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CITY COUNCIL <br />AGENDA ITEM 1E <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br />MEETING DATE: September 9, 2019 <br />TOPIC: Intent to Bond <br />VOTE REQUIRED: <br />INTRODUCTION <br />Consideration of Resolution No. 19-109, Declare Intent to <br />Reimburse from Bond Proceeds, West Shadow Lake Area Street <br />and Utility Improvements. <br />3/5 <br />Staff is requesting council approval to declare the City's intent to reimburse itself from bond <br />proceeds for the proposed 2019 Water Tower No. 3 Project. <br />BACKGROUND <br />On January 22, 2019 the City Council authorized the preparation of plans and specifications for <br />the Water Tower No. 3 Improvement Project. The project The project includes construction of a <br />new 1.5 million gallon water tower. The estimated project cost is $4,700,000. <br />The project will be financed by Utility Revenue Bonds. The Internal Revenue Code requires <br />cities to declare their intent to reimburse project costs incurred prior to receipt of bond proceeds. <br />Preliminary expenditures such as architectural, engineering, surveying, bond issuance, and <br />similar costs are exempt from this provision. <br />Approval of the Intent to Bond resolutions does not obligate the City issue bonds. <br />RECOMMENDATION <br />Staff is recommending adoption of Resolutions No. 19-109. <br />ATTACHMENTS <br />1. Resolution No. 19-109 <br />