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International Falls adopts reimbursement-resolution for Ninth Street project, sets $3 million cap
Summary
City council unanimously adopted a reimbursement resolution allowing the city to use cash reserves now for Ninth Street storm, sanitary and street-lighting work and to reimburse itself later from tax‑exempt bonds not to exceed $3,000,000; bond sale is scheduled for consideration Aug. 4.
The International Falls City Council on June 16 adopted a reimbursement resolution allowing the city to temporarily pay project invoices for the Ninth Street project and later reimburse those expenses from the proceeds of a tax‑exempt bond not to exceed $3,000,000.
The resolution “gives you the opportunity to use your cash reserves in the short term to meet any obligations… and then reimburse yourself at a later date, with the proceeds of a tax exempt bond,” George Eilertson of Northland Securities told the council. Eilertson said the resolution covers the Ninth Street storm and sanitary improvements, street lighting and the purchase of a Vactor (sewer vector) truck and that it lets the city look back up to 60 days to recover eligible project costs.
The city is not issuing bonds tonight: Eilertson said bond issuance is scheduled for consideration at the council’s Aug. 4 meeting and that staff will work in mid‑July on obtaining a bond rating. “Just to hit a couple of highlights… this is the Ninth Street project, so storm and sanitary improvement street lighting, as well as the sewer vector trucks,” Eilertson said. He added the resolution does not obligate the city to issue bonds but provides reimbursement flexibility.
Council discussion clarified the scope and timing but did not change the resolution. The motion to adopt the resolution was made by Councillor Kaler and seconded by Councillor Holden; Mayor Dill called the question and the resolution passed unanimously.
The council’s action establishes procedures intended to comply with applicable reimbursement bond regulations under the Internal Revenue Code; the resolution includes the council’s description of the project and specifies the not‑to‑exceed amount of $3,000,000. Councilors and staff emphasized that passage of the resolution is administrative and that any actual bond sale would return to the council for separate approval.
Council members did not set financing terms tonight; staff will return with bond‑rating information and any final financing documents ahead of the Aug. 4 consideration.
