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AGENDA ITEM REVIEW FORM |
5.D.
Regular City Council Meeting
- Meeting Date:
- 03/10/2021
- Department Head:
- Monica Castro
- Submitted By:
- Monica Castro, Director of Finance, Finance Department
Action Requested:
ITEM:
Discussion and possible action on any and all matters regarding Resolution 2156. A Resolution of the Mayor and City Council of the City of San Luis, Arizona, (1) approving the sale and execution and delivery of pledged excise tax revenue obligations, Taxable Series 2021, evidencing a proportionate interest of the owners thereof in a third excise tax purchase agreement; (2) approving the form and authorizing the execution and delivery of necessary agreements, instruments and documents related to the sale and execution and delivery of such obligations; (3) adopting post-issuance continuing disclosure compliance procedures in connection with Issuance of obligations of the city and a contingency reserve fund policy; (4) delegating authority to the Finance Director of the city to cause a transfer of appropriations within the Fiscal Year 2021 Budget of the city; (5) delegating authority to the Mayor, Manager and Finance Director of the city to determine certain matters and terms with respect to the foregoing; (6) authorizing the taking of all other actions necessary to the consummation of the transactions contemplated by this resolution; and (7) declaring an emergency. (Mark Reader, Underwriter, a Managing Director in Public Finance for Stifel, Nicolaus & Company, Inc.)
SUMMARY:
Staff followed the directions from the Work Session on February 3, 2021 to secure obligations to pay the Public Safety Personnel Retirement System (PSPRS) unfunded liability.
The City of San Luis participates in the Arizona Public Safety Personnel Retirement System (PSPRS) for its police and fire department employees and those departments' retirees. The police plan is funded below about 65% as of the 2019 valuation, while the fire plan is funded at over 86%.
This item is now before City Council for consideration and possible adoption of a resolution (1) approving the form and authorizing the sale and execution and delivery of pledged excise tax revenue obligations taxable series 2021, evidencing a proportionate interest of the owners, thereof in a lease-purchase agreement; (2) Approving the form and authorizing the execution and delivery of necessary agreement, instruments and documents related to the sale and execution and delivery of such obligations; (3) Adopting post-issuance continuing disclosure compliance procedures in connection with issuance of obligations of the city and a contingency reserve fund policy; (4) Approving a transfer of appropriations and increase of budget within the Fiscal Year 2021 budget of the city; (5) Delegating authority to the Mayor, City Manager and Director of Finance to determine certain matters and terms with respect to the foregoing; (6) Authorizing the taking of all other actions of all other action necessary to the consummation of this bond transaction and (7) Declaring an emergency.
The City of San Luis participates in the Arizona Public Safety Personnel Retirement System (PSPRS) for its police and fire department employees and those departments' retirees. The police plan is funded below about 65% as of the 2019 valuation, while the fire plan is funded at over 86%.
This item is now before City Council for consideration and possible adoption of a resolution (1) approving the form and authorizing the sale and execution and delivery of pledged excise tax revenue obligations taxable series 2021, evidencing a proportionate interest of the owners, thereof in a lease-purchase agreement; (2) Approving the form and authorizing the execution and delivery of necessary agreement, instruments and documents related to the sale and execution and delivery of such obligations; (3) Adopting post-issuance continuing disclosure compliance procedures in connection with issuance of obligations of the city and a contingency reserve fund policy; (4) Approving a transfer of appropriations and increase of budget within the Fiscal Year 2021 budget of the city; (5) Delegating authority to the Mayor, City Manager and Director of Finance to determine certain matters and terms with respect to the foregoing; (6) Authorizing the taking of all other actions of all other action necessary to the consummation of this bond transaction and (7) Declaring an emergency.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2156.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $8,800,000
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- See fiscal impact statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- TBD
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
Finance was able to identify budget capacity within this fiscal year to carry out this transaction. We would like to request council authorization to make the necessary budget transfers up to the amount of $8,800,000 so that this bond transaction can be completed.
Attachments
- Resolution No. 2156
- Purchase Agreement
- Trust Agreement
- Obligation Purchase Agreement
- Preliminary Official Statement
- Continuing Disclosure Procedures
- San Luis Policy PSPRS Reserve Fund