HomeMy WebLinkAbout20-023CITY OF LAKEVILLE
RESOLUTION NO. 20-23
RESOLUTION DECLARING THE OFFICIAL INTENT OF THE CITY OF LAKEVILLE TO
REIMBURSE CERTAIN EXPENDITURES FROM BOND PROCEEDS
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.
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 projects (the "Projects") consisting of a) parking lot and
energy savings improvements to its arena facilities located at 19900 Ipava Avenue in the City
and 8525 215t' Street West in the City at a cost of approximately $8.8 million and b) water
facility and infrastructure improvements and equipment acquisition at a cost of
approximately $1.5 million. The City reasonably expects to reimburse the expenditures made
for all or a portion of the costs of the Projects from the proceeds of tax-exempt bonds. All
reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other
expenditures eligible for reimbursement under the Reimbursement Regulations.
3. 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.
4. 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 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 expenditures.
5. 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 16th day of March 2020.
CITY OF LAKEVILLE
Douglas P. Anderson, Mayor
AT ST:
Charlene Friedges, City Cle
VOTE
Anderson
Hellier
Lee
Volk
Wheeler
Aye
X
X
X
X
X
Nay
❑
❑
❑
❑
❑
Abstain
❑
❑
❑
❑
❑
Absent
❑
❑
❑
❑
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