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Introduced the following resolution and moved for its adoption: <br /> <br />RESOLUTION #04-01-XXX <br /> <br />A RESOLUTION ESTABLISHING PROCEDURES RELATING TO <br />COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER <br />THE INTERNAL REVENUE CODE <br /> <br /> BE IT RESOLVED by the City Council of the City of Ramsey, Minnesota as <br />follows: <br /> <br />1. Recitals. <br /> (a) <br /> <br />The Internal Revenue Service has issued Treasury Regulations, <br />Section 1.150-2 (as the same may be amended or <br />supplemented, the "Regulations"), dealing with <br />"reimbursement bond" proceeds, being proceeds of bonds used <br />to reimburse the City of Ramsey (the "City") as the primary <br />obligor under the bonds, for any project expenditure paid by <br />the City prior to the time of the issuance of those bonds. <br /> <br />(b) <br /> <br />The Regulations generally require that the City make a <br />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 the <br />written reimbursement allocation be made from the proceeds of <br />such bonds within 18 months after the later of (1) the date of <br />payment of the expenditure or (2) the date the project is placed <br />in service (but in no event more than 3 years after actual <br />payment). <br /> <br />(c) <br /> <br />The City heretofore implemented procedures for compliance <br />with the predecessor versions of the Regulations and desires to <br />amend and supplement those procedures to ensure compliance <br />with the Regulations. <br /> <br />(d) <br /> <br />The City's bond counsel has advised the City that the <br />Regulations do not apply, and hence the provisions of this <br />Resolution are intended to have no application, to payments of <br />the City out of the proceeds of bonds issued prior to the date of <br />such payments. <br /> <br />4 <br /> <br />Official Intent Declaration. The Regulations, in the situations <br />in which they apply, require the City to have declared an <br />official intent (the "Declaration") to reimburse itself (the City) <br />for previously paid project expenditures out of the process of <br /> <br /> <br />