Consent 1.I.
Regular City Council Meeting
- Meeting Date:
- 10/26/2009
- TITLE
- Resolution Adopting Criteria for the ARRA Recovery Zone Facility Bonds
- PRESENTED BY:
- Patrick Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The City received a $26,831,000 allocation of Recovery Zone Facility Bonds. Yellowstone County received a $9,973,000 allocation of Recovery Zone Facility Bonds, which the County Commissioners reallocated to the City of Billings on September 25, 2009. These bonds are to be used by the citizens of Billings for major development projects. The bonds are issued as tax exempt, which will lower interest costs on projects. The City is establishing criteria for each project that is brought to the City for financing.
ALTERNATIVES ANALYZED
The Council may:
- Use a first-come, first-served basis for allocating the bonds, without regards to City goals; or
- Establish criteria that ensure City goals are met, the projects ready for funding and citizens have their own funding source.
FINANCIAL IMPACT
There is no financial responsibility for the City, as these bonds are similar to Industrial Development Bonds. The City will receive a fee for each project that is approved.
RECOMMENDATION
Staff recommends that Council approve the resolution setting criteria for Recovery Zone Facility Bonds.