HomeMy WebLinkAbout6.d. Authorization of Small Issuer Rebate Exception Authority for Port Authority G.O. Bonds 2000Bs
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: August 15, 2000
AGENDA ITEM: Authorization of Small Issuer Rebate
AGENDA SECTION:
Exception Authority for Port Authority G.O. Bonds 2000B
Consent
PREPARED BY: Jeff May, Finance Director
AGEND .
. IF 6
ATTACHMENTS: Resolution
APPROVED BY:
Attached is a resolution that the City must approve relating to the Port Authority debt that was issued
earlier this evening. Because we anticipate issuing less than $5,000,000 in total debt this year, we
will qualify as a small issuer and be exempt from certain arbitrage requirements. The City and the
Port Authority's total debt will be less than $5,000,000 and the resolution the City is passing
acknowledges that the Port Authority's debt is included in that $5,000,000 total.
RECOMMENDED ACTION:
Motion to adopt a RESOLUTION AUTHORIZING SMALL ISSUER REBATE EXCEPTION
AUTHORITY.
COUNCIL ACTION:
A
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2000 -
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
2000, is allocated to the Authority below.
2. Allocation The City hereby allocates to the Authority
$1,750,000 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 2000. Such allocation is made
solely with respect to the Bonds, is irrevocable and is made
before the issuance of the Bonds. Said $1,750,000 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.
1196831.1
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RESOLUTION 2000 -
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 2000 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 $1,750,000 General Obligation
Bonds, Series 20OOB.
5. Severabilitx 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.
6. 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.
1196831.1
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ok
RESOLUTION 2000
ADOPTED this 15th day of August, 2000.
Cathy Busho, Mayor
ATTESTS
Linda J. Jentink, City Clerk
CERTIFICATION
I hereby certify that the foregoing is a true and correct copy of
a resolution presented to and adopted by the City Council of
Rosemount at a duly authorized meeting thereof, held on the 15
day of August, 2000, as disclosed by the records of said City in
my possession.
(SEAL)
Linda J. Jentink, Rosemount City Clerk
Motion by:
Voted in favor:
Voted Against:
Members Absent:
1196831.1
Seconded by:
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