Title
Ordinance in the Amount of $1,131,000 Amending FY14-15 Hotel Motel Tax Fund Budget
Body
Department: Finance & Legal
Council District: 1
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Richard Lusk, Finance Director, 373-2077
Contact 2 and Phone: Thomas Carruthers, Interim City Attorney, 373-2320
PURPOSE:
To authorize prepayment of the remaining $2.85 million installment payments due on Coliseum Complex Certificates of Participation, Series 1999B and establish appropriations in the FY14-15 Hotel Motel Tax Fund Budget of $1.47 million for the prepayment, in order to perfect the security interest required by the $25.65 million Limited Obligation Bond issue scheduled for September 24, 2014.
BACKGROUND:
The City's bond counsel has advised that the City will need to prepay the $2.85 million outstanding Coliseum Complex Certificates of Participation, Series 1999B in order to secure its obligations under the $25.65 million Limited Obligation Bonds to be sold on September 24, 2014 which were authorized by City Council on August 19, 2014. A new deed of trust is required to replace the existing deed and will grant a first priority lien on the City's interests in the Coliseum Complex, other than the site of the City's aquatics center which is secured by a separate deed of trust.
Of the outstanding $2.85 million Series 1999B Coliseum Complex Certificates of Participation, $1.38 million is due on December 1, 2014 and that payment is included in the current year's budget. The final installment payment of $1.47 million is due on December 1, 2015 and additional budget appropriations are needed to fund its prepayment.
BUDGET IMPACT:
A budget ordinance establishing additional appropriations in the FY14-15 Hotel Motel Tax Fund Budget of $1,131,000 and approving a budget adjustment of $339,000 for prepayment of the December 1, 2015 installment of $1,470,000 is required at this time. A portion of these funds are being transferred from the Coliseum Improvements Bond Fund, as previously approved by City Council on August 4, 2014, to reimburse an advance of funds from the Hotel Motel Tax Fund to the Bond Fund to complete renovation of the CVB offices. Payment of the debt service on the $25.65 million Series 2014 Limited Obligation Bonds will be included in future annual budgets of the Hotel/Motel Tax Fund.
RECOMMENDATION / ACTION REQUESTED:
The Finance and Legal Departments request City Council approval of the attached budget ordinance amending the FY14-15 Hotel Motel Tax Fund Budget, in the amount of $1,131,000 and approving the related budget adjustment of $339,000.