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Approve a Reimbursement Resolution for Future Capital Projects.
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Staff:
Department:
Amy Oland, Director
Business Management
Overview: The attached resolution would declare the Town's intent to reimburse all future expenses incurred with the various capital projects prior to the planned issuances in FY 2023 and FY 2024.
Recommendation(s):
That the Council adopt the attached reimbursement resolution declaring its intent to reimburse costs associated with the various capital projects planned for issuance in FY 2023 and FY 2024.
Key Issues:
* U.S. Treasury regulations and guidelines require that a governmental entity declare its intent to use tax-exempt debt financing in order to subsequently reimburse itself from the proceeds of that borrowing. In accord with this requirement, the Town must adopt a resolution declaring its intent to reimburse itself from the proceeds of the planned issuances of (a) general obligation bonds in FY 2023 for streets & sidewalks project costs and affordable housing project costs and (b) limited obligation bonds in FY 2024 for the Municipal Services Center project costs and any additional construction costs associated with the East Rosemary Parking Deck incurred prior to the financings.
* In accordance with the Internal Revenue Service requirements for the issuance of tax-exempt debt, the attached resolution declares the Town's intent to reimburse itself for (a) streets & sidewalks expenditures up to $7.7 million, (b) affordable housing expenditures up to $5.245 million, (c) Municipal Services Center expenditures up to $45 million, and (d) East Rosemary Parking Deck construction expenditures up to $39.4 million.
* The Council will have the opportunity to specifically approve or reject the proposed projects, funding allocations, and construction bids at a later date. However, without the reimbursement resolution, we cannot finance costs of the project from this date until the actual financings are in place.
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