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HomeMy WebLinkAbout[04d] Bond Reimbursement, Gov't center Council Agenda Item 4d MEETING DATE: July 7, 2016 AGENDA ITEM: Government Center SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None PREVIOUS COUNCIL ACTION: Council awarded bids and issued bonds for the Government Center. BACKGROUND INFORMATION: Cities are allowed to reimburse themselves for construction costs incurred prior to receiving bond proceeds. To do so, a resolution stating the city's intent to reimburse themselves must be adopted. The bond proceeds will be deposited on July 7"'. Project costs prior to this date this year were paid out of city funds with the anticipation the bonds would reimburse the funds. This is common practice for almost any project that is funded by bond proceeds. The expenses included in the debt issue included the early 2016 estimated costs. BUDGET/FISCAL IMPACT: $891,082.71 bond issue ATTACHMENTS: Request for Council Action—Government Center Resolution 2016-034 REQUESTED COUNCIL ACTION: Adopt Resolution 2016-034 allowing the City to reimburse itself for costs associated with the Government Center. CITY OF ST. JOSEPH. RESOLUTION 2016-034 REIMBURSEMENT OF CONSTRUCTION COSTS 2016 Government Center WHEREAS, a resolution of the city council adopted on the 6th day of June, 2016, provided for the issuance and sale of $4,335,000 General Obligation Capital Improvement Plan bonds, Series 2016A to finance the acquisition and construction of a new city hall and public safety facility("Project"). AND WHEREAS, city council awarded bids for the Project at their March 22, 2016 council meeting, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA: That the city council declares its official intent to reimburse itself for the costs of the improvement from the proceeds of the tax exempt bond. Whereupon said resolution was declared duly passed and adopted by the St. Joseph City Council on this 7th day of July, 2016. CITY OF ST. JOSEPH By Rick Schultz, Mayor By Judy Weyrens, Administrator