01-27-2003 Council Packet - Laserfiche WebLink

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A RESOLUTION ESTABLISHING PROCEDURES RELATING TO COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE BE rr RESOLVED by the City Council in and for the City of Orono, Minnesota (the "City"), as follows: 1.Recital^. (a) 'fhe Internal Revenue Service has issued Treasury Regulations, Section 1. 150- 2 (as the same may be amended or supplemented, the "Regulations"), dealing with "reimbursement bond" proceeds, being proceeds of the City's bonds used to reimburse the City for any project expenditure paid by the City prior to the time of the issuance of those bonds. (b) 1 he Regulations generally require that the City make a declaration of intent to reimburse itself for such prior expenditures out of the proceeds of subsequently issued bonds, that such declaration be made not later than 60 days arter the expenditure is actually paid, and that the bonding occur and the written reimbursement allocation be made from the proceeds of such bonds within 18 months after the later of (I) the date of payment of the expenditure or (2) the date the project is placed in service (but in no event more than 3 years after actual payment). (c) Ihc City heretofore implemented procedures for compliance with the predecessor versions of the Regulations and dc.sires to amend and supplement those procedures to ensure compliance with the Regulations. (d) The City's bond counsel has advised the City that the Regulations do not apply, and hence the provisions of this Resolution arc intended to have no application to payments of City project costs first made by the City out of the proceeds of bonds issued prior to the date of such payments. 2. Ofllcial Intent Declaration. The Regulations, in the situations in which they apply, require the City to have declared an official intent (the "Declaration") to reimburse itself for Page 1 of3