21-065 Declaring the Official Intent of the City of Shorewood to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the CityCITY OF SHOREWOOD, MINNESOTA
RESOLUTION NO.21-065
DECLARING THE OFFICIAL INTENT OF THE
CITY OF SHOREWOOD TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2
(the "Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse
prior expenditures will not be deemed spent unless certain requirements are met; and
WHEREAS, the City expects to incur certain expenditures that may be financed temporarily
from sources other than bonds, and reimbursed from the proceeds of a tax-exempt bond;
WHEREAS, the City has determined to make this declaration of official intent (the
"Declaration") to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SHOREWOOD AS FOLLOWS:
1. The City proposes to undertake the following projects (the "Projects").
Glen/Amlee/Manitou 2021 Street & Utility Reconstruction Project
Sweetwater Curve Water Project
Smithtown Pond Trail Project
2021 Mill/Overlay/Striping Project
2. The City reasonably expects to reimburse the expenditures made for certain costs of
the Projects from the proceeds of bonds in an estimated maximum principal amount of $4,325,000.
All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other
expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement
Regulations.
3. This Declaration has been made not later than 60 days after payment of any
original expenditure to be subject to a reimbursement allocation with respect to the proceeds of
bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount
not in excess of the lesser of $100,000 or 5 percent of the proceeds of an issue; or (c) "preliminary
expenditures" up to an amount not in excess of 20 percent of the aggregate issue price of the issue
or issues that finance or are reasonably expected by the City to finance the project for which the
preliminary expenditures were incurred. The term "preliminary expenditures" includes
architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to
commencement of acquisition, construction or rehabilitation of a project, other than land
acquisition, site preparation, and similar costs incident to commencement of construction.
4. This Declaration 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 original
expenditures for the Project and the principal amount of the bonds described in paragraph 2 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 or financial
policies to pay such Project expenditures.
5. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
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Approved by the City Council of the City of SHOREWOOD this 14th day of June, 2021.
CITY OF SHOREWOOD, MINNESOTA
Attest: Jenyfffer La adie, Mayor
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Sandie Thone, City Clerk