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CITY COUNCIL <br />REGULAR MEETING STAFF REPORT <br />AGENDA ITEM 11 <br />STAFF ORIGINATOR: Michael Grochala, Community Development Director <br />MEETING DATE: April 28, 2025 <br />TOPIC: Consider Resolution No. 25-54, Declaring Intent to Reimburse <br />Certain Expenditures from Bond Proceeds, Market Place Drive <br />Realignment <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 Market Place Drive Realignment Project. <br />BACKGROUND <br />On April 14, 2025 the City Council awarded the contract for the Market Place Drive Realignment <br />Project. The project includes roadway improvements and extension of sanitary sewer and <br />water trunk utility lines. The estimated project cost is $1,635,900. <br />The projects will be funded by a combination of land sale proceeds, municipal street state aid <br />and Area and Unit trunk utility funds. The portion of the project funded from the Area and Unit <br />fund, estimated at $537,000, may be financed by issues of bonds. The Internal Revenue Code <br />requires cities to declare their intent to reimburse project costs incurred prior to receipt of <br />bond proceeds. Preliminary expenditures such as architectural, engineering, surveying, bond <br />issuance, and similar costs are exempt from this provision. The total amount of bonds issued <br />may be less 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. 25-54. <br />ATTACHMENTS <br />1. Resolution No. 25-54 <br />1 <br />