TO: Committee of the Whole - Finance, Administration, and Communications
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
Finance
Kelley Cochran
425-556-2748
DEPARTMENT STAFF:
Finance
Adam O'Sullivan
Treasury Manager
Finance
Blake Ruiz
Senior Financial Analyst - Capital
TITLE:
title
Capital Project Bond Reimbursement Resolution
OVERVIEW STATEMENT:
recommendation
Adopt a resolution authorizing the City to reimburse certain capital investment expenditures from the proceeds of a future sale of bonds. The adoption of the resolution permits the City to comply with IRS regulations but does not obligate the City with regard to the sale or structure of the bonds.
? Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
? Receive Information ? Provide Direction ? Approve
REQUEST RATIONALE:
* Relevant Plans/Policies:
N/A
* Required:
Treasury Regulation Section 1.150-2
* Council Request:
N/A
* Other Key Facts:
N/A
OUTCOMES:
As directed by the Council during the Capital Investment Program Funding Strategy presentation on February 24, 2026, a reimbursement resolution is being submitted for consideration on the March 17, 2026, consent agenda.
A reimbursement resolution allows the City to use its own money to pay for project costs upfront and later reimburse itself with tax-exempt bond proceeds, in compliance with Internal Revenue Service (IRS) requirements. Reimbursement resolutions are necessary because capital projects frequently begin before bonds are issued. Specifically, a reimbursement resolution:
* Preserves the ability to use tax-exempt bond proceeds later
* Provides official documentation of intent
* Helps comply with U.S. Treasury regulations (specifically Treasury Regulation ?1.150-2)
If the resolution is not adopted in a timely manner, the City may lose the ability to reimburse itself from future tax-exempt bond proceeds.
The City anticipates expenditures associated with the early phases of these pro...
Click here for full text