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HomeMy WebLinkAbout6/18/2003 - STAFF REPORTS (27) DATE: June 18, 2003 TO: City Council FROM: Director of Finance and Treasurer REIMBURSEMENT OF EXPENDITURES FROM CONVENTION CENTER EXPANSION BOND ISSUE RECOMMENDATION: It is recommended that the City Council approve a resolution declaring its intent to reimburse expenditures for the Visitor Information Center remodel from the proceeds of the Convention Center Expansion tax exempt bond issue. SUMMARY: The City will expend funds for engineering, architectural, legal and other matters for the remodel of the Visitor Information Center(VIC). The Resolution of Intent will allow the City to reimburse itself for all or some of these expenses from the proceeds of the bond issue. BACKGROUND: The City Council has approved the architects for the VIC remodel. The project is expected to cost approximately$600,000 and is scheduled for completion by November, 2003. The bond issue will probably close in December, 2003. In order to include the VIC project costs in the bond issue, the City Council must approve a Resolution of Intent to Reimburse. However, the City is not required to reimburse itself for all costs In effect, the City Council could choose to pay cash for some or all of the improvements The decision on what to include can be made when the bond documents, including the size of the issue, come back to the Council for approval. The attached resolution, and a concurring resolution for the Palm Springs Financing Authority, were prepared by the City Attorney's office, and reviewed by the City's Financial Advisor, Harrell and Company. SUBMITTED BY: APPROVED: Thomas M. KanTarr David H. Ready Director of Finance and Treasurer City Manager ATTACHMENTS: Resolution RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DECLARING ITS OFFICIAL INTENT TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF TAX EXEMPT OBLIGATIONS WHEREAS, the City of Palm Springs (the "City") desires to finance the construction and acquisition of the public facilities described below (collectively, the 'Project'); and WHEREAS, the City will be expending funds for the construction and acquisition of the Project; and WHEREAS, the City reasonably expects to reimburse such expenditures by authorizing the sale and delivery of one or more series of Bonds, as described below, NOW, THEREFORE, the City Council of the City of Palm Springs hereby resolves as follows: Section 1. This Resolution is a declaration of official intent to reimburse expenditures pursuant to Treasury Regulations Section 1.150-2. Section 2. The City desires to finance the construction and acquisition of the Project consisting of remodeling the new Visitor Information Center (formerly Tramway Gas Station). Section 3. The City reasonably expects to incur expenditures in an amount not to exceed $750,000 in connection with the construction and acquisition of the Project. Section 4. The City reasonably expects to reimburse such expenditures through the sale and delivery of one or more series of bonds (the 'Bonds"), the interest component on which is excludable from gross income under Section 103 of the Internal Revenue Code. The maximum principal amount of Bonds expected to be issued from the Project is $30,000,000. Section 5. The reimbursement allocation to be made with respect to the expenditures will occur not later than eighteen (18) months after the later of (i) the date on which the expenditure is paid, or (ii) the date on which the Project is placed in service, but in no event more than 3 years after the expenditure is paid. - 1 - Section 6. This Resolution expresses the City's expectations as of this date with respect to the financing of the construction and acquisition of the Project. Future events or extraordinary circumstances beyond the control of the City may result in the Project being financed in a manner other than as described in this Resolution, and nothing contained herein constitutes an irrevocable commitment by the City to issue the Bonds. Section 7, The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. Notwithstanding the foregoing, such certification and any of the other duties and responsibilities assigned to the City Clerk pursuant to this Resolution may be performed by an Assistant City Clerk/Deputy City Clerk with the same force and effect as if performed by the City Clerk hereunder. ADOPTED this day of . 2003 AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED &APPROVED - 2 -