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Councilmember Elvig introduced the following resolution and moved for its adoption: <br />RESOLUTION #09-10-241 <br />RESOLUTION ESTABLISHING PROCEDURES RELATING TO COMPLIANCE <br />WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL <br />REVENUE CODE <br />NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF <br />RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: <br />1) Recitals. <br />a. The Internal Revenue Service has issued Treasury Regulations, Section 1.150-2 (as <br />the same may be amended or supplemented, the "Regulations"), dealing with <br />"reimbursement bond" proceeds, being proceeds of bonds used to reimburse the City <br />for any project expenditure paid by the City prior to the time of the issuance of those <br />bonds. <br />b. The Regulations generally require that the City (as the issuer of or the primary obligor <br />under the bonds) make a declaration of intent to reimburse itself for such prior <br />expenditures out of the proceeds of subsequently issued bonds, that such declaration <br />be made not later than 60 days after the expenditure is actually paid, and that the <br />bonding occur and the written reimbursement allocation be made from the proceeds <br />of such bonds within 18 months after the later of (1) the date of payment of the <br />expenditure or (2) the date the project is placed in service (but in no event more than <br />3 years after actual payment). <br />c. The City heretofore implemented procedures for compliance with the predecessor <br />versions of the Regulations and desires to amend and supplement those procedures to <br />ensure compliance with the Regulations. <br />d. The City's bond counsel has advised the City that the Regulations do not apply, and <br />hence the provisions of this Resolution are intended to have no application, to <br />payments of City project costs first made by the City out of the proceeds of bonds <br />issued prior to the date of such payments. <br />2) Official Intent Declaration. The Regulations, in the situations in which they apply, <br />require the City to have declared an official intent (the "Declaration") to reimburse itself <br />for previously paid project expenditures out of the proceeds of subsequently issued <br />