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Item 1.N.
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| City Council Regular | |
| Date: | 10/10/2022 |
| Title: | Resolution Establishing Compliance with Reimbursement under Internal Revenue Code for the N 27th TIF Construction Projects |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | No |
| Legal Review | Not Applicable |
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution that will allow the City to reimburse expenses related to projects within the N 27th Urban Renewal District that will incur prior to issuing bonds for the project.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The adopted FY23 Capital Improvement Plan anticipates the City will sell tax increment bonds to finance one-way to two-way street conversions, and the 25th Street Bridge projects downtown. The City needs to expend design and engineering 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 proceeds.
ALTERNATIVES
City Council may:
- Approve the resolution and proceed with the projects with the ability to reimburse expenses when te 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 not reimburse the fund for expenses paid.
FISCAL EFFECTS
This resolution will not result in additional costs to the projects.