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City Council Resolution 2013-08CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2013-008 DECLARING THE OFFICIAL INTENT OF THE CITY OF MONTICELLO TO ?, CAPITAL 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: The City expects to acquire various items of capital equipment (the "Equipment "). 2. The City reasonably expects to reimburse expenditures made by the City for all or a portion of the cost of the Equipment from the proceeds of certificates or bonds (referred to as the "bonds ") in an estimated maximum principal amount of $500,000.00. 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 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. 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 Equipment 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 Equipment expenditures. 5. This Declaration is intended to constitute a declaration of official intent for purposes of the Reimbursement Regulations. APPROVED BYthe City Council of the City of Monticello this 11th day of February, 2013. CITY OF MONTICELLO LA Clint Herbst, Mayor ATTEST: Jeff fYW, City Administrator EXHIBIT A CITY OF MONTICELLO OFFICIAL INTENT RESOLUTION NO. 2013-008 ADOPTED February 11, 2013 2/11/2013 CAPITAL EQUIPMENT PURCHASES: 1) Laseffiche $ 65,000.00 2) Midsize Tractor 92,500.00 3) Paint Striping Sprayer 10,000.00 4) Two -Ton Mini Dump Truck 70,000.00 5) Mini Tack Trailer 35,000.00 6) Sign Lab System .00 7) Two -Ton Mini Dump Truck 75,000.00 8) Three Mowers 95,000.00 9) Brush Clipper 35,000.00 10) Van 22,500.00 2/1112013 1 TOTAL CAPITAL EQUIPMENT NOTE 1 $500,000.00