HomeMy WebLinkAbout12/5/2001 - STAFF REPORTS (20) 4
DATE: December 5, 2001
MEMO TO: City Council
FROM: Director of Finance & Treasurer
RE: Parking Structure financing
Recommendation:
It is recommended that the City Council adopt a Resolution of Intention, declaring its intent to
reimburse expenditures from the proceeds of Tax Exempt obligations for the Downtown Parking
Structure financing in an amount not to exceed $7 million; and approve an advance to the Parking
Fund of$691,000 to cover the initial costs of the project.
Background:
In October, 2001, the City refinanced the 1991 Convention Center bonds to take advantage of low
interest rates. The savings from that refinancing have a present value of about $7 million. The
actual first year savings are $691,000.
In the November, 2001 election, the voters of Palm Springs approved, in an advisory measure, using
the savings from the Convention Center refinancing to build a parking structure or other parking
improvements in downtown Palm Springs.
The recommended actions would enable the City to track the initial costs of the project, such as land
appraisals and design, for a period of up to one year, and to be reimbursed for these costs from the
eventual bond issue. If the parking structure is deemed impractical and is not built, any remaining
unspent funds would be transferred back to the General Fund. If the structure is built and financed
by a bond issue, any funds advanced by the General Fund would be repaid. The annual debt service
for the Parking Structure bond issue would be paid by the General Fund, using savings from the
Convention Center refinancing, and possibly from revenue generated from parking space rentals or
fees.
The parking structure optimum construction period is June through November. This would minimize
the impact on downtown businesses. Depending on other Council actions, the bond issue could be
ready to close as early as February 15, 2002.
The Resolution of Intention was prepared by the City Attorney's office.
Submitted by Approved
Thomas M. Kanarr David H. Ready
Director of Finance & Treasurer City Manager
Attachments: Summary of savings from Convention Center refinancing
Resolution of Intention
Budget Amendment
SPLIT SERIES-EXTEND TERM ON REFUNDING
ADDITIONAL BONDS BASED ON DEBT SERVICE SAVINGS
Col A Col B Col C Col D Col E Col F Col G Col H
Fiscal Outstanding
Year Total Refunding Cashflow Additional Total
Endin¢ Debt Service Debt Service savings Bonds Debt Service Difference PV Savings
6/30/2002 3,886,493 3,195,461 691,031 106,181 3,301,613 584,850 687,406
6/30/2003 3,892,193 3,448,368 443,825 424,725 3,873,093 19,100 416,229
6/30/2004 3,891,028 3,437,108 453,920 424,725 3,861,833 29,195 406,296
6/30/2005 3,889,973 3,454,773 435,200 424,725 3,879,498 10,475 371,132
6/30/2006 3,891,945 3,456,745 435,200 424,725 3,981,470 10,475 353,768
- 6/30/2007 3,897,603 3,462,403 435,200 424,725 3,887,128 10,475 337,217
6/30/2008 3,897,133 3,461,933 435,200 424,725 3,886,658 10,475 321,440
6/30/2009 3,970,505 3,535,305 435,200 424,725 3,960,030 10,475 306,401
6/30/2910 3,976,930 3,089,755 887,175 728,138 3,817,893 159,038 599,474
6/30/2011 3,977,961 3,089,343 888,619 729,400 3,818,743 159,219 572,829
6/30/2012 3,975,949 3,090,868 884,981 729,600 3,820,468 155,381 544,268
6/30/2013 3,186,193 3,088,793 97,400 728,608 3,817,400 (631,208) 55,670
6/30/2014 3,190,280 3,104,980 75,300 726,293 3,831,273 (650,993) 40,776
6/30/2015 4,092,918 3,071,430 1,021,488 727,570 3,799,000 293,918 543,026
6/30/2016 4,095,833 3,094,176 1,001,656 727,365 3,821,541 274,291 509,889
6/30/2017 4,092,093 3,095,743 996,350 730,600 3,826,343 265,750 483,936
6/30/2018 4,091,540 3,092,003 999,538 727,233 3,819,235 272,305 463,265
6/30/2019 4,093,230 3,092,686 1,000,544 727,215 3,819,901 273,329 442,545
6/30/2020 4,091,319 3,092,400 998,919 730,358 3,822,758 268,561 421,682
6/30/2021 4,094,828 3,092,703 1,002,125 726,614 3,819,316 275,511 403,799
6/30/2022 4,097,643 3,093,418 1,004,225 730,950 3,824,368 273,275 386,287
82,26 AM 67,640,389 14,623,095 12%9,198 8011891586 2,073,898 8,669,336
6/30/2023 - 31094,538 (3,094,538) 728,483 3,823,020 (3,823,020) (1,125,460)
6/30/2024 - 3,094,456 (3,094,456) 729,211 3,823,668 (3,823,668) (1,073,310)
6/30/2025 - 3,092,730 (3,092,750) 727,998 3,820,748 (3,820,748) (1,023,092)
6/30/2026 - 3,095,500 (3,095,500) 729,703 3,825,203 (3,825,203) (976,657)
87,263,484 80,017AM 2,24BA51 15,464,591 95,48=4 (13,218,740) 07OX6
NET PROCEEDS FROM ADDITIONAL BONDS(COL B) 6,976,000 PV of savings from cash flow 4,470,816
BUDGET SAVINGS(REDUCED DEBT SERVICE FY 01-02) SM,850 Less:Prior funds on band (1,842,000)
TOTAL PROCEEDS AVAILABLE FOR CAPITAL PROXCIS 7,SWAS0 Plus:Refunding funds on hand 1,280,000
Net PV Savings 3,908,816
13.6200%
Colu=a Dncriptione
A Fiscal Year
B Current Annual Debt Service(payments are made semiannually)
C Annual Debt Service after the refinancing
D Annual Savings(Col B minus Col C)
E Estimated additional debt that could be covered by the savings
F Estimated total of refinancing plus new debt(Col C plus Col E)
G Estimated annual savings of refi+new compared to existing debt(Col B minus Col F)
H Present Value of Col D
�/C712
1442
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 a publicly owned and operated municipal parking lot.
Section 3. The City reasonably expects to reimburse the 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 for the Project is $7,000,000.
Section 4. 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.
Section 5. 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 6. 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
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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 2001.
AYES:
NOES:
ABSENT:
ATTEST:
City Clerk City Manager
REVIEWED & APPROVED AS TO FORM:
David J. Aleshire
City Attorney
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RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING THE BUDGET FOR THE 2001-02
FISCAL YEAR.
WHEREAS Resolution 20062 approving the budget for the fiscal year 2001-02 was adopted
on June 6, 2001; 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
20062, adopting the budget for the 2001-02 fiscal year is hereby amended as follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
132 4463 43200 $691,000
Parking Downtown Parking Contractual Services
Structure
Purpose: To provide funds forthe initial costs of the downtown parking structure (to be
reimbursed from bond issue).
SECTION 2. SOURCE Reduction in transfers to Debt Service Fund because of
Convention Center refinancing.
FUND Activity Account Amount
001 29343 $691,000
General Fund Advances to Other
Funds
Adopted this day of 2001.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED