16-82 - 12-20 - Financing Capital Equipment Resolution 16-82 December 20, 2016
Member Snope introduced the following resolution and moved its adoption:
RESOLUTION RELATING TO THE FINANCING OF CAPITAL EQUIPMENT;
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 "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 $1,000,000.
(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 16-82 -2- December 20, 2016
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.
Larry Fo ne t, Mayor Pro Tem
ATTEST:
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Kristine A. Luedke, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Clausen
and upon a vote being taken thereon, the following voted in favor thereof: Fonnest, Snope,
Clausen and Schmidgall; and the following was absent: Harris and the following voted
against the same: none, whereupon said resolution was declared duly passed and
adopted, signed by the Mayor Pro tem and his signature attested by the City Clerk.
Resolution 16-82 -3- December 20, 2016
EXHIBIT A
Marked Squads (Police)
Computer and Printers (City-wide)
Asphalt Roller (Street)
Pickup Truck (Park)
Aerial Ladder Truck (Fire)
Streetscape Banners City-Wide)
Single Axle Dump Truck (Street)
Sidewalk Snowblower(Street)
Passenger Vehicle (Fire)
Asphalt Hot Box (Street)
Unmarked Police Vehicle
Field Line Painter (Park)
Tasers (Police)
Tack Sprayer(Street)
Utility Tractor(Park)
Rotary Mower (Park)
Body Cameras (Police)
Asset Management Software (Public Works)