Consent 1.G.
Regular City Council Meeting
- Meeting Date:
- 11/28/2011
- TITLE
- Resolution Establishing Compliance with Reimbursement under Internal Revenue Code
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
Public Works plans to upgrade the 5 Mile Creek Wastewater Lift Station or to replace it in FY 2013 and to issue revenue bonds at that time to pay for the work. However, the City needs to expend monies related to the project before funds are available from the bond sale proceeds. Under IRS rules, the attached resolution must be adopted in order for the City to reimburse those expenses from the bond sale proceeds.
ALTERNATIVES ANALYZED
The City Council may:
- Approve the resolution and proceed with the project with the ability to reimburse expenses when the bonds are sold; or
- Not approve the resolution
FINANCIAL IMPACT
This will not result in additional costs to the project.
RECOMMENDATION
Staff recommends City Council approve the attached resolution that will allow the City to reimburse expenses related to a wastewater lift station project that are incurred prior to issuing bonds for the project.