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CITY OF GEM LAKE RESOLUTION NO.2004-0.7 24 May 2004 RE$OL VTiON 61RCLARING THE OFFICIAL INTENT OF THE CITY OF. GEM LAKE, M[NN'ESOTA TO REIMBURSE. CERTAIN ORIGINAL EXPENDITURES FOR GOVERNMENTAL PURPOSE& FROM 'THE PROCEEDS OF TAX- EXEMPT BONDS TO BE ISSUED BY THE .CITY OF GEM LAKE, MINNESOTA :AFTER THE. PAYMENT OF.S.UCH ORIGINAL EXPENDITURES WHEREAS, Treasury Regulations, Section 1.150-2- (the "Reimbursement Regulation"), promulgated pursuant to Section 15.0 of the Internal Revenue: Code of 1986, as amended (the "Code"), provides that the allocation of the proceeds of tax-exempt bends to. expenditures for governmental .purposes originally paid.from a source other than such tax-exempt bonds wiil lie treated as expenditures of such tax-exempt bonds only if certain requirements of the Reimbursement Regulation are satisfied by the issuer of such tax-exempt bonds; and WHEREAS, the City of Gem Lake, Minnesota, a statutory city iihd apolitical .subdivision of the State of Minnesota. (the'"City"),;expects to ,incur .certain original expenditures for governmental purposes to be financed tempoiaiily'from sources other than: the proceeds of tax-exempt bonds and which are expected to be reimbursed from the proceeds of one or more series of tax-exempt. bonds; NOW, THEREFORE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEM LAKE AS FOLLOWS: 1. 'rhe City has a reasonable expectation (within the meaning of Treasury. Regulations, Section i,143-1(b)). that it will make expenditures for:the-pm generally described in EXHIBIT A attached to this: resoltttiott (the "Projects"): "he City itas a reasonable expectation-tbat it will issue.one��or more.series of tax-exempt bonds (the "Bonds.") for:each ofthe Projects in the.estimated -maximum princjpal-amounts set forth in EXHIBIT A and that: it will.make: reimbursement allocations. Nvith.respect to such original expenditures fromAle.proceeds ofsuch Bonds.. 2. The City .Clerk is authorized to.designate appropriate.additions. to. EXHIBIT A. in circumstances where time is of the essence, and any;such designation shall be reported :to the Council at the earliest practicable date. And shall be fled »with the official books. and records of the City as. provided in.Section 3. 3. This: resolution shall be maintained.6s part of the books and records of the City -at the main Administrative 0-ice. of the City; and shall be continuously available during normal business hours of the. City :on every`business day of the period beginning not more than. thirty days after adoption of this resolution and ending on the last date of issue ofatiy Bonds issued to reimburseexpenditures described in EXHIBIT A. 4. This resolution has been -adopted.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 Bonds. S. All reimbursement allocations with respect to cite Bonds will'be made not later than eighteen.,(]8j months .af er,the later of.. (i) the date'the original expenditure is paid; or (ii) the date the Project is placed in service or abandoned, but in nci event more.thau three (3) years:after the original expenditure. 6. All original expenditures to which reimbursement allocations are to be. made constitute: (i) capital expenditures; (ii) costs of issuance of the Bonds; (iii) expenditures for extraordinary, nonrwprring items that are not. custornarilp payable from current revenues, such. as.cas.ualty losses or extraordinary legal judgments In amounts in excess of re:rsortiable..irtsurance coverage; and for whictv no reserye:.is maintained; or (iv). a...grant. (as defined in Treasury Regulations; Section L ] 4&6(d)(4), as a transfer fora governmental purpose of money or property to a transferee that is nor a :.related party to or an agent.of the transferor with.respect to which no -obligation or condition is imposed to difiectly or indirectly repay any amount to tht: trp*iiirox),