HomeMy WebLinkAbout20-165CITY OF LAKEVILLE
RESOLUTION NO. 20-165
SUPPLEMENTAL 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 City has, by resolution adopted October 5, 2020, declared its intent to issue tax-
exempt bonds in an amount not to exceed $18,091,000 in 2021 for purposes of reimbursing costs
of certain Projects, as described in such resolution; and
WHEREAS, The City reasonably expects to issue additional tax-exempt obligations in order to
finance an additional project, consisting of the construction of a new liquor store (the "Additional
Project").
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 Additional Project.
3. The City reasonably expects to reimburse the expenditures made for certain costs of the
Additional Project from the proceeds of bonds in an estimated maximum principal amount of
$6.6 million. 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 Additional Project 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 Additional 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 21st day of December 2020.
i
Douglas P. Anderson, Mayor
Charlene Friedges, City Cl VI
VOTE
Anderson
Hellier
Lee
Volk
Wheeler
Aye
Q'
9
C9'
a
[sem
Nay
0
0
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0
0
Abstain
0
0
0
0
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Absent
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