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Section 6. Declaration of Official Intent to Reimburse Expenditures. 6.01 The Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the "Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met;the City expects to incur certain expenditures with respect to the Project that may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of tax-exempt bonds. 6.02 The City has determined to make a declaration of official intent(the"Declaration") to reimburse certain costs with respect to the Project from proceeds of the Bonds in accordance with the Reimbursement Regulations. 6.03 All reimbursed expenditures will be capital expenditures, costs of issuance of the Bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. 6.04 This Declaration has been made not later than sixty(60)days after payment of any original expenditure to be subject to a reimbursement allocation with respect to the proceeds of the Bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000 or 5% of the proceeds of an issue; or (c) "preliminary expenditures" up to an amount not in excess of 20% of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City to finance the project for which the preliminary expenditures were incurred. The term "preliminary expenditures" includes architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation, and similar costs incident to commencement of construction. 6.05 This Declaration is an expression of the reasonable expectations of the City based on the facts and circumstances known to the City as of the date hereof. The anticipated original expenditures for the Project and the principal amount of the Bonds described herein are consistent with the City's budgetary and financial circumstances. No sources other than proceeds of the Bonds to be issued by the City are,or are reasonably expected to be,reserved, allocated on a long- term basis, or otherwise set aside pursuant to the City's budget or financial policies to pay such expenditures. 6.06 This Declaration is intended to constitute a declaration of official intent for purposes of the Reimbursement Regulations. PASSED BY THE CITY COUNCIL OF THE CITY OF ARDE HILLS, NNESOTA ON THIS LOTH DAY OF FEBRUARY,2025. , - ,,,,, / David Grant, Mayor ATTEST• �4& f N ,`� Julie Hans , City Clerk To view the final document,access adopted Resolutions via Arden Hills Public Laserfiche Weblink by visiting cityofardenhills.org and clicking on Archived Documents under Helpful Links on our main webpage. 2 AR200-22-1008899.v 1