HomeMy WebLinkAboutResolution 24-89 RESOLUTION NO. 24-89
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ATASCADERO
RELATING TO DEBT FINANCING
WHEREAS, it is the intention of the City Council in behalf
of the community to undertake needed capital improvements and/or
land purchase; and
WHEREAS, in light of the fact that the only feasible and
realistic way that said needs can be met in a timely fashion is
through long-term debt financing; and
WHEREAS, it is the City' s conviction that long-term debt
financing can best be accomplished through Certificates of Parti-
cipation (C.O.P. ' s) because, among other things, this financing
method allows greatest flexibility in the use of existing General
Fund revenues; and
WHEREAS, the projects identified to be undertaken through
debt financing and/or a combination of debt financing and other
revenue sources, if needed, are the proposed Lake Pavilion,
Police Facility and lots adjacent to Lake Park; and
WHEREAS, even though the City Council has yet to specifi-
cally allocate the exact amount of money to be spent on these
projects, pending further review of each one following bidding
and land appraisal, it is anticipated that all three could, and
probably will, exceed two million dollars ( $2,000,000) ; and
WHEREAS, in recognition of the volatility of the existing
bond market and the uncertainty of interest rates in the future,
it is the Council Finance sub-Committee' s recommendation that the
City move quickly to secure long-term debt financing through Cer-
tificates of Participation immediately, with the understanding
that said issues shall be invested temporarily in an interest
bearing account to await their use within the 1989-90 fiscal
year, at such time as the City Council shall decide upon the
amounts to be allocated for the projects identified.
NOW, THEREFORE, it is the express desire of the City Council
to authorize the immediate pursuit of Certificates of Participa-
tion in an amount of two million dollars ( $2,000,000) to be used
for the above projects herein identified.,
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(Resolution No. 24-89, cont'd)
on motion by Councilmember DEXTER seconded by Coun-
cilmember BORGESON , the foregoing resolution is hereby
adopted on the following roll-call vote:
AYES: COUNCILMEMBERS DEXTER, LILLEY, MACKEY, SHIERS AND MAYOR BORGESON
NOES: NONE
ABSENT: NONE
ADOPTED: 4/25/89
ATTEST:
BOYD C. SHARITZ, Cit Clerk BO ITA BORGESON, May
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
UA'01'or CITV
E O ENSEN Y INDSOR
C y Atto eVl City Manager
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