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ATTACHMENT A
Resolution
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Resolution No.
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RESOLUTION NO. ____
AUTHORIZING THE ISSUANCE OR INCURRENCE OF
LONG-TERM OBLIGATIONS PAYABLE FROM
ASSESSMENTS LEVIED AND COLLECTED WITHIN THE
BOUNDARIES OF THE PALM SPRINGS TOURISM
INFRASTRUCTURE DISTRICT IN AN AMOUNT NOT
EXCEEDING $55,000,000; AND APPROVING RELATED
DOCUMENTS AND OFFICIAL ACTIONS
WHEREAS, The City of Palm Springs (the “City”) is a charter city organized under the California Constitution and as such has the right and power to make and enforce all laws and regulations in respect of municipal affairs in accordance with and as more particularly provided in sections 3, 5 and 7 of article XI of the California Constitution and section 10 of the City Charter;
WHEREAS, Under its charter powers and the Property and Business Improvement District Law of 1994 (California Streets and Highways Code sections 36600 through 36671) (the “PBID Law”), the City Council has formed the Palm Springs Tourism Infrastructure District (the “District”);
WHEREAS, Under the PBID Law, as augmented by Chapter 3.29 of the Palm Springs Municipal Code (the “Assessment Revenue Bond Law”), and the Management District Plan adopted by the City Council in connection with the formation of the District (the “Management District Plan”), the City is authorized to pledge the assessments levied and collected within the boundary of the District (the “Assessments”) to the payment of one or more series of bonds, notes, loans, interim certificates, debentures, installment- purchase agreements, leases, or other obligations the City issues or incurs to pay directly for authorized purposes or to reimburse the City for amounts paid from other sources toward bonds, notes, loans, interim certificates, debentures, installment-purchase agreements, leases, or other obligations (collectively, the “Assessment Obligations”); WHEREAS, The Assessment Revenue Bond Law and the Management District Plan further provide that the following shall be applicable to Assessment Obligations:
(1) proceeds shall be used to finance the capital improvements authorized by the Management District Plan;
(2) the Assessment Obligations shall be payable from receipts of the Assessments;
(3) the Assessments shall continue until the final maturity of the Assessment Obligations; and
(4) no final maturity shall be beyond 40 years from the date of issuance or incurrence of the first Assessment Obligation.
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WHEREAS, In order to implement the Management District Plan, the City desires to finance the costs of capital improvements, specifically the rehabilitation, modernization and expansion of the Palm Springs Convention Center and other infrastructure projects authorized by the Management District Plan (collectively, the “Project”), via the issuance or incurrence of one or more series of Assessment Obligations; WHEREAS, The Assessment Obligations may be issued on a basis where the interest is intended to be excluded from federal income tax or subject to federal income tax, or a combination thereof, and, subject to the maximum aggregate principal amount authorized by this resolution, one or more Assessment Obligations may be issued or incurred;
WHEREAS, All conditions, things and acts required by law to exist, to happen or to be performed precedent to and a condition of the adoption of the Assessment Revenue Bond Law, the formation of the District and the levy of the Assessments and the issuance or incurrence of the Assessment Obligations have existed, happened and been performed in the time, form and manner required by law; and WHEREAS, The City Council is fully advised in this matter.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council finds that the recitals are true and correct.
SECTION 2. To (1) finance, on a long-term basis, the costs associated with the Project; (2) establish debt-service reserve(s), if necessary; and (3) pay all costs incurred in connection with the authorization, issuance, incurrence, execution, sale, and delivery of the Assessment Obligations, the City Council hereby authorizes the issuance or incurrence of one or more Assessment Obligations in the maximum aggregate principal amount of $55,000,000 (not including any Assessment Obligations issued or incurred to refund any Assessment Obligations, establish debt-service reserve(s) and pay costs incurred in connection with the authorization, issuance, incurrence, execution, sale, and delivery of such Assessment Obligations); provided, however, that no Assessment Obligation may be issued or incurred until such time as the City Manager and the City Treasurer, working with the City’s bond counsel and disclosure counsel (if applicable), have caused the legal documents relating to the Assessment Obligation and any related disclosure document describing the Assessment Obligation and the security therefor to be prepared and approved by the City Council.
SECTION 3. The Assessment Obligations are to be issued or incurred by the City pursuant to an indenture, supplemental indenture, trust agreement, fiscal agent agreement, loan agreement, lease, installment-purchase agreement, revolving-credit agreement, credit or liquidity agreement, or other instrument or agreement (each, a “Principal Financing Document”), and shall have the following terms, unless otherwise specified in the applicable Principal Financing Document:
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(a) Amounts payable on the Assessment Obligations shall be payable in lawful money of the United States of America.
(b) Each Assessment Obligation shall mature on the date or dates and in the amount or amounts, and shall be subject to prepayment or redemption prior to maturity, as shall be provided in the applicable Principal Financing Document, as executed and delivered by the City. Each Assessment Obligation shall bear interest at the rate or rates provided therein; provided, that the true interest cost shall not exceed 12% per annum.
(c) The net proceeds of each Assessment Obligation (net of amounts required to pay the costs of the authorization, issuance, incurrence, execution, sale, and delivery of each Assessment Obligation, establish debt-service reserve(s) for the Assessment Obligation and pay capitalized interest on the Assessment Obligation) must be applied for the sole purpose of financing the Project.
SECTION 4. Each Assessment Obligation and each Principal Financing Document shall be executed and delivered by the Mayor, the City Manager or the City Treasurer, and, if required, attested by the City Clerk.
SECTION 5. The Mayor, the City Manager, the City Treasurer, the City Attorney, and the City Clerk, and any and all other officers of the City are hereby authorized and directed, on the City’s behalf, to do any and all things and take any and all actions, that they, or any of them, considers necessary or advisable to implement the provisions of this resolution, including execution and delivery of any and all documents, assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and documents, which they, or any of them, may deem necessary or advisable in order to effectuate the purposes of this resolution. Whenever in this resolution any officer of the City is directed to execute or attest any document or take any other action, that execution, attestation, or action may be taken on behalf of that officer by any person he or she designates to act on his or her behalf if the officer is absent or unavailable.
SECTION 6. This Resolution shall be effective immediately upon its adoption by the City Council.
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 10TH DAY OF JUNE 2026.
Scott Stiles, City Manager
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ATTEST:
Brenda Pree, MMC, CERA
City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, hereby certify that Resolution No. ______ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on June 10, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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Brenda Pree, MMC, CERA
City Clerk