HomeMy WebLinkAboutItem 12 - Intent to Finance Expenditures IncurredMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
IX
FROM: BRUNO RUMBELOW, ACTING CITY MANAGER 1J�
MEETING DATE: SEPTEMBER 20, 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 issues of certificates of obligation for purchase of land and improvements.
BACKGROUND:
This item is recommended to allow for the purchase of property and improvements located
and 608 and 624 Dooley Street in Grapevine in the amount of $310,000. Purchase of this
property was authorized at the September 6, 2005 Council meeting with an anticipated
closing date of September 30, 2005. The sale of the certificates of obligation to finance
this purchase is not scheduled until October 18, 2005.
This resolution allows for expenditures for this purchase to be reimbursed from the
proceeds of the sale. This will allow the City to meet its September 30, 2005 closing date
obligation.
Staff recommends approval.
WAG/slt
September 9, 2005 (9:24AM)
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A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF GRAPEVINE, TEXAS EXPRESSING INTENT TO
FINANCE EXPENDITURES TO BE INCURRED FOR
ACQUISITION OF LAND AND IMPROVEMENT ON
DOOLEY STREET 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 $310,000.00.
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 20th day of September, 2005
ATTEST:
RES. NO. 2
Description Amount
Acquisition of land and improvements on $310,000
Dooley Street near the Cotton Belt Railroad
District.