5.13.
CC Regular Session
- Meeting Date:
- 05/23/2023
- By:
- Diana Lund, Finance
Information
Title
Adopt Resolution #23-112 Resolution Establishing Procedures Related to Compliance with Reimbursement Bond Regulations under the Internal Revenue Code (Bonding for Hy-10 Improvements & COR Infrastructure Improvements)
Purpose/Background:
Purpose: The City will be issuing TIF debt this year in regards to the improvements for HY-10 (project has been awarded) and for COR infrastructure improvements (CC approval on 5-9-23 for COR Infrastructure Design Services and authorizing advertisement for bids for COR Tree Clearing). A reimbursement resolution allows the city to pay itself back for any funds expended prior to receiving bond funds.
As the city has and will be expending funds prior to receiving the bond funds (proposed funding mechanisms), the city is only allowed to "reimburse" itself if it has a bond reimbursement resolution in place. The resolution calls for up to $10M to be eligible for reimbursement, but it is the intention of the city to fund approximately $7M by debt.
As the city has and will be expending funds prior to receiving the bond funds (proposed funding mechanisms), the city is only allowed to "reimburse" itself if it has a bond reimbursement resolution in place. The resolution calls for up to $10M to be eligible for reimbursement, but it is the intention of the city to fund approximately $7M by debt.
Notification:
The resolution that is attached was drafted by the City's bond counsel of TAFT Law. The reimbursement resolution incorporates all of the reimbursement requirements as mandated by the IRS.
Observations/Alternatives:
The adoption of this resolution does NOT obligate the City to pay for all costs (soft and hard costs) with the bond funds. This resolution simply ALLOWS the City to reimburse itself if it so chooses.
Funding Source:
Funding for the HY 10 and Cor Infrastructure improvement projects are proposed to be funded via the issuance of Tax Increment Financing (TIF) debt.
Recommendation:
Recommendation is to adopt the Reimbursement Resolution #23-112.
Action:
Adopt Resolution #23-112 Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations Under the Internal Revenue Code (Allows the City to pay itself back for expenditures made prior to receiving bond funds).
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Diana Lund | 05/16/2023 07:51 AM |
| Diana Lund (Originator) | Diana Lund | 05/16/2023 07:53 AM |
| Brian Hagen | Brian Hagen | 05/18/2023 08:30 AM |
- Form Started By:
- Diana Lund
- Started On:
- 05/15/2023 01:16 PM
- Final Approval Date:
- 05/18/2023