2021.07.19 CC Packet - Laserfiche WebLink

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14669 Fitzgerald Avenue North, Hugo, MN 55038 • (651) 762‐6300 • www.ci.hugo.mn.us TO: Honorable Mayor Tom Weidt and Members of the City Council FROM: Anna Wobse, Interim Finance Director SUBJECT: Bond Reimbursement Resolution – Lions Park Improvements and Related Public Improvements DATE: For the City Council Meeting of July 19, 2021 DESIRED COUNCIL ACTION Adoption of Resolution Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations LIONS PARK IMPROVEMENTS AND RELATED PUBLIC IMPROVEMENTS At their June 21, 2021 City Council meeting Council approved bids and awarded contracts for the Lions Park pavilion, playground and related public improvements. At that same meeting a public hearing to consider using Tax Abatement to pay for the Lions Park improvements was scheduled for July 19, 2021. As the process continues the City will incur architectural, engineering and other project related expenses before the sale of any bonds would be approved. FINANCING OPTIONS Staff anticipates the issuance of G.O. Tax Abatement Bonds to fund the project costs. Federal treasury regulations permit the City to reimburse itself for project costs that are incurred prior to the time of a bond issuance with the subsequent bond proceeds. However, this financing option is only available if the City Council passes a “reimbursement resolution.” PROCEDURAL ACTION ONLY Passage of this resolution does not require the City to issue bonds. It only buys the City some time to consider undertaking a bond issuance and allows for reimbursement of expenses paid prior to the time a bond would be issued. STAFF RECOMMENDATION The Finance Department recommends that the City Council adopt this reimbursement resolution. ATTACHMENTS Resolution Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations.