2020-47CITY OF CHANHASSEN
CAIXER AND HENNEPIN COUNTIES, MINNESOTA
DATE: July 1.3,2,.02,0RESOLUTION NO:— 2020-47
MOTION BY: Cam ion SECONDED BY: McDonald
wain, lawl awall rui r matll
WHEREAS, the Internal Revenue Service has issued Treasury Regulations § 1. 1 5&�
under the Internal Revenue Code of 1986, as amended, (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 Chanhassen, Minnesota (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;
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 RESOLVED by the City Council of the City of
Chanhassen, Minnesota, as follows:
I , The City proposes to undertake the following projects in the City (the "Projects")
md the estimated costs thereof to be financed:
Lake Lucy Road Rehabilitation $ 595,000
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
$2,550,000. All reimbursed expenditures will be capital expenditures, costs of issuance of the
bonds, or other expenditures eligible for reimbursement under Section 1. 15 0-2(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 sub,; ect 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 $100,000 or 5 percent of the proceeds of an issue; or (c) "preliminary
expenditures" up to an amount not in excess of 20 percent of the aggregate issue price of the
issue or issues that finance or are reasonably expected by the City to finance the project for
which the preliminary expenditures were incurred. The term "preliminary expenditures" includes
architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to
commencement of acquisition, construction or rehabilitation of a project, other than land
acquisition, site preparation, and similar costs incident to commencement of construction.
4. This Declaration is an expression of the reasonable expectations of the City base,.$!.
on the facts and circumstances known to the City as of the date hereof. The anticipated original
consistent with the City's budgetary and financial circumstances.
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M"ITIN
ATTEST:
eather Johnsto nterim City Manager
YES NO
Ryan
Campion
Coleman
0
Elise Ryan, Mayor