HomeMy WebLinkAboutItem 08 - Finance Expenditures ITEM
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MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER FR--
MEETING DATE: DECEMBER 2, 2008
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 sale of Certificate of Obligation Bonds.
BACKGROUND:
This item is placed on your agenda to allow for the expenditure of funds related to the
purchase of vehicles and equipment as previously directed by Council and described on
Exhibit A.
The sale of debt instruments will occur later.
Staff recommends approval.
(1.0/6i\)
RESOLUTION NO.
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 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. That 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
$1,680,000.
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 2nd day of December, 2008.
APPROVED:
ATTEST:
APPROVED AS TO FORM:
RES. NO. 2
Exhibit 'A'
FY 2008-09 PROPOSED OPERATING BUDGET
VEHICLE AND EQUIPMENT REPLACEMENTS
Fire Engine $490,000
Quint $720,000
Add: Police Patrol cars 6 @38,000 $228,000
Golf Carts $195,060
$1,633,060
Add: Closing and Issue Cost Estimated $30,000
Estimated Principal before Sizing $1,663,060
Projected size of Debt Issue $1,680,000