HomeMy WebLinkAbout1/19/2005 - STAFF REPORTS (7) d�
DATE: January 19, 2005
TO: City Council
FROM: Director of Finance & Treasurer
RE: Dissolution of Public Financing Corporation
RECOMMENDATION:
It is recommended that the City Council approve the dissolution of the Public Facilities Corporation
(PFC)
BACKGROUND:
The PFC was established by the City Council on August 5, 1981, for the purpose of issuing debt on
the City's behalf. In a typical issue, the PFC would issue debt to build a public facility and then lease
the facility to the City for an amount equivalent to the annual debt service. This somewhat
convoluted financing structure was necessitated by the restrictions imposed in 1978 by Proposition
13.
The PFC did several financings, with the last one being the Wastewater Treatment Plant (WWTP)
bond issue in 1984. In 1991, the City Council and the Redevelopment Agency jointly formed the
Palm Springs Financing Authority (PSFA) to take the place of the PFC. The PSFA has a number of
technical and legal advantages over the PFC, and all of the City's bond issues since 1991 have been
through it.
The WWTP bond issue was paid off in November, 2003. However, until the PFC is formally
dissolved, the City will still incur audit, filing and administrative costs. Dissolution of the PFC would
have no adverse impacts on the City.
Attached is a resolution that would dissolve the PFC, effective immediately.
Submitted by Approved
Thomas M. Kanan- David H. Ready
Director of Finance & Treasurer City Manager
Attachment: Resolution
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING THE DISSOLUTION OF THE
PUBLIC FACILITIES CORPORATION, ......
WHEREAS, the Public Facilities Corporation (PFC)was established bythe City Council
on August 5, 1981 for the purpose of expediting the issuance of debt for the City; and
WHEREAS, the last debt issuance of the PFC occurred in 1984; and
WHEREAS, the PFC is no longer active in the issuance and maintenance of debt; and
WHEREAS, costs are still incurred for the PFC for accounting and legal fees,
NOW THEREFORE BE IT RESOLVED , that the City Council of the City of Palm
Springs do hereby order the dissolution of the PFC, effective immediately
ADOPTED this day of 2005.
AYES:
NOES:
ABSENT:
ATTEST:
CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED &APPROVED AS TO FORM
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