City Council Resolution 2021-79CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 2021-79
DECLARING THE OFFICIAL INTENT OF THE
CITY OF MONTICELLO TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the "Reimbursement
Regulations") 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 that may be financed temporarily
from sources other than bonds, and reimbursed from the proceeds of a tax-exempt 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 RESOLVED BY THE CITY COUNCIL OF THE CITY OF MONTICELLO AS
FOLLOWS:
1. The City expects to construct various public improvements, including storm water
improvements, related to the Chelsea Commons development (the "Project").
2. The City reasonably expects to reimburse expenditures made by the City for all or a
portion of the cost of the Project from the proceeds of bonds (referred to as the "bonds") in an
estimated maximum principal amount of $5,000,000. 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.
3. 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 (5%) of the proceeds of an issue; or (c) "preliminary expenditures" up
to an amount not in excess of 20 percent (20%) 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.
4. This Declaration is an expression of the reasonable expectations 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 2 are
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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.
5. This Declaration is intended to constitute a declaration of official intent for purposes
of the Reimbursement Regulations.
Approved by the City Council of the City of Monticello this 11th day of October, 2021.
CITY OF MONTICELLO, MINNESOTA
44or
Attest:
.QivlVu�Zr (,wr��
Ci Clerk
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