HomeMy WebLinkAbout92-022
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CITY OF LAKEVILLE
RESOLUTION
Date Februar 18, 1992 Resolution No. 92-22
Motion by xarvey Seconded by sindt
RESOLUTION ESTABLISHING PROCEDURES
RELATING TO COMPLIANCE WITH REIMBURSEMENT BOND
REGULATIONS UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the City Council (the "Council") of the City
of Lakeville, Minnesota (the "City"), as follows:
1. Recitals.
(a) (a) The Internal Revenue Service has issued Section 1.103-18 of
the Income Tax Regulations (the "Regulations") dealing with the
issuance of bonds, all or a portion of the proceeds of which are to be
used to reimburse the City for project expenditures made by the City
prior to the date of issuance.
(b) The Regulations generally require that the City make a prior
declaration of its official intent to reimburse itself for such prior
expenditures out of the proceeds of a subsequently issued borrowing,
that the borrowing occur and the reimbursement allocation be made from
the proceeds of such borrowing within one year of the payment of the
expenditure or, if longer, within one year of the date the project is
placed in service, and that the expenditure be a capital expenditure.
(c) The City desires to comply with requirements of the Regulations
and to establish certain procedures relating thereto.
2. Official Intent Declaration. The Regulations, in the
situations in which they apply, require the City to have made an official
declaration of its intent (the "Official Intent Declaration" or the
"Declaration") to reimburse itself for previously paid project
expenditures out of the proceeds of subsequently issued debt. The Council
hereby authorizes the City Finance Director to make the City's Official
Intent. Declarations. .The following procedures shall be observed in making
Official Intent Declarations:
(a) Each Declaration shall be made substantially in the form of the
Exhibit 1 attached hereto and made a part of this Resolution.
(b) The City Clerk shall maintain a file in her office in which all
Declarations shall be kept. Upon completing a Declaration, the City
Finance Director shall .promptly (and in any event within 30 days)
deliver a copy to the City Clerk and the Clerk shall place it in the
• file maintained for such purpose. Said file and each Declaration (up
until the date upon which the reimbursement borrowing is made) shall
be a part of the publicly available official books and records of the
Gity,and shall be available for inspection by the general public
during normal business hours.
(c) The City .Finance Director shall endeavor to not make Declarations
in cases where the City will not ultimately be issuing reimbursement
bonds to provide long term financing for project costs, and said
official is hereby .authorized and directed to consult with the City's
financial advisor and bond counsel concerning the requirements of the
Regulations in general and their application in particular
circumstances.
(d) The Council shall be advised from time to time as to the
Declarations made and on the desirability and timing of the issuance
of reimbursement bonds relating to project expenditures for which
Declarations have been filed, including recommendations on the .timing
of the issuance of such bonds so that the "Reimbursement .Period
Requirement" described in the Regulations can be met.
3. Reimbursement Allocations. The City Finance Director shall
also be responsible for making the "reimbursement allocations" described
in the Regulations, being generally the transfer of the appropriate amount
of proceeds of the reimbursement bonds to reimburse the source of
temporary financing used by the City to make payment of the prior costs of
the projects. Each allocation shall be evidenced by an entry on the
official books and records of the City maintained with respect to the
bonds, shall specifically identify the actual prior expenditure being
reimbursed or, in the case of reimbursement of a fund or account in
accordance with Section 1.103-18, the fund or account from which the
expenditure was paid, and shall be effective to relieve the proceeds- of
the bonds from any restriction under the bond resolution or other relevant
legal .documents for the bonds, and under any applicable state statute,
which would apply to the unspent proceeds of the bonds..
APPROVED AND ADOPTED this 18th day of February, 1992 by the
City Council of the City of Lakeville, Minnesota.
CIT LAKEV LE
Dua a Zaun, M y
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Charlene Friedges, C y Clerk