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STAFF REPORT <br />DATE:03/17/2026 <br />CONSENT <br />TO: Mayor and Councilmembers <br />FROM: Clarissa Hadler, Finance Director <br />AGENDA ITEM: Reimbursement Resolution <br />CORE STRATEGIES <br />☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services <br />☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future <br />☐ Managed Growth ☒ Resilient Infrastructure <br />BACKGROUND <br />The Internal Revenue Service (IRS) regulations generally require that the City make a declaration of <br />intent to reimburse itself for expenditures out of the proceeds of subsequently issued bonds or other <br />financing and that such declaration be made not later than 60 days after the expenditure is actually <br />paid. <br />The City is planning to use bonds to finance 4 projects in 2026 and 2027. Because of the timing of the <br />expenses and projects, it is recommended that the attached reimbursement resolution be approved <br />in order to finance appropriate expenses at the time of issuance, likely in early 2027. <br />The City will recognize savings by combining the projects into one bond future issue by saving <br />issuance costs. The City has the capacity to cash flow the costs until the issuance of the bonds <br />without it impacting its bond rating. The amount shown in the resolution is $8 million, less than the <br />$8.4 million planned in the CIP, as the 2026 Street project costs came in lower than expected. The <br />final bond amounts will be determined at a later date as we learn more about future project costs <br />and available cash. <br />ISSUE BEFORE CITY COUNCIL <br />Should the City Council approve a reimbursement resolution for various Capital Projects to be <br />reimbursed through future bonding? <br />RECOMMENDATION <br />If removed from the consent agenda:Motion to Resolution 2026 -015,a resolution declaring the <br />official intent to reimburse certain capital expenditures from the proceeds of tax-exempt bonds and <br />establishing compliance with reimbursement bond regulations under the Internal Revenue Code. <br />ATTACHMENTS: <br />1)Resolution 2026 - 015 <br />2)Summary of Projects funded by Bonds