HomeMy WebLinkAboutResolution 2001-057CITY OF LADE ELMO
WASHINGTON COUNTY, MINNESOTA
RESOLUTION 2001- 057
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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;
NOW, THEREFORE, the Issuer declares:
Section 1. The Issuer finds and determines that the foregoing recitals are true and
correct.
Section 2. This declaration is made solely for purposes of establishing compliance
with the requirements of Section 1.150 -2 of the Treasury Regulations. This declaration does not
bind the Issuer to make any expenditure, incur any indebtedness, or proceed with the Project.
Section 3. The Issuer hereby declares its official intent to use proceeds of
indebtedness to reimburse itself for Reimbursement Expenditures.
Section 4. This declaration shall take effect from and after its adoption.
Adopted: August 7, 2001
Lee Hunt
Mayor
ATTESTED:
Ma Kuc tZrator r
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8/219/159700