DEPARTMENT MAKING REQUEST
Comptroller Division
Title
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Utility Reimbursement Resolution
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REQUESTED MOTION/ACTION
recommendation
Recommended Action:
Approve the Utility Reimbursement Resolution
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budget
Budgeted Action:
No action needed.
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BACKGROUND (Why is this Action Necessary, and What Action will be accomplished)
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Background:
The Board of County Commissioners has approved certain water and sewer utility capital improvements which are intended to be funded through tax-exempt bond issuance. In the event expenditures for various capital projects are made prior to issuing Utility Revenue Bonds, such capital improvements and reserves spending are intended to be reimbursed through the issuance of tax-exempt debt. Under federal tax laws, if the County spends funds from its own reserves to pay for any of the related capital improvements prior to the issuance of tax-exempt debt, an “official intent” resolution must be adopted in order to allow the County to retain the ability to reimburse itself for
such prior expenditures from the proceeds of future tax-exempt debt. The proposed Reimbursement Resolution constitutes the official intent resolution required by the federal tax law, providing a “backstop” to replenish reserves and manage cash flow. The document does not commit Charlotte County or the Utility to issuing debt at any particular amount or point in time. Rather, it provides flexibility for spending needs relative to any forthcoming tax-exempt debt issuance. This includes reimbursement of qualified expenditures made up to 60 days prior to the date the Reimbursement Resolution is adopted.
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