HomeMy WebLinkAboutItem 28 - ReimbursementMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: NOVEMBER 21, 2023
SUBJECT: ADOPTION OF REIMBURSEMENT RESOLUTION
RECOMMENDATION: City Council to adopt a reimbursement resolution giving the City the option
of reimbursing itself through a future debt issuance for various capital
projects and equipment.
FUNDING SOURCE: Funds will be available in the General Fund (IT Department), Capital
Projects General Facilities Fund, Capital Equipment Purchase Fund,
Storm Drainage Utility Fund and Enterprise Utility Fund upon approval of
the resolution and receipt of funds from the sale of bonds.
BACKGROUND: As part of the Capital Project planning efforts for the City of Grapevine, the
following projects have been identified as requirements to maintain,
improve or repair City assets. The cost of these projects will be funded
through the future issuance of bonds as total costs are determined.
* Constructing, reconstructing, improving, repairing, developing, extending
and expanding streets, thoroughfares, bridges, interchanges,
intersections, grade separations, sidewalks and other public ways of the
City, including related streetscape improvements, public utility
improvements, storm drainage facilities and improvements, signalization
and other traffic controls, street lighting, and the acquisition of land
* Acquiring software and technology equipment for City purposes
* Constructing, reconstructing, improving, repairing, extending and
expanding property and facilities for storm drainage and flood control
purposes
* Acquiring vehicles and equipment for City departments
* Constructing, improving, and expanding the City's water and wastewater
system, including the water treatment plant
* Constructing, renovating, improving and equipping City facilities,
including the Municipal Service Center
The resolution is requesting $10,000,000 to be used for these projects
prior to the issuance of the bonds with reimbursement expected upon
receipt of the funds from the sale of bonds in late April or early May 2024.
Staff recommends approval
RESOLUTION NO. 2023-022
A REIMBURSEMENT 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 (the "City") is a municipal corporation and
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 design, engineering, acquisition, construction,
reconstruction or renovation of the projects listed on "Exhibit A" attached hereto
(collectively, the "Financed Project"); and
WHEREAS, in certain circumstances, federal and/or state law requires that the
City express its official intent to issue obligations to reimburse itself for expenditures
paid prior to the issuance of such obligations in order for such expenditures to be
eligible for reimbursement from proceeds of such obligations; and
WHEREAS, Section 1.150-2(d)(2) of the Treasury Regulations sets forth
limitations regarding the timing of reimbursements made from the proceeds of certain
obligations; and
WHEREAS, all constitutional and statutory prerequisites for the approval of this
resolution have been met, including but not limited to the Open Meetings Act; and
WHEREAS, the City Council deems the adoption of this resolution to be in the
best interest of the health, safety, and welfare of the public.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated hereinabove are found to be true and correct
and are incorporated herein by reference as if copied in their entirety.
Section 2. 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 design, engineering, acquisition, construction,
reconstruction or renovation of the Financed Project from the proceeds of obligations to
be issued subsequent to the date hereof.
Section 3. 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 $10,000,000.
Section 4. Unless otherwise advised by bond counsel, any reimbursement
allocation will be made not later than 18 months after the later of (1) the date the original
expenditure is paid or (2) the date on which the Financed Project to which the
expenditure relates is placed in service or abandoned, but in no event more than three
years after the original expenditure is paid.
Section 5. 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 21 st day of November, 2023.
APPROVED:
William D. Tate
Mayor
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
Matthew C.G. Boyle
City Attorney
Resolution No. 2023-022 2
EXHIBIT A
DESCRIPTION OF FINANCED PROJECT
Purpose/Proiect Amount
Constructing, reconstructing, improving, repairing, $10,000,000
developing, extending and expanding streets,
thoroughfares, bridges, interchanges, intersections, grade
separations, sidewalks and other public ways of the City,
including related streetscape improvements, public utility
improvements, storm drainage facilities and
improvements, signalization and other traffic controls,
street lighting, and the acquisition of land therefor
Acquiring software and technology equipment for City
purposes
Constructing, reconstructing, improving, repairing,
extending and expanding property and facilities for storm
drainage and flood control purposes
Acquiring vehicles and equipment for City departments
Constructing, improving, and expanding the City's water
and wastewater system, including the water treatment
plant
Constructing, renovating, improving and equipping City
facilities, including the service center
Resolution No. 2023-022 3