HomeMy WebLinkAboutItem 23 - Reimburse General Fund ExpendituresITEM # .2-3
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER 1n ,
MEETING DATE: FEBRUARY 15, 2000
SUBJECT: RESOLUTION EXPRESSING INTENT TO REIMBURSE THE
GENERAL FUND FOR EXPENDITURES MADE PRIOR TO
AVAILABILITY OF FUNDS
RECOMMENDATION:
City Council to consider two resolutions expressing intent to reimburse the General Fund
of the City for expenditures made prior to availability of funds.
FUNDING SOURCE:
Future issue of General Obligation Bonds and Certificates of Obligations.
BACKGROUND:
These items are placed on the agenda in preparation for a General Obligation Bond and
Certificate of Obligation sale later this year to obtain funding for projects to include the
items listed below.
Phase II of the December 5, 1998 Bond Election General Obligation Bond sale is to fund
the following projects:
North Main Street Design Work
Parr Road Construction (Hall Johnson to Parr Lane)
Business 114 Improvement (design)
Economic Development Roadway Projects
Library Expansion
Park and Trail Developments
Issuance Costs
Total
$ 66,850
2,638,600
777,000
1,000,000
2,875,000
250,000
57,550
$7,665,000
February 10, 2000 (10:17AM)
The Certificates of Obligation proceeds are to be used for the following items:
Authorize Vehicles and Equipment Purchases (FY 2000 Budget) $1,550,600
Radio System Improvements (800 MHz and 911 Systems) 4,041,669
Issuance Costs 42.731
Total $5,635,000
The reimbursement resolutions provide that the City can reimburse itself for any
expenditures incurred for the projects listed above prior to the actual date of the bond sale.
Staff does not anticipate that there will be such expenditures, but these items are placed
on your agenda as a "just in case" measure to allow for the eventuality that there might be
some delay in receipt of bond funds. These resolutions authorize reimbursement of any
expenditures made prior to receipt of funds, resulting in no delays for any portions of the
projects listed above.
Current plans are for the General Obligation Bonds and the Certificates of Obligation to be
sold March 7, 2000.
Staff recommends approval of the Reimbursement Resolutions.
WAG/cjc
RagmReimb2000
February 10, 2000 (10:17AM)
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS EXPRESSING INTENT TO FINANCE
EXPENDITURES TO BE INCURRED PERTAINING TO
ISSUANCE OF COMBINATION TAX AND REVENUE
CERTIFICATES OF OBLIGATION AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the City of Grapevine (the City) is a political subdivision of the State of
Texas, authorized to issue obligations to finance its activities pursuant to the Constitution
of the State of Texas and the Home Rule Charter of the City, 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 City is contemplating the acquisition, construction, reconstruction
or renovation of certain property; and
WHEREAS, the City has concluded that it does not currently desire to incur debt to
finance the costs it is about to pay; and
WHEREAS, the City desires to reimburse itself for the costs it is about to pay from
the proceeds of obligations to be issued subsequent to the payment of such costs; and
WHEREAS, the City has no other funds that are, or are reasonably expected to be,
reserved, allocated on a long term basis or otherwise set aside for purposes of paying the
costs the City expects to incur;
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 all costs 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 debt to be incurred
subsequent to the payment of all or a portion of such costs. The City reasonably expects
that the maximum principal amount of such debt used to reimburse the City for such costs
will not exceed $5,635,000.
Section 2. That this resolution is intended to serve as a declaration of official
intent within the meaning of Section 1.103-18 of the Treasury Regulations and the City
hereby directs this Resolution to be made a part of its books and records that are available
for inspection by the general public.
Section 3. That this resolution shall become effective from and after the date of
its passage.
GRA325/71001
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PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE,
TEXAS on this the 15th day of Februray, 2000.
ATTEST:
Linda Huff
City Secretary, City of Grapevine, Texas
APPROVED AS TO FORM:
John Boyle
City Attorney, City of Grapevine
GRA325/71001
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William D. Tate
Mayor, City of Grapevine, Texas
ff 101W.,
wi
DESCRIPTION OF PROPERTY
Project, Fund or Item --Described by Expected Cost,
Character, Type or Purpose Quantity or Size
Purchase, construction, relocation and upgrade $4,084,400
of Public Safety Radio Communications Systems
and 911 System, including equipment relating thereto
Vehicles
GRA325/71001
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1,550,600
$5,635,000
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS EXPRESSING INTENT TO FINANCE
EXPENDITURES TO BE INCURRED PERTAINING TO
ISSUANCE OFGENERAL OBLIGATION BONDS AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Grapevine (the City) is a political subdivision of the State of
Texas, authorized to issue obligations to finance its activities pursuant to the Constitution
of the State of Texas and the Home Rule Charter of the City, 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 City is contemplating the acquisition, construction, reconstruction
or renovation of certain property; and
WHEREAS, the City has concluded that it does not currently desire to incur debt to
finance the costs it is about to pay; and
WHEREAS, the City desires to reimburse itself for the costs it is about to pay from
the proceeds of obligations to be issued subsequent to the payment of such costs; and
WHEREAS, the City has no other funds that are, or are reasonably expected to be,
reserved, allocated on a long term basis or otherwise set aside for purposes of paying the
costs the City expects to incur;
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 all costs 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 debt to be incurred
subsequent to the payment of all or a portion of such costs. The City reasonably expects
that the maximum principal amount of such debt used to reimburse the City for such costs
will not exceed $7,665,000.
Section 2. That this resolution is intended to serve as a declaration of official
intent within the meaning of Section 1.103-18 of the Treasury Regulations and the City
hereby directs this Resolution to be made a part of its books and records that are available
for inspection by the general public.
Section 3. That this resolution shall become effective from and after the date of
its passage.
GRA325/71001
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02/02/00:4:06PM
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE,
TEXAS on this the 15th day of February, 2000.
William D. Tate
Mayor, City of Grapevine, Texas
AW180F
Linda Huff
City Secretary, City of Grapevine, Texas
John Boyle
City Attorney, City of Grapevine, Texas
GRA325/71001
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. EXHIBIT A
DESCRIPTION OF PROPERTY
Project, Fund or Item --Described by Expected Cost,
Character, Type or Purpose Quantity or Size
Street and Drainage Improvements $4,515,000
Library Expansion 2,900,000
Park and Trail Development 250,000
$7,665,000
GRA325/71001
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