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Consent   1.J.
Regular City Council Meeting
Meeting Date:
08/28/2017
TITLE
Resolution Establishing Compliance with Reimbursement under Internal Revenue Code for Landfill Construction Projects
Department:
City Hall Administration
Presentation:
No

PROBLEM/ISSUE STATEMENT

The City will be selling bonds to finance construction projects at the landfill. 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 pre-sale expenses from the bond sale proceeds.

The City will be constructing a drop-off facility at the landfill to provide a place for all landfill customers to discharge garbage and other waste materials.  A new landfill maintenance building will also be built. The City plans to issue bonds in Spring of 2018 to pay for the work.

 


 

ALTERNATIVES ANALYZED

The City Council may:
  • Approve the resolution and proceed with the projects with the ability to reimburse expenses when the bonds are sold; or
  • Not approve the resolution, in which case Public Works will have to suspend work on the project until bonds sell or will have to find alternative ways to pay for the expenses incurred prior to the bond sale.

FINANCIAL IMPACT

This Resolution will not result in additional costs to the project.

RECOMMENDATION

Staff recommends that the City Council approve the attached resolution that will allow the City to reimburse expenses related to  projects at the landfill that it will incur prior to issuing bonds for the project.

APPROVED BY CITY ADMINISTRATOR

Attachments