Laserfiche WebLink
City of Tukwila My WebLink |HelpSearch Tips |About |Sign Out
City of Tukwila <br />Allan Ekberg, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: Finance Council Committee <br />FROM: Vicky Carlsen, Finance Director <br />CC: Mayor Ekberg <br />DATE: May 8, 2019 <br />SUBJECT: Appoint Finance Director to designate expenditures for reimbursement from <br />bond proceeds <br />ISSUE <br />The proposed resolution would appoint the Finance Director to designate certain expenditures for <br />reimbursement from bond proceeds. <br />BACKGROUND <br />Major high -cost capital projects that are not paid for with grants or dedicated revenue sources are <br />often financed with bond proceeds. The City Council approves the capital project through two <br />processes; (1) the budget or budget amendment process, and (2) the issuance of debt to fund <br />the project. <br />Shortly after the project is approved by City Council, departments can, and often do, incur costs <br />associated with the project. These costs typically include planning and design and usually qualify <br />to be covered by bond proceeds. However, it can take three to four months to go through the full <br />legislative process to incur debt and receive the bond proceeds. <br />In order to ensure that expenditures incurred prior to the receipt of bond proceeds can be <br />reimbursed with bond proceeds, Council approves a reimbursement resolution that is specific to <br />the project. Once a reimbursement resolution is approved, expenditures occurring up to 60 days <br />prior to approval of the resolution can be reimbursed with the bond proceeds. This reimbursement <br />resolution is typically included in the same legislative cycle and process to issue debt related to <br />the capital project. <br />DISCUSSION <br />In order to streamline the process to finance certain capital projects with bond proceeds, staff is <br />recommending approval of a resolution that would designate the Finance Director as the official <br />responsible for issuing a statement of official intent to reimburse qualifying expenditures with <br />issuance of debt; including bonds, notes, and leases. <br />Approving this resolution would eliminate one step for future capital projects that are financed with <br />debt proceeds. <br />RECOMMENDATION <br />Council is being asked to forward this resolution to the May 20, 2019 Regular Meeting Consent <br />Agenda. <br />ATTACHMENTS <br />Draft Resolution <br />