HomeMy WebLinkAboutItem 14 - Reimburse General FundITEM I
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER/
MEETING DATE: MAY 16, 2000
SUBJECT: RESOLUTION EXPRESSING INTENT TO REIMBURSE THE
GENERAL FUND FOR EXPENDITURES MADE PRIOR TO
AVAILABILITY OF FUNDS
RECOMMENDATION:
City Council to consider to a Resolution expressing intent to reimburse the General Fund
of the City for expenditures made prior to availability of funds, in an amount not to exceed
$5,000,000.
FUNDING SOURCE:
Future issue of Combined Tax and Tax Increment Reinvestment Zone Revenue
Certificates of Obligation, Series 2000 (TIF CO's).
BACKGROUND:
This item is placed on the agenda pursuant a Combined Tax and Tax Increment
Reinvestment Zone Certificates of Obligation sale scheduled for June 6, 2000. The sale
is for TIF Number 2, the Opryland project.
As Council has previously authorized, $27.5 million of public improvements will be
constructed with the CO's. The funds are scheduled for delivery/availability on July 6.
This Resolution is placed on the agenda to authorize the reimbursement to the General
Fund for any expenditures incurred prior to the delivery of funds in July. Staff does not
anticipate any expenditures, but action on the resolution is taken as a "just in case"
measure to allow for the eventuality that there might be some unforeseen delay in receipt
of bond funds.
Staff recommends approval of the reimbursement Resolution.
WAG/cjc
Ragmreimburseintent
May 10, 2000 (10:01 AM)
RESOLUTION EXPRESSING INTENT TO
FINANCE EXPENDITURES TO BE INCURRED
PERTAINING TO ISSUANCE OF
COMBINATION TAX AND TAX INCREMENT REINVESTMENT
ZONE REVENUE CERTIFICATES OF OBLIGATION,
SERIES 2000
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 $5,000,000.
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.
ADOPTED THIS day of May, 2000.
Mayor, City of Grapevine, Texas
ATTEST:
City Secretary, City of Grapevine, Texas
APPROVED AS TO FORM:
By
City Attorney, City of Grapevine, Texas
GRA325/71001
Dallm 2
05/09/00 1:35 PM
EXHIBIT A
DESCRIPTION OF PROPERTY
Project, Fund or Item --Described by
Character, Type or Purpose
Street Improvements Within
Reinvestment Zone Number
Two
Water and Sewer System
Improvements Within
Reinvestment Zone Number
Two
GRA325/71001
Dallas 2
05/09/00 1:35 PM
Expected Cost,
Quantity or Size
$2,500,000
$2,500,000