HomeMy WebLinkAbout7/9/2008 - STAFF REPORTS - 2.H. Fp��Ms
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DATE: July 9, 2008 Consent Calendar
SUBJECT: Appropriation of Passenger Facility Charges
FROM: David H. Ready, City Manager
BY: Department of Finance and Treasury and Airport Department
SUMMARY
As part of the refinancing of the Airport General Revenue Bonds with funds from the
Passenger Facility Charge (PFC), the Council authorized the use of PFC revenue to
pay the costs of issuance for the new issue, and to pay down existing bonds from
accumulated PFC Fund Reserves.
The PFC revenues are restricted to these uses by law and cannot be used for any other
Airport or City purposes.
RECOMMENDATION:
Approve the resolution amending the budget to use $515,000 to redeem previously
issued 2006 PFC bonds, $182,000 to pay costs of issuance and $385,445 to deposit to
the refunding escrow for the 1998 General Airport Revenue Bonds.
STAFF ANALYSIS:
The PFC is a $4 per passenger charge. The airlines collect the fee, and after a small
deduction for administrative costs, pass the balance on to the City. PFC revenues are
restricted to paying off the bonds that were used for the Airport's expansion, or for the
costs of issuance of new PFC bonds.
PFC revenue for Fiscal Year 2007-08 is expected to be about $3.1 million. Because
collections were higher than anticipated in the 2006 PFC bond issue, the City is
required to use of surplus funds to call bonds. Additionally, some of the surplus was
used to pay the costs of issuance of the 2008 PFC bond issue, which refinanced the
1998 General Airport Revenue Bond.
Item No. 2 • H •
City Council Staff Report
July 9, 2008 -- Page 2
Appropriation of PFC
The resolution appropriating funds from the PFC reserve is essentially a house-keeping
item.
FISCAL IMPACT:
Future debt service payments for the 2006 PFC bond issue will be somewhat less
because of a portion of the principal was paid down. The refinancing of the 1998 GARB
freed up about $1.2 million in Airport reserves required by that bond issue. There is no
direct fiscal impact to the Airport's operating departments. There is no General Fund
impact.
Geoffr y S. Kiehl Thomas Nolan
Director of Finance and Treasurer Executive Director, Airport
David H. Ready, City er
Attachments:
0000��
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET
FOR THE 2007-08 FISCAL YEAR.
WHEREAS, Resolution 21901 approving the budget for the fiscal year 2007-08
was adopted on June 6,2007; and
WHEREAS, the City Manager has recommended, and the City Council desires to
approve, certain amendments to said budget.
NOW, THEREFORE BE IT RESOLVED that the Director of Finance is authorized
to record inter-fund cash transfers as required in accordance with this Resolution,
and that Resolution 21901, adopting the budget for the 2007-08 fiscal year is
hereby amended as follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
410 6277 2006 Debt 49620 Principal $515,000
Airport PFC 6278 2008 Debt 49680 Refi Costs $567,446
Purpose
SECTION 2. SOURCE
Fund Activit Account Amount
410 N/A 29301 $1,082,446
Airport PFC Fund Balance
ADOPTED THIS day of , 2008,
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
Resolution No.
Page 2
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No, is a full, true and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Springs on
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
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