title
CC - Adoption of a Resolution Declaring its Intention to Issue Tax-Exempt Obligations and Approving the Reimbursement of City Funds Expended on Sewer Capital Improvement Projects from Bond Proceeds, if Issued.
body
Meeting Date: August 26, 2019
Contact Person/Dept: Charles D. Herbertson, Public Works Director/City Engineer
Phone Number: 310.253.5630
Fiscal Impact: Yes [x] No [] General Fund: Yes x[] No []
Public Hearing: [] Action Item: [] Attachments: [x]
Commission Action Required: Yes [] No [x] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (08/21/19);
Department Approval: Charles D. Herbertson, Public Works Director/City Engineer (08/14/19)
_____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council adopt a resolution declaring its intention to issue tax-exempt obligations and approving the reimbursement of City funds expended on sewer capital improvement projects from bond proceeds, if issued.
BACKGROUND/DISCUSSION
The City is currently undertaking its sewer capital improvement program on a pay-as-you-go basis, and the costs thereof are being paid by the City from its sewer system operations fund (Sewer Enterprise Fund 204). Capital projects costs of these funds are also paid from eligible impact fees.
The City may elect to finance certain portions of its sewer capital improvement program from the proceeds of tax-exempt obligations. Federal tax law allows the City to reimburse itself from the proceeds of future tax-exempt obligations for capital costs that the City pays prior to the issuance of such tax-exempt obligations. In order to reimburse itself, the City Council must adopt a resolution stating its intent to reimburse itself should tax-exempt obligations be issued.
Stradling Yocca Carlson & Rauth, the City's Bond Counsel, has prepared a resolution permitting reimbursement of not to exceed $...
Click here for full text