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CITY OF SAINT ANTHONY <br />STATE OF MINNESOTA <br />RESOLUTION 21-009 <br />A RESOLUTION FOR THE UPDATED 2021 STREET IMPROVEMENT <br />BOND REIMBURSEMENT <br />BE IT RESOLVED by the City Council of the City of St. Anthony (the "City"), <br />as follows: <br />1. Recitals. <br />(a) The Internal Revenue Service has issued Section 1.150-2 of the Income <br />Tax Regulations (the "Regulations") dealing with the issuance of obligations, all or a <br />portion of the proceeds of which are to be used to reimburse the City for expenditures <br />made by the City prior to the date of issuance. <br />(b) The Regulations generally require that the City make a prior declaration of <br />its official intent to reimburse itself for such prior expenditures out of the proceeds of a <br />subsequently issued borrowing no later than 60 days after payment of such expenditure, <br />that the borrowing occur and the reimbursement allocation be made from the proceeds of <br />such borrowing within eighteen months of the payment of the expenditure or, if longer, <br />within eighteen months of the date the project is placed in service, but in no event more <br />than three years after the date the original expenditure was paid and that the expenditure <br />must either be a capital expenditure, or a cost of issuance of the obligation. <br />2. Official Intent Declaration. <br />The City desires to comply with requirements of the Regulations with respect to the 2021 Street <br />& Utility Project (the Project) in order to preserve the option of the City to finance the costs of <br />the Project with tax-exempt obligations. The total cost of the Project is approximately <br />$3,000,000 exclusive of financing costs and capitalized interest, and the City intends to finance a <br />portion of the costs of the Project from proceeds of a borrowing. The maximum amount of debt <br />to be issued for the Project is $3,000,000. The City reasonably expects to reimburse all or a <br />portion of the expenditures made for costs of the Project out of the proceeds of an obligation, as <br />defined in the Regulations, and the expenditures made for costs of the Project to be reimbursed <br />will be of a type that is properly chargeable to capital account (or would be so chargeable with a <br />proper election such as an election under Section 266 of the Code) under general federal income <br />tax principles. <br />3. Budgetary Matters. As of the date hereof, there are no City funds reserved, allocated on a long <br />term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long term <br />basis or otherwise set aside) to provide permanent financing for the expenditures related to the <br />Project to be financed from proceeds of a borrowing. This resolution, therefore, is determined to <br />be consistent with the City's budgetary and financial circumstances as they exist or are <br />reasonably foreseeable on the date hereof, all within the meaning and content of the Regulations. <br />