DATE: March 8, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator/CFO
SUBJECT:
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Consideration of Resolution 2016-15, a Resolution for Reimbursement of Expenditures for Public Works Improvement Projects from Bond Proceeds (03-22-16 ws)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the reimbursement of expenses from future bond proceeds for Public Works projects including Hillsboro Road.
Background
The Internal Revenue Service (IRS) requires that a reimbursement resolution be passed by the governing body in order to qualify for bond proceeds to be used to reimburse for project expenses made prior to bond issuance. Because the City is planning to issue bonds or other borrowings for public works projects, including Hillsboro Road improvements, it is necessary for the City to adopt such a resolution. It is customary for local governments to adopt such arrangements and it has been a routine procedure for the City of Franklin for most bond issues.
Financial Impact
The reimbursement resolution does not, in itself, have any direct financial impact. It does allow for the City to pay itself back from a bond issue for expenses incurred prior to issuance of the bonds.
Recommendation
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Staff recommends approval of Resolution 2016-15.