HomeMy WebLinkAboutItem 05 - Intent to Finance ExpendituresMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, ACTING CITY MANAGER 'j l4
MEETING DATE: JULY 5, 2005
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 for construction of improvements at the Lake
Parks.
BACKGROUND:
This item is recommended for approval to allow for the reimbursement of payments for the
construction of various improvements authorized for the Lake Parks. The Lake Parks
construction program will include cabins, boat docks, 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 is planned for July 2005, depending on market
conditions. The total amount of the sale is estimated at $2,070,000, per Exhibit "A". This
resolution allows for expenditures related to the purchase between the date of sale and 60
days prior to the sale, which authorizes subsequent reimbursement from the debt issuance
proceeds.
Staff recommends approval.
WAG/cjc
H:AGM Resinte ntfi nanceexpe nd itures7-5-05
June 29, 2005 (911 AM)
NAMMUMOMMIT91
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS EXPRESSING INTENT TO FINANCE
EXPENDITURES TO BE INCURRED FOR LAKE PARKS
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. 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. 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 $2,070,000.
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 5th day of July, 2005
ATTEST:
FWAM N 1001101MA ISTAIM031000:111M
RES. NO. 2
Description Amount
Lake Parks Improvements $2,070,000
June 29, 2005 (10:49AM)