Board Agenda - May 15, 2007

k. Consider all matters incident/related to declaring expectation to reimburse expenditures with proceeds of future debt

Presenter: Richard Matkin

Purpose: A - Request decision - closure required

Time: No time limit

Description:

With the approval of the contract for the purchase of 12.92 acres of land for a new School site located at Parker Road and San Gabriel Drive, the District will close on the property this Summer. To provide the District with flexibility in funding the acquisition, it is recommended a Reimbursement Resolution be adopted in regard to this expenditure.

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 the school site. 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 the project is placed in service, but in no event more than three 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. Reimbursement Resolution is attached.

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 $3,000,000 maximum indicated in the Reimbursement Resolution.

Summary:

Appendix:

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