14.A.ii.
City Council Meeting
- Meeting Date:
- 11/05/2013
- From:
- Barbara Goodrich, Management Services Director
Information
TITLE:
Consideration and Adoption of Resolution No. 2013-27: A resolution of the Mayor and Council of the City of Flagstaff, Arizona declaring for purposes of section 1.150.2 of the Federal Treasury Regulations, official intent to be reimbursed in connection with certain capital expenditures related to Regional Open Space - Observatory Mesa Land Acquisition.
RECOMMENDED ACTION:
1) Read Resolution No. 2013-27 by title only
2) City Clerk reads Resolution No. 2013-27 by title only (if approved above)
3) Adopt Resolution No. 2013-27
2) City Clerk reads Resolution No. 2013-27 by title only (if approved above)
3) Adopt Resolution No. 2013-27
Policy Decision or Reason for Action:
Approval of this resolution will allow the City to reimburse itself for expenditures made on current voter approved bonded projects for expenditures made in advance of issuing the debt.
Financial Impact:
The expenditure for Observatory Mesa will be reimbursed from proceeds of the sale of obligations or other financing mechanisms to be used in the future by or on behalf of the City.
Connection to Council Goal:
Fund existing and consider expanded recreational services
Effective governance through the deliverance of voter approved projects
Effective governance through the deliverance of voter approved projects
Has There Been Previous Council Decision on This:
Yes. The May 18, 2004 bond election authorizing the Regional Open Space - Observatory Mesa Land Acquisition.
Options and Alternatives:
- Approve the Reimbursement Resolution to allow the City the greatest flexibility in assuring expenditures are reimbursed and debt can be issued when most advantageous to the City
- Do not approve the reimbursement resolution and require that bonded debt be issued in advance of the proposed project.
Background/History:
On May 18, 2004, a general election was held by the City of Flagstaff whereby the citizens authorized obligations to be issued in relation to ten capital projects. Question 303 authorized $5,500,000 for 'Regional Open Space - Observatory Mesa Land Acquisition'.
The City has also received a $6 million dollar grant from Arizona State Parks to pay for up to 50% of the anticipated cost of this purchase, estimated at $12 million dollars.
The City anticipates issuing this debt in the spring of 2014 as this is when rates have historically been most advantageous to the City.
The City has also received a $6 million dollar grant from Arizona State Parks to pay for up to 50% of the anticipated cost of this purchase, estimated at $12 million dollars.
The City anticipates issuing this debt in the spring of 2014 as this is when rates have historically been most advantageous to the City.
Key Considerations:
IRS regulations are very specific as to what capital expenditures are eligible for reimbursement. These expenditures must be any cost of a type that is properly chargeable to a capital account (or would be so chargeable with a proper election) under general federal income tax guidelines.
Community Involvement:
Inform
Expanded Options and Alternatives:
- Approve the Reimbursement Resolution to allow the City the greatest flexibility in assuring expenditures are reimbursed and debt can be issued when most advantageous to the City
- Do not approve the reimbursement resolution and require that bonded debt be issued in advance of the proposed project.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| City Clerk | lburke | 10/17/2013 11:32 AM |
| Legal Assistant | Vicki Baker | 10/17/2013 02:12 PM |
- Form Started By:
- bgoodrich
- Started On:
- 09/30/2013 10:03 AM
- Final Approval Date:
- 10/24/2013