7.2. SR 08-05-2019 EGty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 7.2
Agenda Section Meeting Date Prepared by
Public Hearin lAugust 5, 2019 Lori Ziemer, Finance Director
Item Description Reviewed by
Issuance of Sales Tax Revenue Bonds Cal Portner, City Administrator
Reviewed by
Action Requested
Open and close the public hearing regarding the issuance of sales tax revenue bonds.
Background/Discussion
It was initially determined by the city's bond counsel that the sales tax revenue bonds would be issued as
qualified 501(c)3 bonds due to the contractual arrangements for use of the multi-purpose facility with
certain organizations that are designated as exempt organizations (501(c)3).
In order to keep our options open and stay on the same timeline for issuance of the bonds, a public
hearing would be required for the issuance of qualified 501(c)3 bonds and therefore a public hearing
notice was posted.
However,based on discussions and further review of facility use with bond counsel,it was determined
the 501(c)3 designation is not required which would be more restrictive and limiting than the city would
want with regard to use for the facility. Therefore, the city is no longer pursuing the 501(c)3 designation
for the bonds and a public hearing is not required.
Financial Impact
N/A
Attachments
■ None
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