HomeMy WebLinkAboutR-2005-138 Parks Fund & Fire Department Bond or Tax-Exempt Obligation IssuanceRESOLUTION NO. R-2005- 138
A RESOLUTION declaring the City's intent to issue bonds and/or other tax-exempt
obligations to reimburse prior expenditures.
WHEREAS, the Internal Revenue Code of 1986 requires that a municipality declare its
intent to issue tax-exempt bonds or other tax-exempt obligations to reimburse the municipality
for prior expenditures before the expenditures are incurred; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City of Yakima reasonably expects to reimburse the following expenditures with the
proceeds of limited tax general obligation bonds or other tax-exempt obligations to be issued by
the City: various parks capital projects, including construction of a new softball field at Kiwanis
Park and other developments at the park, construction of water playgrounds and a feasibility
study of a regional aquatics center; and modifications to the West Valley fire station to be
acquired by the City. The City expects to issue approximately $780,000 principal amount of
limited tax general obligation bonds for the parks projects; and other tax-exempt obligations of
approximately $610,000 for the West Valley fire station. The expenditures to be reimbursed
from bond proceeds or other tax-exempt obligations will be made from the appropriate capital
funds.
ADOPTED BY THE CITY COUNCIL this 6th day of September, 2005.
ATTEST:
City Clerk
Q�
Paul P. George, Mayor
P: NMNINMN2MX 05/09/01
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 1 1
For Meeting Of 9/6/2005
ITEM TITLE: A Resolution declaring the City's intent to reimburse certain expenditures for the
Parks Fund and Fire Department with the issuance of tax-exempt obligations.
SUBMITTED BY: Department of Finance and Budget
CONTACT PERSON/TELEPHONE: Tim Jensen, Treasury Services Officer 576-6
SUMMARY EXPLANATION: On July 19, 2005 the City Council accepted a report and directed
staff to begin work on several Parks Department projects. (Including: Fourth ball field at Kiwanis Park -
$200,000 (city share); a Water playground at Washington pool ($150,000) and Miller Pool ($100,000); a Kiwanis Park
skate park - $225,000 (city share) and a feasibility study of a regional aquatics center ($75,000)).
Additionally, on June 28th of this year, the Council approved the plan to transfer the West Valley
fire station to the City and make certain improvements to the facility, pursuant to a 2005 budgeted
policy issue. Staff anticipates issuing tax-exempt bonds or some other form of tax-exempt debt to
fund these projects.
The Revised Tax Code of 1986 (The Code) requires issuers of tax-exempt debt to formally state
their intent to utilize debt proceeds to reimburse those funds that incurr costs prior to the issuance
of the debt. In order to ensure that any expenditures made prior to the issuance of the bonds - or
other debt - Council must adopt a reimbursement resolution. At staff's request, the City's Bond
Counsel, Preston, Gates and Ellis, has prepared the attached Resolution which, if adopted by
Council, will authorize the reimbursement of any up -front costs to the appropriate capital funds,
as applicable. (This is simply a housekeeping item, it does not authorize or obligate the City to issue debt or incur
any specific costs.)
Resolution X Ordinance _ Other (Specify)
Contract Mail to (name and address): Phone
Funding Source
APPROVED FOR SUBMITTAL:.
City Manager
STAFF RECOMMENDATION: Ado t Resolution
BOARD/COMMISSION REC& A�1 RESOLUTION NO. R-2005-138
COUNCIL ACTION: