Clinton City Council Passes Resolution On Bond Reimbursement

During Monday’s meeting of Clinton City Council, City Manager Bill Ed Cannon asked council to consider a resolution expressing the intent of the city of Clinton to reimburse itself from the proceeds of tax exempt bonds.

Sounds odd but in simplified terms, this is what they’re doing:  Mr. Cannon informed council that he will soon present them with an ordinance which will authorize the issuance of approximately $800,000 in bonds with the proceeds to be spent on various maintenance projects, most at the Clinton Police Department and Clinton Fire Department.

Should the city see the need to spend money before the bonds are issued for items to be financed by the bonds, this resolution would make it appropriate for the city to then use the proceeds of the bonds to reimburse their reserve account and keep the bonds, not the reserve fund, as the funding source for the all of the projects.

Council member Ronnie Roth questioned the resolution.  He wanted to know if approving the resolution would automatically commit the city to proceed with issuance of the bonds.  The answer was no.  He also wanted to know if council would still approve each of the items on the project list.  Yes, was the answer.

After the discussion, Mayor Bob McLean called for a vote and the resolution was adopted unanimously.