REPORT TO THE CITY COUNCIL
September 21, 2017
FROM: MICHAEL LIMA, Finance Director/City Controller
Finance Department
BY: PHILLIP HARDCASTLE, Principal Accountant - Debt Administration
Finance Department
SUBJECT
Title
TEFRA HEARING - To hear and consider information concerning the proposed issuance of Revenue Obligations by California Enterprise Development Authority for the purpose of financing the development, construction, installation, equipping and furnishing of a facility by United Health Centers of the San Joaquin Valley.
1. ***RESOLUTION - Approving a tax-exempt obligation financing to be issued by the Authority to benefit United Health Centers of the San Joaquin Valley in the aggregate principal amount not to exceed $18 million (Subject to Mayor's veto)
Body
RECOMMENDATION
Staff recommends that the Council first hold a Tax Equity and Financial Responsibility Act (TEFRA) public hearing and then, upon conclusion, adopt the accompanying Resolution approving the issuance of Revenue Obligations (Obligations) by the California Enterprise Development Authority (Authority) on behalf of United Health Centers of the San Joaquin Valley (Applicant) in the aggregate principal amount not to exceed $18 million.
EXECUTIVE SUMMARY
The Applicant is seeking to obtain financing for the development, construction, installation, equipping and furnishing of a facility which will serve as the Applicant's headquarters and training facility. The new tax exempt obligations will be issued by the Authority. As the governing body of a jurisdiction in which the facilities are located, the Council must hold a public hearing in accordance with Section 147(f) of the Internal Revenue Code for the purpose of receiving any public testimony regarding the project before it considers authorizing the Authority to issue obligations for this purpose.
Should the City authorize the issuance of Obligations, the City would have no obligation or liability associated with this facil...
Click here for full text