TO: Members of the City Council
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
Adoption of a Capital Project Bond Reimbursement Resolution
a. Resolution No. 1624: A Resolution of the City of Redmond, Washington, Declaring Its Intent that Certain Capital Expenditures to be Made Shall be Reimbursed from the Proceeds of Tax-Exempt Bonds or Other Obligations
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:
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 projects, including property and...
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