AGENDA ITEM REPORT
TITLE:
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A RESOLUTION AUTHORIZING THE REIMBURSEMENT OF CERTAIN CAPITAL COSTS FROM FUTURE BOND PROCEEDS RELATING TO VARIOUS CAPITAL IMPROVEMENT PROJECTS WITHIN THE CITY.
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BACKGROUND:
The City of Coconut Creek may sometimes incur costs related to capital improvements prior to securing long-term financing. Federal Treasury Regulations require that a governing body adopt a "reimbursement resolution" in order to preserve the City's ability to reimburse itself from tax-exempt bond proceeds for eligible expenditures incurred before the issuance of bonds. Adopting such a resolution ensures that the City maintains compliance with Internal Revenue Service (IRS) requirements and retains maximum flexibility in structuring the financing of major capital projects.
DISCUSSION:
The City's Fiscal Year 2025 (FY25) Capital Improvement Program (CIP) includes several significant projects that may ultimately be financed through a future bond issuance, including Fire Station 113 and MainStreet development projects, as described in the Development Agreement between the City of Coconut Creek and GSR RE Partners, LLC dated August 28, 2025. By adopting this resolution, the City Commission formally declares its intent to reimburse eligible expenditures made in advance of such financing.
The resolution does not obligate the City to issue bonds or to include specific projects in any bond financing; rather, it preserves the City's legal ability to reimburse itself from future tax-exempt debt up to an amount not expected to exceed $75,000,000. This action is considered a standard financial best practice and is taken to safeguard the City's fiscal flexibility.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT:
REVENUES: $ 0
EXPENDITURES: $ 0
BUDGETED? No
NOTES: This resolution has no immediate revenue or expenditure impact, as it solely preserves the City's ability to reimburse eligible future capital costs from bond proceeds, witho...
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