To: MAYOR AND CITY COUNCIL
From: LUKE SMUDE, ASSISTANT TO THE CITY MANAGER
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ADOPT BY TITLE ONLY RESOLUTION NO. CC-2503-017, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA DECLARING THE CITY'S INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF GENERAL OBLIGATION BONDS APPROVED BY THE VOTERS OF THE CITY OF REDONDO BEACH THROUGH MEASURE FP
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EXECUTIVE SUMMARY
On November 5, 2024, Redondo Beach voters approved Measure FP, a General Obligation Bond in the amount of $93,350,000 to fund the reconstruction of Fire Station #1, Fire Station #2, and the Police Headquarters, and renovation of the Police Annex facility. The results of the election were certified by the City Clerk on December 10, 2024, with more than 71.4% of RB voters supporting the measure.
The City expects to incur expenditures associated with Measure FP implementation prior to the issuance of the first tranche of bonds. In order to reimburse capital expenditures paid from non-borrowed funds, the City must adopt a reimbursement resolution which serves as its declaration of official intent to reimburse these expenditures with bond proceeds.
BACKGROUND
In order to effectively carryout the large-scale construction projects associated with Measure FP, the City will incur expenses prior to the issuance of the first tranche of General Obligation Bonds. These costs include fees for services provided by the City's Bond and Disclosure Councils, Municipal Advisor, Owner's Representative and Program Manager, as well as funding for staffing to assist with project management and internal workflow.
Section 1.150-2 of the United States Treasury Regulations governs the allocation of expenditures reimbursed by bonds. These regulations state that that the appropriate governing body must approve a declaration of intent to make reimbursements from bond proceeds for applicable expenditures. The proposed Reimbursement Resolution serves as the City Council's d...
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