costs, for the Project and that the bonds may be paid from or secured by any funds available to the City, including a sales and use tax. (c)On November 5, 2024, a majority of the voters voting in the general election approved the ballot question relating to the imposition of a sales and use tax of one-half of one percent (0.50%) (the “Sales and Use Tax”) for twenty (20) years after first being imposed or when the City Council determines that the amount received from the Sales and Use Tax is sufficient to pay for the costs of the Project and the other projects authorized by the Special Law, whichever comes first. The City Council will approve an ordinance imposing the Sales and Use Tax. (d)It is necessary and expedient to the sound financial management of the affairs of the City to issue its General Obligation Sales Tax Bonds, Series 2024A (the “Bonds”), in the proposed aggregate principal amount of $10,000,000, pursuant to the Act and the Special Law, to finance all or a portion of the costs of the Project. (e)The City is authorized by Section 475.60, subdivision 2(9) of the Act to negotiate the sale of the Bonds, it being determined that the City has retained an independent municipal advisor in connection with such sale. The actions of the City staff and the City’s municipal advisor in negotiating the sale of the Bonds are ratified and confirmed in all respects. Section 2. Sale of Bonds. To provide financing for the Project, the City will therefore issue and sell the Bonds in the proposed aggregate principal amount of $10,000,000. The principal amount of the Bonds is subject to adjustment in accordance with the official Terms of Proposal to be prepared in connection with the offering and the sale of the Bonds. 2 RC145-770-987262.v2 Section 3. Authority of Municipal Advisor. Ehlers and Associates, Inc. (the “Municipal Advisor”) is authorized and directed to negotiate the sale of the Bonds. The City Council will meet on Tuesday, December 10, 2024, or another date selected by City staff, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. Section 4. Authority of Bond Counsel. The law firm of Kennedy & Graven, Chartered, as bond counsel for the City (“Bond Counsel”), is authorized to act as bond counsel and to assist in the preparation and review of necessary documents, certificates and instruments relating to the Bonds. The officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents, certificates, and instruments. Section 5. Covenants. In the resolution awarding the sale of the Bonds, the City Council will set forth the covenants and undertakings required by the Act and the Special Law. Section 6. Official Statement. In connection with the sale of the Bonds, the officers or employees of the City are authorized and directed to cooperate with the Municipal Advisor and participate in the preparation of an official statement for the Bonds and to deliver it on behalf of the City upon its completion. Section 7. Declaration of Official Intent to Reimburse Expenditures. (a) 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; the City expects to incur certain expenditures with respect to projects that may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of tax-exempt bonds. (b) The City has determined to make a declaration of official intent (the “Declaration”) to reimburse certain costs with respect to the Project from proceeds of the Bonds in accordance with the Reimbursement Regulations. (c) 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. (d) This Declaration has been made not later than sixty (60) days after payment of any original expenditure to be subject to a reimbursement allocation with respect to the proceeds of the Bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000 or five percent (5%) of the proceeds of an issue; or (c) “preliminary expenditures” up to an amount not in excess of twenty percent (20%) 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 3 RC145-770-987262.v2 than land acquisition, site preparation, and similar costs incident to commencement of construction. (e)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 herein are consistent with the City’s budgetary and financial circumstances. No sources other than proceeds of the 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 expenditures. (f)This Declaration is intended to constitute a declaration of official intent for purposes of the Reimbursement Regulations. Passed by the City Council of the City of Richfield, Minnesota this 12th day of November, 2024. Mary B. Supple, Mayor ATTEST: Michelle Friedrich, City Clerk