DATE: October 27, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russ Truell, Assistant City Administrator/CFO
SUBJECT:
title
Consideration of Resolution 2016-76, a Resolution Declaring the Intent of the City to Reimburse Itself for Expenditures Related to Public Works Projects from Bond Proceeds; 11/08/16 WS)
body
Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the reimbursement of expenditures on approved capital investment projects by bond proceeds.
Background
In order to reimburse from future bond proceeds any expenditures made on capital investment projects from existing City funds, the Internal Revenue Service requires a resolution indicating the City’s intent to make such reimbursements. This is a standard procedure undertaken each time that the City begins a major project or a series of projects.
Most recently, a similar reimbursement resolution was adopted in April for the Hillsboro Road Phase II project.
Financial Impact
There is no direct financial impact from the resolution. The resolution is permissive in that it allows reimbursement if it is decided to issue bonds for financing purposes.
Recommendation
rec
Staff recommends approval of the Resolution.