Consent 1.O.
Regular City Council Meeting
- Meeting Date:
- 07/14/2014
- TITLE
- Resolution Establishing Compliance with Reimbursement under Internal Revenue Code for W.O. 12-31 Storm Sewer bonds
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
Public Works plans to install storm drain in the East Billings Industrial area to alleviate surcharging and flooding. Included in the project is construction of upstream improvements to the Yegen Drain outfall to address capacity issues. The City will issue bonds in the Fall of 2014 to pay for the work. However, 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 expenses from the bond sale proceeds.
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 that will allow the City to reimburse expenses related to the storm sewer project that it will incur prior to issuing bonds for the project.