Broken Arrow City Council
Meeting of: 10-17-17
To: Mayor and City Council
From: Finance Department
Title:
title
Approval of and authorization to execute Resolution No. 1061, a Resolution stating the intention to reimburse certain capital expenditures from proceeds of tax exempt bonds
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Background:
The City of Broken Arrow has authorized but unsold bond funds related to projects approved by the citizens of Broken Arrow in August 2014 in the amount of $1,115,000 for the acquisition of land and architectural/engineering design for a maintenance center and acquisition of land for the storage of sand and salt. The City Council approved on September 19, 2017 a contract for the purchase of the Windstream Property as part of the above projects. On October 3, 2017 the City Council approved projects for the Series 2018 General Obligations (GO) Bond sale. The projects for the acquisition of land and architectural/engineering design for a maintenance center and acquisition of land for the storage of sand and salt were part of that approval. The City expects to expend funds for the purchase of the Windstream property prior to the sale and closing of the Series 2018 GO Bonds necessitating this Reimbursement Resolution. Budgeted but not yet obligated funds are available in the Sales Tax Capital Improvements (STCI) Fund to purchase the Windstream property. The reimbursement to STCI allowed for by this Resolution will occur when funds from the Series 2018 GO Bond sale are received.
The attached resolution is to satisfy the requirements of Section 1.150-2 of the Treasury Regulations promulgated pursuant to Sections 103 and 141-150 of the Internal Revenue Code of 1986, as amended, which provisions relate to the proceeds of bonds being used for reimbursement for expenditures (the "Reimbursement Regulations").
Cost: $0
Prepared By: Tom Cook Jr., Acting Finance Director
Reviewed By: Legal Department
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