REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Lori Ann Farrell Harrison, Interim City Manager
PREPARED BY: Kellee Fritzal, Deputy Director of Economic Development
Subject:
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Conduct a Tax and Equity Fiscal Responsibility Act ("TEFRA") public hearing and adopt Resolution No. 2019-41 approving the financing of the construction of improvements to the Pegasus School, located at 19692 Lexington Lane, with no City obligations
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Statement of Issue:
The City Council is asked to conduct a public hearing under the Tax and Equity Fiscal Responsibility Act ("TEFRA") for the purpose of making one or more loans by the California Municipal Finance Authority ("CMFA"), a joint exercise of powers of authority and public entity of the State of California, for the construction of educational site improvements at Pegasus School, located at 19692 Lexington Lane, in an amount not to exceed $13,000,000, (the "Loans"). The Loans would be for the purposes of financing the costs of the construction of a science and technology building, remodeling current middle school classrooms, restructuring a parking lot, and upgrading the middle school quad. It will also include the associated design, engineering and planning costs related thereto, and related capital project costs (the "Facilities") and paying related expenses incurred in connection with the making of the Loans (collectively, the "Project").
Financial Impact:
The Loans to be issued by the CMFA for the Project, will be the sole responsibility of the School, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Loans, will contain clear disclaimers that the Loans are not obligations of the City or the State of California, but are to be paid for solely from funds provided by the School.
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