CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 CONSENT CALENDAR
SUBJECT: APPROVE A RESOLUTION ESTABLISHING A REIMBURSEMENT OF
ALL EXPENSES RELATED TO THE CONVENTION CENTER
IMPROVEMENTS WITH FUTURE DEBT PROCEEDS IF PAID PRIOR TO
THE ISSUANCE OF DEBT
FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
SUMMARY:
The City Council is considering financing improvements to the City’s Convention Center with the issuance of tax-exempt obligations. Should the City expend funds on items relating to the rehabilitation, modernization, and expansion of the Convention Center prior to the issuance of the tax-exempt obligations, and expect to be reimbursed from the proceeds, it is necessary under federal tax law for the City to declare its intent to reimburse itself from the proceeds of the tax-exempt obligations.
RECOMMENDATION:
Adopt a Resolution entitled, “A RESOLUTION OF THE CITY OF PALM SPRINGS
DECLARING ITS INTENT TO ISSUE TAX-EXEMPT BONDS TO BE USED TO
REIMBURSE THE CITY FOR EXPENDITURES PRIOR TO THE ISSUANCE OF SUCH BONDS”.
BACKGROUND:
In the Measure J budget for FY26 and FY27, the Commission recommended, and the City Council approved, design costs of $4.45 million and $4.68 million respectively for the Convention Center improvements. These amounts were approved with the expectation the Measure J fund would be reimbursed for these costs, and any other costs, expended for the Convention Center improvements once debt had been issued to fund the project in its entirety. This resolution allows for those costs to be reimbursed.
ENVIRONMENTAL ASSESSMENT:
N/A.
City Council Staff Report
May 27, 2026 -- Page 2
Approve Resolution Reimbursement
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the City Council’s Strategic Plan Broad Goal of Public Safety and Community Services, and the Foundation of Financial and Organizational Well-Being.
FISCAL IMPACT:
None.
REVIEWED BY:
Department Director: Kristopher J. Mooney
City Manager: Scott Stiles
ATTACHMENTS:
A. Resolution
B. Memo from Best Best & Krieger, LLP