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CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO.2021-021 RESOLUTION RELATING TO THE FINANCING OF THE CITY'S STREET IMPROVEMENTS AND SANITARY SEWER PROJECTS; DECLARING THE OFFICIAL INTENT TO REIMBURSE CERTAIN CAPITAL EXPENDITURES OF THE PROJECT 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 maybe 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 2021, including without limitation the County Manning/TH 36 Interchange project, the Old Village Phase 5 and 6 project, the Heritage Farms project and the Tamarack Farms Estates project (the "Street Improvements") and certain improvements to the City's sanitary sewer system, including without limitation utility improvements in connection with the Old Village Phase 5 and 6 project, the Heritage Farms project, and the Hamlet on Sunfish Lake sewer project, to be constructed colmmencing in 2021 (the "Sanitary Sewer bmprovements" and, together with the Improvements, the "Project") 2. The City reasonably expects to reimburse the expenditures made for certain costs of the (i) Street Improvements from the proceeds of tax-exempt bonds in a principal amount currently estimated not to exceed $7,018,800; and (ii) Sanitary Sewer Improvements from the proceeds of tax- LA515-85-698213.v2 _ 1 _