HomeMy WebLinkAboutItem 04 - Finance ExpendituresMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER
MEETING DATE: DECEMBER 7, 2004
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 issue of Certificates of Obligation and Equipment Acquisition notes for the purpose
of acquisition of various vehicles and equipment approved in the FY 2005 Budget; and,
construction of improvements in the Lake Parks.
BACKGROUND:
This item is recommended for approval to allow for the reimbursement of payments for
equipment and vehicles authorized in the FY 2005 Budget and approved by the City
Council; and, for the construction of various improvements authorized for the Lake Parks.
The Lake Parks construction program will include cabins, boat ramps, parking facilities and
various other facilities in the newly acquired lake parks as authorized by the City Council.
The sale of the Certificates of Obligation and Equipment Notes is planned for late January
or early February 2005, depending on market conditions. The total amount of the sale is
estimated at $4,210,000, per Exhibit "A". This resolution allows for expenditures related
to these purchases between now and the date of the actual sale and subsequent
reimbursement from the debt issuance proceeds.
Staff recommends approval.
WAG/cjc
AG M I ntentfi nanceexp-12-7-04
December 2, 2004 (1:02PM)
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 all matters stated in the preamble are found to be true and
correct, and are incorporated herein as if copied in their entirety.
Section 2. 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 3. 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 $4,210,000.00.
Section 4. 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 7th day of December, 2004.
ATTEST:
FWAI a 2
►• i 4 MAIM Eel
RES. NO.
Description
Amount
Lake Parks Improvements $1,500,000
Vehicles, Equipment and Signs $2,710,000
Total $4,210,000