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CC Regular Session <br />Meeting Date: 02/24/2015 <br />By: Diana Lund, Finance <br />Information <br />4. 7. <br />Title <br />Adopt Resolution #15-02-051 Resolution Establishing Procedures Relating to Compliance With Reimbursement <br />Bond Regulations Under the Internal Revenue Code <br />Purpose/Background: <br />Purpose: The City will be issuing Road Reconstruction debt in late May to fund the construction of Garnet <br />Street/168th Avenue and bituminous overlays. A reimbursement resolution allows the city to pay itself back for <br />any funds expended prior to receiving bond funds. <br />Background: The authorization of bids for the construction of Garnet Street and 168th Avenue will not be brought <br />forward to City Council until May 26, 2015 and Bituminous Overlay bids in June. Until these stated times of <br />authorization, the city could experience costs related to such items as legal, engineering, publishing, etc. These soft <br />costs were calculated into the total project costs of the road projects in determining the bonding amount. <br />As the city will be expending funds prior to receiving the bond funds (proposed funding mechanism), the city is <br />only allowed to "reimburse" itself if it has a bond reimbursement resolution in place. <br />Notification: <br />The resolution that is attached was drafted by the city's bond council of Briggs & Morgan. The reimbursement <br />incorporates all of the reimbursement requirements as mandated by the IRS. <br />Observations/Alternatives: <br />The adoption of this resolution does NOT obligate the City to pay for the soft costs with the bond funds. This <br />resolution simply ALLOWS the City to reimburse itself if so chooses and as stated, these costs were included in the <br />total project costs to be bonded. <br />Funding Source: <br />Funding for the construction of Garnet Street/168th Avenue and bituminous overlays is proposed to be funded from <br />the issuance of <br />Street Reconstruction Plan bonds. <br />Recommendation: <br />Recommendation is to approve the attached Reimbursement Resolution #15-02-051. <br />Action: <br />Adopt Resolution #15-02-051 Establishing Procedures Relating to Compliance with Reimbursement Bond <br />Regulations Under the Internal Revenue Code (Allows the City to pay itself back for expenditures prior to receiving <br />bond funds). <br />Attachments <br />Reimbursement Res #15-02-051 <br />