City Council Resolution 2019-90CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2019-90
DECLARING THE OFFICIAL INTENT OF THE CITY OF MONTICELLO TO
REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE
ISSUED BY THE CITY FOR 2020 STREET IMPROVEMENT PROJECT
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 providing that
proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent
unless certain requirements are met; and
WHEREAS, the City expects to incur certain expenditures which may be financed temporarily
from sources other than bonds, and reimbursed from the proceeds of a bond;
WHEREAS, the City has determined to make this declaration of official intent ("Declaration") to
reimburse certain costs from proceeds of bonds in accordance with the Reimbursement
Regulations.
NOW, THEREFORE, BE IT RESOL VED BY THE CITY COUNCIL OF THE CITY OF
MONTICELLO (THE "CITY") AS FOLLOWS:
1. The City reasonably intends to make expenditures for the projects described in Exhibit A
(the "Projects"), and reasonably intends to reimburse itself for such expenditures from the
proceeds of debt to be issued by the City in the maximum principal amount described in
Exhibit A. All reimbursed expenditures will be capital expenditures, costs of issuance of
the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3)
of the Reimbursement Regulations.
2. This Declaration has been made not later than 60 days after payment of any original
expenditure to be subject to a reimbursement allocation with respect to the proceeds of
bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in
an amount not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c)
"preliminary expenditures" up to an amount not in excess of 20 percent of the aggregate
issue price of the issue or issues that finance or are reasonably expected by the City to
finance the project for which the preliminary expenditures were incurred. The term
"preliminary expenditures" includes architectural, engineering, surveying, bond issuance,
and similar costs that are incurred prior to commencement of acquisition, construction or
rehabilitation of a project, other than land acquisition, site preparation, and similar costs
incident to commencement of construction.
3. This Declaration is an expression of the reasonable expectation of the City based on the
facts and circumstances known to the City as of the date hereof. The anticipated original
expenditures for the Project and the principal amount of the bonds described in paragraph
1 are consistent with the City's budgetary and financial circumstances. No sources other
than proceeds of bonds to be issued by the City are, or are reasonably expected to be,
reserved, allocated on a long-term basis, or otherwise set aside pursuant to the City's
budget or financial policies to pay such project expenditures.
4. The City Administrator is authorized to designate appropriate additions to Exhibit A in
circumstances where time is of the essence, and any such designation shall be reported to
the Council at the earliest practicable date and shall be filed with the official books and
records of the City as provided in Section 3.
5. This resolution is intended to constitute a declaration of official intent for purposes of
Treas. Reg. § 1.150-2 and any successor law, regulation, or ruling.
ADOPTED BY the City Council this 9th day of December, 2019.
CITY OF MONTICELLO
z�
Brian Stump ,
ATTEST:
Je O ill, City Administrator
EXHIBIT A
TO OFFICIAL INTENT RESOLUTION NO. 2019-90
ADOPTED December 9, 2019
DATE OF
DECLARATION
DESCRIPTION OF PROJECT
MAXIMUM
PRINCIPAL
AMOUNT OF DEBT
FOR PROJECT
2020 STREET IMPROVEMENT PROJECT -
12/09/2019
including, but not limited to, construction of
$2,500,000
improvements and indirect costs, such as legal,
engineering, administrative, right of way acquisition
(land, etc.) and financing costs. Engineering costs
includes survey, feasibility study, environmental
documents, permitting, preliminary and final design,
preparation of plans and specs, bidding administration,
construction management, staking, inspection and
material testing.