#12 - Reimbursement Resolution - Laserfiche WebLink

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STAFF REPORT DATE: May 7, 2024 CONSENT MOTION TO: City Council FROM: Clarissa Hadler – Finance Director AGENDA ITEM: Approve Reimbursement Resolution REVIEWED BY: Clark Schroeder, Interim City Administrator BACKGROUND: The Internal Revenue Service (IRS) regulations generally require that the City make a declaration of intent to reimburse itself for expenditures out of the proceeds of subsequently issued bonds or other financing and that such declaration be made not later than 60 days after the expenditure is actually paid ISSUE BEFORE THE CITY COUNCIL: 1) Should the City Council approve a reimbursement resolution for various Capital Projects to be reimbursed through future bonding? DISCUSSION: The City is planning to use abatement bonds to finance two projects; 30th St. project and the UP Railroad Crossing - Village Parkway and Village East Watermain projects. Because of the timing of the expenses and projects, it is recommended that the attached reimbursement resolution be approved in order to finance appropriate expenses at the time of issuance, likely in 2025. Issuance of the abatement bonds is being postponed due to the unknown timing of the Village railroad crossing project as we await permit approvals. FISCAL IMPACT: The City will recognize savings by combining the projects into one bond future issue by saving issuance costs. The City has the capacity to cash flow the costs until the issuance of the bonds without it impacting its bond rating. RECOMMENDATION: If removed from the consent agenda: Motion to Resolution 2024-056, a resolution declaring the official intent to reimburse certain capital expenditures from the proceeds of tax-exempt bonds and establishing compliance with reimbursement bond regulations under the Internal Revenue Code. ATTACHMENTS: 1) Resolution 2024-056.