HomeMy WebLinkAboutCity Council Resolution 2007-077CITY OF PLYMOUTH
RESOLUTION NO. 2007-077
DECLARING THE OFFICIAL INTENT OF THE CITY
OF PLYMOUTH TO REIMBURSE CERTAIN EXPENDITURES
FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. Section 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 (the
"Declaration") to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PLYMOUTH AS FOLLOWS:
The City proposes to undertake the following projects:
Fernbrook Lane Reconstruction (27th to 34th Avenue)
Street Reconstruction — District 76
Street Reconstruction — District 78
2. The City reasonably expects to reimburse the expenditures made for
certain costs of the projects from the proceeds of bonds in an estimated maximum
principal amount of $14,000,000. 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 the 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 projects 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,
constriction, or rehabilitation of a project, other than land acquisition, site preparation,
and similar costs incident to commencement of constriction.
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 projects 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 area, 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.
Adopted by the City Council on February 13, 2007.
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 February 13, 2007 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