Agenda - Council - 09/22/2020 - Laserfiche WebLink

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CC Regular Session Meeting Date: 09/22/2020 By: Diana Lund, Finance Information 5. 8. Title Adopt Resolution #20-210 Resolution Establishing Procedures Related to Compliance with Reimbursement Bond Regulations under the Internal Revenue Code (Bonding for Construction of Public Works Campus) Purpose/Background: Purpose: The City will be issuing debt in late fall to fund the construction of the City's Public Works Campus. A reimbursement resolution allows the city to pay itself back for any funds expended prior to receiving bond funds. Background: Council has accepted bids and awarded contracts for the first bid package of the Public Works Campus at its regular meeting of September 8, 2020 and the second bid package is to come before City Council at is November 10, 2020 meeting. The City has already experienced soft costs related to the architectural design fees. These soft costs were calculated into the total project costs of the Public Works Campus which has an estimated all-inclusive cost of $20 Million. As the city has and will be expending funds prior to receiving the bond funds (one of proposed funding mechanisms), the city is only allowed to "reimburse" itself if it has a bond reimbursement resolution in place. The resolution incorporates the full $20M to be eligible for reimbursement, but it is the intention of the city to fund approximately $10M by debt. Notification: The resolution that is attached was drafted by the city's bond council of TAFT Law (Formerly Briggs & Morgan. The reimbursement incorporates all of the reimbursement requirements as mandated by the IRS. Observations/Alternatives: The adoption of this resolution does NOT obligate the City to pay for all costs (soft and hard costs) with the bond funds. This resolution simply ALLOWS the City to reimburse itself if it so chooses. Funding Source: Funding for the Public Works Campus is to be funded via the issuance of debt, an internal loan, the Facility Fund, Landfill Fund, Water Fund, Sewer Fund, Street Lighting Fund and Storm Drainage Fund. Recommendation: Recommendation is to approve the attached Reimbursement Resolution #20-210. Action: Adopt Resolution #20-210 Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations Under the Internal Revenue Code (Allows the City to pay itself back for expenditures prior to receiving bond funds). Attachments Reso #20-210 Reimbursement Resolution Public Works Campus