Office of the Superintendent of Schools
Office of Finance and Operations
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Approval Of Resolution Declaring Intention To Reimburse Expenditures Related To A Future Bond Issue
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In the event a bond issue is held in November 2024, any expenditures incurred by the General Fund in connection with that endeavor can be reimbursed from bond proceeds should the bond election be approved by voters. Only eligible expenditures incurred between the time the board approves the resolution and approximately April 2025 will be reimbursed. All expenditures will be vetted by bond counsel for eligibility.
The administration recommends that the School Board approves a reimbursement resolution to allow the district to reimburse itself for costs incurred for capital projects approved pursuant to a November 2024 bond election. The reimbursement resolution is a non-binding expression of intent of the district required by federal tax law to preserve the ability to pay or reimburse current project costs with the proceeds of a future tax-exempt bond issue. Any reimbursement from bond proceeds must occur within 18 months of the date of the expenditure or the date the project is placed in service, whichever is later, but in no event more than three years from the date of the expenditure.
The resolution does not obligate the district to make any expenditure, to pursue a future bond financing, or to make any reimbursements. The resolution is being submitted solely to comply with federal tax regulations and preserve financial flexibility.
A copy of the resolution is attached.
COST/FUNDING SOURCE(S):
None
STAFFING IMPLICATIONS:
None
THIS ITEM DOES NOT ESTABLISH, MODIFY, OR DELETE BOARD POLICY.
recommendation
RECOMMENDED: That the School Board approves the resolution declaring the district's intention to reimburse expenditures paid for capital projects approved should the district seek and receive voter approval in a November 2024 bond election, effective April 12, 2024....
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