HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/07/2022 - RESOLUTION 2022-058 DECLARING THE OFFICIAL INTENT Agenda Item 13
Item # 13 Page 1
AGENDA ITEM SUMMARY June 7, 2022
City Council
STAFF
Amanda Newton, Sr. Treasury Analyst
Blaine Dunn, Accounting Director
John Duval, Legal
SUBJECT
Resolution 2022-058 Declaring the Official Intent of the City to Reimburse the Applicable City Funds for
Expenditures Relating to Funding the City’s Capital Projects Identified in Ordinance No. 062, 2022, Through
the Issuance of Certificates of Participation.
EXECUTIVE SUMMARY
The purpose of this item is to declare the City’s official intent to reimbursed the applicable City fund with the
proceeds from the issuance of the certificates of participation (Certificates of Participation) approved by City
Council in Ordinance No. 062, 2022, for the City expenditures made before the issuance of the Certificates of
Participation to fund (a) the acquisition of the real property on which the Hughes Stadium previously existed,
(b) the acquisition and installation of certain irrigation improvements for the Southridge Golf Course, (c) the
construction and installation of a fleet maintenance facility at 800 Wood Street, and (d) such additional projects
that benefit the City and are approved by resolution of the City Council (Projects).
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
On this same June 7 agenda, Council will be considering adoption of Ordinance No. 062, 2022, on second
reading to authorize the issuance of the Certificates of Participation. The proceeds from the issuance of the
Certificates of Participation will be used to fund the Projects.
The maximum aggregate principal amount of the Certificates of Participation issued for the Projects is
expected not to exceed $16.5M. The proceeds of $8.5M from the issuance will be used to fund the purch ase of
the Hughes Stadium land, $5.0M will be used to fund the construction of the Southridge golf course irrigation
system improvements, and $3.0M will be used to fund the construction of the Fleet shop expansion.
The Projects each have different timelin es, so the initial expenditures for one or more of them might be paid
before the issuance of the Certificates of Participation from applicable City funds. Therefore, for the City to be
able to use the proceeds from that issuance to reimburse such City funds for any initial expenditures for the
Projects, and at the same time maintain the tax-exempt status of the Certificates of Participation, the Internal
Revenue Service (Treasury Regulation 26 C.F.R. §1.150 -2) requires that Council adopt the Resolution. Th e
Resolution represents the City’s declared official intent to reimburse the applicable City funds for such initial
expenditures with the proceeds from the issuance of the Certificates of Participation.
Agenda Item 13
Item # 13 Page 2
CITY FINANCIAL IMPACTS
The declaration of this official intent through the Resolution complies with federal regulations. It also provides
more flexibility to the City so it can better manage the capital expenditures related to the Projects. For
example, the Southridge Golf Course project needs to secure so me of the key materials before prices
increase. With this Resolution, the City can make the capital expenditure prior to issuing the Certificates of
Participation and later reimburse the applicable City fund with the proceeds from the issuance of the
Certificates of Participation.
-1-
RESOLUTION 2022-058
OF THE COUNCIL OF THE CITY OF FORT COLLINS
DECLARING THE OFFICIAL INTENT OF THE CITY TO REIMBURSE THE APPLICABLE
CITY FUNDS FOR EXPENDITURES RELATING TO FUNDING THE
CITY’S CAPITAL PROJECTS IDENTIFIED IN ORDINANCE NO. 062, 2022,
THROUGH THE ISSUANCE OF CERTIFICATES OF PARTICIPATION
WHEREAS, the City of Fort Collins, Colorado (the “City”) expects to make after the date
of this Resolution, but before issuing the certificates of participation approved by City Council in
Ordinance No. 062, 2022 (“Certificates of Participation”), expenditures from applicable City funds
for the funding of (a) the acquisition of the real property on which the Hughes Stadium
previously existed, (b) the acquisition and installation of certain irrigation improvements for the
Southridge Golf Course, (c) the construction and installation of a fleet maintenance facility at
800 Wood Street, and (d) such additional projects that benefit the City and are approved by
resolution of the City Council (collectively, the “Projects”); and
WHEREAS, the City intends to later reimburse the applicable City fund for such original
expenditures with the proceeds from the issuance of the Certificates of Participation; and
WHEREAS, the maximum aggregate principal amount of the Certificates of Participation
issued for the Projects is expected not to exceed $16,500,000.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT COLLINS, COLORADO, AS FOLLOWS:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That this Resolution declares the City’s “official intent,” within the
meaning of Treasury Regulation 26 C.F.R. §1.150-2, to reimburse the applicable City funds with
the proceeds from the issuance of the Certificates of Participation for its original expenditures to
fund the Projects made before issuing the Certificates of Participation.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 7th
day of June, A.D. 2022.
Mayor
ATTEST:
City Clerk