2.5 ERMUSR 01-12-2021 - Laserfiche WebLink

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Member ______________introduced the following resolution and moved its adoption: RESOLUTION NO. 21-1 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 Elk River Municipal Utilities Commission, public body corporate and politic of the State of Minnesota (the “Commission”), 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 Commission 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 Commissionor another political subdivision in accordance with the Reimbursement Regulations. NOW, THEREFORE, BE IT RESOLVED BY THE ELK RIVER MUNICIPAL UTILITIES COMMISSION AS FOLLOWS: 1. The Commission may incur certain capital expenditures in connection with the construction of a field house facility to house service trucks, inventory and offices (collectively, the “Project”) 2. The Commission 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 $14,000,000. 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 the tax-exempt bonds that are reasonably expected by the Commission to finance the Project. The term “preliminary expenditures” includes architectural, engineering, surveying, soil testing, bond EL185-13-697167.v1 50