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Item 1.J.
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| City Council Regular | |
| Date: | 01/27/2025 |
| Title: | Resolution Establishing Compliance with Reimbursement under Internal Revenue Code for the Billings Recreation Center TIF Bonds |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | No |
| Legal Review: | Not Applicable |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution that will allow the City to reimburse expenses related to the Amend Park Recreation Campus within the South Billings Boulevard Urban Renewal District that it will incur prior to issuing bonds for the project.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The City will be selling tax increment bonds to finance design, engineering, and construction of the Billings Recreation Center. The City needs to expend monies related to this project before the funds are available for the bond sale proceeds. Under IRS rules, the attached resolution must be approved in order for the City to reimburse those pre-sale expenses from the bond sale proceeds.
ALTERNATIVES
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, in which case the City may have to suspend certain areas of work until the bonds are sold or may have to delay work elements prior to the bond sale.
FISCAL EFFECTS
This resolution will not result in additional costs to the project.