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CITY COUNCIL <br />REGULAR MEETING STAFF REPORT <br />AGENDA ITEM 6D <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br />MEETING DATE: March 24, 2025 <br />TOPIC: Consider Resolution No. 25-39, Declaring Intent to Reimburse <br />Certain Expenditures from Bond Proceeds, 2025 Street <br />Reconstruction and Sewer and Water Extension Project <br />VOTE REQUIRED: Simple Majority <br />INTRODUCTION <br />Staff is requesting council approval to declare the City's intent to reimburse itself from bond <br />proceeds for the proposed 2025 Street Reconstruction and Sewer and Water Extension Project. <br />BACKGROUND <br />On March24, 2025 the City Council is considering award of the 2025 Street Reconstruction and <br />Sewer and Water Extension Project contract. The project includes street reconstruction and <br />stormwater improvements as part of the City's Pavement Management Plan. The project also <br />includes the extension of sanitary sewer and water main improvements. The cost of the Street <br />Reconstruction portion of the project, authorized in the 2024 — 2028 Street Reconstruction plan <br />is $4,450,000. The utility portion of the project is estimated at $2,818,000. <br />The project will be financed by a combination of General Obligation Street Reconstruction <br />Bonds, Utility Revenue Bonds and/or General Obligation Improvement Bonds. The Internal <br />Revenue Code requires cities to declare their intent to reimburse project costs incurred prior to <br />receipt of bond proceeds. Preliminary expenditures such as architectural, engineering, <br />surveying, bond issuance, and similar costs are exempt from this provision. The total amount of <br />bonds issued may be less than the authorized limit. <br />Approval of the reimbursement bond resolution does not obligate the City to issue bonds. <br />RECOMMENDATION <br />Staff is recommending adoption of Resolution No. 25-39. <br />ATTACHMENTS <br />