Department of Finance
Reference: Reimbursement Resolution for Certificates of Participation
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Catrina Asher, Director of Finance
Date Prepared: September 2, 2025
PURPOSE
To request Council approval of a reimbursement resolution related to future borrowing to finance the purchase and renovation of a building to be used to support public safety services.
BACKGROUND
The City is in need of additional space to support a growing Police Department. After evaluating a variety scenarios and options, staff determined the best option is to purchase an additional building to supplement the police operations. A building has been identified that would meet the City's needs.
Purchase and renovation of the facility are estimated to cost $6,000,000. To purchase this building, City staff recommend financing the purchase through the issuance of Certificates of Participation, or COPs. COPs are a lease-purchase arrangement where investors purchase a share of lease revenues. Operationally, it acts similar to traditional debt where the City will make annual payments similar to traditional debt service.
The first step in the borrowing is a Reimbursement Resolution. This is a statement that the City intends to use the proceeds of a future borrowing on costs incurred as of the date of the resolution. If approved, the City intends to move quickly with the property acquisition, and it would be expected to close before financing could be completed. This step allows the financing to close after the acquisition and for the City to use those funds to reimburse itself for the acquisition and related costs. As the purchase price has not yet been finalized and renovation costs are being reviewed, the resolution will state a proposed amount of $7,000,000 to allow for cost refinement as well as cost of issuance.
The Reimbursement Resolution does not define the bonding parameters or term...
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