HomeMy WebLinkAboutReso RDA 09-2006
RESOLUTION NO. 09-2006
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION AMENDING THE 2005-06
REDEVELOPMENT OPERATING AND CAPITAL
IMPROVEMENT BUDGETS TO CHANGE THE FUNDING
SOURCES FOR VARIOUS CAPITAL PROJECTS AND TO
AUTHORIZE AN ADDITIONAL APPROPRIATION IN
ORDER TO DEFEASE PRIOR REDEVELOPMENT BONDS
WHEREAS, the Redevelopment Agency of the City of South San Francisco ("the Agency")
is closing a bond sale on or around May 3,2006 ("the Bond Sale"); and
WHEREAS, on August 24, 2005 the Agency Board passed a resolution stating its intent to
use the proceeds oftax exempt bonds from this Bond Sale to reimburse itself for expenditures made
for several capital improvement projects; and
WHEREAS, a budget amendment now needs to be adopted to formally change the project
funding for those capital projects previously listed in the reimbursement resolution approved on
August 24, 2005; and
WHEREAS, a budget amendment is also needed to authorize additional budgetary actions in
order to defease the existing 1997 and 1999 redevelopment bonds; and
WHEREAS, by defeasing the existing redevelopment bonds, net debt service savings can be
realized from the current lowered interest rate environment; and
WHEREAS, tax counsel has advised the Agency that cash should be used to pay for a total of
$2,874,500 in bond defeasance costs in order to comply with Internal Revenue Service tax
regulations regarding the use oftax-exempt bond proceeds; and
WHEREAS, in order to make the cash available for the defeasance, the funding sources of
various existing Redevelopment Agency capital improvement projects need to be changed and the
Redevelopment Agency operating budget needs to be amended; and
WHEREAS, the pending 2006 redevelopment bonds are financed through a merged revenue
area while the budgets for the Agency were appropriated by project area.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of
South San Francisco that the Redevelopment Agency Board hereby amends the 2005-06
Redevelopment Agency operating and capital budgets as shown in Exhibit A and hereby
incorporated as part of this resolution.
BE IT FURTHER RESOLVED, that the Finance Director may take additional budgetary
actions to close out any remaining 1997 and 1999 Redevelopment Bonds as part of the defeasance.
BE IT FURTHER RESOLVED, that the Finance Director may transfer budgeted funds
between the Redevelopment Project Area Funds of the merged project area for the remainder of the
2005-06 fiscal within generally accepted accounting principles and within redevelopment law.
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I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the Redevelopment Agency of the City of South San Francisco at a regular meeting held on the
26h day of April 2006 by the following vote:
AYES:
Boardmembers Mark N. Addiego, Pedro Gonzalez and Karyl Matsumoto,
Vice Chair Richard A. Garbarino and Chair Joseph A. Fernekes
NOES: None
ABSTAIN: None
ABSENT: None
ATTEST:
41 ' J
Lelia ;no ~~<<-
Clerk
Exhibit A, Budget Amendment Detail:
Projects Currently Appropriated with Tax Increment to be
I. shifted to being Funded by New Bond Funds:
Description:
Health Center and IT Building Improvements
Oak Ave. Extension
Misc. Land Acquisition
New Downtown Fire Station Improvements
Bay Trail Improvements
Sidewalk Rehabilitation
Subtotal:
$500,000
$2,507,000
$2,500,000
$3,700,000
$18,000
$25,000
$9,250,000
IIA. Projects Appropriated with Bond Funds to be closed:
Harbor Way Improvements
Misc. Land Acquisition
Subtotal:
Projects Currently Appropriated with Existing Bond Funds
lIB. to be shifted to being funded with Tax Increment:
Day Care Facilities
Train Station
Subtotal:
Projects Appropriated with Existing Bond Funds to be
ne. shifted to being funded through other Funding Sources:
Oyster Point Flyover, shift to Developer Fees:
lID-I. Additional Funds from Operating Budget:
IID-2, Offset by Revenue Funds to Be Received By Redevelopment
Agency at Time of Bond Closing in Reimbursement to the
Agency for Cost of Issuance Expenses:
III. (IIA + lIB + IIC + lID-I) =
Subtotal, Funds Available to Be Used Towards 1997 & 1999
Bond Defeasance:
$700,267
$1,500,000
$2,200,267
$300,978
$56,400
$357,378
$191,263
$125,592
$52,000
$2,874,500