City Council Resolution 1993-14RESOLUTION 93- 14
RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED
PROJECTS TO BE UNDERTAKEN BY THE CITY OF MONTICELLO
ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND
REGULATIONS UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the City Council (the "Council") of the City of Monticello,
Minnesota, (the "City") as follows:
1. Recitals.
(a) The Internal Revenue Service has issued Section 1.103-18 of the Income
Tax Regulations (the "Regulations") dealing with the issuance of bonds,
all or a portion of the proceeds of which are to be used to reimburse the
City for project expenditures made by the City prior to the date of
issuance.
(b) The Regulations generally require that the City make a prior
declaration of its official intent to reimburse itself for such prior
expenditures out of the proceeds of a subsequently issued borrowing,
that the borrowing occur and the reimbursement allocation be made
from the proceeds of such borrowing within one year of the payment of
the expenditure or, if longer, within one year of the date the project is
placed in service, and that the expenditure be a capital expenditure.
(c) The City desires to comply with requirements of the Regulations with
respect to certain projects hereinafter identified.
2. Official Intent Declaration.
(a) The City proposes to undertake the following projects described on
Exhibit A attached hereto.
(b) Other than (i) expenditures to be paid or reimbursed from sources other
than a borrowing, or (ii) expenditures permitted to be reimbursed
pursuant to the transition provision of Section 1.103-18(1)(2) of the
Regulations, or (iii) expenditures constituting preliminary expenditures
as defined in Section 1.103-18(i)(2) of the Regulations, no expenditures
for the foregoing projects as identified on Exhibit A have heretofore been
made by the City and no expenditures will be made by the City until
after the date of this Resolution.
Resolution 93- 14
Page 2
(c) The City reasonably expects to reimburse the expenditures made for
costs of the designated projects out of the proceeds of debt (the "Bonds")
to be incurred by the City after the date of payment of all or a portion
of the costs. All reimbursed expenditures shall be capital expenditures
as defined in Section 1.150-1(h) of the Regulations.
(d) This declaration is a declaration of official intent adopted pursuant to
Section 1.103-18 of the Regulations.
3. Budgetary Matters. As of the date hereof, there are no City funds reserved,
allocated on a long-term basis, or otherwise set aside (or reasonably expected
to be reserved, allocated on a long-term basis, or otherwise set aside) to provide
permanent financing for the expenditures related to the projects, other than
pursuant to the issuance of the Bonds. This resolution, therefore, is
determined to be consistent with the City's budgetary and financial
circumstances as they exist or are reasonably foreseeable on the date hereof,
all within the meaning and content of the Regulations.
4. Filin . This resolution shall be filed within 30 days of its adoption in the
publicly available official books and records of the City. This resolution shall
be available for inspection at the office of the City Clerk at the City Hall
(which is the main administrative office of the City) during normal business
hours of the City on every business day until the date of issuance of the Bonds.
5. Reimbursement Allocations. The City's financial officer shall be responsible
for making the "reimbursement allocations" described in the Regulations, being
generally the transfer of the appropriate amount of proceeds of the Bonds to
reimburse the source of temporary financing used by the City to make payment
of the prior costs of the projects. Each allocation shall be evidenced by an
entry on the official books and records of the City maintained for the Bonds,
shall specifically identify the actual prior expenditure being reimbursed or, in
the case of reimbursement of a fund or account in accordance with Section
1.103-18, the fund or account from which the expenditure was paid, and shall
be effective to relieve the proceeds of the Bonds from any restriction under the
bond resolution or other relevant legal documents for the Bonds, and under
any applicable state statute, which would apply to the unspent proceeds of the
Bonds.
Adopted this 12th day of April, 1993.
ayor
City Administr for
Resolution 93- 14
Page 3
EXHIBIT A
Proiect Description
Sanitary sewer, water main, storm sewer,
bituminous streets, curb & gutter, &
appurtenant work within Cardinal Hills
3rd Addition - Project 93-02C
Estimated Cost
to be Reimbursed
From Bond Proceeds
$721,300