HomeMy WebLinkAboutCity Council Resolution 2021-214
CITY OF PLYMOUTH
RESOLUTION NO. 2021-214
RESOLUTION DECLARING OFFICIAL INTENT TO REIMBURSE CERTAIN EXPENDITURES
FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the “Reimbursement
Regulations”) providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not
be deemed spent unless certain requirements are met; and
WHEREAS, the City expects to incur certain expenditures that may be financed temporarily from
sources other than bonds, and reimbursed from the proceeds of a tax-exempt bond; and
WHEREAS, the City has determined to make this declaration of official intent (“Declaration”) to
reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH,
MINNESOTA that the following is approved:
1. The City proposes to undertake the following projects in the City in 2021 (the “Project”):
Fire Stations 2 & 3.
2. The City reasonably expects to reimburse the expenditures made for certain costs of the
Project from the proceeds of bonds in an estimated maximum principal amount of $21,500,000.
All reimbursed expenditures will be capital expenditures, costs of issuance of the 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 bonds,
except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not
in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) “preliminary expenditures”
up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues
that finance or are reasonably expected by the City to finance the project for which the
preliminary expenditures were incurred. The term “preliminary expenditures” includes
architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to
commencement of acquisition, construction or rehabilitation of a project, other than land
acquisition, site preparation, and similar costs incident to commencement of construction.
4. 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 bonds described in paragraph 2 are
consistent with the City’s budgetary and financial circumstances. No sources other than proceeds
of bonds to be issued by the City are, or 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 Project expenditures.
Resolution No. 2021-214
Page2 of 2
5. This Declaration is intended to constitute a declaration of official intent for purposes of the
Reimbursement Regulations.
APPROVED by the City Council on this 27th day of July, 2021.
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS.
The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth, Minnesota,
certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth City Council on
July 27, 2021 with the original thereof on file in my office, and the same is a correct transcription thereof.
WITNESS my hand officially as such City Clerk and the Corporate seal of the City this ___________day of
__________________, __________.
____________________________________
City Clerk