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 ...
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