HomeMy WebLinkAboutItem 13 - Reimburse Utility Fund for Expenditures131,19-M 13
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER
MEETING DATE: OCTOBER 17, 2000
SUBJECT: RESOLUTION EXPRESSING INTENT TO REIMBURSE THE
UTILITY FUND FOR EXPENDITURES MADE PRIOR TO
AVAILABILITY OF FUNDS
RECOMMENDATION:
City Council to consider a resolution expressing intent to reimburse the Utility Fund for
expenditures made prior to the availability of funds. ,
FUNDING SOURCE:
Future issue of Utility Revenue Bonds.
BACKGROUND:
This item is place on the agenda in preparation for a Water and Sewer Revenue Bond sale
to be held in Spring 2001 in order to obtain funding for the projects listed below. Please
note that listed costs are estimates and actual costs may vary as projects are bid and let
for construction.
Projects/Estimated Costs
Water System Improvements
Parr Lane Water Line $325,000
SH 360 Water Line 350,000
Annexed Area Water Lines 300,000
Northwest Water Lines 100,000
2 Million gal. Elevated Storage Tank (includes land acquisition) 3,150,000
Booster Pump Station 150,000
Total $4,375,000
Wastewater System Improvements
Kimball Road Lift Station Rehab
$400,000
Glade Road Force Main
160,000
Hilton Lift Station Upgrade
160,000
Ball Street Parallel Sewer
275,000
SH 360 Sewer Extension
350,000
Annexed Area Sewer Lines
500.000
Total
$1,845,000
October 12, 2000 (11:04AM)
19
E
I
Water System Improvements
Wastewater System Improvements
Reserve Fund
Issuance Costs
Total
The reimbursement resolution provides that the City can reimburse itself for any
expenditure incurred for the projects listed above, prior to the actual date of the bond sale.
Staff anticipates that there will be expenditures for design and planning costs. This
resolution authorizes reimbursement of any expenditures made prior to receipt of funds,
resulting in no delays for any portions of the projects.
Current plans are for the Revenue Bond sale to be conducted in February, 2001. It is
necessary to have audited financials so the reserve fund certification can be made and the
audited numbers will be available by that time.
Staff recommends approval of the Resolution.
WAG/cjc
HAGMUtilityRes intent2000
October 12, 2000 (11:05AM)
RESOLUTION EXPRESSING INTENT TO
FINANCE EXPENDITURES TO BE INCURRED
PERTAINING TO ISSUANCE OF
WATERWORKS AND SEWER SYSTEM REVENUE BONDS
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 $6,350,000.
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.
GRA325/71007
rev bond 2000 res
10/11/00:2:30 PM
0 ADOPTED THIS day of -, 2000.
ATTEST:
City Secretary, City of Grapevine, Texas
Mayor, City of Grapevine, Texas
APPROVED AS TO FORM:
By
City Attorney, City of Grapevine,
Texas
Signature Page for Reimbursement Resolution
GRA325/71007
rev bond 2000 res
10/11/00:2 :30 PM
EXHIBIT A
DESCRIPTION OF PROPERTY
Project, Fund or Item --Described by
Character, Type or Purpose
Acquisition of Land
Improvements and Extensions
to the City'sWaterworks and Sewer System
GRA325/71001
rev bond 2000 res
10/ 11/00:2:30 PM
Expected Cost,
Quantity or Size
$ 350,000
6,000,000
$6,350,000