The City anticipates replacing the Briarwood Reservoir.  The project will replace the existing water tank with a new larger 750,000 gallon tank to provide adequate capacity for the projected population in the area, as well as meet fire flow demands.  The City will issue bonds this spring to finance this project.  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 itself for those expenses from the bond proceeds  

Reimbursement resolutions are required by the Internal Revenue Code for any bonded project where there may be a need to reimburse funds for costs incurred prior to the bond sale. 

City Council may:

• Approve, the resolution and proceed with the project with the ability to reimburse expenses when the bonds are sold or;
• Disapprove the resolution and pay preliminary expenses from the Water operating budget.

This will not result in additional costs to the project

Staff recommends City Council approve the attached resolution that allows the city to reimburse itself from bond funds instead of operating funds.