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HomeMy WebLinkAboutResolution No. 2001-073 Reimbursing Golf Course Bonds. 0 RESOLI RESOLUTION RE IMPROVEMENTS ESTABLISHING COMP BOND REGULATI ON NO. ;001-73 CIN T6FINANCING SOF BR EMAR CLUBHOUSE;. ,N E WITH REIMBURSENI S UNDER THE INTERNAL vU CODE i City Of Edina BE IT RESOLVED by the CiCouncil of the City of Edina, Minnesota (the "City"), as follows: 1. Recitals. (a) The United States DEpariment of Treasury has romulgated final regulations governing the use of proceeds of tax-exempt bonds, all or a rtion of which are to be used to reimburse the City for project expenditures paid by the City prior to the date of issuance of such bonds. Those regulations (Treasury Regulatio> s, %ction. 1.150-2) (the "Regulations") require that the City adopt a tatement of official intent to reimburse an original expenditure not later than 60 days aft r payment of the ori gina. expenditure. The Regulations also generally require that the bonds be issued and e reimbursement allocation made from the proceeds of the bonds wi�hin 18 month (or three years, if the reimbursement bond issue �ualifies for the "small issuer" excep 'on rom. the arbitrage rebate requirement) after the' later of (i) the da the expenditure is paid or (ii) the date the project is placed in service or abandoned, b (unless the issue qualifies for the "small issuer" exception from the arbitrage rebate req irem@nt) in no event more than three years after the date the expenditure is paid. The Regulations generally pormil reimbursement of capital expenditures and costs of issuance f thE bondis. (b) The City desires to comply with 'requirements c f 6 Regulations with respect to a project hereinafter identified. 2. Official In (a) The City is underta ing a ptoject (the "Ptoje "), consisting of improvements to the clubhouse for the B aenLar golf course at a totAl estimated cost of $500,000. (b) Other than (i) expenditures be plaid or reimbursedrom sources other than the Bonds (as hereinafter defined), (ii) expenditures permitted to 1310 reimbursed under the transitional provision contained in Sec 'on150-20)(2) of ' the Regulations, (iii) expenditures constituting preliminary exp ndi resithin the me ni> of Section 1.150- 2(f)(2) of the Regulations, or (iv) expenditures in a 1'de minimus" anti nt (as defined in Section 1.150-2(f)(1) of the Regulations), no ex end4ures for the Projects have heretofore been paid by the City and no expenditures will be plaid by the City uri'1 after the date of this Resolution. (c) The City reasonably expects t reimburse the expendi res made for costs of the Project out of the proceeds of the City's G. -neral Obligation Recrea on Facility Bonds, Series 2001A to be issued in an estimated ag regate principal amount of $4,020,000 (the "Bonds") after the date of payment of all or a pc rtion of the costs of the Roject. Proceeds of City Hall 4801 WEST 50TH STREET EDINA, MINNESOTA 55424-1394 (952) 927-8861 FAX (952) 826-0390 TDD (952) 826-0379 the Bonds are to be used to finance the roje t an improvemen b facilities of the City and to refund outstanding loonds of the Zitl expenditures shall be capital expenditures, a cost of issuance f t expenditures eligible for reimbursement under ectio 1.150-2(d)(3) of d 3. Budgetary Matters. As of the 4te hereof, th�re reserved, allocated on a long-term basis or othei -wise $et aside (or re�sor reserved, allocated on a long-term basis rther ise set aside) j to financing for the expenditures related to theProject,ther than pur�uaj the Bonds. The statement of intent contained hL thisesolution, the#efo be consistent with the City's budgetary and ancZ circumstances a reasonably foreseeable on th� date hereof. 4. Reimbursement Allocz tion s. T City's financia responsible for making the "reimbursemen all catio4s" described ii. thi generally the transfer of the appropriate ar iourt of p oceeds of the 3orl source of temporary financing used by the City to make prior pay en Project. Each allocation shall be evidenced by en on the offici 1 b the City maintained for the Bonds or the Project and shall specifi�ally original expenditure being reimbursed. i Attest: Adopted this 19th day of Septem+, 2001. Debra A. Mangen,-City Clerk STATE OF MINNESOTA) i COUNTY OF HENNEPIN)SS CITY OF EDINA ) ICERTIFICA' I, the undersigned duly appointed and acting C the attached and foregoing Res lution was dul Meeting of September 19, 2001 and as record WITNESS my hand and seal 'lof said City in 2 Dennis F i i CIT CLERK .rk fo the City ofd a d ited b the Edina City Coun, he Mi utes of said Re ulair da� of '20 -4 ether recreational All reimbursed Bonds or other Regulations. -e no City funds ply expected to be ovide permanent to the issuance of is determined to they exist or are officer shall be Regulations, being s to reimburse the of the costs of the )ks and records of dentifv the actual Mayor Hereby certify that it at its Regular City Clerk