Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 26-R21, a Resolution Regarding Reimbursement of Certain Costs Relating to the Acquisition, Construction and Equipping of Various Capital Improvements to the City’s Water and Wastewater Utility System, Providing for Conflict; Providing for Severability; Providing an Effective Date.
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Submitted By: Stephen Okiye, Finance Director, Finance Department.
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): This utility bond reimbursement resolution allows the Utility System to recover project costs that are incurred before the issuance of bonds.
Presentation Information: Staff will be available for questions.
Staff Recommendation: Move that the Council approve the Resolution.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the Resolution.
2. Move that the Council provide staff direction.
Background: This Resolution supports several planned utility capital projects, including the Rangeline Road Raw Water Main, the Rangeline Road Reverse Osmosis (RO) Injection Well System, the RO Water Treatment Plant, the RO Wells, the Glades EQ Tank, and the Glades Wastewater Treatment Plant Expansion (this list in included in Exhibit A of the Resolution). Capital projects often require early expenditures, such as design, engineering, or land acquisition, before long-term financing is secured.
Issues/Analysis: This reimbursement resolution helps avoid arbitrage issues by allowing the government to begin spending as needed, without issuing bonds prematurely or holding proceeds in low-yield accounts. In summary, a reimbursement resolution provides flexibility to start projects early, maintain regulatory compliance, and align financing with project schedules.
Financial Information: The projects covered by the reimbursement resolution are included in the fiscal year 25/26 budget.
Special Consideration: N/A
Location of Project: N/A
Business Impact Statement: N/A
Attachments: 1. Resolution 26-XX Draft
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: Legal Intake #26036-02
Legal Sufficiency Review:
Reviewed by Richard Berrios, City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.