HomeMy WebLinkAbout2024-056CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION DECLARING THE OFFICIAL INTENT TO REIMBURSE
CERTAIN CAPITAL EXPENDITURES FROM THE PROCEEDS OF TAX-
EXEMPT BONDS AND ESTABLISHING COMPLIANCE WITH
REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL
REVENUE CODE
WHEREAS, the Internal Revenue Service has issued Treasury Regulations, Section 1.150-2
(the "Reimbursement Regulations") under the Internal Revenue Code of 1986, as amended (the
"Code"), providing that proceeds of tax-exempt bonds used to reimburse prior capital expenditures
will not be deemed spent unless certain requirements are met; and
WHEREAS, the City of Lake Elmo, Minnesota, municipal corporation and a political
subdivision of the State of Minnesota (the "City"), expects to incur certain expenditures that may be
financed temporarily from sources other than tax-exempt bonds, and later reimbursed from the
proceeds of tax-exempt bonds; and
WHEREAS, the City has determined to make a declaration of its official intent (the
"Declaration") to reimburse certain capital costs from the proceeds derived from the sale of tax-
exempt bonds issued by the City or another political subdivision in accordance with the
Reimbursement Regulations.
LAKE • MWNESOTA AS FOLLOWS:
1. The City may incur certain capital expenditures in connection with certain street
improvements to be constructed commencing in 2024 and 2025, including without limitation the 30th
St. project, the UP Railroad Crossing - Village Parkway project, and the Village East Trunk
Watermain project (the "Project").
2. The City reasonably expects to reimburse the expenditures made for certain costs of
the Project from the proceeds of tax-exempt bonds in a principal amount currently estimated not to
exceed $2,000,000. All reimbursed expenditures related to the Project will be capital expenditures,
costs of issuance of the tax-exempt bonds or other expenditures eligible for reimbursement under
Section 1. 1 50-2(d)(3) of the Reimbursement Regulations.
3. This Declaration has been made not later than 60 days after payment of any original
expenditure to be subject to a reimbursement allocation with respect to the proceeds of tax-exempt
bonds, except for the following expenditures: (a) costs of issuance of tax-exempt bonds; (b) costs in
an amount not in excess of the lesser of $100,000 or 5% of the proceeds of the tax-exempt bonds; or
(c) "preliminary expenditures" up to an amount not in excess of 20% of the aggregate issue price of
the tax-exempt bonds that are reasonably expected by the City to finance the Project. The term
LA515-142-942862.v 1 _ 1 _
--pre Iminary expenctitures" mc ucies arc engineering, surveying, soil testing, bond issuance
and similar costs that are incurred prior to commencement of acquisition, construction, or
rehabilitation of the Project, excluding land acquisition, site preparation, and similar costs incident to
commencement of construction.
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2 are consistent with the City's budgetary and financial circumstances. No sources other than
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or otherwise set aside pursuant to the City's budget or financial policies to pay such expenditures for
which bonds are issued.
6. The action is intended to constitute a declaration of official intent for purposes of the
Reimbursement Regulations,
By:
Charles Cadenhead
Mayor
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LA515-142-942862A