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CITY OF LADE ELMO WASHINGTON COUNTY, MINNESOTA RESOLUTION 2001- 057 r WHEREAS, the City of Lake Elmo, Minnesota (the "Issuer") intends to acquire, construct and improve street improvements in the City of Lake Elmo (the "Project "); WHEREAS, the Issuer expects to pay certain expenditures (the 'Reimbursement Expenditures ") in connection with the Project prior to the issuance of indebtedness for the purpose of financing costs associated with the Project on a long -term basis; WHEREAS, the Issuer reasonably expects that debt obligations in an amount not expected to exceed $1,500,000 will be issued and that certain of the proceeds of such debt obligations will be used to reimburse the Reimbursement Expenditures; WHEREAS, Section 1.150 -2 of the Treasury Regulations (the "Regulations") require the Issuer to declare (i) its.reasonable official intent to reimburse prior expenditures for the Project with proceeds of a subsequent borrowing; (ii) that such expenditures will be paid out of the proceeds of the bond issue; (iii) that such declaration generally be made on or before the date the expenditure is actually paid, but not later than 60 days after payment of the expenditure; (iv) that the reimbursement allocation be made from bond proceeds not later than 18 months after the later of the date the expenditure is paid or the date the project is place in service (but in no event more than three years after the date of the expenditure is paid); and (v) that the expenditure is for a governmental purpose; and WHEREAS, Section 1.150 -2(f) of the Regulations does not require the Issuer to make official declaration of intent to reimburse itself: (i) regarding the costs of issuance of a bond; (ii) where the amount to be reimbursed does not exceed the lesser of $100,000 or five percent (5 %) of the proceeds of the bond issue; and (iii) regarding any "preliminary expenditures" (as that term is defined by Section 1.150- 2(f)(2) of the Regulations), up to an amount not in excess of twenty percent (20 %) of the aggregate issue price of the bonds reasonably expected to finance the project for which the preliminary expenditures have been incurred;