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CC Regular Session <br />Meeting Date: 05/23/2023 <br />By: Diana Lund, Finance <br />Information <br />5. 13. <br />Title <br />Adopt Resolution #23-112 Resolution Establishing Procedures Related to Compliance with Reimbursement Bond <br />Regulations under the Internal Revenue Code (Bonding for Hy-10 Improvements & COR Infrastructure <br />Improvements) <br />Purpose/Background: <br />Purpose: The City will be issuing TIF debt this year in regards to the improvements for HY-10 (project has been <br />awarded) and for COR infrastructure improvements (CC approval on 5-9-23 for COR Infrastructure Design <br />Services and authorizing advertisement for bids for COR Tree Clearing). A reimbursement resolution allows the <br />city to pay itself back for any funds expended prior to receiving bond funds. <br />As the city has and will be expending funds prior to receiving the bond funds (proposed funding mechanisms), the <br />city is only allowed to "reimburse" itself if it has a bond reimbursement resolution in place. The resolution calls <br />for up to $10M to be eligible for reimbursement, but it is the intention of the city to fund approximately $7M by <br />debt. <br />Notification: <br />The resolution that is attached was drafted by the City's bond counsel of TAFT Law. The reimbursement <br />resolution 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 all costs (soft and hard costs) with the bond <br />funds. This resolution simply ALLOWS the City to reimburse itself if it so chooses. <br />Funding Source: <br />Funding for the HY 10 and Cor Infrastructure improvement projects are proposed to be funded via the issuance <br />of Tax Increment Financing (TIF) debt. <br />Recommendation: <br />Recommendation is to adopt the Reimbursement Resolution #23-112. <br />Action: <br />Adopt Resolution #23-112 Establishing Procedures Relating to Compliance with Reimbursement Bond <br />Regulations Under the Internal Revenue Code (Allows the City to pay itself back for expenditures made prior to <br />receiving bond funds). <br />Attachments <br />Reso #23-112 Reim Reso for HY 10/Cor Improvements <br />Form Review <br />Inbox Reviewed By Date <br />Brian Hagen Diana Lund 05/16/2023 07:51 AM <br />