92-011 RES
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RESOLUTION 92 - li..
RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION DESIGNATING THE CITY ADMINISTRATOR
AS A PERSON AUTHORIZED TO DECLARE, FROM TIME TO TIME,
THE OFFICIAL INTENT OF THE CITY TO REIMBURSE
CERTAIN TYPES OF EXPENDITURES MADE BY THE CITY
WITH THE PROCEEDS OF DEBT TO BE INCURRED BY THE CITY
BE IT RESOLVED by the City Council of the City of Elk River
(the City), as follows:
Section 1. FiDdinqs. It is hereby found and
declared that:
1.1) In order for the City to use bond proceeds to
reimburse itself for expenditures made prior to the issuance of
such bonds, the City must comply with Treasury Regulation
Section 1.103-18 (the Regulation) which sets out rules for
determining when the allocation of proceeds of governmental
bonds or certain private activity bonds to reimburse
expenditures previously made by the issuer of such bonds will
be treated as an expenditure of bond proceeds for purposes of
Sections 103 and 141-150 of the Internal Revenue,Code of 1986,
as amended (the Code). The portion of bond proceeds allocated
to reimburse an expenditure paid prior to the date the bonds
were issued is referred to herein as a "Reimbursement Bond."
An allocation of Reimbursement Bond proceeds made in accordance
with paragraph (e)(2) of the Regulation is referred to herein
as a "Reimbursement Allocation."
1.2) One of the requirements under the Regulation for
qualifying a Reimbursement Allocation as an expenditure of bond
proceeds is a declaration by the issuer of the Reimbursement
Bonds, on or before the date the expenditure to be reimbursed
is paid by the issuer, of the issuer's reasonable intention to
reimburse the expenditure with the proceeds of debt to be
incurred by the issuer (the Declaration of Official Intent).
1.3) The Regulation allows an issuer of Reimbursement
Bonds to designate one or more persons or entities to make
Declarations of Official Intent on behalf of the issuer.
1.4) The City is currently contemplating several
projects for which it has advanced funds from its investment
pool in expectation of reimbursement from proceeds of debt to
be incurred by the City, including the fOllowing specific
projects:
a. WE-SLSIP~_Wh'l'KILANP SEWER_IJ:1ER9_\~~l1ENT&
Construction of the project will not begin for
several years. The City has incurred
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approximately $54,000 of engineering and
appraisal expenses to date.
b.
MAIN~lREET1QRQJiO BRIDGE REPLACEMENT
Construction of the project is expected to begin
in 1992. The City has incurred approximately
$30,000 of engineering expenses to date. The
project will be funded by a combination of
federal and state highway funds and debt to be
incurred by the City.
c.
EAST HI~ijWAr 10 WATER AND SEWER IMPROVEMENTS
Construction of the project is not expected to
begin for several years. The City has incurred
approximately $7,500 of engineering expenses to
date.
d.
WACO STREET BRIDGE ENGINEERING EXPENSES
Construction of the project will not begin for
several years. The City has incurred
approximately $1,800 of engineering expenses to
date.
e. LAKE ORONO DR~DGING
Because of the expense of the project, it has not
been determined whether the project is .
economically feasible. The City has incurred
approximately $2,100 of engineering expenses to
date.
f. MAIN__STRtE'tLBrGHWAY 169 INTF;ll~E_CTIO~
IMt>J~OVE.M~N'r~
Construction of the project is expected to begin
in 1992. The City has incurred approximately $56,000
of engineering expenses to date. The project will be
funded by a combination of state funds and debt to be
incurred by the City.
g. WESTWOOD UTILITY AND STREET IMPROVEMENTS
Construction of the project is expected to begin
in 1992. The City has incurred approximately
$58,000 of engineering expenses to date. The
project will be funded by a combination of
special assessments and debt to be incurred by
the City.
h. CITY HALL UTILITY AND ROAD IMPROVEMENTS
Construction-of the project is expected to begin
in 1992. The City has incurred approximately
$31,000 of engineering expenses to date. The
project will be funded by a combination of state
aids, special assessments, and debt to be
incurred by the City.
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i. JACKSON AVENUE/HIGHWAY 169 SIGNAL IMPROVEMENTS
Construction of the project is expected to begin
in 1992. The City has incurred approximately
$9,300 of engineering expenses to date. The
project will be funded by state and City funds
and debt to be incurred by the City.
Section 2.
Designation.
2.1) The City does hereby appoint the City Administrator
as a person designated by the City to make Declarations of
Official Intent on behalf of the City pursuant to paragraph (f)
of the Regulation.
2.2) This designation includes any Declarations of
Official Intent required to be made in connection with the
projects herein recited as well as any other projects for which
the City shall advance payment of expenditures in anticipation
of the issuance of debt for reimbursement thereof.
Section 3. Execution Date of Resolution. This
Resolution shall be in full force and effect from and after its
passage.
Passed and adopted by the City Council of the City of Elk River
this 2nd day of March, 1992.
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ATTEST:
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James A. Tralle, Mayor