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3273-24 Declaring Intention to Reimburse Expenditures2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 RESOLUTION NO.3273-24 RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT DECLARING INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT FINANCING WHEREAS, the South Tahoe Public Utility District (the "District") desires to finance the costs of certain improvements to its water enterprise consisting generally of the following projects (collectively, the "Projects"): Meters Cleanup, Ham Lane Waterline (WL), Apache Ave WL Improvements, Larch to Ski Run WL Improvements, Field Communication Upgrades: Phases 2 and 3, Generator at Keller and Paloma, Al Tahoe Well Rehabilitation, Al Tahoe/Bayview Backup Power, Paloma Well Rehab, Bayview Well Variable Frequency Drive (VFD) and Control System Upgrade, Elks Club Well Pump/Motor Replacement, Bakerfield Pump/Motor Replacement, South Upper Truckee Well Rehab, Tank Coatings, Lookout Tank Access Road Repairs, Upper Montgomery Booster, Fire Pump and Waterline, H Street Zone Booster and Fire Pump and Computerized Maintenance Management System (CMMS) Implementation; WHEREAS, the District intends to finance all or a portion of the Projects through the issuance of water revenue bonds or certificates of participation (the "Financing") in the estimated maximum principal amount of $15 million, and to use all or a portion of the proceeds of the Financing to reimburse expenditures made for one or more of the Projects prior to the execution and delivery of the Financing; WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, one of which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditure; and WHEREAS, the Board of Directors wishes at this time to take the necessary actions to declare its official intent to reimburse expenditures on the Projects from the proceeds of the Financing; THEREFORE, BE IT RESOLVED by the Board of Directors of the South Tahoe Public Utility District, as follows: 1. Recitals Correct. The foregoing recitals are true and correct. 2. Execution and Delivery of Financing. The Board of Directors hereby confirms its intention to execute and deliver the Financing to finance all or a portion of the Projects. 3. Reimbursement. The Board of Directors hereby declares that (i) it may pay certain costs of one or more of the Projects prior to the date of execution and delivery of the Financing and, in such case, (ii) it intends to use all or a portion of the proceeds of the Financing for reimbursement of expenditures for the Projects that are paid before the date of execution and delivery of the Financing. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 4. Effective Date. This resolution shall take effect upon its adoption. WE, THE UNDERSIGNED, do hereby certify that the above and foregoing Resolution No. 3273-24 was duly adopted and passed by the Board of Directors of the South Tahoe Public Utility District at a regularly scheduled meeting held on the 18th day of April, 2024, by the following vote: AYES: Haven, Romsos, Peterson, Sheehan, Exline NOES: ABSENT: vid Pe erson, Board President South Tahoe Public Utility District ATTEST: (A�hx� &=, - Mclonie Guttry, Clerk of the oard Page 2 of 2 Resolution No. 3273-24 April 18, 2024