Loading...
HomeMy WebLinkAbout4039_CCv0001.pdf RESOLUTION NO. 4039 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS TRANSFERRING A PORTION OF THE PRIVATE ACTIVITY BOND ALLOCATION OF THE CITY OF REDLANDS WHEREAS, pursuant to the Tax Reform Act of 1984 (Public Law 98-369) and the Governor's Proclamation of July 19, 1984, implementing said Act, the City of Redlands ("City") has received a private activity bond allocation in the amount of $2,545,000 for the calendar year 1984; and WHEREAS, the Act permits unused private activity bond allocation in any calendar year to be carried forward to future years with respect to certain designated types of projects; and WHEREAS, the County of San Bernardino and other Cities in the Valley portion of San Bernardino County plan to contract for the construction of a waste-to-energy resource recovery facility (the "Project") , in the County's West Valley area, and it is contemplated that part or all of the cost of such facilities will be financed with tax-exempt bonds which will require a private activity bond allocation when issued; and WHEREAS, County staff has advised the City that it is most likely that the bonds for the Project will be issued by the California Pollution Control Authority; and WHEREAS, the City desires to assist the Project by making part of its unused 1984 private activity bond allocation available to the California Pollution Control Financing Authority in order for the Authority to make a carry forward election with respect to the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as follows: 1. The City of Redlands hereby transfers to the State of California the aggregate amount of the City's unused 1984 private activity bond allocation under the Act and the Governor's Proclamation. Such transfer is made under the express condition that the State may only utilize such transfer for the purpose of making a carry forward election pursuant to Section 1203(n)(9) of the Internal Revenue Code of 1964 with respect to the Project. 2. The City Clerk is hereby directed to transmit a copy of this resolution to the California Debt Limit Allocation Committee and to file with said Committee the notice required by the Governor's Proclamation. The Clerk is further directed to retain a copy of this resolution in its records until any bonds issued to finance the Project are retired. 3. This resolution shall take effect immediately upon its passage. ADOPTED, SIGNED AND APPROVED this 19th day of February, 1985. ATTEST: &A'z�ot�� Mayor of the City of Redlands City I Clerk ((()t"VT 'W" BOARD OF SUPERVISORS SAN BERNA►RDINO John Joyner ..First District Cal McElwain _ ... Second District ROBERT B_RIGNEY Administrative Officer Barbara cram Riordan......... . ... 7hirdOsrricr Robert 0.Townsend,Chairman......Fourth District Robert L.Hammock.............. .Fifth District COUNTY ADMINISTRATIVE OFFICE No.1 Arrowhead Plaza 385 North Arrowhead Avenue San Bernardino, CA 92415-0120 17141 383-2018 February 4, 1985 Mr. John E. Holmes City Manager City of Redlands 30 Cajon and Vine Redlands, CA 92373 RE: 1984 PRIVATE ACTIVITY BOND ALLOCATION Dear Mr. es: G In response to the passage of the Federal Tax Reform Act of 1984, Governor Deukmejian issued a Proclamation on July 19, 1984 governing the allocation, use, and transfer of private activity bonds in California. Based on a formula in the Governor's Proclamation, each City and the County of San Bernardino received a funding allocation for 1984. The Redlands allocation was for $2,545,000. The Governor's Proclamation allows any city to transfer any unused portion of its allocation to any other local government or state agency. You probably recall receiving a mailing from the League of California Cities in December suggesting that your city turn over its unused 1984 allocation to the State. As you know, the County of San Bernardino and various cities, including Redlands, are planning a waste-to-energy facility for the Valley. Financing of the facility will require the issuance of approximately $200-$250 million of private activity bonds through the California Pollution Control Financing Authority (CPCFA). This facility will be a vital part of the region's long-term waste management plan. In order to assist the CPCFA accumulate the allocation which will be needed to finance this project, the County in December transferred $35 million of unused 1984 allocation to the State, and this money will be used by the CPCFA to make a carryforward election with respect to the Waste-to-Energy Project, (The carryforward election makes this money available for bonds to be issued anytime through 1988.) The Internal Revenue Service recently extended the deadline for issuers (including CPCFA) to file the 1984 carryforward election until February 26, 1985. We are requesting Redlands help with this project by transferring to the State for the benefit of this project any of your 1984 private activity bond allocation which has not been used. The procedure required is for the City Council to adopt a resolution 1984 PRIVATE ACTIVITY BOND ALLOCATION February 4, 1985 Page 2 transferring a state dollar amount to the State with the direction to the State that the allocation is to be applied to the CPCFA for a carryforward to benefit the Project. We have attached a draft resolution which could be used by your City. The resolution needs to be adopted at your first meeting in February. This action by your City would not in any way commit your Council to approve any future actions regarding the Waste-to-Energy Project, A certified copy of the resolution must be sent to the State and received no later than February 19, 1985. The resolution should be sent by Federal Express or other rapid delivery to: California Debt Limit Allocation Committee 915 Capitol Mail, Suite 400 Sacramento, CA 95814 Tim Kelly, Project Manager, is available to discuss any aspect of this request (telephone 714-383-1380). You may also contact Mary Jane Jagodzinski, Executive Secretary of COLAC in Sacramento at 916-324-0310. We appreciate your consideration of this request and will assist your staff with the details of the resolution and carryforward process. Sincerely, ROB , RIGNEY County Administrative Officer RBR:va Attachment cc: Board of Supervisors