23-061 (07-05) Declare Intent to Reimburse Capital Expenditures Project from Proceeds of Tax Exempt BondsDocuSign Envelope ID: 9C45DAF8-10EB-4898-AD73-6F188E85683D
RESOLUTION NO.23-061
RESOLUTION RELATING TO DECLARING THE OFFICIAL INTENT TO
REIMBURSE CERTAIN CAPITAL EXPENDITURES OF A 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 proposes to acquire, construct and equip a fire station public safety
project (the "Project").
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 $20,000,000. 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.
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,
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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 5t' day of July, 2023.
DocuSgned by: R.
epa . arris, Mayor
ATTEST:
FT-DocuSegned by::
! Sew
go
Theresa c yma, City Clerk
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