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HomeMy WebLinkAboutItem 15 - Intent to Finance ExpendituresMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: • . • - MEETING DATE: NOVEMBER 17, 2015 SUBJECT: RESOLUTION AUTHORIZING THE REIMBURSEMENT OF CERTAIN EXPENDITURES TO BE INCURRED FROM FUTURE TAX-EXEMPT OBLIGATIONS OF THE CITY AND PROVIDING AN EFFECTIVE DATE RECOMMENDATION: City Council to consider approving a resolution expressing intent to finance expenditures to be incurred relative to purchasing and acquisition of vehicles and equipment for the Fire Department and providing effective date. FUNDING SOURCE: Future sale of Public Property Finance Contractual Obligation. Will fund account 325- 48910-210-03-16-2. BACKGROUND: This item is placed on your agenda to allow for the expenditure of funds related to the purchase of a new Pierce Pumper Fire Truck as specified by the Fire Department from Siddons-Martin Emergency Group through an interlocal participation agreement with the Local Government Purchasing Cooperative (Buyboard). This resolution allows for expenditure of funds occurring prior to the bond sale to be reimbursed from the proceeds of the bonds. This action helps the City save money by allowing a discounted contract to be approved prior to the bond sale. The City 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. Chief Financial Officer recommends approval. GJ November 12, 2015 (8:11a11/p11) RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AUTHORIZING THE REIMBURSEMENT OF CERTAIN EXPENDITURES TO BE INCURRED FROM FUTURE TAX-EXEMPT OBLIGATIONS AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine, Texas (the "City") is a political subdivision of the State of Texas authorized to finance its activities by issuing obligations; and WHEREAS, the City will make, or has made not more than 60 days prior to the date hereof, payments with respect to the acquisition of vehicle and equipment specified by the Fire Department; and WHEREAS, the City has concluded that it does not currently desire to issue obligations to finance the costs associated with the acquisition; and WHEREAS, the City desires to reimburse itself for the costs associated with the acquisition from the proceeds of obligations to be issued subsequent to the date hereof; and WHEREAS, the City reasonably expects to issue obligations to reimburse itself for the costs associated with the acquisition; and WHEREAS, all legal prerequisites for the adoption of this resolution have been met, including but not limited to the Local Government Code and the Open Meetings Act; and WHEREAS, the City Council hereby declares that the approval of this resolution is in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That the City reasonably expects to reimburse itself for 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 of a new Pierce Pumper Fire Truck as specified by the Fire Department from the proceeds of obligations to be issued subsequent to the date hereof. Section 2. That the City reasonably expects that the maximum principal amount of obligations issued to reimburse the City for the costs associated with the acquisition will be $690,000. 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 17th day of November 17, 2015. MERMAID ATTEST: RES. NO. 2