22-086 (10-06) Financing 2024 PMPGL135-36-827431.v3 A-1
RESOLUTION NO. 22-086
RESOLUTION RELATING TO THE FINANCING OF THE CITY’S 2024
PAVEMENT MANAGEMENT PROGRAM; DECLARING THE OFFICIAL
INTENT TO REIMBURSE CERTAIN CAPITAL EXPENDITURES OF THE
PROJECT FROM THE PROCEEDS OF TAX-EXEMPT BONDS AND
ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND
REGULATIONS UNDER THE INTERNAL REVENUE CODE
WHEREAS, the Internal Revenue Service has issued Treasury Regulations, Section 1.150-2
(the “Reimbursement Regulations”) under the Internal Revenue Code of 1986, as amended (the
“Code”), providing that proceeds of tax-exempt bonds used to reimburse prior capital expenditures
will not be deemed spent unless certain requirements are met; and
WHEREAS, the City of Golden Valley, Minnesota, a municipal corporation and a political
subdivision of the State of Minnesota (the “City”), expects to incur certain expenditures that may be
financed temporarily from sources other than tax-exempt bonds, and later reimbursed from the
proceeds of tax-exempt bonds; and
WHEREAS, the City has determined to make a declaration of its official intent (the
“Declaration”) to reimburse certain capital costs from the proceeds derived from the sale of tax-
exempt bonds issued by the City or another political subdivision in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GOLDEN VALLEY, MINNESOTA AS FOLLOWS:
1. The City may incur certain capital expenditures in connection with the City’s 2024
Pavement Management Program, substantially as described in the attached Executive Summary For
Action (collectively, the “Project”) which includes without limitation:
Duluth Street (Wisconsin Avenue North – Winnetka Avenue North)
Westbend Road (Wisconsin Avenue North – Valders Avenue North)
Winnetka Heights Drive (Orkla Drive – Valders Avenue North)
Valders Court (Valders Avenue North – east cul-de-sac)
Wisconsin Avenue North (Duluth Street – 23rd Avenue North)
Orkla Drive (Westbend Road – 23rd Avenue North)
Valders Avenue North (Duluth Street – 23rd Avenue North)
2. The City reasonably expects to reimburse the expenditures made for certain costs of
the Project from the proceeds of tax-exempt bonds in a principal amount currently estimated not to
exceed $5,000,000. All reimbursed expenditures related to the Project will be capital expenditures,
costs of issuance of the tax-exempt bonds or other expenditures eligible for reimbursement under
Section 1.150-2(d)(3) of the Reimbursement Regulations.
DocuSign Envelope ID: 03BA2AB7-750B-48CB-80AF-9C492E4D008E
GL135-36-827431.v3 A-2
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 tax-exempt
bonds, except for the following expenditures: (a) costs of issuance of tax-exempt bonds; (b) costs in
an amount not in excess of the lesser of $100,000 or 5% of the proceeds of the tax-exempt bonds; or
(c) “preliminary expenditures” up to an amount not in excess of 20% of the aggregate issue price of
the tax-exempt bonds that are reasonably expected by the City to finance the Project. The term
“preliminary expenditures” includes architectural, engineering, surveying, soil testing, bond issuance
and similar costs that are incurred prior to commencement of acquisition, construction, or
rehabilitation of the Project, excluding land acquisition, site preparation, and similar costs incident to
commencement of construction.
4. A reimbursement allocation with respect to tax-exempt bonds will be made not later
than 18 months after the later of: (i) the date the original expenditure is paid; or (ii) the date the Project
is placed in service or abandoned, but in no event more than 3 years after the original expenditure.
5. 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 described in paragraph
2 are consistent with the City’s budgetary and financial circumstances. No sources other than
proceeds of tax-exempt bonds 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 expenditures for
which bonds are issued.
6. The action is intended to constitute a declaration of official intent for purposes of the
Reimbursement Regulations.
Adopted by the City Council of Golden Valley, Minnesota this 6th day of October, 2022.
Shepard M. Harris, Mayor
ATTEST:
_____________________________
Theresa Schyma, City Clerk
DocuSign Envelope ID: 03BA2AB7-750B-48CB-80AF-9C492E4D008E