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HomeMy WebLinkAboutItem 10 - Finance ExpendituresC,6 ITEM 0 1'9 -- MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER'') MEETING DATE: AUGUST 20, 2002 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 issue of Equipment Acquisition Notes for the purpose of acquisition of a purchase approved in the FY 2002 Budget, Account Number 325-48860-000-0-0006 a Bronto fire apparatus for the fire department. BACKGROUND: This item is recommended for approval to allow for the reimbursement of payments for the Bronto model F118 HDT aerial fire apparatus which was authorized for purchase in FY 2002. The vehicle was ordered in August, 2001 and was received by the City July 9, 2002. The truck is still having equipment installed on it and will be put into service within the next 30 days or so after our personnel are properly trained on the apparatus. The notes will be tax exempt obligation similar to the notes which have been issued in prior years for equipment purchases. The purchase price of the Bronto is $951,210. Since the end of the current fiscal year is close and some additional equipment will need to be purchased in FY 2003, staff is planning to issue the notes for the Bronto at the same time equipment notes for the FY 2003 equipment are issued. This will save some issuance costs and economies of scale should produce optimum interest rates on the issue at that time. The sale is planned for the first quarter of FY 2003. Staff recommends approval. WAG/cjc Ragmequipnotes8-20-02 August 14, 2002 (9:40AM) i 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 all matters stated in the preamble are true and correct and are incorporated into the body of this resolution as if copied in their entirety. Section 2. 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 3. 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 $1,000,000. Section 4. That this resolution shall become effective from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 20th day of August, 2002. ATTEST: Oil Description Amount Equipment acquisition for the $1,000,000 fire department.