HomeMy WebLinkAboutResolution 3025RESOLUTION #3025
A RESOLUTION RELATING TO PROPOSED CITY HALL, POLICE
DEPARTMENT AND PUBLIC WORKS FACILITIES;
AUTHORIZING THE EXPENDITURE OF MONEYS IN ANTICIPATION
OF THE ISSUANCE OF LEASE REVENUE'BONDS
BE IT RESOLVED by the City Council of the City of Orono,
Minnesota, as follows:
1. The City has determined that it is necessary to
undertake certain public improvements consisting of a new City
Hall and Police Department and Public Works Department
facilities (collectively, the "Improvements"), to be undertaken
by the City or its Housing and Redevelopment Authority (the
"HRA"). The City presently intends that some or all of the
Improvements will be financed with the proceeds of lease revenue
bonds, the interest on which is excludable from gross income
under Section 103 of the Internal Revenue Code of 1986, as
amended (the "Bonds"), issued by the HRA, in one or more series
as needed for the payment of the costs of the Improvements. The
Improvements will be leased to the City on rentals sufficient to
pay the principal of and interest on the Bonds, and the City
will derive the moneys for payment of the lease rentals from ad
valorem'tax'levies
2. -The City has been advised that the Internal Revenue
• Service has issued new regulations relating to the conditions
under which municipal issuers are able to issue tax-exempt
obligations to reimburse themselves for expenditures incurred
prior to the issuance of the obligations. One of the
requirements for the issuance of tax-exempt obligations is a
preliminary resolution or other official action of the governing
body, adopted at or prior to the time the expenditures are
incurred, expressing the intent of the municipality to issue
taxable or tax-exempt obligations to reimburse prior
expenditures.
3. The City hereby declares its present intention to
cause the HRA to issue the Bonds to provide the moneys necessary
to finance the costs of acquisition and construction of the
Improvements. The currently estimated cost of the Improvements
is approximately $4,600,000, and the City estimates that the
principal amount of Bonds to be issued will be approximately
$4,000,000.
4. The City intends to reimburse itself from the
proceeds of the Bonds for any costs of acquisition and
construction incurred and paid after the date hereof by the City
or the HRA in connection with the Improvements, to the extent
such costs are allowable under the law and approved by the
City. The City presently anticipates that the HRA will issue
the Bonds for the reimbursement of such costs within one year
from the date on which the Improvements are completed.
RESOLUTION #3025
5. It is anticipated that. the expenditures =or costs of
• acquisition and construction of the Improvements will be paid
l . �> r�anor�l, wGrcr Cipe �r?:1Cj, SE -ewer
Lrom V h2 C::; ty ' s BL'7 lding (✓u�la1 ,
Operating, and Permanent Improvement Revolving funds)
and that
the reimbursement will include the interest paid on any
temporary borrowing from funds of the City during the
construction period. The primary source of funds to pay debt
service on the Bonds will be the lease rentals to be paid by the
City, and the City will levy ad valorem taxes to provide the
moneys for the payment of the lease rentals.
Adopted this day of September, 1991.
Barbara A. Peterson, Mayor
ATTUT:
i v
&oo thy M. allin,
City Clerk
•
is
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