HomeMy WebLinkAboutResolution 2012-42 - Declaring Intent to Reimburse ExpendituresCity of Corcoran
County of Hennepin
State of Minnesotu
RESOLUTION NO. 2012 -42
Motion By: Milbrandt
Seconded By: Gmach
A RESOLUTION DECLARING THE OFFICIAL INTENT OF THE
CITY OF CORCORAN TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
Azugust 9. 2012
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 that may be financed
temporarily from sources other than bonds, and reimbursed from the proceeds of a tax -
exempt bond;
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.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORCORAN AS FOLLOWS:
1. The City proposes to purchase various items of capital equipment for
police, public works, and administrative purposes (the "Project ").
2. The City reasonably expects to reimburse the expenditures made for
certain costs of the Project from the proceeds of bonds in an estimated maximum
principal amount of $500,000. Ali 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 not 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 $100,000 or 5 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 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
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City of Corcoran
County gf'Hennepin ,4119ust 9, 2012
State of'Al innesota
RESOLUTION NO, 2012 -42
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 of the date hereof. The
anticipated original expenditures for the Project and the principal amount of the bonds
described in paragraph 2 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 official intent for
purposes of the Reimbursement Regulations,
VOTING AYE
❑ Guenthner, Ken
Asleson, Rich
® Cossette, Tom
❑ Gmach, George
❑ Milbrandt, Rosalyn
VOTING NAY
❑ Guenthner, Ken
❑ Asleson, Rich
❑ Cossette, Tom
❑ Gmach, George
❑ Milbrandt, Rosalyn
Whereupon, said Resolution is hereby declared adopted on this 9th day of
August, 2012
TTEST:
eanie Heinecke — City Clerk
Kenneth Guenthner - Mayor
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