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<br />A.( ~( <br />( II <br />fl~ River <br /> <br />ITEM 8.3. <br /> <br />FROM: <br /> <br />MAYOR & CITY COUNCIL ~ <br />FINANCE DIRECTOR, LORI JOHNSON ~~ <br /> <br /> <br />TO: <br /> <br />DATE: DECEMBER 27, 1993 <br /> <br />SUBJECT: REVISED REIMBURSEMENT BOND <br />REGULATION <br /> <br />In 1992, the City Council approved a resolution in order to <br />bring the City into compliance with the Internal Revenue <br />Service's proposed new rules and regulations for reimbursement <br />bonds. At that time the rules were rather lengthy and <br />unclear. The IRS has recently relaxed the rules, making them <br />easier for cities to comply. <br /> <br />The new rules still require that the City complete a <br />Declaration of Official Intent at the beginning of each project <br />for which the City may expect to reimburse itself for the cost <br />of the project out of the proceeds of a bond issue. The <br />resolution attached would replace the resolution adopted in <br />1992. The Declaration of Official Intent would change from a <br />three page document to a one page document. <br /> <br />e <br /> <br />Staff recommends approval of the resolution as attached. This <br />will help to decrease the amount of time needed to comply with <br />the reimbursement bond regulation. If a Declaration of <br />Official Intent is not on file for a given project, the City <br />will not be allowed to issue bonds for that project. <br />Therefore, it is very important that the IRS reimbursement bond <br />regulation rules be followed carefully. <br /> <br />e <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />