The City needs to sell bonds to finance the projects in the South Billings Urban Renewal District described below.  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.

W.O. 15-07 Orchard Lane Reconstruction is a project to reconstruct Orchard between King Ave East and State Avenue.  The Council approved a $4,070,072 construction contract on April 23. The City plans to issue bonds in June to pay for part of the work.

Sanitary Sewer, Phase 2 project will construct approximately 3,400 lineal feet of new sewer in areas where there currently is none. The area is bounded north-south by Morgan and Francis Ave and bounded east-west by Jackson St and Hallowell Lane.  New mains and sewer service connections to property lines will be installed.






 

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 project.

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

Staff recommends that the City Council approve the attached resolution that will allow the City to reimburse expenses related to  projects in the South Billings Urban Renewal District that it will incur prior to issuing bonds for the project.