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iCITYOF GEM LAKE RESOLUTION NO.2006-06 21 February 2006 A. RESOLUTION DECLARING THE OFFICIAL INTENT OF THE CITY OF GEM. LAKE, RAMSEY COUNTY,.MINNESOTA TO REIMBURSE CERTAIN ORIGINAL EXPENDITURES FOR GOVERNMENTAL PURPOSES..FRO.M THE PROCEEDS OF EXEMPT BONDS TO. BE ISSUED BY THE CITY OF GEM LAKE, .RAMSEY COUNTY, .MiNNE50TA AFTER THE PAYMENT OF SUCH ORIGINAL EXPENDITURES. WHERCAS., TreasuryR.egulatioiis, Section.1.T50-2 (the"ReiinbursenientRegulation'),prbmulgated pirrsiiantto Section 150. of the Internal Revenue Code of 1.996 as amended (the "Cade"), provides that the allocation of proceeds .of.tax- exempt bonds to expenditures for governmental purposes originally paid front a source otherthan stick'tax-exempt bonds will.be treated as expenditures of suc11 tax-exempt bonds only if certain requirements of the. Reimbursement Regulation are satisfied by the issuer of such tax-exerript blinds; and WHEREAS, the City of Gem Lake, -Ramsey County, Minnesota, a statutory city and•a political subdivision of;he State (if Miilnesiita (the. "City"), expects -to incur certain original expenditures .for governmental purposes to be financed temporarily from sources other. than proceeds of tax=exempt bonds and which are expected to be reimbursed from the proceeds of one or more series tax-tkempt bonds; now, therefore, be it RESOLVED, by the. City. Council of the City of Gem Lake as follows: 1. The City has a reasonable expectation (within the meaning.of Treasury Regulations, Section 1.148-1(b)) that it.. will make expenditures for the projects generally described. in EXHIBIT A attached to. this resolution (tile "Projects`'}. Tlie..City lias.a. reasonable expectation that it w'tll.issue;one.gr more* series of tax-exempt bonds (the ``Bonds' for each of.the Projects -in the estimated maximum principal amounts set forth in EXH.I.BiT A and.that it will make reirnbursement.allocations with respect.to such original expenditures from the proceeds of such .Bonds. '. The City Clerk is authorized to des ignate:.appropriate additions to EXHIBIT.A in circumstances wheretime is of the essence, and any such designation shall be teported.to the City Council at the earliest practicable date and shall.be filed with:the official .books and records of the City as provided in Section 3.. 3. This resolution shall be:niaintained as.pait ofthe.books avid records of the City at thee main adinitiisti-ative office 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(30) days after adoption.ofthis resolution and ending on the last date of issue of any Bonds. issued to reimburse expenditures described in EXHIBIT A. 4. This resolutionlias been adopted not later than sixty (60) days after payment.of any original expenditure to be subject toa.reirnbursement allocation with respect to the.proeeeds ofthe Bonds; 5: All reimbursernent atlbeations wish respect to the Bonds will be. made not later than eighteen (18) months after.the laterof- (1) the dateihe.oeiginal expenditure is paid;:or (ii.) the date the Project is placed in serviceorabanddned, but in no event more than three (3).yeors after the original expenditure. 6; AlIoriginal expenditures towhich reimbursement allocations are tobemade coiistitute:(I)capitalexpenditures, (ii) casts of issuance of the Bonds; (iii) expenditures for extraordinary,.non-recurring items that are.not customarily payable from current revenues, such as casualty losses or.extraordinary legal judgements in amounts .in excess Ofreasonable .insurance coverage, and for which no, reserve is maintained; or. (iv) a grant (as defined in Treasury Regulations, Section 1.149-6(d)(4), as. a: transfer far a governmental purpose of nioriey or property to a transferee that is, not a related party to or.an agent of the transferorwith respectrtq whicli nt#obligation or condition is:irnposed to directly or indirectly repay any amount to the transferor). 7. The limitations set forth. in paragraphs 4 and 5 of this resolut'ion.do riot apply to: (I) the costs of'issuance of the Bonds jii) an: amount not iii.excess of the. lesser of.S.100,000 or five (5%)'percent of the proceeds ofthe.Bonds, or (iii) .preliminary expenditures tip to an amount not in excess of twenty (20%) percent of the aggregate issue price: of the Bonds.that .finance or are reasonably expected by the City to finance the Projects for which the preliminary exl eriditures:were incurred. The term ."preliniinatvexpenditui-es"includes architectural, engineering, surveyjgg, soil testing; reimbursement for brand issuance, and similar.costs that are incurred prior;o commencement of acquisition, construction or rehabilitation of a Project, other than land acquisition; site preparation, and similar costs incident. to cormmencemenr.of construction.