Resolution Number 05-20
RESOLUTION NUMBER 05-20
MAKING A DECLARATION OF OFFICIAL INTENT UNDER U.S. TREASURY REGULATIONS SECTION 1.150-2
WHEREAS, the Internal Revenue Code of 1986, as amended, and Treasury Regulations Section 1.150-2 promulgated thereunder (the “Reimbursement Rules”), require that in order for an issuer to use the proceeds of an issue of tax-exempt obligations to reimburse an original expenditure paid before the issue date of the obligations, an issuer must adopt an official intent for the original expenditure not later than 60 days after payment thereof; and
WHEREAS, the City of Mountain Iron, Minnesota, (the “Issuer”) is a governmental unit with bond issuing powers; and
WHEREAS, the Issuer intends to finance improvements to its water treatment and distribution system (the “Project”), from proceeds of an issue of tax-exempt obligations (the “Bonds”); and
WHEREAS, it may be necessary for the Issuer to temporarily finance certain costs of the Project by using either working capital and cash reserves which will be needed for other purposes, or temporary loans from financial institutions or others prior to the issuance of the Bonds.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MOUNTAIN IRON, MINNESOTA that:
- The maximum principal amount of the Bonds is $2,200,000.
- The Issuer reasonably expects to incur expenditures with respect to the Project in advance of issuance of the Bonds.
- The Issuer reasonably expects that expenditures for the Project will be reimbursed from the proceeds of the Bonds.
- The reimbursement will occur not later than 18 months after the later of the date the original expenditure was paid or the date the Project is placed in service or abandoned, but in no event more than three years after the original expenditure is paid.
- The Issuer has not previously adopted a resolution under the Reimbursement Rules for a project, the costs of which were not paid from the proceeds of an issue of tax-exempt bonds.
DULY ADOPTED BY THE CITY COUNCIL THIS 20th DAY OF APRIL, 2020.
Mayor Gary Skalko