Agenda - 04-15-2008-4l - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 15, 2008 Action Agenda Item No. =T 6 _ SUBJECT: Adoption of Reimbursement Resolution for the Office Building and Library DEPARTMENT: Financial Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Attachment 1. Reimbursement Donna Coffey, (919) 245-2151 Resolution -Office Building and Library PURPOSE: To .adopt a reimbursement resolution authorizing the County to reimburse itself for non-general obligation bond project expenditures incurred for the Office Building and Library capital project prior to the actual issuance of debt. BACKGROUND: On January 15, 2008, the Board of County Commissioners approved a Resolution regarding the Agreements for Purchase and Sale of the Office Building and the Library. In addition, the Board approved the Agreement for Construction Manager at Risk Services for these two projects. Current plans include issuing non-general obligation debt, also known as .alternative financing, in spring 2009 to fund the project. There will be times between now and the time of actually issuing the debt, however, that the County will be required to expend monies related directly to the Office Building and Library project. As specified by the Internal Revenue Service, the tool that allows local governments to proceed with planned projects and expend monies prior to issuing debt is a reimbursement resolution. Reimbursement resolutions allow governing boards to state their intent to reimburse themselves for capital. project expenses with monies from debt financing. The adoption of this resolution is consistent with past practices -the most recent being on February 19, 2008 for construction of the Animal Services Facility -when the Board adopted a reimbursement resolution that .authorized the County to expend monies up front and reimburse itself once the borrowed monies were in hand. FINANCIAL IMPACT: As outlined in the attached resolution, the maximum amount of debt planned for issuance this spring for the Office Building and Library totals $17,939,079. It is important to note that this amount reflects the maximum amount of money that the County would anticipate borrowing spring 2009 to complete the new facility (exclusive of the Gateway Center which the County is currently leasing) in order to allow flexibility to the Board in approving the project's final budget. .The $17,939,079 figure is consistent with the amounts outlined in the Manager's Recommended 2008-18 Capital Investment Plan (CIP). RECOMMENDATION(S): The Manager recommends that the Board of County Commissioners adopt the reimbursement resolution for the Office Building and Library project.