HomeMy WebLinkAboutCity Council Resolution 2003-082CITY OF PLYMOUTH
RESOLUTION NO. 2003-082
ORDERING IMPROVEMENT AND PREPARATION OF
PLANS AND SPECIFICATIONS
2003 STREET RECONSTRUCTION PROJECT AND
ESTABLISHING COMPLIANCE WITH REIMBURSEMENT
BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE
CITY PROJECT NO. 3101
WHEREAS, the City Council adopted a resolution on the 7th day of January, 2003, which
fixed a date for a public hearing with respect to the improvements to that portion of
Maintenance District 27 east of Clifton E. French Regional Park, west of Zachary Lane,
and including 36th Avenue through 39h Avenue; and
WHEREAS, the proposed project includes the reconstruction of streets by the installation
of bituminous pavement, new curb and gutter on the north side of 36th Avenue, repair of
concrete curb and gutter and all necessary appurtenances; and
WHEREAS, ten days published notice of the hearing through three weekly publications
of the required notice was given and the hearing will be held thereon the 11th day of
February, 2003, at which time all persons desiring to be heard will be given an
opportunity to be heard thereon; and
WHEREAS, ordering this improvement requires a 4/5 vote of the Council (six votes)
since the project has not been petitioned for by the benefiting owners;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF
THE CITY OF PLYMOUTH, MINNESOTA:
1. Such improvement is hereby ordered as proposed in the Council resolution
adopted January 7, 2003.
2. The Plymouth Engineering Department is designated as engineer for the
improvement. They shall prepare plans and specifications for the making
of such improvement.
Resolution No. 2003-082
Page 2
BE IT FURTHER RESOLVED by the City Council (the "Council") of the City of
Plymouth (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 of the bonds.
(b) The Regulations generally require that the City, as issuer of the bonds,
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 certain projects to be undertaken within the City.
2. Official Intent Declaration.
(a) The City expects to make original expenditures with respect to the above
described projects prior to the issuance of reimbursement bonds, and the City reasonably
expects to issue reimbursement bonds for such projects in the maximum principal amount
shown below:
Maximum Amount of Bonds
Project Expected to be Issued for Project
Street Reconstruction (3 10 1) 1 $1,716,000
(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 projects 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.
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
Resolution No. 2003-082
Page 3
be reserved, pledged, allocated on a long term basis or otherwise set aside) to provide
permanent financing for the original expenditures related to the projects, 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 financial officer 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 projects. 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.
Adopted by the City Council on February 11, 2003.