Consent 1.H.
Regular City Council Meeting
- Meeting Date:
- 08/24/2020
- TITLE
- Resolution Establishing Compliance with Reimbursement under Internal Revenue Code for the West End Reservoir
- PRESENTED BY:
- Andy Zoeller
- Department:
- Finance
Presentation:
No
PROBLEM/ISSUE STATEMENT
The City will be selling bonds to finance the water system improvements at the West End Reservoir, including design, engineering and construction of a new water reservoir, plant, intake pipeline, trunk line and related improvements. The City needs to expend monies related to the projects 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.
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 the City will have to suspend the project.
FISCAL EFFECTS
This Resolution will not result in additional costs to the projects.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution that will allow the City to reimburse expenses related to the West End Reservoir, that it will incur prior to issuing bonds for the project.