HomeMy WebLinkAbout2016-012 -- EN HILLS
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION No. 2016-012
DECLARING THE OFFICIAL INTENT OF THE CITY OF ARDEN HILLS,
MINNESOTA TO REIMBURSE CERTAIN EXPENDITURES FROM THE
PROCEEDS OF TAX-EXEMPT BONDS TO BE ISSUED BY THE CITY
WHEREAS, the City of Arden Hills, Minnesota (the "City") is a statutory city duly
organized and existing under the Constitution and laws of the State of Minnesota; and
WHEREAS, the Internal Revenue Service has issued Treas. 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, including costs of public
improvements related to the Twin Cities Army Ammunition Plant site in the City(the Project"),that
may be financed temporarily from sources other than tax-exempt bonds and other obligations, and
reimbursed from the proceeds of a tax-exempt bonds or other obligations;
WHEREAS, the City has determined to make this declaration of official intent (the
"Declaration")to reimburse certain costs from proceeds of tax-exempt bonds or other obligations in
accordance with the Reimbursement Regulations.
THEREFORE,BE IT RESOLVED that:
1. The City reasonably expects to reimburse the expenditures made for certain costs of
the Project from the proceeds of general obligation bonds of the City in an estimated maximum
principal amount of$10,000,000. All reimbursed expenditures will be capital expenditures, costs of
issuance of the tax-exempt bonds or other obligations, or other expenditures eligible for
reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations.
2. This Declaration has been made not later than 60 days after payment of any
original expenditure to be subject to a reimbursement allocation with respect to the proceeds of
tax-exempt bonds or other obligations, except for the following expenditures: (a) costs of
issuance of bonds or other obligations; (b)costs in an amount not in excess of$100,000 or 5 percent
of the proceeds of an issue of bonds or other obligations; 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 finance or
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.
3. This Declaration is an expression of the reasonable expectations of the City based
on the facts and circumstances known to the City as of the date hereof. The anticipated original
expenditures for the Project and the principal amount of the tax-exempt bonds or other
obligations described in paragraph 1 are consistent with the City's budgetary and financial
circumstances. No sources other than proceeds of tax-exempt bonds or other obligations 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.
4. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
Adopted by the City Council of the City of Arden Hills, Minnesota, this 28th day of
March, 2016.
David Grant, Mayor
ATTEST:
Sue Iverson, Interim City Administrator