(a) The purpose of this special tax is to provide funds to the City to pay:
1. lease payments to be made by the City pursuant to any lease of fire safety and paramedic communications and dispatch equipment and systems to be utilized by the Fire Department;
2. expenses incurred incident to the authorization, issuance or sale of the bonds referred to below;
3. costs or expenses incurred by any lessor of any such communications and dispatch equipment or systems in connection with the execution, performance or enforcement of any such lease or any assignment thereof, the ownership of any such communication and dispatch equipment or systems or the lease thereof to the City, including but not limited to fees, costs, expenses or administrative costs of any such lessor in connection with any such communications equipment or systems;
4. costs or expenses (including attorneys’ fees and disbursements) of any trustee under any trust agreement or indenture under which any of such bonds are issued, including but not limited to compensation and indemnification of any such trustee;
5. any insurance premiums payable on account of any such equipment or systems (including amounts payable to any self–insurance fund) or its use or operation;
6. any amounts payable incident to obtaining or maintaining, or otherwise pursuant to, any credit enhancement or liquidity agreements or arrangements with respect to any of such bonds or lease;
7. any amounts required to be paid to the United States of America as a rebate in order for interest payments on any of such bonds to be exempt from federal income taxes;
8. any amount required to be paid into any reserve fund created under any such trust agreement or indenture; and
9. the costs of collecting and administering the tax.
The lease payments will serve as collateral for and the source of repayment of not to exceed $67,000,000 in lease revenue bonds (including refunding bonds) to be issued as a single issue, or in two or more issues or series of an issue, by a nonprofit corporation, joint powers authority or other financing medium.
The net proceeds of the lease revenue bonds are to be used to acquire such communications and dispatch equipment and systems. The equipment and systems are required by the Fire Department to provide more rapid, efficient delivery of fire safety and paramedic services in the City of Los Angeles. In the event the City shall lease any of such communications and dispatch equipment or systems under a lease that is payable from the General Fund as well as from the special tax, and such lease provides for abatement of rent or other payments either in whole or in part in the event of damage to or destruction of any such equipment or systems, then, in the event there is any such abatement, payments from the special tax permitted by this Section 21.14.4 shall be allocated first to, or in respect of, any component of the equipment or systems for which payment from the General Fund has abated due to such damage or destruction, and thereafter to the balance of the equipment and systems. In the event the City Council does not authorize the leasing of such equipment and systems, the tax shall not take effect.
(b) The taxes collected pursuant to this article shall not be used to replace City General Fund money that would normally be appropriated to finance fire safety or paramedic service.
(c) The Los Angeles City Council may provide for the collection of the special tax in the same manner and subject to the same penalties as, or with, other charges and taxes fixed and collected by the City, or by the County of Los Angeles on behalf of the City of Los Angeles. If the special tax is collected by the County on behalf of the City, the County may deduct its reasonable costs incurred for such service.
(d) Director of Finance costs of enforcement and administration of the tax, including refunds, shall be paid from the special tax revenues.