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HomeMy WebLinkAbout12/15/1999 - STAFF REPORTS (27) JVP DATE: December 15, 1999 TO: City Council FROM Director,Office ofManagement and Budget(OMB) APPROVE REIlMURSEMENT RESOLUTION RECOMMENDATION: It is recommended that the City Council &pprove a Reimbursement Resolution recognizing its intent to reimburse itself for certain Capital expenditures for payments already made related to City Council authorized expenditures BACKGROUND: In a continuing effort to improve the effectiveness and efficiency of service provided to Patin Springs citizens,City council approved a Master Lease Agreement with CaLease on October 21, 1998. Recognizing the benefits derived from this program with CaLease, and certain tax code requirements,the Office of Management and Budget is recommending that Council approve this reimbursement Resolution. The intent of this action is to comply with the 1986 Tax Code requirements as they relate to reimbursement issues. The 1986 Tax Code requires that if a city plans to be reimbursed for prior expenditures from the tax-exempt proceeds,the City must approve a Reimbursement Resolution This action is a housekeeping item that must be acted upon every 18 months and is routine in nature. Additionally this action is not authorizing any expenditures beyond those already approved by City Council. �a1�'IJf�O Jl;'1: 0 and Y; uFCI TT of OMB Approved: ' City anager Attachment: 1 Resolution RESOLUTION NO. 19707 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DETERMING ITS INTENT TO REIMBURSE ITSELF FOR CERTAIN CAPITAL EXPENDITURES. WHEREAS, The City Council of the city of Palm Springs ("City") expects to make capital expenditures in connection with the acquisition of certain equipment, including city vehicles, computer system purchases and related equipment (the "Equipment") on and after the date hereof, and intends to reimburse itself for the Expenditures with the proceeds of a lease agreement or other obligations to be issues by the City,(the"Obligation"). WHEREAS, The 1986 Tax Code requires that if a city plans to be reimbursed for expenditures from the tax-exempt proceeds,the city must approve a Reimbursement Resolution. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Palm Springs does hereby declare its intent to reimburse itself for the expenditures with the proceeds of a lease agreement or other obligations to be issued by the City, and that the maximum principal amount of the Obligation expected to be issued for the Equipment shall not exceed$1,500,000. ADOPTED this 15thdayof Dec. 1999. AYES: Members Hodges, Jones, Oden, Reller-Spurgin, Mayor Kleindienst NOES: None ABSENT. None ATTEST: CITY OF PALM SPRINGS,CALIFORNIA By City Clerk City Manager REVIEWED&APPROVED: Iwoo 1