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

The City will be selling tax increment bonds to finance design, construction and installation of street improvements on Vaughn Lane, Mitchell Avenue, Morgan Avenue, Ryan Avenue and Hillview Lane.  The City needs to expend monies related to these projects 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.

       

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 certain areas of work until the bonds are sold or will have to find alternative ways to pay for the expenses incurred prior to the bond sale.

This resolution will not result in additional costs to the projects.