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CITY OF LINO LAKES <br />RESOLUTION NO. 24-85 <br /> <br />DECLARING THE OFFICIAL INTENT OF THE <br />CITY OF LINO LAKES TO REIMBURSE <br />CERTAIN EXPENDITURES FROM THE PROCEEDS <br />OF A NOTE FROM THE MINNESOTA PUBLIC FACILITIES AUTHORITY <br />TO BE ISSUED BY THE CITY <br />(2024 Water Treatment Plant) <br /> <br /> <br /> WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the <br />“Reimbursement Regulations”) providing that proceeds of tax-exempt obligations used to <br />reimburse prior expenditures will not be deemed spent unless certain requirements are met; and <br /> <br /> WHEREAS, the City expects to incur certain expenditures that may be financed temporarily <br />from sources other than tax-exempt obligations, and reimbursed from the proceeds of a tax-exempt <br />obligations; <br /> <br /> WHEREAS, the City has determined to make this declaration of official intent (“Declaration”) <br />to reimburse certain costs from proceeds of a note provided by the Minnesota Public Facilities <br />Authorities in accordance with the Reimbursement Regulations. <br /> <br /> NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes, Minnesota that: <br /> <br /> 1. The City proposes to undertake the building of a Water Treatment Plant (the <br />“Project”). <br /> <br /> 2. The City reasonably expects to reimburse the expenditures made for certain costs <br />of the Project from the proceeds of a loan from the Minnesota Public Facilities Authority in an <br />estimated maximum principal amount of $18,000,000.00. All reimbursed expenditures will be <br />capital expenditures, costs of issuance of the bonds, or other expenditures eligible for <br />reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. <br /> <br /> 3. This Declaration has been made not later than 60 days after payment of any <br />original expenditure to be subject to a reimbursement allocation with respect to the proceeds of <br />bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount <br />not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) “preliminary expenditures” <br />up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues that <br />finance or are reasonably expected by the City to finance the project for which the preliminary <br />expenditures were incurred. The term “preliminary expenditures” includes architectural, <br />engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement <br />84 of 99