HomeMy WebLinkAboutCC RES 05-065RESOLUTION NO. 05-65
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT DECLARING ITS INTENT TO ISSUE BONDS OR OTHER
OBLIGATIONS OR CAUSE BONDS OR OTHER OBLIGATIONS TO BE
ISSUED TO FINANCE THE INSTALLATION AND CONSTRUCTION OF
THE PORTOLA AVENUE BRIDGE AND TO REIMBURSE CERTAIN
EXPENDITURES FROM PROCEEDS OF THE BONDS AND RESCINDING
RESOLUTION NO. 05-40
RECITALS:
A. The City Council of the City of Palm Desert (the "City") intends to issue bonds
or other obligations (the "Bonds"), or cause Bonds to be issued, to finance the costs of the
installation and construction of the Portola Avenue Bridge and appurtenant work (the
"Project").
B. The City or the Palm Desert Redevelopment Agency (the "Agency") expects
to expend moneys (other than moneys derived from the issuance of bonds or other
obligations) on expenditures relating to the costs of the Project prior to the issuance of the
Bonds. All expenditures will be properly chargeable to a capital account under general
federal income tax principles. The City and the Agency reasonably expect to reimburse
such capital expenditures with the proceeds of the Bonds.
C. The City and the Agency expect that the maximum principal amount of Bonds
which will be issued to pay for the costs of the Project (and related issuance costs) will not
exceed $7,250,000.
D. At the time of the reimbursement, the City and the Agency will evidence the
reimbursement in a writing which identifies the allocation of the proceeds of the Bonds for
the purpose of reimbursing the City or Agency for the capital expenditures made prior to
the issuance of the Bonds.
E. The City and the Agency expect to make the reimbursement allocation no
later than 18 months after the later of (i) the date on which the earliest original expenditure
for the Project is paid or (ii) the date on which the Project is placed in service (or
abandoned), but in no event later than three years after the date on which the earliest
original expenditure for the Project is paid.
F. The City and the Agency will not, within one year of the reimbursement
allocation, use the proceeds of the Bonds received in the reimbursement allocation in a
manner that will result in the creation of replacement proceeds of the Bonds or another
issue (e.g., the City and the Agency will not pledge or use the proceeds received for the
payment of debt service on the Bonds or another issue, except that the proceeds of the
Bonds can be deposited in a bona fide debt service fund).
RESOLUTION NO. 05-65
G. This Resolution is intended to be a "declaration of official intent" in
accordance with Section 1.150-2 of the Treasury Regulations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT
HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. In accordance with Section 1.150-2 of the Treasury Regulations, the City
Council hereby declares its intention to issue Bonds, or cause Bonds to be issued, in a
principal amount not expected to exceed $7,250,000, the proceeds of which will be used to
pay for the costs of the Project (and related issuance costs), including the reimbursement
to the City or the Agency for capital expenditures relating to the Project made prior to the
issuance of the Bonds.
Section 2. Resolution No. 05-40 is hereby rescinded.
Section 3. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 25th day of August 2005, by the
following vote:
AYES: BENSON, FERGUSON, KELLY, SPIEGEL, and CRITES
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
ATTEST:
CHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
2
BUS• ' D A. CRITES, MAYOR
P6401 / 1033/833827.1