Title
Resolution of the City of Hampton, Virginia Declaring Its Official Intent to Reimburse Itself from Proceeds of Bonds or Other Obligations by Authorizing an Advance of $ 8,843,508 from the City's General Fund Unassigned Fund Balance to the FY26 Capital Budget (Capital Projects) Fund for Certain Designated Projects
Purpose
PURPOSE/BACKGROUND:
City Council is being requested to advance a total sum of $ 8,843,508 from the General Fund Unassigned Fund Balance to provide funds to the FY26 Capital Budget (Capital Projects) Fund for certain projects that were approved in the FY26 Capital Budget (Capital Projects) Fund and will ultimately be funded from proceeds of the City’s next General Obligation Bond Series, anticipated to issued in October, 2025. The advancement of funds is recommended to allow the City to procure and perform necessary work in a timely manner to meet deadlines; begin preliminary work; and, to work during the most opportune time. The specific projects for which advanced funding is being requested are as follows:
Hampton City Schools Maintenance ($6,287,500)
Maintenance of Public Properties ($1,500,000)
Parks, Recreation and Leisure Services Maintenance ($1,056,008)
Impact:
This advanced funding will allow those identified projects to proceed in a timely manner.
Recommendation:
Approve.
Body
WHEREAS, the Hampton City Council (“Council”) approved and appropriated funds via the FY26 Capital Budget (Capital Projects) Fund for certain projects for Hampton City Schools Maintenance; Maintenance of Public Properties; and Parks, Recreation, and Leisure Services Maintenance (the "Projects");
WHEREAS, the Council's intent is to finance all or a portion of the costs of the Projects through the issuance of tax-exempt bonds or other tax exempt debt obligations (the "Obligations");
WHEREAS, Council acknowledges that the proceeds from Obligations will not be available in sufficient time to permit the procurement and performance of necessary work in a timely manner to meet deadlines, begin preliminary work, and work during the most opportune time;
WHEREAS, Bond counsel has advised that United States Treasury Regulation Sec. 1.150-2 (the "Regulation") requires the City to adopt a resolution to state its intent and purpose to preserve the City's ability to use the proceeds of the Obligations to reimburse itself for such costs paid by the City; and
WHEREAS, an expenditure of $ 8,843,508 from the General Fund Unassigned Fund Balance via the FY26 Capital Budget (Capital Projects) Fund is recommended to provide advanced funding, to be allocated as set forth below, until the anticipated Obligations are issued, at which time the advanced funds will be reimbursed to the General Fund Unassigned Fund Balance account.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hampton, Virginia, that:
1. The City intends to finance all or a portion of the costs of the Projects in the total amount of $ 8,843,508 through the issuance of one or more series of Obligations, the principal amount of which is anticipated to exceed the amount of this advance and the cumulative amount of all other qualifying advances, to be allocated as follows:
Hampton City Schools Maintenance ($6,287,500)
Maintenance of Public Properties ($1,500,000)
Parks, Recreation and Leisure Services Maintenance ($1,056,008)
2. The City reasonably expects to make expenditures for the Projects from available City funds before the Obligations are issued or incurred and use the proceeds thereof to reimburse all or a portion of such prior expenditures from the proceeds of such Obligations;
3. Any such expenditure will be a capital expenditure in accordance with the Regulation or as otherwise permitted by such Regulation;
4. The City Manager is authorized to expend $8,843,508 of the General Fund Unassigned Fund Balance for the Projects via the FY Capital Budget (Capital Projects) Fund, which shall be reimbursed to the General Fund Unassigned Fund Balance from the proceeds of the Obligations, when issued; and
5. This Resolution represents a declaration of "official intent" under the Regulation and shall be in effect from and after its adoption.