2011 04 05 FA
NOTICE AND CALL OF SPECIAL MEETING
OF THE LA QUINTA FINANCING AUTHORITY
TO THE MEMBERS OF THE FINANCING AUTHORITY OF THE CITY OF LA QUINTA
AND TO THE CITY CLERK:
NOTICE IS HEREBY GIVEN that a special meeting of the Financing Authority
of the City of La Quinta is hereby called to be held on April 5, 2011 at 4:00 p.m.,
at La Quinta City Hall, 78 -495 Calle Tampico, La Quinta, California
Dated:
Don Adolp Chair son
Attest:
Veronica J. ntecino
City Clerk
DECLARATION OF POSTING
I, Veronica J. Montecino, City Clerk of the City of La Quinta, do hereby declare
that the foregoing agenda for the Special La Quinta Financing Authority meeting of
April 5, 2011, was posted on the outside entry to the Council Chamber at 78 -495
Calle Tampico and on the bulletin boards at 51 -321 Avenida Bermudas and 78 -630
Highway 111 on
DAT
Veronica J nteiSino, City Clerk
City of La Oklinta, California
00-1
Financing Authority 1 April 5, 2011
FINANCING AUTHORITY
AGENDA
CITY COUNCIL CHAMBERS
78 -495 Calle Tampico
La Quinta, California 92253
Special Meeting
TUESDAY, APRIL 5, 2011 — 4:00 P.M.
Beginning Resolution No. FA 2011- 003
CALL TO ORD
Roll Call:
Board Members: Evans, Franklin, Henderson, Sniff, and Chairman Adolph
PUBLIC COMMENT
At this time members of the public may address the Financing Authority on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments
to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES - NONE
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
1. APPROVAL OF AN APPROPRIATION FOR CAPITAL PROJECTS FROM THE
PROCEEDS OF THE 2011 FINANCING AUTHORITY AND 2011
REDEVELOPMENT AGENCY BOND ISSUES
07102
Financing Authority Agenda 1 April 5, 2011
BUSINESS SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS — NONE
ADJOURNMENT
The next regular meeting of the Financing Authority will be held on April 19, 2011
at 4:00 p.m. in the City Council Chambers, 78 -495 Calle Tampico, La Quinta, CA
92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Financing Authority meeting of April 5,
2011, was posted on the outside entry to the Council Chamber at 78 -495 Calle
Tampico and on the bulletin boards at 51 -321 Avenida Bermudas and 78 -630
Highway 1 1 1, on April 1, 2011.
DATED/L L -
e
VERONICA J. ONTECINO, City Clerk
City of La Quinta, California
Public Notice
Any writings or documents provided to a majority of the Financing Authority regarding any
item on this agenda will be made available for public inspection at the City Clerk counter at
City Hall located at 78 -495 Calle Tampico, La Quinta, California, 92253, during normal
business hours.
O .)031
Financing Authority Agenda 2 April 5, 2011
COUNCIL/RDA MEETING DATE: April 5, 2011
ITEM TITLE: Approval of an Appropriation for Capital
Projects From the Proceeds of the 2011 Financing
Authority and 2011 Redevelopment Agency Bond
Issues
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR: '
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION
Approve an appropriation of $68,475,000 for capital projects from the proceeds of the
2011 Financing Authority and 2011 Redevelopment Agency Bond Issues, subject to
the signing of the bond purchase agreements.
FISCAL IMPLICATIONS
The 2011 Financing Authority and Redevelopment Agency Bond issues are scheduled
to close the first week of April. The following is the estimated net proceeds that will
be available along with the requested appropriations:
CHARTER CITY IMPLICATIONS
None.
201012011 1 1 Total
1,21 I I 24,397.454
2,012.779
5]3,221
1,609,000
393,017 5,042,164
10,640,862 18,252,672
15,243,415
13,514,]]5
0104
Bond lasue
Taxable
Taxable
Taxable
Taxable
Project Area No .1
Project Area No.2
Protect Area No.1
Financing Authority
Nco-housin
Non- housin
Houim
Housin
Subtotal
Net
$ 2],830,000
$ 4,2]5,000
$ 11000,000
$ 25,3]0,000
$ 58,4]5,000
AppPublints
Fqlnf,,aat��u�
23,180,853
23.180,853
Dn
St t
2,012]]9
2,012,]]9
Was Ave Reconstruction - Adams So to
573221
573,221
Dune Patina Rd
City Entrance Monuments 6 Landscape
Improvements
1,689,000
1,689,000
SilverRock Entry Feature B Public Roads
4,649,147
4649147
Washington Street Apartments
7,611,810
7,611,810
Washington Street Teats Property
11,000.000
4,243,415
15,243,415
13,514,775
13,514,]]5
Dune Palm at WeshveN Ho A admenta
Tolaln uestsd appro priations
$ 27,830,000
$ 4,2]5,000
$ 11,000,000
$ 25370000
$ 68,4]5,000
CHARTER CITY IMPLICATIONS
None.
201012011 1 1 Total
1,21 I I 24,397.454
2,012.779
5]3,221
1,609,000
393,017 5,042,164
10,640,862 18,252,672
15,243,415
13,514,]]5
0104
BACKGROUND AND OVERVIEW
On February 15, 2011, the Agency authorized the staff to begin the process to issue
bonds. There are various factors that go into the size of a bond issue, which
ultimately result in the net amount of cash received from the bond proceeds. These
factors include the projected tax increment revenue collections, the rating given by
Standard & Poor's, the interest rate environment in the municipal bond market, the
type of bond issue — tax exempt or taxable, other municipal agencies issuing debt at
the same time, and alternative investments for investors to consider. The amount of
cash that is estimated to be deposited in the first part of April 2011 is $68,475,000.
The actual amount of bond proceeds will not be known until the bond purchase
contracts are signed.
All Capital Improvement Projects are accounted for in the City Capital Project Fund
(Fund 401). This is done to comply with Government Accounting Standards Board
(GASB) 34 which requires that the City track capital projects and determine if they
should be reported as a fixed asset. The City was an early implementer of GASB 34 in
June 30, 2001 and has been using Fund 401 in a similar fashion, even before GASB
34, since the mid 1990's.
Within Fund 401, individual project budgets are set up to track the expenditures and
the sources of revenue used to pay for the expenditures. Many individual project
budgets have more than one funding source to pay for the costs of the project. In all
cases, the estimated revenue and appropriation amounts for each individual capital
projects must agree which is the case in this report.
Once completed, these assets will be reported in the Comprehensive Annual Financial
Report (CAFR). The CAFR reports the financial activity of the City, the La Quinta
Redevelopment Agency, the La Quinta Housing Authority and the La Quinta Financing
Authority.
FINDINGS AND ALTERNATIVES
The alternatives available to the Financing Authority include:
1. Approve an appropriation of $68,475,000 for capital projects from the proceeds
of the 2011 Financing Authority and 2011 Redevelopment Agency Bond Issues,
subject to the signing of the bond purchase agreements; or
2. Do not approve an appropriation of $68,475,000 for capital projects from the
proceeds of the 2011 Financing Authority and 2011 Redevelopment Agency Bond
Issues, subject to the signing of the bond purchase agreements; or
3. Provide staff with alternative direction.
0)05
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
0106