HomeMy WebLinkAbout07/06/1999, C10 - INTENT TO REIMBURSE EXPENDITURES FOR PROPERTY PURCHASES AND ATHLETIC FIELDS council �_�
j acEnaa Report ]�N
C10
CITY OF SAN LUIS OBISPO
FROM: Bill Statler,Director of Finance�Pk� .14
Prepared By: Linda Asprion,Revenue Managero f
SUBJECT: — - IIV'I'ENT TO REIMBURSE EXPENDITURES FOR PROPERTY
PURCHASES AND ATHLETIC FIELDS
CAO RECOMN ENDATION
Adopt a resolution declaring the City's intent to reimburse expenditures relating to property
purchases and athletic fields from the proceeds of tax-exempt obligations.
DISCUSSION
The adopted 1999-01 Financial Plan includes capital improvement plans to purchase three
properties to: (1) provide a small park along San Luis Obispo Creek; (2) permit eventual
expansion of the Historical Museum; and (3) permit eventual expansion of the Police Station.
The anticipated cost of these three properties is over $1 million which is to be funded through
debt financing. Additionally,the 1997-99 Financial Plan also anticipated funding the acquisition
and development of athletic fields through debt financing. Annual debt service payments of
$300,000 were projected for this purpose. As discussed in the June 15, 1999 agenda report
authorizing the purchase of property from the Damon-Garcia's,this will support total acquisition
and development costs of about$4.4 million.
The debt financing for these capital projects is scheduled for September, 1999. However, the
expenditures for these projects could occur prior to September, 1999. To retain the option of
reimbursing these costs as part of the debt financing, we need to adopt the attached resolution
declaring our intent for reimbursement.
FISCAL EVIPACT
There is no fiscal impact associated with adopting this resolution. The resolution merely retains
the City's option to be reimbursed for any advances for these projects prior to completing the
debt financing in September of 1999.
CONCURRENCES
The City's bond counsel - Jones Hall - drafted the proposed resolution and concurs with its
adoption by Council.
ATTACHMENT
Resolution declaring intention to reimburse project expenditures through debt financing.
C10-1
RESOLUTION NO. (1999 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
DECLARING INTENTION TO REIMBURSE EXPENDITURES RELATING TO PROPERTY
PURCHASES AND ATHLETIC FIELDS FROM THE PROCEEDS OF TAX-EXEMPT
OBLIGATIONS OF THE CITY
WHEREAS, the City Council of the City of San Luis Obispo (the "City") has adopted a
capital improvement plan which includes the purchase of three properties to: (1) provide a small
park along San Luis Obispo Creek; (2)permit eventual expansion of the Historical Museum; and
(3)permit eventual expansion of the Police Station(the"Property Purchases Project"), and which
also includes the purchase and improvement of property for athletic fields (the "Athletic Fields
Project'); and
WHEREAS, in order to provide funds to finance the Property Purchases Project and the
Athletic Fields Project(collectively,the"Projects'), the City Council intends to issue and sell its
tax-exempt certificates of participation, lease revenue bonds or other obligations in an aggregate
principal amount which is sufficient to raise approximately $5,500,000 for the Projects (the
`Bonds'); and
WHEREAS, in order to use the proceeds of the Bonds to reimburse advances made by the
City for the Projects before the date of issuance of the Bonds, but not more than sixty (60) days
before the date of adoption of this Resolution, Section 1.150-2 of the United States Income Tax
Regulations requires that City Council declare its intention to reimburse such advances from the
proceeds of the Bonds; and
WHEREAS, it is in the public interest and for the public benefit that the City declare its
official intent to reimburse the expenditures referenced herein;
NOW, THEREFORE,BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Declaration of Intent. The City Council hereby declares that it reasonably
expects to issue the Bonds and to use a portion of the proceeds thereof to reimburse expenditures
made by the City for the Projects before the date of issuance of the Bonds, and not more than
sixty (60) days before the date of adoption of this Resolution. The Bonds shall be issued in an
aggregate principal amount which is sufficient to raise funds for the Projects in the approximate
amount of$5,500,000.
SECTION 2. Effective Date. This Resolution shall take effect from and after the date of
its passage and adoption.
C10-2
Upon motion of , seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this day of ' 1999.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
APPROVED AS TO FORM:
J Jo e , C� Attomey
C10-3