Resolution 2005-052 - Laserfiche WebLink

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Councilmember DeLapp introduced the following resolution and moved its adoption, which motion was seconded by Counciimember Johnson RESOLUTION AUTHORIZING REIMBURSEMENT OF EXPENDITURES BE IT RESOLVED by the City Council (the "Council ") of Lake Elmo, Minnesota (the "City ") as follows: 1. Recitals. (a) The Department of Treasury has promulgated final regulations governing the use of proceeds of tax - exempt bonds, all or a portion of which are to be used to reimburse an issuer for project expenditures made by the issuer prior to the date of issuance of such bonds. Those regulations (Treasury Regulations, Section 1.150 -2) (the "Regulations ") require that the issuer adopt a statement of official intent to reimburse an original expenditure not later than 60 days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds within 18 months after the date the expenditure is paid or the date the project is placed in service or abandoned, but in no event more than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. (b) The City desires to comply with requirements of the Regulations with respect to the project hereinafter identified. 2. Official intent Declaration. (a) The City has determined that it will undertake a project (the "Project ") comprising certain improvements to the City's water utility system (the "System "). The cost of the Project is presently estimated at $-4, 987 , 000 (b) Other than (i) expenditures to be paid or reimbursed from sources other than the Bonds (as hereinafter defined), (ii) expenditures constituting preliminary expenditures within the meaning of Section 1.150- 2(0(2) of the Regulations, or (iii) de minimis expenditures (as defined in Section 1.150- 2(f)(1) of the Regulations), no expenditures for the Project have heretofore been paid by the City and no expenditures will be paid by the City until after the date of this Resolution. (c) The City reasonably expects to issue General Obligation Water Revenue Bonds in an estimated maximum aggregate principal amount of $4,500,000 (the "Bonds ") after the date of payment of all or a portion of the costs of the Project. All reimbursed expenditures shall be capital expenditures, a cost of issuance of the Bonds or other expenditures eligible for reimbursement under Section 1.150- 2(d)(3) of the Regulations. 3. Budgetary Matters. As of the date hereof, there are no funds of the City reserved, allocated on a long term -basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long -term basis or otherwise set aside) to provide permanent financing for the expenditures related to the Project, other than pursuant to the issuance of the Bonds. This