HomeMy Public PortalAbout2003.148 (08-06-03)RESOLUTION 1V0: 2003.148
A RESOLUTION OF `I'I~E CITY COiJI~1CIL OF THE CITY OF LYNWOOD
AUTHORIZING AND APPROVING THE ALI.OCATION OF UNSPEN7C ~OND
PROCEEDS 'I'O BE USED TO ~UND BOTH PREVIOUS EXPENDITURES INCURRED
~OY2 ELIGIBL,E PROJECTS AND TO REDEEM OiJTSTANDING BONDS TO REDUCE
THE PRINCIPAL BALANCE."
WHEREAS, The Lynwood City Council approved the issuance of a$4.5 million 1995
~ Water Revenue Bond; and a 1993 $8.6 million Lease Revenue Bond to provide funding for
~ ~ capital improvement projects; and
WHEREAS, the Internal Revenue Service and the trust indenture for both Bonds require
that Bonds be spent within three years of the date of issuance or be used to redeem the Bonds;
and
WHEREAS, the 1993 and 1995 Bond proceeds project funds have remaining balances
that have resulted in unspent proceeds of $1.9 million m the 1995 Water Revenue Bond and
$629,155 in the 1993 Lease Revenue Bond; and
WHEREAS, the IRS Code specifies that failure to spend Bond proceeds in the required
time period could result in the IRS declaring Prior Bonds to be retroactively taxable, and/or
declaring the'City to be an entity whose tax certificates are unreliable, which will preclude access
by the City to the tax exempt bond market.
WHEREAS, the IRS can initiate. monetary penalties as well as civil proceedings against
the City due to unspent proceeds remaining after three years from date of bond issuance; and
WHEREAS, remedies exist that pennit the City to substitute other eligible projects for
use of bond proceeds and utilize remaining bond proceeds tn redeem outstanding bonds.
WHEREAS, a reallocation of funds allows the proceeds of both bond issues to be spent
in accordance with the IRS Code.
NOW, THEREFORE, the City Council does hereby find, order and resolve as follows:
Section 1. That authorization and approval of amendments to the 2003-OS biennial
budget to transfer funds from the General fund and Water fund to the 1993 Lease Revenue Bond
and 1995 Water Bond to cover costs incurred for projects noted m Section 2.
Section 2. That the City Manager or lier designee is authorized to make the following
budget amendments:
Transfers-Out Transfers-Out
Description (City Funds) (Bond Proceeds) Comments
1993 Lease Revenue Bonds:
Youth Center Project (5174) ($629,155) $629,155 Removes transfer from Gen Fund (O1)
Transfers-Out Transfers-Out
Description (City Funds) (Bond Proceeds) Comments ~
1995 Water itevenue Bond:
Water Main Upgrade (5180) ($580,713)
LAN Network System (5218) ($113,535)
Computerized Billing System ($ 15,774)
Water Bonds Totals ($710,022)
$580,713 Removes transfer from Wtr. Fund (02)
$113,535 Remove transfer from Wtr. Fund (02)
$ 15,774 Removes transfer from Wtr. Fund (02)
$710,022
Section 3. That the remaining balance of the 1995 Water Revenue Bond of
approximately $1.2 million be used to redeem outstanding water bonds, thus reducing the
principal amount of the Bond refunding by $1.2 million.
Section 4. That this resolutron shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this ~th day of August, 2003.
~~ ~
' ~ernando Pedro a,1VIayor
A1'TESTo
~~
Andrea H. Hooper, City Clerk
APPROVED AS TO FORNI: APPI20VED AS TO CON'TENT:
~ J J ~ ~.
R~
City Attorney Lorry Hempe, ity Manager
STATE OF CALIFORNIA }
} ss.
COUNTY OF LOS ANGELES }
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a
regular meeting held on the 6~h day of Au9~s~ 2003.
,
AYES: COUNCILMCN BYRD, REYES, RICHARDS, RODRIGUEZ, PEDROZA
NOES: NONE
ABSENT: NO~fE
ABSTAIN: P10NE
Andrea L. Hooper, City C erk
S'I'ATE OF CALIFORNIA }
} ss.
COUNTY OF LOS ANGELES }
I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of
said City, do hereby certify that the above and foregoing is a full, true and correction copy of
Resolution No. ?~n~ _ 14R on file in my office and that said Resolution was adopted on the
date and by the vote therein stated.
Dated this Fth day of Auc~~~t , 2003.
/1
Andrea L. Hooper,~ City Clerk