HomeMy WebLinkAbout24-105 Resolution Declaring the Official Intent of the City of Lakeville to Reimburse Certain Expenditures from Bond Proceeds CITY OF LAKEVILLE
RESOLUTION NO.��I0�
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 2025 is $22.62 Million.
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:
�ont estim�
bo�s iu 2025
25-02:2025 Street Reconstruction $ 4,145,000
25-03:Colledor Roadway Rehabilitiation 683,245
25-12 FiRST Center 17,792,608
TOTAI. S 22,620,853
The projects listed above include only the projects where some bond funding is anticipated in
2025. The amount in the `Total estimated bonds in 2025' column is the anticipated
reimbursement amount from 2025 bonds.The total project cost may be 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 the lesser 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 7th day of October 2024
CITY OF LAKEVILLE �'
By: -.
L M. Hellier, Mayor
ATTEST:
Ann Orlofsky, City Cler
VOTE Hellier Bermel Lee Volk Wolter
Aye � � �
Nay ❑, ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑