City Council Resolution 2004-36CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 2004-36
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 or a conduit borrower 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 participate in the financing of a community ice arena (the
"Project") to be constructed by the Monticello Youth Hockey Association or a related entity (the
"Borrower").
2. The City reasonably expects to reimburse expenditures made by the Borrower or the
City for certain costs of the Project from the proceeds of bonds in an estimated maximum principal
amount of $1,500,000. 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 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 Borrower or 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 Project and the principal amount of the bonds described in paragraph 2 are
consistent with the City's (and to the best of the City's knowledge, the Borrower'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 (or to the best of the City's knowledge, the Borrower'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 24th day of May, 2004.
CITY OF MONTICELLO, MINNESOTA
Mayor
Attest:
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City Administrator
SJB-247767v1 2
MN 190-112