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14669 Fitzgerald Avenue North, Hugo, MN55038 • (651) 762-6300 • www.ci.hugo.mn.us <br />TO: Honorable Mayor Tom Weidt and Members of the City Council <br />FROM: Ron Otkin, Finance Director <br />SUBJECT: Bond Reimbursement Resolution (PW Facility Financing) <br />DATE: For the City Council Meeting of June 1, 2020 <br />DESIRED COUNCIL ACTION <br />Adoption of Resolution Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations <br />PUBLIC WORKS FACILITY AT IRISH AVENUE <br />At several workshops held over the last several months, the City Council has reviewed preliminary plans and cost <br />estimates for constructing a new public works facility on city owned property. As the process continues the city will <br />incur architectural/engineering expenses, with the ultimate goal of bidding the project later this summer. <br />FINANCING OPTIONS <br />Aside from using funds on hand to pay for this project, staff anticipates the issuance of G.O. Capital Improvement Bonds <br />for all or a portion of the project costs. Federal treasury regulations permit the City to reimburse itself for project costs <br />from the proceeds of bonds. But this financing option is only available if the City Council passes a "reimbursement <br />resolution." <br />PROCEDURAL ACTION ONLY <br />Passage of this resolution does not require the City to issue bonds. It only buys the City some time to consider <br />undertaking a bond issuance. <br />STAFF RECOMMENDATION <br />The Finance Department recommends that the City Council adopt this reimbursement resolution. <br />ATTACHMENTS <br />Resolution Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations. <br />