15-100 - 12-15 - Financing of City Projects Resolution 15-100 December 15, 2015
Member Fonnest introduced the following resolution and moved its adoption:
RESOLUTION RELATING TO THE FINANCING OF CITY PROJECTS;
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:
1. 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 acquire certain capital equipment described on Exhibit
A hereto (the "Capital Equipment 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 Capital Equipment Project, in one or
more series, in an amount not to exceed $800,000.
(b) The City proposes to undertake a project consisting of the replacement of
the Brookview Community Center (the "Community Center 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 Community
Center Project, in one or more series, in an amount not to exceed $18,000,000.
(c) The City proposes to undertake a project consisting of the construction and
improvement of Golden Valley Road at West Highway 55 in the City (the "Golden
Valley Road 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 Golden Valley Road Project, in one or more series, in
an amount not to exceed $1,695,000.
Resolution 15-100 -2- December 15, 2015
(d) The City proposes to undertake a project consisting of the construction and
improvement of Xenia Avenue in the City (the "Xenia Avenue 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 Xenia Avenue
Project, in one or more series, in an amount not to exceed $1,500,000.
(e) The Capital Equipment Project, the Community Center Project, the Golden
Valley Road Project, and the Xenia Avenue Project are collectively the "Projects."
(f) 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
Projects 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 respective reimbursement bonds.
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 Projects, other than
pursuant to the issuance of the respective reimbursement bonds. Consequently, it is not
expected that the issuance of the respective 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 respective reimbursement bonds to
reimburse the source of temporary financing used by the City to make payment of the
original expenditures relating to the Projects. 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.
She and M. Harris, yor
ATTEST:
/9
G�.
Kristine A. Luedke, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Snope
and upon a vote being taken thereon, the following voted in favor thereof: Harris, Snope,
Clausen, Fonnest and Schmidgall and the following voted against the same: none
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and his signature attested by the City Clerk.
Resolution 15-100 -3- December 15, 2015
Exhibit A
Marked Squads
Computer and Printers
Pickup Truck - Street
Portable Computers - Police
Rotary Mower
Asphalt Cold Planer
Fire Hose
Rescue Vehicle - Fire
Pickup Truck - Engineering
Aerial Bucket Truck
Utility Tractor - Park
Single Axle Dump Truck
Sidewalk Tractor
Unmarked Police Vehicle
800 MHZ Radios (Fire)
800 MHZ Radios (Police)
Thermal Imaging Camera