City Council Resolution 2024-98CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO.2024-98
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 of Monticello, Minnesota (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 acquire, construct and equip a new water treatment plant (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.
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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
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 28th day of October, 2024.
CITY OF MONTICELLO, MINNESOTA
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Mayor
Attest:
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