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CITY OF LINO LAKES <br />RESOLUTION NO. 25-156 <br />DECLARING THE OFFICIAL INTENT OF THE CITY OF LINO LAKES TO <br />REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF <br />BONDS TO BE ISSUED BY THE CITY FOR THE OTTER LAKE ROAD <br />EXTENSION IMPROVEMENTS <br />WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the <br />"Reimbursement Regulations"), providing that proceeds of tax-exempt bonds used to <br />reimburse prior expenditures will not be deemed spent unless certain requirements are met; <br />and <br />WHEREAS, the City of Lino Lakes, Minnesota (the "City") expects to incur certain <br />expenditures with respect to projects that may be financed temporarily from sources other <br />than bonds, and reimbursed from the proceeds of tax-exempt bonds; and <br />WHEREAS, the City has determined to make a declaration of official intent (the <br />"Declaration") to reimburse certain costs from proceeds of bonds in accordance with the <br />Reimbursement Regulations. <br />NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes, Minnesota that <br />based on the following: <br />1. The City proposes to issue bonds to finance costs of the Otter Lake Road <br />extension improvements (the "Project") in the amount of up to $9,500,000. <br />2. The City reasonably expects to reimburse the expenditures made for certain <br />costs of the Project from proceeds of one or more series of bonds in an estimated principal <br />amount of up to $9,500,000. All reimbursed expenditures will be capital expenditures, costs of <br />issuance of the bonds, or other expenditures eligible for reimbursement under <br />Section 1.150-2(d)(3) of the Reimbursement Regulations. <br />3. This Declaration has been made not later than sixty (60) days after payment of <br />any original expenditure to be subject to a reimbursement allocation with respect to the <br />proceeds of bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) <br />costs in an amount not in excess of $100,000 or five percent (5%) of the proceeds of an issue; <br />or (c) "preliminary expenditures" up to an amount not in excess of twenty percent (20%) of the <br />aggregate issue price of the issue or issues that finance or are reasonably expected by the City <br />to finance the project for which the preliminary expenditures were incurred. The term <br />"preliminary expenditures" includes architectural, engineering, surveying, bond issuance, and <br />4922-1468-7862.1 <br />