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HomeMy WebLinkAbout21-136CITY OF LAKEVILLE RESOLUTION NO. 21-136 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 2022 is $21,071,000. 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 projects (the "Projects") in the table below, and 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: ProicctDescdption Total estimated ' bonds in 2022 22-02: 2022 Street Reconstruction $ 7,646,000 21-20: 200th St Iiambur -Cedar Ave 235,000 22-03: 210th Street Reconstruction 8,305,000 22-04: Ipava Ave (CSAF50-192nd St), 192nd St (CSA1j50- I ava Ave) 1,945 000 U-9: Fixed base water meter reading system 1,890,000 P-9: Antlers Community Park 1,000,000 P-12 Ritter Farm Park ELC 50,000 TOTAL $ 21071,000 The projects listed above include only the projects where some bond funding is anticipated in 2022. The amount in the `Total estimated bonds in 2022' column is the anticipated reimbursement amount from 2022 bonds. The total project cost maybe higher and may include both project costs funded from sources other than bonds, and/or costs funded by bonds in a year earlier or later than the year shown above. 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. 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 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. 5. This Declaration is intended to constitute a declaration of the official intent for the purposes of the Reimbursement Regulations. APPROVED this 4th day of October 2021 CITY OF LAKEVILLE By: Douglas P. Anderson, Mayor ATTEST: Charlene Friedges, City Cle VOTE Anderson Bermel Hellier Lee Volk Aye GY ❑ 53/ V �. Nay ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Absent 11 GY 0 11 0