Res 1991 - 50 Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations Under the Internal Revenue Code�
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RESOLUTION NO. 91-, 50
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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 Mendo�a Heights _ , Minnesota (the "City") , as follows: �
1. Rec�tals.
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(a)', The Internal Revenue Service has issued proposed
Treasury Regulations Section 1.103-17 (as proposed and/or
finally adopted, 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 honds. . � .
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(b) The Regulations�qenerally require that the City make
a prior declaration of its official intent to reimburse itself
for snch prior expenditures � out of the proceeds of
subsequently �ssued taxable or tax exempt borrowings,�that
such declaration generally be made prior to but not more than
two years before the time the e�enditure is actually paid,
that the bonding occur and the reimbursement allocation Yie
made from the proceeds.of such bonds within one year of the
payment of the�expenditure (or not later than the time that
the project is placed in service, if that is a longer period),
and that the expenditure �relate to progerty having a
reasonably expected ec��omic life of at least one year. ,
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�c) The City desires to comply wit
Regulations and to establish certain
thereto. . �
h requirements of the
procedures relating
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- (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 F�ntent Declaration. The Regulations, in the
situations in which they apply, require the City to have made a
reasonable declaration of its official intent (hereinafter referred
to as the "Official Intent Declaration" or the "Declaration") to
reimburse itself for previously paid project expenditures .out of
the proceeds of subsequently issued taxable or tax exempt bonds or
other borrowings. � The Council hereby� authorizes the City
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