HomeMy WebLinkAbout21-173CITY OF LAKEVILLE
RESOLUTION NO. 21-173
Supplemental Resolution Declaring the Official Intent of the City of Lakeville to
Reimburse Certain Expenditures from Bond Proceeds
I
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
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 the development of
recreational trails, construction of new community park facilities, improvement of existing
parks and athletic courts, construction of an outdoor ice sheet at Hasse Arena, and
improvements to arts and environmental learning centers, 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 $38,000,000. 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 2 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.
ADOPTED by the Lakeville City Council this 6th day of December 2021.
CITY OF LAKEVILLE
Douglas P. Anderson, Mayor
ATTE
Charlene Friedges, City Clerk
VOTE Anderson Bermel Hellier Lee Volk
Aye
Nay ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑