25-155 - Resolution - Public Works Building - Bonds

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CITY OF LINO LAKES RESOLUTION NO. 25-155 DECLARING THE OFFICIAL INTENT OF THE CITY OF LINO LAKES TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY OR THE LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY FOR THE PUBLIC WORKS BUILDING PROJECT WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 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; and WHEREAS, the City of Lino Lakes, Minnesota (the "City") expects to incur certain expenditures with respect to projects that may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of tax-exempt bonds; and WHEREAS, the City has determined to make a declaration of official intent (the "Declaration") to reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes that based on the following: 1. The City or the Lino Lakes Economic Development Authority (the "Authority") proposes to issue bonds to finance costs of the public works building project (the "Project") in the amount of up to $29,500,000. 2. The City reasonably expects to reimburse the expenditures made for certain costs of the Project from proceeds of one or more series of bonds in an estimated principal amount of up to $29,500,000, which may be issued by the City or the Authority. All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(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 bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000 or five percent (5%) of the proceeds of an issue; 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 4898-7433-2534.1