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HomeMy WebLinkAboutCOW 2003-02-10 Item 4B - Resolution - Capital Expenditures Regarding Tukwila Village / South Park Bridge Transfer ......................... Initials ....................... ITEM NO. Meeting Date Prepared by Mayor'slreview Council review i 2/10/03 AD ~,/ _t~. CAS NUMBER: 03-015 I Original Agenda Date: February 10, 2003 Agenda Item Title: A resolution showing intent to reimburse capital expenditures for Tukwila Village and South Park Bridge transfer. Original Sponsor: Council Admin. X Timeline: Approve at 2/18/Q3 Regular Meeting Sponsor's Summary: Resolution required to allow bond proceeds to reimburse expenditures made prior to bond sale; Recommendations: Sponsor: Approve as submitted. Committee: N/A Administration: Same as sponsor. Cost Impact (if known): N/A Fund Source (if known): N/A Meeting Date Action 2/10/03 Meeting Date Attachments 2/10/03 Staff report dated 2/6/03 Proposed resolution MEMORANDUM February 6, 2003 To: Mayor Steve Mullet and City Council c AD From: Alan R. Doerschel, Finance Director Subject: Proposed Bond Issue for 2003 The 2003 Adopted Budget includes bond proceeds for three funds: Golf Course - 000 $5,000,000 Clubhouse Arterial Street - 104 3,000,000 South Park Bridge Facilities - 302 2,450, O00 Tukwila Village $10.450.000 We are waiting until May-June 2003 before the Bond Issue is executed. We already have short- term funds of $3.5 million for the Golf Course construction. However, the Federal Statutes require that a Resolution on Statement by the governing officials declaring that all expenditures to be reimbursed from bond proceeds be executed within sixty (60) days after any such expenditure are made. We made the $3.0 million payment to King County for the South Park Bridge in January and expenditures for Tukwila Village are forthcoming. The attached Resolution, approved by our Bond Counsel, Foster Pepper, will accomplish this requirement. Note that the Resolution authorizes $3.0 million for Tukwila Village due to the delay in starting the project. Also, the 5-year note ($1,450,000) for the property purchase in 1998 by the Hotel/Motel Fund expires on March 1, 2003. I am working with Foster Pepper and Key Bank to find alternative financing options. We will probably need to approve the recommended option at the February 18th or 24th meeting.., more to come. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWTLA, WASHINGTON, DECLARING ITS OFFICIAL INTENT TO REIMBURSE CAPITAL EXPENDITURES IN CONNECTION WITH THE TUKWILA VILLAGE PROJECT AND THE SOUTH PARK BRIDGE TRANSFER TO KING COUNTY FROM PROCEEDS OF A FUTURE BORROWING. WHEREAS, the City of Tukwila, Washington (the "City intends to make expenditures for the projects identified below, from funds that are available, but that are not (and are not reasonably expected to be) reserved, allocated on a long -term basis, or otherwise set aside for those expenditures; and reasonably expects to be reimbursed for those expenditures from proceeds of bonds or other obligations "bonds issued to finance those expenditures; and WHEREAS, certain federal regulations (the "federal reimbursement regulations relating to the use of proceeds of tax- exempt bonds to reimburse the issuer of the bonds for expenditures made before the issue date of the bonds require, among other things, that not later than 60 days after payment of the original expenditure the City (or any person designated by the City to do so on its behalf) declare a reasonable official intent to reimburse those expenditures from proceeds of bonds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Description of Projects for Which Expenditures are to be Made. The City intends to make (and /or, not more than 60 days before the date of this declaration, has made) expenditures, and reasonably expects to reimburse itself for those expenditures from proceeds of bonds, for the following projects: A. Tukwila Village This project is a continuation of a major effort to revitalize Tukwila International Boulevard with temporary funding available from the General and /or Arterial Street funds. B. South Park Bridge Transfer This project relates to the transfer of the Bridge to King County in exchange for Tukwila assuming their pool in Tukwila along with a $3,000,000 payment to King County. Temporary funding for this payment is from the Arterial Street Fund. Section 2. Maximum Principal Amount of Obligations Expected to be Issued for the Projects The City expects that the maximum principal amount of bonds that will be issued to finance these projects will be $6,000,000. Section 3. Declaration Reasonable. The City Council has reviewed its existing and reasonably foreseeable budgetary and financial circumstances and has determined that the City reasonably expects to reimburse itself for expenditures for the projects from proceeds of bonds because the City has no funds available that already are, or are reasonably expected to be, reserved, allocated on a long-term basis, set aside by the City for those expenditures on the projects. Section 4. Limitations on Uses of Reimbursement Amounts. The City will not, within one year after the expected reimbursement, use amounts corresponding to proceeds received from bonds issued in the future to reimburse the City for previously paid expenditures for the Project in any manner that results in those amounts being treated as replacement proceeds of any tax-exempt bonds, i.e., as a .... ing pl dg inking fund ~ result of be deposited in a reserve fund, e ed fund, s or similar fund (other than a bona fide debt service fund) that is expected to be used to pay prinopal of or interest on tax-exempt bonds. Nor will the City use those amounts in any manner that employs an abusive arbitrage device to avoid arbitrage restrictions. *' Section 5. Date of Declaration. This declaration of official intent shall be dated as of the date of adoption of this resolution. ..4!- Section 6. Ratification and Confirmation. Any actions of the City or its'officers prior to the date thereof and consistent with the terms of this resolution are ratified ' and corLfirmed. Section 7. Effective Date. This resolution shall be in full force and effect from and after its adoption and approval. -- ;~ PASSED BY THE C~.'r 'f COUNCIL OF THE (dfl'¥ OF TUKWILA, WASHINGTON, ?!'-;~ 2003.at a regular meeting thereof this day of , :_:i!~i: A'I-rEST/AUTHENTICATED: ~? r P~ Carter, Council President :~i. ~ Jane E. Cantu, CMC, City Clerk ;;.; APPROVED AS TO FORM BY: . ,~.: Filed with the City Clerk: : .-~. Passed by the City Council: .- ::~ Office of the City Attorney Resolution Number:.