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HomeMy WebLinkAboutItem 08 - Finance Expenditures ITEM ...,. ,.+..w*..�aez MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER FR-- MEETING DATE: DECEMBER 2, 2008 SUBJECT: RESOLUTION EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED AND PROVIDING AN EFFECTIVE DATE RECOMMENDATION: City Council to consider approving a resolution expressing intent to finance expenditures to be incurred and providing an effective date. FUNDING SOURCE: Future sale of Certificate of Obligation Bonds. BACKGROUND: This item is placed on your agenda to allow for the expenditure of funds related to the purchase of vehicles and equipment as previously directed by Council and described on Exhibit A. The sale of debt instruments will occur later. Staff recommends approval. (1.0/6i\) RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine, Texas (the "Issuer") is a home rule city authorized to finance its activities by issuing obligations the interest on which is excludable from gross income for federal income tax purposes ("tax-exempt obligations") pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"); and WHEREAS, the Issuer will make, or has made not more than 60 days prior to the date hereof, payments with respect to the acquisition, construction, reconstruction or renovation of the property listed on Exhibit "A" attached hereto; and WHEREAS, the Issuer has concluded that it does not currently desire to issue tax-exempt obligations to finance the costs associated with the property listed on Exhibit "A" attached hereto; and WHEREAS, the Issuer desires to reimburse itself for the costs associated with the property listed on Exhibit "A" attached hereto from the proceeds of tax-exempt obligations to be issued subsequent to the date hereof; and WHEREAS, the Issuer reasonably expects to issue tax-exempt obligations to reimburse itself for the costs associated with the property listed on Exhibit "A" attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That the Issuer reasonably expects to reimburse itself for all costs that have been or will be paid subsequent to the date that is 60 days prior to the date hereof and that are to be paid in connection with the acquisition, construction, reconstruction or renovation of the property listed on Exhibit "A" attached hereto from the proceeds of tax-exempt obligations to be issued subsequent to the date hereof. Section 2. That the Issuer reasonably expects that the maximum principal amount of tax-exempt obligations issued to reimburse the Issuer for the costs associated with the property listed on Exhibit "A" attached hereto will not exceed $1,680,000. Section 3. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 2nd day of December, 2008. APPROVED: ATTEST: APPROVED AS TO FORM: RES. NO. 2 Exhibit 'A' FY 2008-09 PROPOSED OPERATING BUDGET VEHICLE AND EQUIPMENT REPLACEMENTS Fire Engine $490,000 Quint $720,000 Add: Police Patrol cars 6 @38,000 $228,000 Golf Carts $195,060 $1,633,060 Add: Closing and Issue Cost Estimated $30,000 Estimated Principal before Sizing $1,663,060 Projected size of Debt Issue $1,680,000