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Minnesota Public Facilities Authority State General Obligation Bond Appropriation Projects financed with the proceeds of state general obligation bonds are subject to requirements of the Minnesota Constitution, state statutes, appropriation bill language and state accounting policies. Projects must have a public purpose and public ownership. The grantee must demonstrate its ability to fully fund the project and, once constructed, be able to operate and maintain the facility. General obligation bond proceeds can only be used for items specified in the appropriation bill language and must be for eligible capital expenditures. For example, if the appropriation language states: "For a Grant to the City of Frostbite Falls to construct improvements to the water treatment plant." The grant funds can only be used to construct improvements to the water treatment plant (no engineering or other costs allowed). If the appropriation language states: "For a grant to the City of Frostbite Falls to engineer, acquire land for and construct improvements to the water treatment plant'; then engineering, acquisition and construction costs are an eligible use of the special appropriation grant for the water treatment plant. Effective Date Costs incurred before the effective date of the bill, June 2, 2023, are not eligible for reimbursement under the grant agreement unless specifically identified in the appropriation language. Full Project Funding Grant Recipients must document full project funding is in place before PFA can issue a grant agreement. If project costs are more than the funds appropriated, or if the appropriation language requires a non -state match or contribution, the recipient must provide documentation that needed cash, financing, other grants, etc., are in place. Documentation may vary depending upon the source of funds. Please discuss with your loan officer. Reimbursement/Disbursement Requests SPAP funds are disbursed on a reimbursement basis for eligible incurred costs that are supported by invoices and incurred after the effective date ofthe appropriation (June 2, 2023). PFA disburses monthly. A completed disbursement request form and accompanying invoices submitted (after grant agreement is executed) by the 15th of the month to PFA will be paid out at the end of that same month to the recipient. On -going Requirements Some requirements stay with the project after the funds are disbursed and the project is completed. A declaration that identifies the real property as "bond -financed property" must be filed with the County Recorder's office. For projects located within roads, highways or utility or transit corridors, easements, or rights of way, where recordings would be problematic, a waiver to the declaration recording requirement may be requested from the Commissioner of Management and Budget (MMB). Example declaration and waiver requests are provided. GO Bond Special Appropriation Forms 4 of 32 August 2023