21-065/09-09 2023 PMP Capital Expenditures Bonds and Reimbursement Bond RegulationsDocuSign Envelope ID: 7FCFA4B9-F79C-462C-BDED-5D48D29D12F9
RESOLUTION NO.21-65
RESOLUTION RELATING TO THE FINANCING OF THE CITY'S 2023
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 2023 Pavement
Management Program as described in the attached Executive Summary For Action (collectively, the
"Project") which includes 23rd Avenue North, Xylon Avenue North to Winnetka Avenue North
Wynnwood Road, Orkla Drive to Valders Avenue North lonellen Lane, Bies Drive to Valders Avenue
North 25th Avenue North, Orkla Drive to Valders Avenue North Wisconsin Avenue North, 23rd Avenue
North to Orkla Drive Orkla Drive, Wynnwood Road to Medicine Lake Road Bies Drive, Wynnwood Road
to 25th Avenue North Valders Avenue North, 23rd Avenue North to Wynnwood Road, Valders Avenue
North, and Jonellen Lane to 25th Avenue North (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 $3,950,000. 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 1.150-2(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
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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.
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 9t' day of September, 2021.
E
oocuned bySlp6parl k. RAMS
Shepar arris, Mayor
ATTEST:
7. DocuSlgned by:
Theresa . c_ yma, City Clerk
I'll
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