HomeMy WebLinkAboutResolution No. 2004-088 Reimbursement for Bond Proceeds e tt RESOLUTION NO. 2004-88
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RESOLUTION DELEGATING FINANCE DIRECTOR TO MAKE OFFICIAL ESTI lof Edlnc
DECLARATIONS FOR PURPOSES OF REIMBURSEMENT REGULATIONS
BE IT RESOLVED by the City Council of the City of Edina, Minnesota(the"City) as
follows:
1. Recitals.
(a) The Internal Revenue Service has issued Section 1.150-2 of the Income Tax
Regulations (the"Regulations") dealing with the issuance of obligations, all or a portion of the
proceeds of which are to be used to reimburse the City for project expenditures or expenditures
for purchases of capital equipment made by the City prior to the date of issuance.
(b) The Regulations generally require that the City make a prior declaration of its
official intent to reimburse itself for such prior expenditures out of the proceeds of a
subsequently issued borrowing no later than 60 days after payment of such expenditure,that the
borrowing occur and the reimbursement allocation be made from the proceeds of such borrowing
within eighteen months of the payment of the expenditure or, if longer,within eighteen months
of the date the project is placed in service,but in no event more than three years after the date the
`-- original expenditure was paid and that the expenditure must either be a capital expenditure,or a
cost of issuance of the obligation.
(c) The City desires to establish certain procedures with respect to compliance with
the Regulations.
2. Official Intent Declaration; Delegation; Procedures.
(a) The Regulations, in the situations in which they apply, require the City to have
declared its official intent (the "Official Intent Declaration"or the"Declaration")to reimburse
itself for previously paid project or equipment expenditures out of the proceeds of subsequently
issued debt. This Council hereby authorizes the Finance Director of the City to make the City's
Official Intent Declarations.
(b) The following procedures shall be observed by the Finance Director in making
Official Intent Declarations:
(i) Each Declaration shall made by the Finance Director substantially in the
form of Exhibit A attached hereto, which is hereby incorporated herein and made a part
of this Resolution.
(ii) The Finance Director shall maintain a file in his or her office in which all
Declarations shall be kept.
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(c) The Finance Director shall endeavor not to make Declarations in cases where the
City will not ultimately be issuing indebtedness to provide long-term financing for project costs,
and the Finance Director is hereby authorized and directed to consult with the City's bond
counsel concerning the requirements of the Regulations in general and their application in
particular circumstances.
(d) The Council shall be advised from time to time as to the Declarations made and
on the desirability and timing of the issuance of indebtedness relating to project expenditures for
which Declarations have been filed, including recommendations on the timing of the issuance of
such indebtedness so that the "reimbursement period"requirement described in the Regulations
can be met.
Adopted this 5th day of October, 2004.
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EXHIBIT A
Declaration of Official Intent
The undersigned,being the duly appointed and acting Finance Director of the City of
Edina, Minnesota(the"City"),pursuant to and for purposes of compliance with Treasury
Regulations, Section 1.150-2 (the "Regulations"), promulgated under the Internal Revenue Code
of 1986, as amended, hereby states and certifies as follows:
1. The undersigned has been and is on the date hereof duly authorized by the Edina City
Council to make and execute this Declaration of Official Intent (the"Declaration") for and on
behalf of the City.
2. The City proposes to undertake certain projects or has or will purchase certain items
of equipment,which projects and equipment and the estimated costs thereof are generally
described on Schedule I hereto, which is hereby incorporated herein and made a part hereof.
3. The City reasonably expects to reimburse the expenditures made for costs of the
projects or equipment described on Schedule I hereto out of the proceeds of debt in an estimated
maximum aggregate principal amount of$ (the"Bonds") after the date of payment
of all or a portion of the costs of the projects or equipment. All reimbursed expenditures shall be
capital expenditures, a cost of issuance of the Bonds or other expenditures eligible for
reimbursement under Section 1.150-2(d)(3) of the Regulations.
4. As of the date hereof, there are no City funds reserved, allocated on a long-term basis
or otherwise set aside(or reasonably expected to be reserved, allocated on a long-term basis or
otherwise set aside)to provide permanent financing for the expenditures related to the projects or
equipment described on Schedule I hereto, other than pursuant to the issuance of the Bonds. The
statement of intent contained in this Declaration,therefore, is determined to be consistent with
the City's budgetary and financial circumstances as they exist or are reasonably foreseeable on
the date hereof.
Dated: , 20—.
Finance Director
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SCHEDULE I
Description of Projects
or Equipment(l) Estimated Cost(2)
(t) Include general functional description of character or type of Project or
equipment,which may include any property,project or program. Examples contained in the
Regulations are"highway capital improvement program,""hospital equipment acquisition"and
"school building renovation." Alternatively,the City may designate particular funds or accounts
as the project description if the functional purpose to be reimbursed is set forth. Example
contained in the Regulations is, "parks and recreation fund—recreational facility capital
improvement program."
(2)Include construction or acquisition costs and engineering, architectural,
legal, fiscal and other costs.
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`- ATTEST:
City Clerk Mayor
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )SS
CITY OF EDINA )
CERTIFICATE OF CITY CLERK
I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby
certify that the attached and foregoing Resolution was duly adopted by the Edina City
Council at its Regular Meeting of October 5, 2004, and as recorded in the Minutes of
said Regular Meeting.
WITNESS my hand and seal of said City this day of ,20 .
City Clerk