HomeMy WebLinkAbout2026-035 Intent To Bond Project 2414CITY OF COLUMBIA HEIGHTS, MINNESOTA
RESOLUTION NO.2026-035
DECLARING THE OFFICIAL INTENT OF THE CITY OF COLUMBIA HEIGHTS,
MINNESOTA TO REIMBURSE CERTAIN EXPENDITURES FROM THE
PROCEEDS OF TAX-EXEMPT BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treasury Regulations § 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.
WHEREAS, the City of Columbia Heights, Minnesota (the "City") expects to incur certain
expenditures that may be financed temporarily from sources other than tax-exempt bonds and other obligations,
and reimbursed from the proceeds of tax-exempt bonds or other obligations.
WHEREAS, the City has determined to make this declaration of official intent (the "Declaration") to
reimburse certain costs from proceeds of tax-exempt bonds or other obligations in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia Heights,
Minnesota as follows:
1. The City has proposed to undertake the construction of capital improvements described in
the City's five (5) year capital improvement plan, including but not limited to the construction of a public
works building to replace the City's Municipal Service Center (the "Project").
2. The City reasonably expects to reimburse the expenditures made for certain costs of the
Project from the proceeds of one or more series of general obligation bonds of the City in an estimated
maximum principal amount of $31,515,000. All reimbursed expenditures will be capital expenditures, costs
of issuance of the tax-exempt bonds or other obligations, or other expenditures eligible for reimbursement
under Section 1. 1 50-2(d)(3) of the Reimbursement Regulations.
3. This Declaration has been made not later than sixty (60) days after payment of any original
expenditure to be subject to a reimbursement allocation with respect to the proceeds of tax-exempt bonds
or other obligations, except for the following expenditures: (a) costs of issuance of bonds or other obligations;
(b) costs in an amount not in excess of the lesser of $100,000 or five percent (5%) of the proceeds of an issue
of bonds or other obligations; or (c) "preliminary expenditures" up to an amount not in excess of twenty percent
(20%) 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, and is intended to constitute a declaration
of official intent for purposes of the Reimbursement Regulations.
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Approved this 26th day of May, 2026, by the City Council of the City of Columbia Heights, Minnesota.
Offered by: Buesgens
Seconded by: Spriggs
Roll Call: All Ayes r
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in a Marquez Simula, ayor
ATTEST:
S a Ion, City Clerk
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