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Counci]member Pearson introduced the following resolution and moved for its adoption: <br /> <br />RESOLUTION #05-11-366 <br /> <br />RESOLUTION ESTABLISHING PROCEDURES RELATING TO COMPLIANCE <br />WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL <br />REVENUE CODE <br /> <br />BE IT RESOLVED by the City Council of the City of Ramsey, Minnesota as follows: <br /> <br />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 supplemented, the <br />"Regulations"), dealing with "reimbursement bond" proceeds, being <br />proceeds of bonds used to reimburse the City of Ramsey (the "City") <br />as the primary obligor under the bonds, for any project expenditure <br />paid by 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 expenditures out <br />of the proceeds of subsequently issued bonds, that such declaration be <br />made not later than 60 days after the expenditure is actually paid, and <br />that the bonding occur and the written reimbursement allocation be <br />made from the proceeds of such bonds within 18 months after the later <br />of (1) the date of payment of the expenditure or (2) the date the project <br />is placed 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 amend <br />and supplement those procedures to ensure compliance with the <br />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 Resolution <br />are intended to have no application, to payments of the City out of the <br />proceeds of bonds issued prior to the date of such payments. <br /> <br />Official Intent Declaration. The Regulations, in the situations in which <br />they apply, require the City to have declared an official intent (the <br />"Declaration") to reimburse itself (the City) for previously paid project <br />expenditures out of the process of subsequently issued bonds. Each <br />Declaration shall comply with the requirements of the Regulations, <br />including without limitation the following: <br /> <br /> <br />