Title
Consider a resolution expressing official intent to reimburse certain project expenditures from the proceeds of a future Certificates of Obligation bond sale.
Body
This resolution allows for project costs related to facility design and construction at Luther Peterson to be spent before the bond proceeds are received. This resolution will allow the project to move forward using existing cash and then reimburse the funds once the bonds are issued.
The City plans to issue $7 million of Certificates of Obligations to fund $6.75 million of the project and estimated closing cost expenditures during fiscal year 2017/18. Per Council direction during the 2016/17 budget process, the original General Self-Finance Construction Fund monies designated for this project were redirected to the City’s neighborhood street maintenance program.
The Luther Peterson facility is under design with an expected ground breaking of January 2018. This first phase of the new Luther Peterson site will house:
• Utility department staff currently at Luther Peterson,
• All of the Utility department management and administration, currently located at the Enterprise location;
• A portion of Utility department staff currently located at the water plant;
• Transportation Administration staff currently at Enterprise.
The entire Luther Peterson facility is projected to cost $16.5 million. The Utility Fund’s portion is $9.75 million.
This resolution is required to meet IRS rules and regulations regarding the use of tax-exempt funds.