Presenter/Contact
Presenter
Martie Simpson, Finance Director
Contact Info
(830) 221-4385 - msimpson@nbtexas.org
Subject Header
SUBJECT:
Title
Approval of a resolution relating to establishing the City’s intention to reimburse itself for the for the prior lawful expenditure of funds relating to the construction of various city improvements from the proceeds of tax-exempt obligations to be issued by the city for authorized purposes; authorizing other matters incident and related thereto; and providing an effective date.
Body
BACKGROUND / RATIONALE:
Attached is a reimbursement resolution prepared by McCall, Parkhurst and Horton, the City’s bond counsel. This resolution will enable the New Braunfels Industrial Development Corporation (NBIDC), through the City, the option to reimburse themselves for costs associated with various projects related to the land acquisition for a sports complex in the amount of $650,000 and for costs associated with resurfacing of playing fields in the amount of $2,500,000 as well as fund their commitment associated with the recreation center in the amount of $5,800,000.
This reimbursement resolution allows the NBIDC the flexibility to determine a strategic direction for funding current and future commitments to projects. The NBIDC will be discussing funding options at a workshop in the near future and may elect to fund projects through cash reserves, debt proceeds or a combination of the two. This reimbursement resolution is for an amount not to exceed $8,950,000.
Through this resolution an expenditure of funds is eligible for reimbursement for up to eighteen months after payment is made.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
|
X |
Yes |
City Plan/Council Priority: |
Strategic Priorities: Maintain fiscal stability of City operations |
FISCAL IMPACT:
This reimbursement resolution is for an amount not to exceed $8,950,000 and will reduce the NBIDC’s cash balances in the short term. However, sufficient cash reserves are available for this action.
Recommendation
COMMITTEE RECOMMENDATION:
N/A
STAFF RECOMMENDATION:
Staff recommends approval of a resolution relating to establishing the City’s intention to reimburse itself for the for the prior lawful expenditure of funds relating to the construction of various city improvements from the proceeds of tax-exempt obligations to be issued by the city for authorized purposes; authorizing other matters incident and related thereto; and providing an effective date.