Consent 1.F.
Regular City Council Meeting
- Meeting Date:
- 10/25/2010
- TITLE
- ARRA Bonding Authority Waiver from the City to the State of Montana and University of Montana
- PRESENTED BY:
- Patrick M. Weber, Financial Services Manager
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The State of Montana has asked that any municipality with unused bonding authority remaining from the American Recovery and Reinvestment Act (ARRA) waive the allocation and return it to the State.
The City has $24,537,000 bonding authority for Recovery Zone Economic Development Bonds, of which $6,649,000 was from Yellowstone County. The total amount will be reallocated to the State of Montana for use in other parts of the State. The City does not have any projects that will use this funding authority.
The City also received $36,804,000 bonding authority for Recovery Zone Facility Bonds, of which $9,973,000 was from Yellowstone County. Zootist Enterprises has an application for $20 million of this allocation for the Northern Hotel and the Billings Airport used $6.5 million of the allocation for the Quick Turn-Around Car Rental Facility. The City will reallocate the unused $10,000,000 of its authority to the State of Montana for use in other parts of the State.
Those two amounts would be returned by a single waiver form.
Under a different part of the ARRA, the City received bond provisions of $1,067,866 for Qualified Energy Conservation Bonds (QECBs). The University of Montana (is it the University in Missoula or is it MSU-B?) has contacted City Finance and asked that the City allocate its share to the University as they have a project that qualifies under the QECBs rules. The City will not have a qualified project for this bonding authority. A second waiver form would be needed to make the transfer.
The amounts being reallocated will not be used by the City prior to the deadline of December 31, 2010.
The City has $24,537,000 bonding authority for Recovery Zone Economic Development Bonds, of which $6,649,000 was from Yellowstone County. The total amount will be reallocated to the State of Montana for use in other parts of the State. The City does not have any projects that will use this funding authority.
The City also received $36,804,000 bonding authority for Recovery Zone Facility Bonds, of which $9,973,000 was from Yellowstone County. Zootist Enterprises has an application for $20 million of this allocation for the Northern Hotel and the Billings Airport used $6.5 million of the allocation for the Quick Turn-Around Car Rental Facility. The City will reallocate the unused $10,000,000 of its authority to the State of Montana for use in other parts of the State.
Those two amounts would be returned by a single waiver form.
Under a different part of the ARRA, the City received bond provisions of $1,067,866 for Qualified Energy Conservation Bonds (QECBs). The University of Montana (is it the University in Missoula or is it MSU-B?) has contacted City Finance and asked that the City allocate its share to the University as they have a project that qualifies under the QECBs rules. The City will not have a qualified project for this bonding authority. A second waiver form would be needed to make the transfer.
The amounts being reallocated will not be used by the City prior to the deadline of December 31, 2010.
ALTERNATIVES ANALYZED
The Council may:
- Approve the two waiver forms; or
- Not approve the two waiver forms.
FINANCIAL IMPACT
There is no financial impact to the City of Billings.
RECOMMENDATION
Staff recommends City Council approve the two waiver forms reallocating bonding authority to the State of Montana and University of Montana.