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Council member Kuether introduced the <br />following resolution and move its adoption: <br />CITY OF LINO LAKES <br />RESOLUTION NO. 92 - 03 <br />RESOLUTION ESTABLISHING PROCEDURES <br />RELATING TO COMPLIANCE WITH REIMBURSEMENT BOND <br />REGULATIONS UNDER THE INTERNAL REVENUE CODE <br />BE IT RESOLVED by the City Council (the "Council") of the City <br />of Lino Lakes, Minnesota (the "City"), as follows: <br />1. Recitals. <br />(a) The Internal Revenue Service has issued <br />proposed Treasury Regulations Section 1.103-17 (as proposed <br />and/or finally adopted, the "Regulations") dealing with <br />reimbursement bond proceeds, which would include those <br />proceeds of the City's bonds to be used to reimburse the City <br />for any project expenditure paid by the City prior to the time <br />of the issuance of those bonds. <br />(b) The Regulations generally require that the City <br />make a prior declaration of its official intent to reimburse <br />itself for such prior expenditures out of the proceeds of <br />subsequently issued taxable or tax exempt borrowings, that <br />such declaration generally be made prior to but not more than <br />two years before the time the expenditure is actually paid, <br />that the bonding occur and the reimbursement allocation be <br />made from the proceeds of such bonds within one year of the <br />payment of the expenditure (or not later than one year after <br />the project is placed in service, if that is a longer period) , <br />and that the expenditure relate to property having a <br />reasonably expected economic life of at least one year. <br />(c) The City desires to comply with requirements of <br />the Regulations and to establish certain procedures relating <br />thereto. <br />(d) The City's bond counsel has advised the City <br />that the Regulations do not apply, and hence the provisions of <br />this Resolution are intended to have no application, to <br />payments of City project costs first made by the City out of <br />the proceeds of bonds issued prior to the date of such <br />payments. <br />2. Official Intent Declaration. The Regulations, in the <br />situations in which they apply, require the City to have made an <br />official declaration of its reasonable intent (hereinafter referred <br />to as the "Official Intent Declaration" or the "Declaration") to <br />reimburse itself for previous paid project expenditures out of the <br />proceeds of subsequently issued taxable or tax exempt bonds or <br />