19-63 - 11-19 - Finance 2021 Pavement Management Program RESOLUTION NO. 19-63
RESOLUTION RELATING TO THE FINANCING OF THE CITY'S 2021 PAVEMENT
MANAGEMENT PROGRAM; DECLARING THE OFFICIAL INTENT TO REIMBURSE
CERTAIN CAPITAL EXPENDITURES OF THE 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, 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 may incur certain capital expenditures in connection with the City's 2021
Pavement Management Program as described in the attached Exhibit A (collectively, 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 $3,400,000. 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 1.1 50-2(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,
excluding land acquisition, site preparation, and similar costs incident to commencement of
construction.
Resolution No. 19-63 -2- November 19, 2019
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 19"' day of November, 2019.
s
She_ rd M. Harris, ayor
ATTEST:
Kristine A. Luedke, City Clerk
Resolution No. 19-63 -3- November 19, 2019
Exhibit A
Project Description
The City proposes to rehabilitate approximately 1.33 miles of streets in the northwest part of
the City. The project is bounded by Aquila Avenue North on the West, 23rd Avenue North on
the North, Xylon Avenue North and Wisconsin Avenue North on the East and Duluth Street on
the South. The following streets are included in the project:
•Aquila Avenue North (Duluth Street—23rd Avenue North)
• Zealand Avenue North (Duluth Street—23rd Avenue North)
• Xylon Avenue North (Westbend Road —23rd Avenue North)
• Duluth Street(West cul-de-sac—Wisconsin Avenue North)
•Westbend Road (Zealand Avenue North —Wisconsin Avenue North)
•Winnetka Heights Drive (Zealand Avenue North—Xylon Avenue North)
Certain existing utilities such as water, storm sewer, sanitary sewer, underground power and
gas in the right of way will be replaced or improved.