Consent 1.N.
Regular City Council Meeting
- Meeting Date:
- 06/11/2012
- TITLE
- Resolution Establishing Compliance with Reimbursement under Internal Revenue Code
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The City anticipates constructing a new water storage reservoir in the fall 2012. The Department of Natural Resources and Conservation will issue bonds later this year and a portion of them will be used to finance the reservoir. The City may need to expend money relating to the project before the funds are available from the bond sale proceeds.This resolution allows the City to reimburse those expenses from the bond sale proceeds.
Reimbursement resolutions are required by the Internal Revenue Service for any bonded project where there may be a need to reimburse funds for costs incurred before the bond sale.
Reimbursement resolutions are required by the Internal Revenue Service for any bonded project where there may be a need to reimburse funds for costs incurred before the bond sale.
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.