Res 1992 - 11 Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations Under the Internal Revenue Code;}
RESOLUTION NO. 92'11
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 � Mendota Heights , Minnesota (the "City��) , as follows:
l. Recitals.
(a) The Internal Revenue Service has issued final
Treasury Regulations Section 1.103-18 (the "Regulations")
dealing with reimbursement bond proceeds, which would include
those proceeds of the City�s bonds to be used to reimburse the
City for any project expenditure paid by the City prior to the
time of the issuance of those bonds.
(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 subsequent
borrowings, that such declaration generally be made on or
before the date the expenditure is actually paid, that the
bonding occur and the reimbursement allocation be made from
the proceeds of such bonds within one year of the payment of
the expenditure (or not later than one year after the project
is placed in service, if that is a longer period), and that
the expenditure be a capital expenditure.
(c) The City desires to comply with the Regulations and
to establish certain procedures relating thereto.
(d) The City's bond counsel has advised the City that
the Regulations do not apply, and hence the provisions of this
Resolution are intended to have no application, to payments of
City project costs first made by the City out of the proceeds
of bonds issued prior to the date of such payments.
2. Official Intent Declaration. The Regulations, in the
situations in which they apply, require the City to have made an
official deciaration of its reasonable intention (hereinafter
referred to as the "Official Intent Declaration" or the
"Declaration") to reimburse itself for previously paid project
expenditures out of the proceeds of subsequent bonds or other
borrowings. The Council hereby authorizes the City`12reasurer
to make the City's Official Intent Declarations or to delegate from
time to time that responsibility to other appropriate City
employees. Each Declaration shall comply with the requirements of
the Regulations, including without limitation the following:
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(a) Each Declaration shall be made
the City pays the applicable project cost
the City reasonably intends and expects
for the expenditure with proceeds of
Declaration may be made substantially
"Declaration of Official Intent" which is
a part of this Resolution.
�n or before the date
and shall state that
to reimburse itself
a borrowing. Each
in the form of the
attached to and made
(b) Each Declaration shall specifically contain the
following statement: ��This Declaration is a declaration of
official intent under Treasury Regulations Section 1.103-18."
(c) Each Declaration shall and is hereby declared to be
made and filed in the publicly available official books,
records, or proceedings of the City, which shall be reasonably
available for public inspection at City Hall during normal
business hours of the City on every business day during the
period beginning on the earlier of 10 days after the making of
the Declaration or the date of issuance of the reimbursement
bonds and ending on the day after the issuance of such bonds.
(d) Each Declaration shall, at a minimwa, contain a
general functional description of the property, project, or
program for which the expenditure to be reimbursed is paid
(for example, "1992 Street Improvement Project" or other
specific, identifiable project of the City) or, in the
alterative, shall identify the particular fund or account of
the City from which the expenditure to be reimbursed is paid,
including a description of the general functional purpose of
that fund or account (for example, "park and recreation fund -
recreational facility capital improvement program").
(e) Each Declaration shall also contain a statement of
the maximum principal amount of debt expected to be issued for
the subject project.
(f) Care shall be taken so that the City, or its
authorized representatives under this Resolution, not make
Declarations in cases where the City does not reasonably
expect that it will ultimately issue reimbursement bonds to
provide long-term financing for the subject project costs, and
the City officials are hereby authorized to consult with bond
counsel to the City concerning the requirements �of the
Regulations in general and their application in particular
circumstances. It is the Council's intention that
Declarations not be made (i) when available funds of the City
have been or are reasonably expected to be dedicated or
otherwise reserved to fund on a long-term basis the particular
expenditures involved or (ii) when it is not reasonably
expected that reimbursement bonding will occur.
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(g� The Counci2 shall be advised from time to time an
the desirability and timing of the issuance of reimbursement
bonds relating to praject e�enditures for which the City has
made Clfficial Intent Declaratior�s, including recommendations
on the timing af the issuance af such bonds so that the
"reimbursement allocation" described in the Regulations and in
paragraph 3 below can be made within the 1 year time limits
prescribed in the Regulation�.
(h} This Resolution shal2 supplement and amend alI prior
determinations and policies adopted by the City in regard to
camplying with the Regulatians, as initially propased, and in
the event of any inconsistency between the terms provided in
this Reso3.ution and said priar determinatians ar poiicies, the
provisions of this Resolution shall govern.
3. Reimbursement Allocations. The designated City officials
shall alsa be responsible far making the "reimbursement
ai3.ocations" described in the Regulations, being generaily the
transfer of the appropriate amount of reimbursement bond proceeds
to reimburse the source of temporary financing used by the City to
make payment of the prior expenditure. Each allocation shall be
evidenced by an entry on the official books or records of the City
maintained for such reimbursement bonds; shall specifically
identify the actual prior expenditure being reimbursed or, in the
case of the reimbursement of a particular fund or account, the fund
or account from which the expenditure was paid; and shall be
effective to relieve the bond proceeds involved fram any
restriction under the bond resolution or other relevant legal
documents for those bonds and under any applicab3e state statute
applicable to unspent proceeds of such bond issue.
Adopted this �� day of �'�b����' , 1992, by the
Mendota- Heights Ci y Council.
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Mayor
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CERTIFICATION
The undersigned, being the duly=qualified and acting City
Clerk of the C'lty Of Mendota Heights �
Minnesota, hereby certifies the following:
The foregoing is true and correct copy of a Resolution on file
and of official, publicly available record in the offices of the
City, which Resolution relates to procedures of the City for
compliance with certain IRS Regulations on reimbursement bonds.
Said Resolution was duly adopted by the governing body of the City
(the "Council") at a regular or special meeting of the Council held
on February ls. � , 1992. Said meeting was duly called,
regularly held, open to the public, and held at the place at which
meetings of the Council are regularly held. Councilmember
xoch moved the adoption of the Resolution, which
motion was seconded by Councilmember smith . A vote
being taken on the motion, the following members of the Council
voted in favor of the motion to adopt the Resolution:
and the following voted against the same:
Whereupon said Resolution was declared duly passed and adopted.
The Resolution is in full force and effect and no action has been
� taken by the Council which would in any way alter or amend the
Resolution. .
WITNESS MY HAND officially as the City Clerk of
the City of Mendota Heights , Minnesota, this day of
February � 1992.
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C ty G/c r K
City of /Y/eo Pc ` i3 , Minnesota