SUBJECT
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A Resolution expressing official intent to reimburse with tax-exempt obligation proceeds, not to exceed $5,000,000.00, costs associated with acquiring, constructing, improving and equipping a mass transit facility serving the governmental functions of the City.
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PREVIOUS COUNCIL ACTION
Presentation of Plan of Finance by Noe Hinojosa of Estrada-Hinojosa & Company on July 22, 2024.
BACKGROUND
The Transit System Fund will advance an amount not to exceed $5,000,000.00 for construction of transit administrative offices, terminal, and other related improvements. This reimbursement resolution will authorize the reimbursement of up to $5,000,000.00 to the Transit System Fund from a proposed bond issuance.
In order to perform this reimbursement with tax-exempt borrowings, the City needs to have in place a reimbursement resolution. The resolution attached allows the City to reimburse itself for any costs incurred 60 days prior to its adoption. The resolution does not specifically authorize the issuance of the debt at this time, and does not fix the exact amount of the future debt we will issue. The attached resolution states the official intention of the City Council to fund projects with debt, and additionally states that some proceeds of this debt, if and when issued for the purposes of funding capital improvements, will be used to pay for costs incurred prior to the date of the new debt being issued.
The reimbursement resolution included with this agenda item is required if the City will be reimbursing itself from tax-exempt obligation (such as bonds or certificates of obligation) proceeds, as we intend to do.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends the adoption of proposed resolution.
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Fiscal Impact
Fiscal Year: 2024
Budgeted Y/N?: N
Source of Funds: Transit System Fund
Account #: 518
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
No financial impact at this time.