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City Council Resolution 2009-52CITY OF MONTICELLO RESOLUTION 2009 -52 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 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 RESOLVED BY THE CITY COUNCIL OF THE CITY OF MONTICELLO (THE "CITY ") AS FOLLOWS: 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. 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 28th day of September, 2009 Clint eI rbs�M y r ATTEST: ,"till, City Administrator EXHIBIT A TO OFFICIAL INTENT RESOLUTION ADOPTED SEPTEMBER 28, 2009 MAXIMUM DATE OF PRINCIPAL DECLARATION DESCRIPTION OF PROJECT AMOUNT OF DEBT FOR PROJECT 9/28/2009 Fallon Avenue Rehabilitation - Project $200,000.00 09CO05