Consent 1.I.
Regular City Council Meeting
- Meeting Date:
- 07/28/2014
- TITLE
- Resolution Establishing Compliance with Reimbursement under Internal Revenue Code for Exposition Gateway Infrastructure Plan
- PRESENTED BY:
- Tina Volek
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
At its July 7, 2014, Work Session, the City Council gave tentative approval to temporarily assist the Billings Industrial Revitalization District (BIRD) with the $3.1 million estimated costs for storm water, water and sewer improvements to be developed as part of the Exposition Gateway Infrastructure Plan.
The Public Works Department would contribute $596,000 to the water and storm water projects. Yellowstone County would contribute $250,000 from a rural water SID that would be liquidated if the City annexes the property. The East Billings Tax Increment Financing District (TIFD) would contribute $250,000. Revenue bonds paid for by future TIFD funds would cover the $2 million of remaining costs for the infrastructure improvements, which tentatively are scheduled to be competed by December 2015.
The City will need to expend monies related to the project before funds are available from the bond sale proceeds. Under IRS rules, a resolution must be adopted in order for the City to reimburse those expenses from the bond sale proceeds.
The Public Works Department would contribute $596,000 to the water and storm water projects. Yellowstone County would contribute $250,000 from a rural water SID that would be liquidated if the City annexes the property. The East Billings Tax Increment Financing District (TIFD) would contribute $250,000. Revenue bonds paid for by future TIFD funds would cover the $2 million of remaining costs for the infrastructure improvements, which tentatively are scheduled to be competed by December 2015.
The City will need to expend monies related to the project before funds are available from the bond sale proceeds. Under IRS rules, a 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 allow the project to proceed 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 that the City Council approve the resolution that will allow the City to reimburse expenses related to the storm water, storm and sewer project that it will incur prior to issuing bonds for the project.