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Member Matt Westgaard introduced the following resolution and moved its adoption: <br /> RESOLUTION NO.21-1 • <br /> RESOLUTION DECLARING THE OFFICIAL INTENT TO REIMBURSE <br /> CERTAIN CAPITAL EXPENDITURES FROM THE PROCEEDS OF TAX- <br /> EXEMPT BONDS AND ESTABLISHING COMPLIANCE WITH <br /> REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL <br /> REVENUE CODE <br /> WHEREAS, the Internal Revenue Service has issued Treasury Regulations, Section 1.150-2 <br /> (the "Reimbursement Regulations") under the Internal Revenue Code of 1986, as amended (the <br /> "Code"), providing that proceeds of tax-exempt bonds used to reimburse prior capital expenditures <br /> will not be deemed spent unless certain requirements are met; and <br /> WHEREAS,the Elk River Municipal Utilities Commission,public body corporate and politic <br /> of the State of Minnesota (the "Commission"), expects to incur certain expenditures that may be <br /> financed temporarily from sources other than tax-exempt bonds, and later reimbursed from the <br /> proceeds of tax-exempt bonds; and <br /> WHEREAS, the Commission has determined to make a declaration of its official intent (the <br /> "Declaration") to reimburse certain capital costs from the proceeds derived from the sale of tax- <br /> exempt bonds issued by the Commission or another political subdivision in accordance with the <br /> Reimbursement Regulations. <br /> NOW,THEREFORE,BE IT RESOLVED BY THE ELK RIVER MUNICIPAL UTILITIES <br /> COMMISSION AS FOLLOWS: <br /> 1. The Commission may incur certain capital expenditures in connection with the <br /> construction of a field house facility to house service trucks, inventory and offices (collectively, the <br /> "Project") <br /> 2. The Commission reasonably expects to reimburse the expenditures made for certain <br /> costs of the Project from the proceeds of tax-exempt bonds in a principal amount currently estimated <br /> not to exceed $14,000,000. All reimbursed expenditures related to the Project will be capital <br /> expenditures, costs of issuance of the tax-exempt bonds or other expenditures eligible for <br /> reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. <br /> • 3. This Declaration has been made not later than 60 days after payment of any original <br /> expenditure to be subject to a reimbursement allocation with respect to the proceeds of tax-exempt <br /> bonds, except for the following expenditures: (a) costs of issuance of tax-exempt bonds; (b) costs in <br /> an amount not in excess of the lesser of$100,000 or 5% of the proceeds of the tax-exempt bonds; or <br /> (c)"preliminary expenditures" up to an amount not in excess of 20%of the aggregate issue price of <br /> the tax-exempt bonds that are reasonably expected by the Commission to finance the Project. The <br /> term "preliminary expenditures" includes architectural, engineering, surveying, soil testing, bond <br /> EL185-13-697167.vl <br />