RES FA-04RESOLUTION NO. FA-4
A RESOLUTION OF THE PALM DESERT FINANCING
AUTHORITY DECLARING ITS INTENTION TO
REIMBURSE FROM THE PROCEEDS OF TAX-EXEMPT
BOND MONEYS OF THE CITY TO BE EXPENDED FOR A
PORTION OF THE COST OF THE EXPANSION OF THE
CIVIC CENTER AND THE INSTALLATION AND
CONSTRUCTION OF THE NORTH PORTOLA STORM DRAIN
THE PALM DESERT FINANCING AUTHORITY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The City of Palm Desert has awarded a
construction contract in connection with the expansion of the
Civic Center. Such expansion will include the addition of
approximately 20,000 square feet of gross building area to the
Civic Center. The expanded area will provide additional office
space for the Palm Desert Redevelopment Agency administrative
offices and for offices to be occupied by the Finance Department
of the City. The expansion is being undertaken pursuant to the
City's Civic Center Master Plan. The City has also entered into
a construction contract for the construction of the North Portola
Storm Drain. The storm drain extends from the Whitewater Channel
to Country Club Drive. The storm drain is being installed
pursuant to the City's Master Drainage Plan. Pursuant to prior
resolutions, agreements, understandings or budget considerations
of the City and the Agency, portions of the cost of the expansion
and of the storm drain have been allocated to the Agency. Both
the expansion and the storm drain have an economic life of at
least one year.
Section 2. No moneys of the City, the Agency or the
Authority are, or are reasonably expected to be, available on a
long-term basis under the respective budgets of the City, the
Agency or the Authority, to pay for the portion of the cost of
the expansion which has been allocated for payment by the Agency.
No moneys of the City, the Agency or the Authority are, or are
reasonably expected to be, available on a long-term basis under
the respective budgets of the City, the Agency or the Authority,
to pay for the portion of the cost of storm drain which has been
allocated for payment by the Agency.
Section 3. The Agency expects that it will issue, or
that the Authority will issue, tax-exempt bonds secured by and
payable from taxes allocated to the Agency from the Added
Territory of Project Area No. 1 of the Agency, and that the
proceeds of such bonds will be used to pay for the costs of the
expansion and the storm drain which have been allocated to the
Agency. The Authority expects that the City will incur certain
costs in connection with the expansion and storm drain prior to
issuing the bonds. The costs of the expansion will be paid from
moneys on hand in the new construction tax fund of the City's
RESOLUTION N0. FA-4
General Fund. The costs of the storm drain have been, and will
be, paid from moneys on hand in the drainage fund of the City's
General Fund.
Section 4. Pursuant to Treasury Regulation
Sections 1.103-17, the Authority hereby declares its intention to
reimburse the City's new construction tax fund of the General
Fund that portion of the cost of the expansion allocated for
payment by the Agency. The Authority intends to make such
reimbursement from the proceeds of such tax-exempt bonds to be
issued by the Authority and loaned to the Agency. The City and
the Agency have previously taken certain actions indicating their
objective and reasonable expectation that the Agency would
reimburse all of the expenditures which have been paid to date
from the proceeds of tax-exempt bonds of the Agency secured by
and payable from taxes allocated to the Agency from the Added
Territory of Project Area No. 1. All such expenditures were made
after September 8, 1989. Pursuant to Treasury Regulation
Sections 1.103-17, the Authority hereby declares its intention to
reimburse the drainage fund of the City's General Fund that
portion of the cost of the subject storm drain allocated for
payment by the Agency (and which expenditures are made after
September 8, 1991) from the proceeds of tax-exempt bonds to be
issued by the Agency or by the Authority and loaned to the
Agency.
1991.
PASSED, APPROVED AND ADOPTED this 22nd day of August
AYES: =ES, KELLY, WILSON, SN DER
NOES : NONE
ABSENT:
ABSTAIN:
ATTEST:
BENISON
NONE
gfi, Secretary
2
Chairman
,