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Home My WebLink About1984-12-18; City Council; 8005; Transfer Private Acitivity Bond Allocation California Pollution Control Financing Authority0 l.Ll 6 0:: a.. a.. c:( z 0 § < .J 0 z ::, 0 0 i ~B# ?O o ,!;J- MTG.12/l8/84 DEPT FIN CIT' --1F CARLSBAD -AGENDJ'' 11LL rtn.E: TP~2\NSFER OF PRIVATE ACTIVITY BOND ALLOCATION TO CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY RECOMMENDED ACTION: Adopt Resolution No. 7~S-? authorizing the transfer of the City's private activity bond allocation to the county to be used for the construction of a waste-to-energy resource recovery facility at the Miramar Landfill. ITEM EXPLANATION: In July the City of Carlsbad received an allocation of $2,io6,000 under the state's plan for distribution of the federal limit on private act~vity bonds. These bonds typically limited to the financing of manufacturing or energy related projects, may be allocated by the City to any qualified projects on or before December 31, 1984. The City may also transfer its allocation to other agencies to pool allocations where a single agency may have less than the required allocation to finance a project. The County of San Diego has requested that the City of Carlsbad, along with other cities in the county, transfer its unused allocation to them to be used on the waste-to-energy project located near the Miramar Landfill. The following chart summarizes the action of the other cities in the county. (In Millions $) RECOMMENDING .Q!TI ALLOCATION TRANSFER Chula Vista 44,6 X Coronado LO N/A Del Mar 0.3 El Cajon 4.2 X Escondido 3.9 X Imperial Beach 1.2 N/A La Mesa 2.7 Lemon Grove 1.1 X National City 2.8 X Oceanside 4.5 Poway 1.8 undecided San Diego 49.6 San Marcos 1.0 N/A Santee 2.4 X Vista 2.2 RETAINED APPROVED ALLOCATION FOR TRANSFER EACH PROJECT X X X X X County staff has agreed to reco,amend to the B9ard that should Carlsbad transfer its allocation to the county at this time rather than allowing the allocation to lapse at year end, the county staff agreas to support a transfer back to ·Carlsbaa,a like amount from any future county allocation t:o help finance any specific project the City may wish to sponsor. I Page -2- FISCAL IMPACT: This action in itself has no fiscal impact, since the City presently has no pla~s to use the 1984 allocation. The agreement to transfer back to the City $2.l million of bond, allocations in §tibsequ~nt years may be of value should the City desire to finance a project during 1985 or future years. EXHIBITS: 1. Letter from County of San Diego dated November 27, 1984, re: private activity bond allocation State of California. 2. League of California bulletin dated December S, 1984. 3. Resolution No . .Jtr.s-7 transferring the City's private activity bond allocation for 1984 to the California Pollution Control Financing Authority. .2 COUNTY OF SAN DIEGO DOARD OF SUPERVISORS TOM HAMILTOM ff'IRS"f DISTRICT CHIEF ADMINISTRATIVE OFFICE PAUL W, FORDEM SWCOND DISTAICT l6QO PAC!F!C HlGHl."JAY ~ SAN DiEGu, CALIFORNIA 92101 TELEPHONE (G19) 236·2722 PATRICK M, BOARMAN --::,.;:;v w •• T"IC:T- LEON L, WILLIAMS t'OURTH o,aTRICY CLIFFORD W. GRAVE:S CHIEF ADMINISTRATIVE OFFICER November 27, 1984 F r a n k A.l e s h i r e City Manager 1200 Elm Avenue Carlsbad, CA 92008 NOV tijS4 J 'City' of ~ \PAftLSBA~.., cc Cl.rl'-~d.t >1n " PAUL 25:CKERT f#lfP'fH DIST'IICT RE: PRIVATE ACTIVITY BOND ALLOCATION STATE OF CALIFORNIA In response to the passage of the Federal Tax Reform Act of 1984, Govern9r Deukmejain issued a Proclamation on July 19, 1984 govern- ing the allocation, use, and transfer of private activity bonds in California. Based on a formula in the Governor's Proclamation, c~Gh City in San Diego County and the County of San Diego have received a funding allocation for 1984. The City oJ Car-lsb-ad 1 s ,all:obati"on is fo,r $.2,1'06,.000. The Governor's Pr.oclamat'ion a-llows an_J Gi·t-Y to, -tr,ansf er any ·unu-se.d portion of its a-11:oc.ati on to any otfler loca·,,-government or state agency. The City of San Diego and County of San Diego are planning a waste-to-energy facility (SANDER) which will require the private owner to issue approximately $210 M of private activity bonds through the California Pollution Control Financing Authority (CPCFA). This facility is planned for the City of San Diego's Miramar landfill and will be a vital part of the entire region's long-term waste management plan. There will be a number of competing projects for the CPCFA annual bond allocation so it is desirable to pool funds over the next three years in order to fund the amount required for the SANDER project. In order to accumulate the amount of private activity bond allocation necessary to fund the SANDER Project the County of San Diego has elected to transfer its 1984 allocation to the California Pollution Control Financing Authority. We expect the City Council of the City of San Diego to be asked to follow the same procedure for a portion of its 1985 allocation. EXHIBIT :t. 3 We are reques·ting that the CLty o.f Car-ls·bad· h-e+11··us w;-tlf this n:~!:ri;(ffi-a"i' "JTf·o-J"e~et by carrying forward any of your 1984 private activity bond allocation which you are not planning on using. The procedure for carryforward is: City Council adopts a resolution transferring a statea dollar amount to CPCFA with direction to the Authority tlrat·theallocation is for the benefit of SANDER Project. We have attached a draft resolution which could be used by your City. The resolution needs to be adopted by the end of this year for the 1984 allocation. This action by your City would in no way commit your Council to any financial obligation or future approvals regarding the SANDER Project. Nicole A. Clay, CAO Project Manager, is available to discuss any aspects of this request. We appreciate your consideration of this request and will assist your staff with the details of the resoluti'on and carryforward process~ _ _,<""-.... .., City Manager City of San Diego RTB:CWG:kb Attachment Officer League of California Cities 1400KSTREET • SACRAMENTO,CA95814 • (916)444-5790 Urgent -Action NEEDED! Sacramento, CA December 5, 1984 Urgent -Action NEEDED! TO: City Managers, City Administrators, Clerks in Non-Manager Cities RE: Urgent. Need to Reallocate Unused Private Activity Bond Allocation. Immediate Action is Now Needed. The Federal Tax Reform Act of 1984, among other things, placed a ceiling on the issuance of private activity bonds of $150 per capita in each state. By Executive Proclamation, Gov~rnor Dukemejia1, established California's process for the allocation of availab~,e funds, by allocating (•a) 50% of the state ceiling to state agencies; (b) 35% to cities and counties (for their un- incorporated areas); and (c) 15% of the state teiling to be allocated directly to counties on a per capita basis, based upon their entire population. Each city and,each county in the state received a certain dollar amount of allocation and therefore could issue Private Activity Bonds up to the amount of the Private Activity Bond limit. Many cities have not or will not use their full allocation during the 1984 calendar year, and have the right to transfer part or all their allocation to the State of California, a city, county, or other issuer of bonds (e.g. redevelopment agency, or special district). The League strongly encourages this allocation transfer. There are good reasons for cities to do this. First, it would free up available funds for other cities that do not have a sufficient enough allocation to carry out worthwhile projects. Second, if any portion of a city's excessive or unused allocation is returned to the state, it allows the California Debt Advisory Comnission to reallocate these funds to state agencies, cities, counties or other issuers needing them in other parts of the state. It is our opinion that if cities want fairness in future bond allocations they should adopt a resoltuion transferring part or all its allocation to the state or other local agencies before the ,,,,______ end of the 1984 calendar year. To assist cities with this process, we have included a sample resoh,th,;1 making the allocation transfer, and a list of preliminary allocations for the issuance of private activity bonds for cities and counties for the 1984 calendar year. Though the enclosed 11 model 11 resolution specifies a transfer to the State of California, it is perfectly acceptable for a city to transfer its allocation directly to another city, county or other issuer of bonds. In that case, appropriate changes should be made in the 11 whereas 11 clauses to describe the proposed project which is to be assisted, and the operative sections of the resolution should also be changed to indicate the recipient of the allocation. -EXHIBIT 2 S , • • ll • I ,t,_. 1 • \ ,• •' 4 • ... ,-• • 0 • • ;,~ .. .: I • • ' 0 Resolutions authorizing the transfer should irrmediately ·be filed with the California Debt Limit Allocation Conmittee once adooted bv the db, .co1.1nc:i-L in addition, a: cert'ified copy of tile resolution m•Jst be sent to the governmenta,I body to whom the allocation is transferred. Please call the Sacramento office of the League at 916/444-5790 if you have any questions. -2 - y ,. ---------...:~--------. ------------------~~-------~ .-~~ ----' , l-. • I • ' • • • / • ' , • • • , :· ' . ' COUIITY ( ~!_ RIVERSIDE SACRAMENTO SAN BENITO PRELIMINARY ALLOCATIONS FOR THE ISSUANCE OF PRIVATE AC'l'IVITY"BONDS IN 1984(1)-CONTINUED £!!!l!!~~t~~~Q POPULATION(4) PRIVATE ACTIVITY BOND ----ALIOC~!!Q!r~L -- 757,500 $16,882,000 BANNING 15,750 $819,000 BEAUMONT 7,575 $394,000 BLYTHE 7,525 $391,000 CATHEDRAL cr•ry 14,800 $770,000 COACHELLA 12,000 $624,000 CORONA 41,650 $2,166,000 DESERT HOT SPRINGS 7,575 $394,000 LM<E ELSINORE 8,475 $441,000 LA QUINTA 6,100 _$317,000 HEMET 26,350 $1,370,000 INDIAN WELLS 1,880 $98,000 INDIO 26,600 $1,383,000 NORCO 21,850 $1,136,000 PALM DESERT 14,550 $757,000 PALM ·SPRINGS 37,700 $1,960,000 PERRIS 8,300 $432·, 000 RANCHO MIRAGE 7,275 $378,000 RI·VERSIDE 179,700 $9,345,000 S~N JACINTO 8,900 $463,000 UNIN:ORPORATED 302,900 $15,751,000 858,500 $19,133,000 FOLSOM 14,500 $754,000 GALT 6,150 $320,000 ISLETON 930 $48,000 SACRAMENTO 30~,400 $15,777,000 UNINCORPORATED 533,500 $27,743,0QO 28,500 $635,0QO HOLLISTER 14,100 $733,000 SA~ JUAN BAUTISTA 1,350 $70,090 UNINCORPORATED 13,050 $679,000 $AH BEIUIARDIHO 1,014,500 $22,610,000 3,230 $168,000 ADELANTO BARSTOW 19,2?0 $998,000 BIG BEAR LAKE 5,850 $304,000 CHINO 45, fJSO $2,384,000 COLTON 23,350 $1, 214,·0'00 FONTANA 45,500 $2,366,000 GRAND TERRACE 9,650 $502,000 LOMA LINDA 11,200 $582,000 MONTCLAIR 24,700 $1,284,000 NEEDLES 4,500 $234,000 -14 - PRELIMINARY ALLOCATIONS FOR THE ISSUANCE OF PRIVATE ACTIVITY 80@$ IN 1984{1)-CO!!T-!W.JED coq~J.~i CITY/UNINCORPORATED POPUIATION(4) PRIVATE ACTIVITY BOND ·----·-~_pr----ALLOCATION{S°) SAN BERNARDINO (CONTINUED) ONTARIO 104,200 $5,419,000 RANCHO CUCAMONGA 61,600 $3,203,000 REDLANDS 48,950 $2,545,000 RIALTO 44,100 $2,293,000 SAN BERNARDINO 131,000 $6,812,000 UPLAND 52,000 $2,704,000 VIC·roRVILLE 18,800 $978,000 UNINCORPORATED 360,800 $18,762,000 SAN DIEGO 2,040,900 $45,484,000 CARLSBAD 40,500 $2,106,000 CHULA VIS~t'A 89,400 $4,649,000 CORONADO 19,750 $1,027,000 DEL MAR 5,150 $268,000 EL CAJON 80,000 $4,160,000 ESCONDIDO 74,300 $3,864,000 IMPERIAL BE;ACH 23,900 $1,243,000 LA MESA 52,400 $2,725,000 LEMON GROVE 21,800 $1,134,000 NATIONAL CITY 54,700 $2,844,000 OCEANSIDE 87,100 $4,529,000 POWAY 35,450 $1,843,000 SAN DIEGO 953,900 $49, 604,·000 SAN MARCOS 19,000 $988,000 SANTEE 46,000 $2,392,000 VIST.I\ 41,950 $2,181,000 UNINCORPORATED 395,700 $20,577,000 SAN FRANCISCO 706,900 $15, 7 54,.000 SAN FRANCISCO 706,900 $36,760,000 SAN JOAQUIN 390,600 $8,705,000 ESCALON 3,430 $178,000 LODI 39,500 $2,054,000 MANTECA 29,100 $1,513,900 RIPON 4,390 $228,000 STOCKTON 169,100 $8,793,000 TRACY 21,650 $1,126,000 UNINCORPORATED 123,400 $6,417,000 -15 - . ) l 2 3 4 5 6 7 8 9 10 11 12 13 t 14 15 16 17 18 19' 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 7857 A RESOLUTION OF THE CITY COUNCI~ Of T8E CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE TRANSFER OF THE CITY'S PRIVATE ACTIVITY BOND ALLOCATION TO THE CALIFORNIA POLLUTION CONTROL FACILITY. WHEREAS, pursuant to the Tax Reform Act of 1984 and the Governor's Proclamation of July 1~, 1984 implementing said Act, the City of Carlsbad has received a private activity bond allocation in the amount of $2,106,000 for the calendar year 1984; and WHEREAS, it is not expected that the City will utilize the full amount of such allocation for the issuance of private activity bonds during 1984; and WHEREAS, the Act permits unused private activity bond allocation in any calendar year to be carried forward to future years with respect to certain designated types of proj~cts; and WHEREAS, the SANDER Joint Powers Authority plans to construct a waste-to-energy resource recovery facility at Miramar Landfill, and it is contemplated that part or all of the cost of such facilities will be financed with tax-emempt bonds which will require a private activity bond allocation when issued; and WHEREAS, the City of Carlsbad has been advised that it is likeJ.y that the bonds for the SANDER Project will ,be issued by the California Pollution Control Financing Authority; and WHEREAS, the City of Carlsbad will make part of its unused 1984 private activity bond allocation available to the California Pollution Control Financing Authority in order for the Authority to make a carryforward election with resDect to the SANDER Project. 1 " l 2 3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gar-lsbad as follows: 1. The City of Carlsbad hereby transfers to the California 4 Pollution Control Financing Authority the aggregate amount 5 of $2,106,000 of the City's unused private a~tivity bond allocatio 6 under the Act and the Governor's Proclamatin. Such transfer 7 is made under the express condition that the Authority may 8 only utilize such transfer for the purpose of making a carryforwar 9 election pursuant to Section 1031n) (9) of the Internal Revenue 16 Code of 1964 with respect to the SANDER Project. If such carry- 11 forward election is not made by the Authority by December 27, 12 1984, the allocation stated herein shall revert to the City. 13 2. The City Clerk is hereby directed to transmit a copy 14 of this resolution to the California Pollution Control Financing 15 Authority. 16 This resolution will take effect immediately upon its 17 passage. 18 PASSED, APPROVED AND ADOPTED by the City Council of the 19 City -of Carlsbad at a regular meeting held on 18th day of 20' 21 22 ___ n: ____ ce.mter ___________ , 19_!!!_, by ·the following vote, to wit: AYES: Council M::mbers easier, Lewis, Kulchin, 01ick am Pettine NOES: 23 ABSENT: ?\Tone ~ d~ 24 25 26 27 28 ATTEST: MARr-«::!CASLER, Mayor ALETHA L. RAUTENKRANZ, City flerk (SEAL)