11-02 - 01-18 - financing of 2012 PMP - establish compliance with bond regulationsResolution 11-2
January 18, 2011
Member Pentel introduced the following resolution and moved its adoption:
RESOLUTION RELATING TO THE FINANCING OF THE CITY'S 2012
PAVEMENT MANAGEMENT PROGRAM; ESTABLISHING COMPLIANCE WITH
REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the
"City"), as follows:
Recitals.
(a) The Internal Revenue Service has issued Section 1.150-2 of the
Income Tax Regulations (the "Regulations") dealing with the issuance of bonds all or
a portion of the proceeds of which are to be used to reimburse the City for project
expenditures made by the City prior to the date of issuance.
(b) The Regulations generally require that the City make a declaration of
its official intent to reimburse itself for such prior expenditures out of the proceeds of
a subsequently issued series of bonds within 60 days after payment of the
expenditures, that the bonds be issued and the reimbursement allocation be made
from the proceeds of such bonds within the reimbursement period (as defined in the
Regulations), and that the expenditures reimbursed be capital expenditures or costs
of issuance of the bonds.
(c) The City desires to comply with requirements of the Regulations with
respect to the projects hereinafter identified.
2. Official Intent Declaration.
(a) The City proposes to undertake a pavement management program in
2011, consisting of the improvement of the City streets identified on Exhibit A hereto
(collectively, the "Project"), and to make original expenditures with respect thereto
prior to the issuance of reimbursement bonds, and reasonably expects to issue
reimbursement bonds for the Project, in one or more series, in an amount not to
exceed $5,500,000.
(b) Other than (i) de minimis amounts permitted to be reimbursed pursuant to
Section 1.150-2(f)(1) of the Regulations or (ii) expenditures constituting preliminary
expenditures as defined in Section 1.150-2(f)(2) of the Regulations, the City will not
seek reimbursement for any original expenditures with respect to the foregoing
Project paid more than 60 days prior to the date of adoption of this resolution. All
original expenditures for which reimbursement is sought will be capital expenditures
or costs of issuance of the reimbursement bonds.
Resolution 11-2 -Continued
January 18, 2011
3. Budgetary Matters. As of the date hereof, there are no City funds
reserved, pledged, allocated on a long term basis or otherwise set aside (or
reasonably expected to be reserved, pledged, allocated on a long term basis or
otherwise set aside) to provide permanent financing for the original expenditures
related to the Project, other than pursuant to the issuance of the reimbursement
bonds. Consequently, it is not expected that the issuance of the reimbursement
bonds will result in the creation of any replacement proceeds.
4. Reimbursement Allocations. The City's Finance Director shall be
responsible for making the "reimbursement allocations" described in the
Regulations, being generally the transfer of the appropriate amount of proceeds of
the reimbursement bonds to reimburse the source of temporary financing used by
the City to make payment of the original expenditures relating to the Project. Each
reimbursement allocation shall be made within 30 days of the date of issuance of the
reimbursement bonds, shall be evidenced by an entry on the official books and
records of the City maintained for the reimbursement bonds and shall specifically
identify the original expenditures being reimbursed.
ATTEST:
/~~~~-.
V
Susan M. Virnig, City Clerk
~.
Linda R. Loomis, Mayor
The motion for the adoption of the foregoing resolution was seconded by Member Scanlon
and upon a vote being taken thereon, the following voted in favor thereof: Freiberg, Loomis,
Pentel, Scanlon and Shaffer; and the following voted against the same: none, whereupon
said resolution was declared duly passed and adopted, signed by the Mayor and her
signature attested by the City Clerk.
Resolution 11-2 -Continued
EXHIBIT A
2012 PAVEMENT MANAGEMENT STREET LIST:
• Circle Down: Turners Crossroad South to cul-de-sac
• King Hill Road: Glenwood Avenue to King Creek Road
• King Creek Road: King Hill Road to Glenwood Avenue
• Welcome Avenue North: Golden Valley Road to Phoenix Street
• Welcome Circle: Welcome Avenue North to Phoenix Street
• Phoenix Street: Welcome Circle to TH 100 Frontage Road
January 18, 2011