Laserfiche WebLink
UTILITIES COMMISSION MEETING <br />TO: FROM: <br />ERMU Commission Theresa Slominski –General Manager <br />MEETING DATE: AGENDA ITEM NUMBER: <br />January 12, 2021 2.5 <br />SUBJECT: <br />Resolution for Reimbursement of Capital Expenditures <br />ACTION REQUESTED: <br />Adopt ResolutionNo. 21-1 Declaring the Official Intent to Reimburse Certain Capital <br />Expenditures from the Proceeds of Tax-Exempt Bonds and Establishing Compliance with <br />Reimbursement Bond Regulations Under the Internal Revenue Code. <br />BACKGROUND: <br />Elk River Municipal Utilitiesintends to expand its field services facility to have indoor parking <br />for all of its equipment and vehicles, holdinventory in one secured area, and expand its office <br />space. We will bebonding for this in 2021, and the funds will be received in thespring.As <br />certain expenditures will occur prior to the funding being received, ERMU intends to pay for <br />these expenditures and then reimburse the companywhen the bond funds are received. <br /> <br />DISCUSSION: <br />The IRS has guidelines for an entity toreimburse themselves out of bond funds for expenses <br />already incurred. As ERMU intends to be compliant with these requirements, bond counsel has <br />prepared a resolution for the commission to adopt stating this intent. The amount listed is <br />$14,000,000, which will cover our budgeted $12,500,000 amount for the building, plus bond <br />issuance costs. <br /> <br />ATTACHMENTS: <br /> Resolution No. 21-1 – Declaring the Official Intent to Reimburse Capital Expenditures <br />from the Proceeds of Tax-Exempt Bonds and Establishing Compliance with <br />Reimbursement Bond Regulations Under the Internal Revenue Code <br />______________________________________________________________________________ <br />Page 1 of 1 <br />49 <br />