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-1-LA515-142-942862.v1 <br />CITY OF LAKE ELMO <br />WASHINGTON COUNTY <br />STATE OF MINNESOTA <br />RESOLUTION NO. 2026 - 015 <br />RESOLUTION DECLARING THE OFFICIAL INTENT TO REIMBURSE <br />CERTAIN CAPITAL EXPENDITURES FROM THE PROCEEDS OF TAX- <br />EXEMPT BONDS AND ESTABLISHING COMPLIANCE WITH <br />REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL <br />REVENUE CODE <br />WHEREAS, the Internal Revenue Service has issued Treasury Regulations, Section 1.150-2 <br />(the “Reimbursement Regulations”) under the Internal Revenue Code of 1986, as amended (the <br />“Code”), providing that proceeds of tax-exempt bonds used to reimburse prior capital expenditures <br />will not be deemed spent unless certain requirements are met; and <br />WHEREAS, the City of Lake Elmo, Minnesota, municipal corporation and a political <br />subdivision of the State of Minnesota (the “City”), expects to incur certain expenditures that may be <br />financed temporarily from sources other than tax-exempt bonds, and later reimbursed from the <br />proceeds of tax-exempt bonds; and <br />WHEREAS, the City has determined to make a declaration of its official intent (the <br />“Declaration”) to reimburse certain capital costs from the proceeds derived from the sale of tax- <br />exempt bonds issued by the City or another political subdivision in accordance with the <br />Reimbursement Regulations. <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF <br />LAKE ELMO, MINNESOTA AS FOLLOWS: <br />1.The City may incur certain capital expenditures in connection with certain street <br />improvements to be constructed commencing in 2026 and 2027, including without limitation the 2026 <br />Street Improvements, the 2027 Street Improvements, 45th /47th/Julep Street Improvements, and the <br />TH36-Lake Elmo Ave (CSAH 17) Improvements (the “Project”). <br />2.The City reasonably expects to reimburse the expenditures made for certain costs of <br />the Project from the proceeds of tax-exempt bonds in a principal amount currently estimated not to <br />exceed $8,000,000. All reimbursed expenditures related to the Project will be capital expenditures, <br />costs of issuance of the tax-exempt 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 60 days after payment of any original <br />expenditure to be subject to a reimbursement allocation with respect to the proceeds of tax-exempt <br />bonds, except for the following expenditures: (a) costs of issuance of tax-exempt bonds; (b) costs in <br />an amount not in excess of the lesser of $100,000 or 5% of the proceeds of the tax-exempt bonds; or <br />(c) “preliminary expenditures” up to an amount not in excess of 20% of the aggregate issue price of