Town of Yountville
Staff Report
6550 Yount Street
Yountville, CA 94599
Agenda Item #: 8J
Yountville Town Council Staff Report
DATE: July 15, 2025
TO: Mayor and Town Council
FROM: Brad Raulston, Town Manager; Celia King, Administrative Service Director PREPARED BY: Brad Raulston, Town Manager; Celia King, Administrative Service Director
RECOMMENDATION
Adopt Resolution Number 25-4376 approving the Town of Yountville’s intention to reimburse expenditures related to the Yountville Commons Development Project (CF-0046) from the proceeds of tax-exempt bonds up to $100,000,000.
DISCUSSION/BACKGROUND
The Town expects to issue tax-exempt bonds, notes, or other financing (the “Obligations”) in Fiscal Year 2025/2026 or 2026/2027 to finance the engineering, design, construction and/or renovation of the former school site and buildings located at the former school site located adjacent to the Town Hall building (collectively, the “Project”). The Town of Yountville (the “Town”) may elect to advance certain of its own funds toward the Project.
The Town will advance funds on the understanding that it can be reimbursed for amounts expended on the Project from the subsequent sale of the Obligations. The Internal Revenue Code has certain requirements that need to be satisfied in order for a public agency to be reimbursed for costs incurred for capital projects in advance of the sale of tax-exempt Obligations. In order to qualify the Town for reimbursement of such costs from the proceeds of the execution and delivery of the Obligations, the Town Council must adopt a Resolution which satisfies all the requirements of the Internal Revenue Code within 60 days of the date on which the expenditures have been made.
The Town of Yountville’s bond counsel has prepared the attached Resolution which complies with the applicable requirements of the Internal Revenue Code and allows the Authority to reimburse the Town for any advanced Project costs from the proceeds of the sale of the Obligations. The adoption of this Resolution does not obligate the Authority or the Town to ever advance funds toward the Project. The adoption of this Resolution preserves the option for the Town Council to decide at a subsequent date whether or not it would be in the best interests of the Authority or the Town to allocate a portion of any proceeds of the sale of the Obligations towards the reimbursement of the monies the Town might spend on the Project.
There is a reference in this Resolution to $100,000,000 as the reasonably expected maximum principal amount of the Obligations. The Internal Revenue Code obligates this Resolution to include an estimated size of the borrowing from which the reimbursement will occur. The Town of Yountville is not required to maintain this $100,000,000 amount. It is included to satisfy a legal requirement and constitutes only a rough estimate of the likely size of the Obligations that the Town Council may consider. If the Town were to sell a smaller borrowing, such decision would not adversely affect its ability to use a portion of the proceeds of the Obligations to reimburse the Town for these costs.
ENVIRONMENTAL REVIEW
Exempt per California Environmental Act (CEQA) Guideline, Section 15061(b)(3).
FISCAL IMPACT
Is there a Fiscal Impact? No
Is it Currently Budgeted? N/A
Where is it Budgeted? N/A
Is it Mandatory or Discretionary? Mandatory
Is there a Staff Resource Impact? No
ATTACHMENTS
1. Resolution No 25-4376