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Home My WebLink About2026-015CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2026 - 015 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. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKE ELMO, MINNESOTA AS FOLLOWS: 1. The City may incur certain capital expenditures in connection with certain street improvements to be constructed commencing in 2026 and 2027, including without limitation the 2026 Street Improvements, the 2027 Street Improvements, 45th /47t1i/Julep Street Improvements, and the TH36-Lake Elmo Ave (CSAH 17) Improvements (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 $8,000,000. 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 1.150-2(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 LA515-142-942862.v1 4- the tax-exempt bonds that are reasonably expected by the City to finance the Project. The term "preliminary expenditures" includes architectural, 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 comrencement of construction. 4. A reimbursement allocation with respect to tax-exempt bonds will be made not later than 18 months after the later of. (i) the date the original expenditure is paid; or (ii) the date the Project is placed in service or abandoned, but in no event more than 3 years after the original expenditure. 5. This Declaration is an expression of the reasonable expectations of the City based on the facts and circumstances lmown to the City as of the date hereof. The anticipated original expenditures for the Project and the principal amount of the tax-exempt bonds described in paragraph 2 are consistent with the City's budgetary and financial circumstances. No sources other than proceeds of tax-exempt bonds are reasonably expected to be reserved, allocated on a long-term basis, 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. APPROVED by the Lake Elmo City Council on this 17t" day of March, 2026. By: Agdzz�& Charles Cadenhead Mayor ATTEST: XJ ie on C y lerlc LA515-142-942862,vl _2_ STATE OF MINNESOTA ) COUNTY OF WASHINGTON ) SS. CITY OF LADE ELMO ) I, the undersigned, being the duly qualified and acting Cleric of the City of Lake Elmo, Minnesota (the "City"), DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full and true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on March 17, 2026, insofar as such minutes relate to a resolution declaring official intent. WITNESS my hand on this 10 day of Nr t l 2026. Ce LA515-142-942862.v1 _3_ CITY OF LAKE ELMO CITY COUNCIL MINUTES March 17, 2026 CALL TO ORDER/PLEDGE OF ALLEGIANCE Mayor Cadenhead called the meeting to order at 7:00 pm. PRESENT: Mayor Charles Cadenhead and Councilmembers Matt Him (via video) and Nick Kragness. ABSENT: Councilmembers Nick Dragisich and Jeff Holtz. Staff present: Administrator Miller, City Attorney Sonsalla, City Engineer Stanley, Community Development Director Stopa, Senior Planner Jensen, Finance Director Hadler and Finance Coordinator Kraemer. APPROVAL OF AGENDA Councilmember Kragness, seconded by Councilmember Him, moved TO APPROVE THE AGENDA AS PRESENTED. Roil call vote taken. Motion passed 3 — 0. Public Comments / Inquiries None ACCEPT MINUTES Councilmember Kragness, seconded by Councilmember Him, moved TO ACCEPT THE MINUTES OF THE MARCH 3, 2026 SPECIAL CITY COUNCIL MEETING AS PRESENTED. Roll call vote taken. Motion passed 3 — 0. CONSENT AGENDA 1. Approve Payment of Disbursements 2. Approve Operator III Hiring 3. Approve Budget Amendment --Tree Fund 4. Approve Reimbursement Resolution 5. Approve Engineering Design Standards Updates Councilmember Kragness, seconded by Councilmember Him, moved TO APPROVE THE CONSENT AGENDA AS PRESENTED. Roll call vote taken. Motion passed 3 - 0. Page113 REGULAR AGENDA ITEM 1: Letter of Support for Valley Community Center David Frank, Valley Community Center, presented the plan for locating a community center in Lake Elmo and requested a letter of support from the city to be Included in a grant request to a local foundation. Councilmember Kragness, seconded by Councilmember Him, moved TO APPROVE THE LETTER OF SUPPORT FOR THE VALLEY COMMUNITY CENTER. Roll call vote taken. Motion passed 3 — 0. ITEM 2: Northstar 3rd Addition Final Plat, Final PUD and Development Agreement Senior Planner Jensen presented the request from GWSA Land Development, LLC for approval of the third and final addition for 34 single family home in outlot K of the Northstar 15t Addition, and the 3rd Addition Development Agreement. Councilmember Kragness, seconded by Councilmember Him, moved TOADOPTRESOLUTION 2026-016 APPROVING THE FINAL PLAT AND PUD FOR NORTHSTAR 3RD ADDITION,-- - - - - - REQUESTED BY GWSA LAND DEVELOPMENT, I.I.C. FOR THE SUBJECT PROPERTY BASED ON THE FINDINGS OF FACT AND RECOMMENDED CONDITIONS OF APPROVAL LISTED IN THE STAFF REPORT. Roll call vote taken. Motion passed 3 — 0. Councilmember Kragness, seconded by Councilmember Him, moved TO ADOPT RESOLUTION 2.026-017 APPROVING THE DEVELOPER'S AGREEMENT FOR NORTH STAR 3rd ADDITION. Roll call vote taken. Motion passed 3 — 0. ITEM 3: Accept Bids and Award Contract for CSAH 14 Watermain Improvements City Engineer Stanley reported on the need for replacement of approximately 1,700 feet of the watermain beneath CSAH 14. Engineer Stanley reviewed the proposed Improvements, bids received and estimated project costs. Discussion was held regarding road closures and detours. Councilmember Kragness, seconded by Councilmember Him, moved TO APPROVE RESOLUTION NO.2026-019, ACCEPTING BIDS AND AWARDING A CONTRACTTO MILLER EXCAVATING, INC., FOR THE BID AMOUNT OF $687,206.54 FOR THE CSAH 14 WATERMAIN IMPROVEMENTS. Roll call vote taken. Motion passed 3-0. Councilmember Kragness, seconded by Councilmember Him, moved TO AUTHORIZE THE CITY ADMINISTRATOR TO ENTER INTO A MATERIAL TESTING CONTRACT FOR THE PROJECT CONSTRUCTION PHASE SERVICES IN THE NOT -TO -EXCEED AMOUNT OF $20,000 FOR THE CSAH 14 WATERMAIN IMPROVEMENTS. Roll call vote taken. Motion passed 3-0. Page 213 ITEM 4: Utility Financial Management Plan Updates Finance Coordinator Kraemer reviewed updates to the city's utility financial management plan and utility rate adjustments for the city's water, sewer and stormwater utilities. Councilmember Kragness, seconded by Councilmember Him, moved TO APPROVE ORDINANCE 2026-03 AMENDING THE 2026 FEE SCHEDULE TO INCLUDE THE UTILITY RATE UPDATES. Roll call vote taken. Motion passed 3 — 0. COUNCIL REPORTS None STAFF REPORTS AND ANNOUNCEMENTS None Meeting adjourned at 7:56 p.m. LAKE ELMO CITY COUNCIL ATTEST: / 4 Charles Cadenhead, Mayor Julie oh so City Clerk Page 313