Adopt Resolution #13-02-028 Resolution Establishing Procedures Relating to Compliance With Reimbursement Bond Regulations Under the Internal Revenue Code.

The City of Ramsey's Adopted 2013 General Fund Budget included $463,000 of capital equipment for such items as three squad cars, second-half funding of a fire tanker truck, plow truck and a large mower.  The Adopted 2013 General Fund Budget designated the funding source for these purchases to come from the issuance of Capital Equipment Certificates.  Capital Equipment Certificates were presented as the financing source so as to take advantage of the current low-interest rates and to preserve the current equipment fund for possible future purchases/capital improvement needs. 

Staff will be bringing forward the request in regard to the issuance of Capital Equipment Certificates at a later date.  As the city will not have the funds from these certificates for any current capital equipment purchases being made, the city needs to pass what is known as a reimbursement resolution.  This reimbursement resolution allows the city to pay itelf back for any capital equipment expenditures when actual bond proceeds are received.  A resolution can be adopted no later than 60 days after the first payment for any capital equipment purchase.  The city has not expended any funds-to-date on capital equipment.  


 

The resolution that is attached was drafted by the city's bond council of Briggs and Morgan.  The resolution incorporates all of the reimbursement requirements as mandated by the IRS.

Funding for 2013 Capital Equipment Purchases is expected to be funded from the issuance of Capital Equipment Certificates.

Adopt Resolution #13-02-028 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).