Board Agenda - April 04, 2006

h. Resolution declaring expectation to reimburse expenditures with proceeds of future debt

Presenter: Richard Matkin

Purpose: A - Request decision - closure required

Time: No time limit

Description:

The adoption of a reimbursement resolution provides the District the ability to reimburse the expenditures made from existing M & O funds that involve securing property for a school site and construction of a new school to open in August, 2007. The new school will relieve Stinson, Boggess, and Miller Elementary Schools. Proceeds from tax-exempt obligations will be issued hereafter. Pursuant to the IRS regulation, 1.150-2, the reimbursement must occur not later than 18 months after the date the original expenditure is paid or after the date the new relief school is placed in service, but in no event more that 3 years after the original expenditure is paid. The reimbursement resolution offers the District flexibility as to when this project will need to be included in a bond program presented to the voters for their approval.

Recommendation:

The administration recommends adoption of the reimbursement resolution.

Business Impact:

The amount of available funds from Operating to be used for this project is limited to the $20,000,000 maximum indicated in the reimbursement resolution.

Summary:

Appendix:

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