Loading...
HomeMy WebLinkAbout6.f. Resolution Authorizing Small Issuer Rebate Exception to Port Authority 9ROSEMOLINT SUMMARY CITY COUNCIL City Council Meeting Date: March 18, 2008 AGENDA ITEM: Resolution Authorizing Small Issuer AGENDA SECTION: Rebate Exception to Port Authority Consent PREPARED BY: Jeff May, Finance Director AGENDA NO. f' ATTACHMENTS: Resolution APPROVED BY: RECOMMENDED ACTION: Motion to adopt A Resolution Authorizing Small Issuer Rebate Exception Authority. BACKGROUND Earlier today, the Port Authority sold bonds related to the Brockway /Downtown TIF District activities. Prior to this meeting the Port Authority approved resolutions accepting the offers on these two sales and providing for their issuance. As part of this sale process, the City's bond counsel has recommended the Council's approval of the attached resolution to comply with the Internal Revenue Code of 1986. This should not have any adverse affect on any debt issues that the City may have in 2008. SUMMARY Recommend the above motion. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2008 RESOLUTION AUTHORIZING SMALL ISSUER REBATE EXCEPTION AUTHORITY NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Rosemount, Minnesota (the "City") as follows: 1. Finding. Unless an exception is available, bonds which are tax exempt are subject to the federal arbitrage requirement of rebating earnings in excess of the bond yield on certain investments; and ordinarily bonds are subject to rebate if issued by a governmental unit that lacks general taxing powers, such as the Rosemount Port Authority (the "Authority"). However, if the Authority issues bonds on behalf of a governmental unit with general taxing powers, such as the City, it will be treated as having general taxing powers if the bonds do not exceed the lesser of $5,000,000 or such amount of the $5,000,000 small issuer limitation as the City allocates to the Authority, and the City is a governmental unit with general taxing powers. The City hereby finds, determines and declares that (1) the Authority is issuing the Bonds on behalf of the City within the meaning of Section 148(f)(4)(C)(iv) of the Internal Revenue Code of 1986, as amended (the "Code (2) the Authority is therefore treated as a subordinate entity of the City for purposes of such Section, and (3) the aggregate face amount of the Bonds does not exceed the lesser of $5,000,000 or the amount which, when added to the aggregate amount of other bonds issued by the Authority in 2008, is allocated to the Authority below. 2. Allocation. The City hereby allocates to the Authority $3,275,000 of the City's $5,000,000 limitation under Section 148(f)(4)(C)(i)(IV) of the Code in the aggregate face amount of tax- exempt bonds (other than private activity bonds) issued by the City during the calendar year 2008. Such allocation is made solely with respect to the Bonds, is irrevocable and is made before the issuance of the Bonds. Said $3,275,000 allocated to the Authority bears a reasonable relationship to the benefits received by the City from the Bonds issued by the Authority, because the Bonds finance infrastructure improvements in the Rosemount Business Park in the City. The Authority shall accept this allocation by issuing the Bonds and making a statement in its Nonarbitrage Certificate relating to the Bonds. 3. Aggregation. The City and Authority will be aggregated and treated as one issuer for purposes of said $5,000,000 limitation, and together will not issue in 2008 more than $5,000,000 aggregate face amount of all tax- exempt bonds (other than private activity bonds). 4. Concurring of Authority Resolution. The City hereby concurs in the Resolution adopted by the Authority this same date authorizing the issuance of its $3,275,000 General Obligation Tax Increment Bonds, Series 2008B. 5. Continuing Disclosure. The City is an obligated person with respect to the Bonds. The Mayor and Clerk of the City, or any other officer of the City authorized to act in their place, are hereby authorized and directed to execute on behalf of the City the Continuing Disclosure Undertaking in substantially the form presented to the Board of Commissioners of the Authority, 2144676v1 RESOLUTION 2008 subject to such modifications thereof or deletions thereto as are (i) consistent with the requirements under the Pool, (ii) required of the purchaser of the Bonds, and (iii) acceptable to the Mayor and the City Clerk. 6. Severability. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 7. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. ADOPTED this day of 2008. William H. Droste, Mayor ATTEST: Amy Domeier, City Clerk Motion by: Seconded by: Voted in Favor: Voted Against: Members Absent: 2144676v1 RESOLUTION 2008 CERTIFICATE STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF ROSEMOUNT I, Amy Domeier, duly appointed, acting and qualified City Clerk of the City of Rosemount, do hereby certify that I have examined the City of Rosemount records and the Minute Book of said City for the meeting of the of February, 2008 and that the attached copy of the RESOLUTION AUTHORIZING SMALL ISSUER REBATE EXCEPTION AUTHORITY was approved and is a true and correct copy of the City Proceedings relating to said Resolution. IN WITNESS WHEREOF, I have hereunto set my hand this day of 2008. Amy Domeier, City Clerk City of Rosemount 2144676v1 CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2008 1 RESOLUTION AUTHORIZING SMALL ISSUER REBATE EXCEPTION AUTHORITY NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Rosemount, Minnesota (the "City") as follows: 1. Finding. Unless an exception is available, bonds which are tax exempt are subject to the federal arbitrage requirement of rebating earnings in excess of the bond yield on certain investments; and ordinarily bonds are subject to rebate if issued by a governmental unit that lacks general taxing powers, such as the Rosemount Port Authority (the "Authority"). However, if the Authority issues bonds on behalf of a governmental unit with general taxing powers, such as the City, it will be treated as having general taxing powers if the bonds do not exceed the lesser of $5,000,000 or such amount of the $5,000,000 small issuer limitation as the City allocates to the Authority, and the City is a governmental unit with general taxing powers. The City hereby finds, determines and declares that (1) the Authority is issuing the Bonds on behalf of the City within the meaning of Section 148(f)(4)(C)(iv) of the Internal Revenue Code of 1986, as amended (the "Code (2) the Authority is therefore treated as a subordinate entity of the City for purposes of such Section, and (3) the aggregate face amount of the Bonds does not exceed the lesser of $5,000,000 or the amount which, when added to the aggregate amount of other bonds issued by the Authority in 2008, is allocated to the Authority below. 2. Allocation. The City hereby allocates to the Authority $3,275,000 of the City's $5,000,000 limitation under Section 148(f)(4)(C)(i)(IV) of the Code in the aggregate face amount of tax exempt bonds (other than private activity bonds) issued by the City during the calendar year 2008. Such allocation is made solely with respect to the Bonds, is irrevocable and is made before the issuance of the Bonds. Said $3,275,000 allocated to the Authority bears a reasonable relationship to the benefits received by the City from the Bonds issued by the Authority, because the Bonds finance infrastructure improvements in the Rosemount Business Park in the City. The Authority shall accept this allocation by issuing the Bonds and making a statement in its Nonarbitrage Certificate relating to the Bonds. 3. Aggregation. The City and Authority will be aggregated and treated as one issuer for purposes of said $5,000,000 limitation, and together will not issue in 2008 more than $5,000,000 aggregate face amount of all tax exempt bonds (other than private activity bonds). 4. Concurring of Authority Resolution. The City hereby concurs in the Resolution adopted by the Authority this same date authorizing the issuance of its $3,275,000 General Obligation Tax Increment Bonds, Series 2008B. 5. Continuing Disclosure. The City is an obligated person with respect to the Bonds. The Mayor and Clerk of the City, or any other officer of the City authorized to act in their place, are hereby authorized and directed to execute on behalf of the City the Continuing Disclosure Undertaking in substantially the form presented to the Board of Commissioners of the Authority, 2144676v1 RESOLUTION 2008 subject to such modifications thereof or deletions thereto as are (i) consistent with the requirements under the Pool, (ii) required of the purchaser of the Bonds, and (iii) acceptable to the Mayor and the City Clerk. 6. Severability. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 7. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. ADOPTED this day of 2008. William H. Droste, Mayor ATTEST: Amy Domeier, City Clerk Motion by: Seconded by: Voted in Favor: Voted Against: Members Absent: 2144676v1 RESOLUTION 2008 CERTIFICATE STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF ROSEMOUNT I, Amy Domeier, duly appointed, acting and qualified City Clerk of the City of Rosemount, do hereby certify that I have examined the City of Rosemount records and the Minute Book of said City for the meeting of the of February, 2008 and that the attached copy of the RESOLUTION AUTHORIZING SMALL ISSUER REBATE EXCEPTION AUTHORITY was approved and is a true and correct copy of the City Proceedings relating to said Resolution. IN WITNESS WHEREOF, I have hereunto set my hand this day of 2008. Amy Domeier, City Clerk City of Rosemount 2144676v1