89-005 RES
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RESOLUTION 89 - 5
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION DESIGNATING CERTAIN BONDS ISSUED
IN 1986 AS "QUALIFIED TAX-EXEMPT OBLIGATIONS"
A. WHEREAS, the City of Elk River, Minnesota (the
"Issuer"), issued its $1,975,000 General Obligation Improvement
Bonds August 28, 1986, (the "Bonds") after August 7, 1986, the
effective date of the federal Tax Reform Act of 1986; and
B. WHEREAS, when the Bonds were issued, the Issuer made a
designation that it intended to qualify under Section 802 (e) (3)
of H.R. 3838 of the 99th Congress as passed by the House of
Representatives; and
C. WHEREAS, for the Bonds to get the benefit of being
designated as "qualified tax-exempt obligations" under Section
265(b} (3) of the federal Internal Revenue Code of 1986, as
amended (the "Code"), it is necessary that the Issuer designate
the Bonds pursuant to subparagraph (B) of Section 1009(b} (3) of
the federal Technical and Miscellaneous Revenue Act of 1988
("Tamra") and Section 265(b} (3) of the Code; and
D. WHEREAS, the Bonds qualify for such designation
because they are not private activity bonds (or, if private
activitiy bonds, are qualified 501(c) (3) bonds, or refund bonds
which were not industrial development bonds or private loan
bonds}, the Issuer with respect to bonds issued in 1986 is a
"qualified small issuer" of $10,000,000 or less of bonds, and not
more than $10,000,000 of bonds issued in 1986 have been
designated:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Elk River, Minnesota, as follows:
1. Designation of Qualified Tax-Exempt Obliqations.
In order to qualify the Bonds as "qualified tax-exempt
obligations" within the meaning of Section 265(b} (3) of the Code,
the Issuer hereby makes the following factual statements and
representations:
(a) the Bonds were issued after August 7, 1986:
(b) the Bonds are not "private activity bonds" as defined
in Section 141 of the Code, or, if private activity bonds, they
are:
(i) qualified 501(c} (3) bonds as defined in Section
145 of of the Code, or
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Resolution (continued)
Page Two
(ii) obligations issued to refund (or which are part of
a series of obligations issued to refund) obligations issued
before August 8, 1986, which were not industrial development
bonds (as defined in Section 103(b) (2) of the federal
Internal Revenue Code of 1954, as amended, as in effect on
the day before the date of enactment of the federal Tax
Reform Act of 1986) or a private loan bond (as defined in
Section 103(0) (2) (A) as so in effect, but without regard to
any exemption from such definition other than Section
103 (0) (2) (A));
(c) the Issuer hereby designates the Bonds as
"qualified tax-exempt obligations" for purposes of Section
265(b) (3) of the Code;
(d) the amount of tax-exempt obligations (other than
private activity bonds, treating qualified 501(c) (3) bonds as not
being private activity bonds) which were issued in 1986 by the
Issuer (and all entities treated as one issuer with the Issuer,
and all subordinate entities thereof) during calendar year 1986
did not exceed $10,000,000; and
(e) not more than $10,000,000 of obligations issued
by the Issuer during calendar year 1986 have been designated for
purposes of Section 265(b) (3) of the Code.
2. Notice. Notice of the above designation shall be
communicated to the United States Department of the Treasury or
the United States Internal Revenue Service if and as may be
required to give it effect.
Passed and adopted this 9th day of January, 1989, by the Elk
River City Council.
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James A. Tralle, Mayor
ATTEST:
a/j?~
Patrick D. Klaers, City Administrator