HomeMy WebLinkAbout19-121CITY OF LAKEVILLE
RESOLUTION NO. 19-121
RESOLUTION DECLARING THE OFFICIAL INTENT OF THE CITY OF LAKEVILLE TO
REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS
TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treasury 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 expects to incur certain expenditures that may be financed temporarily
from sources other than bonds, and later reimbursed from the proceeds of tax-exempt bonds;
and
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; and
WHEREAS, the total estimated general obligation bonds for 2020 is $14,793,000.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville,
Minnesota as follows:
1. The recitals set forth above are incorporated herein.
2. The City proposes to undertake the following projects (the "Projects"):
a. #20-02 2020 Street Reconstruction
b. #20-04 170th St (Flagstaff Ave - Pilot Knob Rd/CSAH 31)
c. #20-08 179th St (Cedar Ave/CSAH 23 - Flagstaff Ave)
d. #21-03 Highview Ave (175`h St - 1601 St), Heritage Dr (Dodd Blvd- Highview
Ave), and Iberia Ave (202"d St - Heritage Dr)
e. #22-03 Lakeville Blvd (Holyoke Ave- Cedar Ave), 210th Street (Kensington
Blvd- Holyoke Ave)
3. The City reasonably expects to reimburse the expenditures made for certain costs of the
Projects from the proceeds of bonds in an estimated maximum principal amount of the
following (note these are 2020 costs only; projects 21-03 and 22-03 have significant costs
planned for 2021 and/or 2022 that are not expected to be paid from bond proceeds in 2020):
a. #20-02 2020 Street Reconstruction -$12,878,000
b. #20-04 170th St (Flagstaff Ave - Pilot Knob Rd/CSAH 31) -$1,300,000
c. #20-08 179th St (Cedar Ave/CSAH 23 - Flagstaff Ave)- $217,000
d. #21-03 Highview Ave (175th St - 1601 St), Heritage Dr (Dodd Blvd- Highview
Ave), and Iberia Ave (202nd St - Heritage Dr) - $120,000
e. #22-03 Lakeville Blvd (Holyoke Ave- Cedar Ave), 2101 Street (Kensington
Blvd- Holyoke Ave) -$278,000
The City may declare other separate statements of reimbursement intent in connection with
specific public improvements projects as they are initiated under Minnesota Statutes,
Chapters 429 and 444, or for other capital projects, with the understanding that such
additional declarations of reimbursement intent will supplement this resolution. 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.
4. This Declaration has been made no 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 five 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 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.
5. This Declaration is an expression of the reasonable expectations of the City based on the facts
and circumstances known to the City as the date hereof. The anticipated original
expenditures for the Projects and the principal amount of the bonds described in paragraph 3
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.
6. This Declaration is intended to constitute a declaration of the official intent for the purposes
of the Reimbursement Regulations.
ADOPTED by the Lakeville City Council this 7th day of October 2019
Douglas P. Anderson, Mayor
Charlene Friedges, City Cler
VOTE
Anderson
Hellier—Lee
Volk
Wheeler
Aye
2 --
Nay
❑
❑
❑
❑
❑
Abstain
❑
❑
❑
❑
❑
Absent
0
0
0
11
❑