EDA Resolution 2026-08 (Declaration for EDA Reimbursement from Bond Proceeds for Public Works)CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.2026-08
DECLARING THE OFFICIAL INTENT OF THE
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE AUTHORITY
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 Economic Development Authority (the "Authority") 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 Authority has determined to make this declaration of official intent (the
"Declaration") to reimburse certain costs from proceeds of bonds in accordance with the Reimbursement
Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AS FOLLOWS:
The Authority proposes to undertake a new public works building (collectively, the "Project")
2. The Authority reasonably expects to reimburse the expenditures made for certain costs of the
Project from the proceeds of bonds in an estimated maximum principal amount of $35,000,000. All reimbursed
expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for
reimbursement under Section 1. 1 50-2(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 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
Authority 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 Authority based on the
facts and circumstances known to the Authority 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 Authority's
budgetary and financial circumstances. No sources other than proceeds of bonds to be issued by the Authority
are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant
to the Authority's budget or financial policies to pay such Project expenditures.
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5 . The electronic signature of the President and/or the Executive Director to this Declaration and
to any certificate authorized to be executed hereunder shall be as valid as an original signature of such party
and shall be effective to bind the Authority thereto. For purposes hereof, (i) "electronic signature" means a
manually signed original signature that is then transmitted by electronic means; and (ii) "transmitted by
electronic means" means sent in the form of a facsimile or sent via the internet as a portable document format
("pdf') or other replicating image attached to an electronic mail or internet message.
6. This Declaration is intended to constitute a declaration of official intent for purposes of the
Reimbursement Regulations.
Adopted by the Board of Commissioners of the City of Monticello Economic Development Authority this 13th
day of May, 2026.
Rick Barger, Neirident
ATTEST:
s, Executive Director
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