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CITY COUNCIL <br />REGULAR MEETING STAFF REPORT <br />AGENDA ITEM 6E <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br />MEETING DATE: March 24, 2025 <br />TOPIC: Consider Resolution No. 25-40, Declaring Intent to Reimburse <br />Certain Expenditures from Bond Proceeds, 2025 Street <br />Rehabilitation 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 February 10, 2025 the City Council awarded the contract for the 2025 Street Rehabilitation <br />Project. The project includes bituminous overlays and water main valve and service <br />replacement. The estimated project cost is $1,438,500. <br />The projects will be funded by a combination of General Fund proceeds and the water <br />operating fund. The portion of the project funded from the water operating fund, estimated at <br />$508,000 may be financed by issues of bonds. The Internal Revenue Code requires cities to <br />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. The total amount of bonds issued may be less <br />than the authorized limit. <br />Approval of the bond reimbursement resolution does not obligate the City to issue bonds. <br />RECOMMENDATION <br />Staff is recommending adoption of Resolution No. 25-40. <br />ATTACHMENTS <br />1. Resolution No. 25-40 <br />