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RESOLUTION #3025 A RESOLUTION RELATING TO PROPOSED CITY HALL, POLICE DEPARTMENT AND PUBLIC WORKS FACILITIES; AUTHORIZING THE EXPENDITURE OF MONEYS IN ANTICIPATION OF THE ISSUANCE OF LEASE REVENUE'BONDS BE IT RESOLVED by the City Council of the City of Orono, Minnesota, as follows: 1. The City has determined that it is necessary to undertake certain public improvements consisting of a new City Hall and Police Department and Public Works Department facilities (collectively, the "Improvements"), to be undertaken by the City or its Housing and Redevelopment Authority (the "HRA"). The City presently intends that some or all of the Improvements will be financed with the proceeds of lease revenue bonds, the interest on which is excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended (the "Bonds"), issued by the HRA, in one or more series as needed for the payment of the costs of the Improvements. The Improvements will be leased to the City on rentals sufficient to pay the principal of and interest on the Bonds, and the City will derive the moneys for payment of the lease rentals from ad valorem'tax'levies 2. -The City has been advised that the Internal Revenue • Service has issued new regulations relating to the conditions under which municipal issuers are able to issue tax-exempt obligations to reimburse themselves for expenditures incurred prior to the issuance of the obligations. One of the requirements for the issuance of tax-exempt obligations is a preliminary resolution or other official action of the governing body, adopted at or prior to the time the expenditures are incurred, expressing the intent of the municipality to issue taxable or tax-exempt obligations to reimburse prior expenditures. 3. The City hereby declares its present intention to cause the HRA to issue the Bonds to provide the moneys necessary to finance the costs of acquisition and construction of the Improvements. The currently estimated cost of the Improvements is approximately $4,600,000, and the City estimates that the principal amount of Bonds to be issued will be approximately $4,000,000. 4. The City intends to reimburse itself from the proceeds of the Bonds for any costs of acquisition and construction incurred and paid after the date hereof by the City or the HRA in connection with the Improvements, to the extent such costs are allowable under the law and approved by the City. The City presently anticipates that the HRA will issue the Bonds for the reimbursement of such costs within one year from the date on which the Improvements are completed.