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Council approves $69.2M reimbursement resolution to preserve future financing options
Summary
Council adopted a reimbursement resolution declaring intent to reimburse prior lawful expenditures from future tax‑exempt obligations (certificates of obligation) for up to about $69.2 million in potential projects covering water, wastewater, parks and other capital needs.
City financial advisors and staff briefed council on a reimbursement resolution that preserves the city’s ability to reimburse itself for preliminary expenditures from future tax‑exempt obligations.
Andrew Friedman of Samco Capital Markets and Finance Director Pervez Maitre said the resolution is a pre‑issuance “intent” that typically accompanies planned financings so that the city can spend on design, engineering and other preconstruction costs and later reimburse those expenditures from bond proceeds if it decides to issue certificates of obligation.
Maitre told council the figure for the resolution — roughly $69.2 million — covers estimated near‑term spending across multiple project categories for the next 12 months: approximately $37.1M for water infrastructure; $11.1M for wastewater plant expansion; about $3.8M for Lake Kensington preliminary work; $4.7M for intersection engineering; $2.6M expected for animal shelter design work this year; and $9.9M for roundabout/illumination work.
Councilors asked whether this commits the city to borrow; staff emphasized the resolution only preserves the ability to reimburse and is not an authorization to issue bonds. Officials also noted potential impacts: utility rate increases could follow water/wastewater financing and property taxes could be affected by street or park financings. Staff said any project‑level financing and rate/tax impacts would return to council for separate votes and analysis.
Council approved the reimbursement resolution by voice vote 6–0. Staff said failing to adopt a resolution now would limit the city’s ability to reimburse eligible preliminary spending if it later issued tax‑exempt certificates of obligation.
