A reimbursement resolution allows an issuer, such as a state or local government, to reimburse itself with bond proceeds for money it spent on a project from its own sources.
When an issuer begins a capital project it may use bond proceeds or a bond anticipation note to finance the construction phase of the project. If the issuer has funding available (in the general fund) and does not want to wait through the issuance process to start building. It may, however, begin the project early and pay for construction with its own money.
In that case, the issuer passes a reimbursement resolution outlining its intent to reimburse itself with bond proceeds when the bonds are issued. Under federal law, the issuer can typically reimburse spending made up to 60 days before passing the resolution.
