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<br /> <br />e <br /> <br />RESOLUTION NO. 94-3 <br /> <br />A RESOLUTION AMENDING RESOLUTION 92-11 <br /> <br />RESOLUTION ESTABLISHING PROCEDURES <br />RELATING TO COMPLIANCE WITH REIMBURSEMENT BOND <br />REGULATIONS UNDER THE INTERNAL REVENUE CODE <br /> <br />BE IT RESOLVED by the City Council (the "Council") of the city <br />of Elk River, Minnesota (the "City"), as follows: <br /> <br />1. Recitals. <br /> <br />(a) The Internal Revenue Service has issued Treasury <br />Regulations, Section 1.150-2 (as the same may be amended or <br />supplemented, the "Regulations"), dealing with "reimbursement <br />bond" proceeds, being proceeds of the City's bonds used to <br />reimburse the City for any project expenditure paid by the <br />City prior to the time of the issuance of those bonds. <br /> <br />e <br /> <br />(b) The Regulations generally require that the City make <br />a declaration of intent to reimburse itself for such prior <br />expenditures out of the proceeds of subsequently issued bonds, <br />that such declaration be made not later than 60 days after the <br />expenditure is actually paid, and that the bonding occur and <br />the written reimbursement allocation be made from the proceeds <br />of such bonds within 18 months after the later of (1) the date <br />of paYment of the expenditure or (2) the date the project is <br />placed in service (but in no event more than 3 years after <br />actual paYment). <br /> <br />(c) The City heretofore implemented procedures for <br />compliance with the predecessor versions of the Regulations <br />and desires to amend and supplement those procedures to ensure <br />compliance with the Regulations. <br /> <br />e <br /> <br />(d) The City's bond counsel has advised the City that <br />the Regulations do not apply, and hence the provisions of this <br />Resolution are intended to have no application, to paYments of <br />City project costs first made by the City out of the proceeds <br />of bonds issued prior to the date of such paYments. <br /> <br />2. Official Intent Declaration. The Regulations, in the <br />situations in which they apply, require the City to have declared <br />an official intent (the "DeClaration") to reimburse itself for <br />previously paid project expenditures out of the proceeds of <br />subsequently issued bonds. The Council hereby authorizes the City <br />Finance Directorto make the City's Declarations or to delegate from <br />time to time that responsibility to other appropriate City <br />employees. Each Declaration shall comply with the requirements of <br />the Regulations, including without limitation the following: <br />