Loading...
City Council Resolution 2017-35CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2017-35 RESOLUTION DECLARING THE OFFICIAL INTENT OF THE CITY OF MONTICELLO TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY FOR CHELSEA ROAD (WEST OF FALLON AVENUE TO TH 25) UTILITY AND STREET IMPROVEMENTS AND 7TH STREET (CEDAR STREET TO WEST OF WASHINGTON STREET) AND CEDAR STREET (SOUTH OF 7TH STREET) STREET IMPROVEMENTS. 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. NO W, THEREFORE, BE IT RESOL VED B Y THE CITY CO UNCIL OF THE CITY OF MONTICELLO (THE "CITY') AS FOLLOWS: 1. 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 tenn "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. 5. 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 10th day of July, 2017. CITY OF MONTICELLO Brian Stumpf, Mayor ATTEST: Jeff City Administrator EXHIBIT A TO OFFICIAL INTENT RESOLUTION TATO, 2017-35 ADOPTED July 109 2017 DATE OF DESCRIPTION OF PROJECT DECLARATION CHELSEA ROAD (WEST OF FALLON 7/ 10/2017 AVENUE TO TH 25) UTILITY AND STREET IMPROVEMENTS - including, but not limited to, construction of improvements and indirect costs, such as legal, engineering, administrative, right of way acquisition (land, etc.) and financing costs. Engineering costs includes survey, feasibility study, environmental documents, permitting, preliminary and final design, preparation of plans and specs, bidding administration, construction management, staking, inspection and material testing. 7TH STREET (CEDAR STREET TO WEST OF 7/10/2017 WASHINGTON STREET) AND CEDAR STREET (SOUTH OF 7TH STREET) STREET IMPROVEMENTS - Project(s) costs - including, but not limited to, construction of improvements and indirect costs, such as legal, engineering, administrative, right of way acquisition (land, etc.) and financing costs. Engineering costs includes survey, feasibility study, environmental documents, permitting, preliminary and final design, preparation of plans and specs, bidding administration, construction management, staking, inspection and material testing. 3 ATAXIMUM PRINCIPAL AMOUNT OF DEBT FOR P-AOjEC T $2,200,000 '►:11 !11