HomeMy WebLinkAboutItem 12 - Reimburse General Fund for ExpendituresK
ITEM i ';�
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER G#V
MEETING DATE: OCTOBER 17, 2000
SUBJECT: RESOLUTIONS EXPRESSING INTENT TO REIMBURSE THE
GENERAL FUND FOR EXPENDITURES MADE PRIOR TO
AVAILABILITY OF FUNDS
RECOMMENDATION:
City Council to consider approval of two resolutions expressing intent to reimburse the
General Fund of the City for expenditures made prior to availability of funds.
FUNDING SOURCE:
Future issues of General Obligation Bonds and Combination Tax and Revenue Certificates
of Obligation.
BACKGROUND:
These items are placed on the agenda in preparation for a General Obligation Bond Sale
and Certificate of Obligation sale scheduled for later this year to obtain funding for the
projects listed below:
Phase III of the December 5, 1998 bond election General Obligation Bond sale will fund
the following projects.
Library Improvements
Parks and Trail Projects
Church Street Improvements
Dooley Street Improvements
Economic Development Roadway Improvements
Issuance Costs
Total
$2,830,000
1,013,000
425,000
675,000
2,000,000
52,000
$6,995,000
October 12, 2000 (10:17AM)
0 The Certificates of Obligation proceeds are to be used for the following items:
Storm Drainage Utility System Improvements (creeks 17 and 23) $4,205,000
Main Street Construction 1,000,000
Downtown Parking Garage 250,000
Equipment Acquisition (FY 2001 Budget) 2,350,000
Issuance Costs 55,000
Total $7,860,000
The reimbursement resolutions on the agenda enable the City to reimburse itself for any
expenditures incurred for the projects listed above prior to the actual date of the bond sale.
While the expenditure of funds is not expected prior to the bond sale, the resolutions are
submitted for consideration as a "just in case" scenario. In the event the receipt of bond
funding is delayed, these resolutions authorize reimbursement of expenditures related to
the projects listed above without any delays.
Currently, the General Obligation Bonds and the Certificates of Obligation are to be sold
November 7, 2000.
Staff recommends approval of the reimbursement Resolutions.
WAG/cjc
H:agmresbdsa1e2000
October 12, 2000 (10:17AM)
RESOLUTION EXPRESSING INTENT TO
FINANCE EXPENDITURES TO BE INCURRED
PERTAINING TO ISSUANCE OF
GENERAL OBLIGATION BONDS
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, THAT:
Section 1. 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 $6,995,000.
Section 2. 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.
GRA325/71001
bond res 2000A
10/ 12/00:10:31 AM
0 ADOPTED THIS day of , 2000.
ATTEST:
City Secretary, City of Grapevine, Texas
Texas
GRA325/71001
bond res 2000A
10/12/00:10:31 AM
Mayor, City of Grapevine, Texas
APPROVED AS TO FORM:
By
City Attorney, City of Grapevine,
Signature Page for Reimbursement Resolution
EXHIBIT A
DESCRIPTION OF PROPERTY
Project, Fund or Item --Described by
Character, Type or Purpose
Street and Drainage Improvements
Library Expansion
Park and Trail Development
Cost of Issuance
GRA325/71001
bond res 2000A
10/12/00:10:31 AM
Expected Cost,
Quantity or Size
$3,100,000
2,830,000
1,013,000
52,000
$6,995,000
RESOLUTION EXPRESSING INTENT TO
FINANCE EXPENDITURES TO BE INCURRED
PERTAINING TO ISSUANCE OF
COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION,
SERIES 2000A
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, THAT:
Section 1. 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 $7,860,000.
Section 2. 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.
GRA325/71003
cert of ob 2000
10/ 12/00 10:35 AM
ADOPTED THIS - day of 22000.
Mayor, City of Grapevine, Texas
ATTEST:
City Secretary, City of Grapevine, Texas
APPROVED AS TO FORM:
By
City Attorney, City of Grapevine,
Texas
Signature Page for Reimbursement Resolution
GRA325/71003
cert of ob 2000
10/ 12/00 10:35 AM
0 EXHIBIT A
DESCRIPTION OF PROPERTY
Project, Fund or Item --Described by Expected Cost,
Character, Type or Purpose Quantity or Size
Storm Drainage $4,205,000
Equipment Acquisition 2,350,000
Main Street 1,000,000
Parking Garage 250,000
Costs of Issuance 55,000
$7,860,000
GRA325/71003
cert of ob 2000
10/ 12/00 10:35 AM