HomeMy WebLinkAboutF-2c - Library Certificates of Participation�sa>
Council Agenda No.
F-2(c)
CITY OF NEWPORT BEACH
DEPARTMENT OF FINANCE
May 29, 1992
BY THE CITY CU :N'IL
tY OF NEWPGRT BEAC
JUN 81992
ne �Z-6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dennis Danner, Director of Finance
SUBJECT: LIBRARY CERTIFICATES OF PARTICIPATION
BACKGROUND:
Over the past several weeks the Newport Beach City Council and the
Newport Beach Public Facilities Financing Corporation have taken
various actions to authorize the sale of Certificates of
Participation in order to fund the construction of the new Central
Library. The certificates, in the amount of $7,500,000 are
scheduled to be sold (or were sold) on Wednesday, June 3, 1992.
In order for these certificates to be sold as "qualified tax-exempt
obligations" for purposes of Section 265 of the Internal Revenue
Code of 1986, the attached resolution must be adopted by the City
Council at the Council meeting of June 8, 1992. The purpose of
selling these certificates as "qualified tax-exempt obligations" is
to open the bidding process to financial institutions (Banks) which
will greatly enhance the competitive bidding for the certificates.
By adopting the resolution the Council is certifying that the City
"reasonably anticipates that the amount of tax-exempt obligations
(as defined by Section 265 (b) (4) (B) of the Code) which will be
issued by, or on behalf of, the City during this calendar year will
not exceed $10,000,000. Based on discussions with City staff, I
believe the City will not issue tax-exempt debt in excess of
$10,000,000 this calendar year. On May 28, 1992, the Budget
Committee approved, in concept, the adoption of this resolution
after assurances that the $10,000,000 cap would not be exceeded.
RECOMMENDATION:
That the City Council adopt the attached resolution stating that
"the City reasonably anticipates that the amount of tax-exempt
obligations which will be issued by, or on behalf of, the City
during this calendar year will not exceed $10,000,000.
CITY OF NEWPORT BEACH
RESOLUTION NO. 92-61
RESOLUTION DESIGNATING $7,500,000.00
OF CERTIFICATES OF PARTICIPATION
SERIES 1992 (CENTRAL LIBRARY
BUILDING) PROJECT AS "QUALIFIED TAX-
EXEMPT OBLIGATIONS"
RESOLVED by the City Council of the City of Newport Beach,
California (the "City"):
WHEREAS, the City has approved financing for the construction
of a new central library for the City through the issuance of
certain certificates of participation all as described in the
various documents previously approved by this Council on May 11,
1992 and on file with the Clerk of the City, including the
Preliminary Official Statement;
WHEREAS, this City Council desires to designate the
certificates of participation as "qualified tax-exempt obligations"
for purposes of Section 265 of the Internal Revenue Code of 1986
(the "Code");
NOW, THEREFORE, it is hereby ORDERED and DETERMINED, as
follows:
SECTION 1. Designation. This Council reasonably
anticipates that the amount of tax-exempt obligations (as defined
at Section 265 (b)(4)(B) of the Code) which will be issued by, or
on behalf of, the City.during this calendar year will not exceed
$10,000,000.00. This Council, on behalf of the City, therefore
designates the $7,500,000.00 Certificates of Participation Series
1992 (Central Library Building Project) evidencing proportionate
interests in lease payments to be made by the City to the Newport
Beach Public Facilities Corporation as qualified tax-exempt
obligations pursuant to, and for the purposes of Section 265 (b) (3)
of the Code.
**********
PASSED AND ADOPTED This 8th day of June, 1992, by the
following vote:
AYES: HEDGES, WATT, TURNER, SANSONE, HART, COX, PLUMMER
NOES: NONE
ABSENT: NONE
---
'Mayor
w !efo. " 70,
W01
r _ /W-4 . aj- , - Noe,
/