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CITYOF LAKE ELMO <br />WASHINTON COUNTY <br />STATE OF MINNNESOTA <br />RESOLUTION NO. 2018-085 <br />RESOLUTION ESTABLISHING PROCEDURES RELATING TO COMPLIANCE <br />WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL <br />REVENUE CODE IN CONNECTION WITH THE GENERAL OBLIGATION BOND <br />ISSUES OR EQUIPMENT CERTIFICATES <br />BE IT RESOLVED by the City Council (the "Council") of the City of Lake Elmo, <br />Minnesota (the "City"), as follows: <br />1, Recitals. <br />(a) The Internal Revenue Service has issued Treasury Regulations, Section 1. 150-2 (as <br />the same may be amended or supplemented, the "Regulations"), dealing with "reimbursement <br />bond" proceeds, being proceeds of bonds used to reimburse the City for any project expenditure <br />paid by the City prior to the time of the issuance of those bonds, including without limitation, <br />General obligation bonds or equipment certificates, or other obligations (collectively, the "bonds") <br />in one or more series. <br />(b) The Regulations generally require that the City (as the issuer of or the primary <br />obligor under the Bonds) make a declaration of intent to reimburse itself for such prior <br />expenditures out of the proceeds of the Bonds, that such declaration be made not later than 60 days <br />after the expenditure is actually paid, and that the bonding occur and the written reimbursement <br />allocation. be made from the proceeds of the Bonds within 18 months after the later of (1) the date <br />of payment of the expenditure or (2) the date the project is placed in service (but in no event more <br />than 3 years after actual payment). <br />(c) The provisions of this Resolution are intended to have no application, to payments <br />of City project costs first made by the City out of the proceeds of bonds issued prior to the date of <br />such payments. <br />2. Official Intent Declaration. The Regulations, in the situations in which they apply, <br />require the City to have declared an official intent (the "Declaration") to reimburse itself for <br />previously paid project expenditures out of the proceeds of the Bonds. This Declaration relates to <br />the following projects (collectively, the "Project") and the costs thereof to be financed: <br />2018 Improvement projects $ 2,33800 <br />Water projects 374,000 <br />Sewer projects 460,000 <br />Storm Sewer projects 24,600 <br />Fire Truck 700,000 <br />Dump Truck 240,00 <br />Total $ 4,136fi00 <br />