HomeMy WebLinkAbout20-115CITY OF LAKEVILLE
RESOLUTION NO. 20-115
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; and
WHEREAS, the total estimated general obligation bonds for 2021 is $18,091,000.
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. #21-02 2021 Street Reconstruction
b. #21-03 Highview Ave (175t11 St - 160t1, St)
c. #22-03 Lakeville Blvd (Holyoke Ave- Cedar Ave), 210t1, Street (Kensington
Blvd- Holyoke Ave)
d. Arenas capital improvements
e. Water facility and infrastructure improvements and equipment acquisition
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 2021 costs only; project 22-03 has significant costs planned for 2022
that are not expected to be paid from bond proceeds in 2021):
a. #21-02 2021 Street Reconstruction -$5,732,000
b. #21-03 Highview Ave (1751 St - 160th St) - $1,666,000
c. #22-03 Lakeville Blvd (Holyoke Ave- Cedar Ave), 210[1, Street (Kensington
Blvd- Holyoke Ave) -$1,340,000
d. Arenas capital improvements- $7,933,000
e. Water facility and infrastructure improvements and equipment acquisition -
$1,420,000
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 5th day of October 2020.
Douglas . Anderson, Mayor
Charlene Friedges, City
VOTE
Anderson
Hellier
Lee
Volk
Wheeler
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Abstain
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Absent
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