HomeMy WebLinkAboutItem 05 - Intent to Finance ExpendituresITIM r
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER��
MEETING DATE: NOVEMBER 5, 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 Certificates of Obligation and Equipment Acquisition Notes for the purpose
of acquisition of various vehicles and equipment approved in the FY 2003 budget and
acquisition of property previously authorized by the City Council, account number 325-
00000-000-0-0006 — Combination Tax & Revenue Certificates of Obligation, Series 2003.
BACKGROUND:
This item is recommended for approval to allow for the reimbursement of payments for
equipment and vehicles authorized in the FY 2003 budget; and, for the acquisition of two
pieces of property. The properties include the old GTE Building which was previously
authorized by the City Council under a contract which was entered into on November 7,
2000. The building is located at 402 South Barton Street. The second piece of property
is a parking lot located on Main Street.
The sale of CO's and Equipment Notes is planned for December of 2002. This resolution
allows for expenditures related to these various purchases between now and the date of
the actual sale and subsequent reimbursement from the debt issuance proceeds.
Staff recommends approval.
WAG/cjc
H:AGMReimburseresl1-05-02
October 28, 2002 (2:40PM)
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 $2,200,000.
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 5th day of November, 2002.
F-ITIMT.-T-50-7515-91
ATTEST:
F."I = SoM MJ a aLei
RES. NO. 2
•
Equipment for various City departments
Purchase of a building for City use
Purchase of land and a parking lot for City use
Miscellaneous costs associated with purchases
Total
3
$1,595,000
$ 215,000
$ 368,000
$- 22,000
$2,200,000