Staff recommends that City Council approve the attached resolution related to the proposed improvements to the South Park Pool Complex. Approval will allow the City to reimburse eligible pre-issuance project expenses with future bond proceeds once the bonds are sold.

The proposed resolution enables the City to comply with federal reimbursement bond regulations for improvements to the South Park Pool Complex. Adoption of this resolution is required under U.S. Treasury Regulations in order for the City to reimburse eligible project costs incurred before the issuance of tax-exempt bonds. The City anticipates issuing up to $8 million in bonds to finance project design, engineering, construction, and related improvements.

The City intends to undertake improvements to the South Park Pool Complex, including feasibility review, renovation planning, design, engineering, and construction of facility upgrades. These activities must begin before bond proceeds are available. Federal regulations require the City to adopt a statement of official intent so that pre-issuance expenditures can later be reimbursed with tax-exempt bond proceeds. No prior expenditures have been made outside those permitted under IRS rules, and no long-term funding has been allocated for these improvements aside from the anticipated bond issuance.

The South Park Pool improvements are expected to be financed through the issuance of up to $8 million in bonds. Because certain project costs will be incurred before the bond sale, the City will temporarily use available cash or short-term funds to cover early feasibility, design, and engineering expenses. Approval of this resolution preserves the City’s ability to reimburse those early costs with bond proceeds once bonds are sold, ensuring the long-term project financing aligns with planned bond funding rather than drawing on operating resources.

City Council may:
• Approve the resolution, allowing the project to proceed with the ability to reimburse eligible pre-issuance expenses once the bonds are issued; or
• Not approve the resolution, in which case the City may need to delay or suspend feasibility, design, engineering, or construction activities until bond proceeds are available.