Resolution - 19-10 - Reimburse Expenditures from Bond ProceedsCITY OF SPRING PARK
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 19-10
DECLARING THE OFFICIAL INTENT OF THE CITY OF SPRING PARK
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 of Spring Park (the "City") expects to incur certain expenditures that
may be funded temporarily from sources other than tax-exempt bonds, and reimbursed from the
proceeds of a subsequent tax-exempt bond issue;
WHEREAS, the City has determined to make this declaration of official intent (the
"Declaration") to reimburse certain costs from the proceeds of tax-exempt bonds in accordance with
the Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF SPRING PARK,
MINNESOTA AS FOLLOWS:
1. The City proposes to undertake the Shoreline Drive ADA Improvement Project in
2019. The Project consists of making accessibility improvements at intersections along the
Shoreline Drive (Co. Rd. 15) corridor, as well as modifications to traffic signals to improve traffic
flow.
2. The City reasonably expects to reimburse the expenditures made for certain costs of
the Project from the proceeds of tax-exempt bonds in an estimated maximum principal amount of
$250,000. All reimbursed expenditures will be capital expenditures, costs of issuance of the 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
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.
5. This Declaration is intended to constitute a declaration of the City's official intent
for purposes of the Reimbursement Regulations.
Approved by the Spring Park City Council this 1" day of April, 2019.
CITY OF SP ARK MINNESOTA
Jerome P. Rokvam, Mayor
Attest:
T�' esa Schyma, Ci Clerk