92-46 City of Chanhassen
Carver and Hennepin Counties, Minnesota
DATE: ADril 13, 1992
RESOLUTION NO: 92-46
MOTION BY: Mason
SECONDED BY: Workman'
A RESOLUTION DECI~RING THE OFFICIAL INTENT OF THE CITY
OF C~SSEN TO REIMBURSE CERTAIN EXPENDITURES FROM THE
PROCEEDS OF BONDS TO BE ISSUED BY THE CITY
W~ER~AS, the Internal Revenue Service has issued Tres Reg. §
1.103-18 providing that proceeds of tax-exempt bonds used to
reimburse prior expenditures will not be deemed spent unless
certain requirements are met; and
W~ER~AS, the City expects to incur certain expenditures which
may be financed temporarily from sources other than bonds, and
reimbursed from the proceeds of a bond; and
W~EREAS, the reimbursement rules apply to bonds issued after-
March 2, 1992;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Chanhassen (The "City") as follows:
1. The City reasonably intends to make expenditures for the
project described in Exhibit A (the "Project"), and reasonably
intends to reimburse itself for such expenditures from the proceeds
of debt to be issued by the City in the maximum principal amount
described in Exhibit A.
2. The City Manager is authorized to designate appropriate
additions to Exhibit A in circumstances where time is of the
essence, and any such designation shall be reported to the Council
at the earliest practicable date and shall be filed with the
official books and records of the City as provided in Section 3.
3. This resolution shall be maintained as part of the books
and records of the City at the main administrative office of the
City, and shall be continuously available during normal business
hours of the City on every business day of the period beginning not
more than 30 days after adoption of this resolution and ending on
the last date of issue of any bonds issued to reimburse
expenditures described in Exhibit A.
4. This resolution 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 reimbursements
set forth at Exhibit A 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 of financial policies to pay such
Project expenditures. The City has no% adopted any allocation,
budget, or restriction of moneys or adoption of a requirement or
policy to reimburse a fund, the primary purpose of which is to
prevent moneys from being available to pay an expenditure the City
intends to reimburse with proceeds of a borrowing.
5. This resolution is intended to constitute a declaration
of official intent for purposes of Tes Reg § 1.103-18 and any
successor law, regulation, or ruling.
6. The allocation of proceeds of the bonds to be issued to
any Project expenditures described in Exhibit A will be made not
later than one year after the expenditure was paid or one year
after the property was placed in service.
7. The Project expenditures described in Exhibit A are
capital expenditures as defined in Tes. Reg. 1.150-1(h), including
costs of issuance of the bonds to be issued in order to reimburse
the Project expenditures.
8. Proceeds of the bonds issued to reimburse the Project
expenditures described in Exhibit A will be deemed spent only when
(1) an allocation entry is made on the books or records of the City
with respect to the bonds; (2) the entry identifies an actual
expenditure to be reimbursed, or where the Project is described as
a fund or account, the fund or account from which the expenditure
was paid; and (3) the allocation is effective to relieve the bond
proceeds from restrictions on unspent proceeds under applicable
documents and state laws.
9. No entity or entities possess simultaneously two or more
of the following discretionary and non-ministerial powers with
respect to the City: power to (1) remove without cause a
controlling portion of the City Council; (2) select, approve, or
disapprove a controlling portion of the City Council; (3) determine
the City's budget or require the use of the City's funds or assets
for the other entity's purpose; or (4) approve, disapprove, or
prevent the issuance of debt obligations of the City.
10. None of the proceeds of the bonds issued to reimburse the
City for the Project expenditures described in Exhibit A will be
used within one year. of the allocation (i) to refund another
governmental obligation or (ii) to create or increase the balance
in a sinking fund or replace funds used for such purpose, or (iii)
to create or increase the balance in a reserve or replacement fund
or replace funds used for such purposes; or will be used at any
time to reimburse any person or entity (other than the City) for
expenditures originally paid with the proceeds of a City obligation
(excluding a City inter-fund borrowing); unless (i) such amounts
are deposited in a bona fide debt service fund or are used to pay
debt service in the next one-year period on any City obligation
other than the reimbursement bond, or (ii) the original issue was
not reasonably expected to be used to finance the expenditure.
not reasonably expected to be used to finance the expenditure.
11. No action or inaction by the City with respect to the
allocation of bond proceeds to reimbursement of Project
expenditures will be an artifice or device to avoid, in whole or in
part, arbitrage yield restrictions or arbitrage rebate
requirements.
12. The procedures described in this resolution shall cease
to apply to the extent not required by Tres. Reg. § 1.103-18 or any
successor law, regulation, or ruling.
Passed and adopted by the Chanhassen City Council this 13th
day of April, 1992.
ATTEST:
Don Ashworth,
'~Ci~t~ager
YES
NO
ABSENT
Chmiel
Wing
Mason
Workman
None
Dimler