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HomeMy WebLinkAboutItem 13 - Reimbursement ResolutionMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: JUNE 7, 2016 SUBJECT: AUTHORIZE REIMBURSEMENT RESOLUTION EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED RECOMMENDATION: City Council to consider approving a resolution expressing intent to finance expenditures to be incurred relative to designing, developing, constructing, improving, extending, and expanding streets, thoroughfares, sidewalks, bridges, and other public ways of the City, including streetscaping, streetlighting, right-of-way protection, utility relocation, and related storm drainage improvements as well as acquiring right-of-ways in connection with a financed project. FUNDING SOURCE: Future sale of obligations with a reasonable expectation of maximum principal amount of $20,000,000. This item is placed on your agenda to allow for the expenditure of funds related to the costs in connection with the acquisition, construction, reconstruction, or renovation of the financed project. In simple terms, this item gives us the option to issue (likely) TIF debt at Council's direction for public owned infrastructure expenditures related to the 185 for a prior 60 day period and for a three-year term into the future. This resolution allows for expenditure of funds occurring prior to the debt sale to be reimbursed from the proceeds of the bonds. Chief Financial Officer recommends approval. GJ RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AUTHORIZING THE REIMBURSEMENT OF EXPENDITURES TO BE INCURRED FROM FUTURE TAX-EXEMPT OBLIGATIONS 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 acquisition, construction, reconstruction or renovation of the project listed on Exhibit "A" attached hereto (collectively, 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 the 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; 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 interests 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 acquisition, construction, reconstruction or renovation of the Financed Project from the proceeds of obligations to be issued subsequent to the date hereof. Section 2. 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 $20,000,000. 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 DAY OF JUNE 7, 2016 William D. Tate Mayor ATTEST: Tara Brooks City Secretary John F. Boyle, Jr. City Attorney Resolution No. Purpose/Proiect Amount Designing, developing, constructing, improving, $20,000,000 extending, and expanding streets, thoroughfares, sidewalks, bridges, and other public ways of the City, including streetscaping, streetlighting, right-of-way protection, utility relocation, and related storm drainage improvements; and acquiring rights-of-way in connection therewith;. Resolution No. 3