TITLE
Title
REIMBURSEMENT RESOLUTION FOR TAX-EXEMPT FINANCING FOR CERTAIN CAPITAL EXPENDITURES
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SPONSOR
Sponsor
Kimberly Slusher, Finance
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BACKGROUND
Background
This action seeks approval of reimbursement resolutions, which are routinely used as part of the County’s capital financing process to preserve the ability to reimburse eligible expenditures incurred before long-term financing is completed. Federal tax rules (Treasury Regulation § 1.150-2) require the County to formally declare an intent to reimburse costs, or the county permanently forfeits the ability to fund these initial expenses with tax-exempt bonds. Generally, reimbursement allocation must occur within 18 months after the later of the expenditure or placement in service/abandonment, but no later than three years after the expenditure, subject to exceptions. Approval of the reimbursement resolution does not itself issue debt. Rather, it preserves the County’s ability, consistent with federal tax requirements, to reimburse eligible project expenditures from future financing proceeds if and when the financing is completed. Debt issuances will be planned over the next five years based on actual spending.
This action sets up a reimbursement resolution for $57.4 million for Guilford Technical Community College (GTCC) capital projects, to support Aviation Building Two, High Point Health Sciences Building, High Point Skilled Trades Center, BioProcess Manufacturing Technology Renovation, and the Center for Advanced Manufacturing Renovation. These projects will support economic development growth in aviation, advanced manufacturing, and bioscience.
The Board approved $65 million for county capital improvements with the FY2027 budget. A separate reimbursement resolution, presented concurrently with this item, will support expenditures including Law Enforcement Facilities and Renovations, Parks Facilities and Renovations, Elevator Replacement, Courthouse Renovations, and County Facilities...
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