Agenda - Council - 05/23/2023 - Laserfiche WebLink

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CC Regular Session Meeting Date: 05/23/2023 By: Diana Lund, Finance Information 5. 14. Title Adopt Resolution #23-113 Resolution Establishing Procedures Related to Compliance with Reimbursement Bond Regulations under the Internal Revenue Code (Bonding for Water Treatment Plant & Trunk Watermain Improvements) Purpose/Background: Purpose: The City will be issuing a Water Revenue bond (late this year or early spring 2024) in regards to the Water Treatment Facility and related trunk watermain improvements. Council approved the construction of the water treatment plant (WTP) at its regular meeting of March 28, 2023 and the WTP trunk watermain improvements are proposed to be bid this summer/fall. A reimbursement resolution allows the city to pay itself back for any funds expended prior to receiving bond funds. As the city has and will be expending funds prior to receiving the bond funds (one of the proposed funding mechanisms), the city is only allowed to "reimburse" itself if it has a bond reimbursement resolution in place. The resolution calls for up to $20 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 counsel of TAFT Law. The reimbursement resolution 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 Water Treatment Plant (WTP) and its trunk watermain utility improvements are proposed to be funded from the water and sewer utility funds (33.5M) and $9M from the issuance of a revenue bond (TBD based on WTP trunk watermain improvements low bid). Recommendation: Recommendation is to adopt the Reimbursement Resolution #23-113. Action: Adopt Resolution #23-113 Establishing Procedures Relating to Compliance with Reimbursement Bond Regulations Under the Internal Revenue Code (Allows the City to pay itself back for expenditures made prior to receiving bond funds). Attachments Reso #23-113 Reim Reso for WTP & Watermain Improvements Form Review Inbox Reviewed By Date Brian Hagen Diana Lund 05/16/2023 08:20 AM Diana Lund (Originator) Diana Lund 05/16/2023 08:23 AM Brian Hagen Brian Hagen 05/18/2023 08:25 AM