23-065 (07-28) Declare Itent Reimburse Capital Expenditures Tax Exempt BondsDocuSign Envelope ID: CB21 0AFF-1 163-4D84-8FD9-611185803l3DB
RESOLUTION NO.23-06S
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 land for a new public works facility and construct and
equip a new public works facility and a new public safety facility (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 $105,000,000 plus costs of issuance. 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
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DocuSign Envelope ID: CB210AFF-11634D84-8FD9-611185803BDB
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 18th day of July, 2023.
II DocuSigned by:
bIllp69�
Shepard M. Harris, Mayor
ATTEST:
,-- DocuSigned by:
T4,C44
Theresa Sc yma, City Clerk
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