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HomeMy WebLinkAboutItem 09 - Intent to Finance ExpendituresMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGERt'" MEETING DATE: AUGUST 16, 2011 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: Proceeds of debt obligations to be issued. BACKGROUND: This item is placed on your agenda to allow for the expenditure of funds related to the acquisition and construction of a City owned parking lot. This resolution allows for the expenditure of funds occurring prior to the issuance of debt obligations. The City reasonably expects to reimburse itself for 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 and construction of a City owned parking lot from the proceeds of obligations to be issued subsequent to the date hereof. Staff recommends approval. r K RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine, Texas (the "City ") is a political subdivision of the State of Texas authorized to finance its activities by issuing obligations; and WHEREAS, the City 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 projects listed on Exhibit "A" attached hereto (the "Financed Project "); and WHEREAS, the City has concluded that it does not currently desire to issue obligations to finance the costs associated with the Financed Project; and WHEREAS, the City desires to reimburse itself for the costs associated with Financed Project from the proceeds of obligations to be issued subsequent to the date hereof; and WHEREAS, the City reasonably expects to issue obligations to reimburse itself for the costs associated with the Financed Project. 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 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 Financed Project from the proceeds of obligations to be issued subsequent to the date hereof. Section 2. That the City reasonably expects that the maximum principal amount of obligations issued to reimburse the City for the costs associated with the Financed Project will be $480,000.00. 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 16th day of August, 2011. APPROVED: ATTEST: APPROVED AS TO FORM: RES. NO. EXHIBIT A DESCRIPTION OF PROPERTY Description Purchase property at 115 E. Worth Street for the purpose of building a City owned parking lot Demolition, excavation and paving Closing costs Amount $400,000.00 $ 60,000.00 $ 20,000.00