R-08-10-09-8A1 - 10/9/2008RESOLUTION NO. R -08-10-09-8A1
WHEREAS, the City of Round Rock, Texas (the "Issuer") is a
home -rule City of the State of Texas, and
WHEREAS, the Issuer expects to pay expenditures in connection
with acquiring certain vehicles and equipment (the "Property") prior
to the issuance of obligations to finance the Property, and
WHEREAS, the Issuer finds, considers, and declares that the
reimbursement of the Issuer for the payment of such expenditures
will be appropriate and consistent with the lawful objectives of the
Issuer and, as such, chooses to declare its intention, in accordance
with the provisions of Section 1.150-2 of the Treasury Regulations,
to reimburse itself for such payments at such time as it issues
obligations to finance the Property, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
I.
That the Issuer reasonably expects to incur debt, as one or
more separate series of various types of obligations, with an
aggregate maximum principal amount equal to $750,000 for the purpose
of paying the costs of the Property.
II.
That all costs to be reimbursed pursuant hereto will be capital
expenditures. No tax-exempt obligations will be issued by the Issuer
in furtherance of this Resolution after a date which is later than
18 months after the later of (1) the date the expenditures are paid
or (2) the date on which the property, with respect to which such
expenditures were made, is placed in service.
0:\WDOX\RESOLUTI\R81009A1.DOC/r'mc
III.
The foregoing notwithstanding, no tax-exempt obligation will be
issued pursuant to this Resolution
date any expenditure which is to be
more than three years after the
reimbursed is paid.
IV.
The City Council hereby finds and
declares that written notice
of the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted
the public as required by law
Resolution and the subject matter
and that such meeting was open to
at all times during which this
hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this 9th day of October, 2008.
ATTEST:
bats
SARA L. WHITE, City Secretary
2
Of)41/2/--
ALAN
MCGRAW, Mayor
City of Round Rock, Texas
Eligible Capital Lease Items
Fiscal Year 2008-2009
Department Description
Police Pickup (1)
PoliceMarked Vehicles (14) 20,000
Police545,000
Unmarked Vehicles (4)
PoliceK-9 Vehicle (1) 143,000
FirePickup (2) 37,000
PARDPickup (1) 34,000
Engineering Pickup (1) 23,000
StreetPickup (2) 24,000
46,000
$ 872,000
Budgeted Cost
EXHIBIT
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a "A"
DATE: October 1, 2008
SUBJECT: City Council Meeting — October 9, 2008
ITEM: 8A1. Consider a resolution expressing official intent to reimburse cost of
acquiring certain vehicles and equipment.
Department:
Staff Person:
Justification:
Finance
Cheryl Delaney, Assistant Finance Director
In accordance with the operating budget, certain equipment is acquired with cash and
subsequently financed for three years through a tax-exempt leasing arrangement. Because of
the tax-exempt nature of the financing, Internal Revenue Service regulations require the City to
state its intensions before the transactions are completed. This type of financing allows the City
to acquire new equipment and replace equipment and rolling stock in a timely manner as
requirement criteria are met. For the current fiscal year, the equipment to be financed is
scheduled at $750,000.
Funding:
Cost: $750,000
Source of funds: Payment of principle in interest for the three year amortization of this
obligation is funded from the debt service portion of the property tax.
Outside Resources: N/A
Background Information:
With a three year payback, the impact of any one operating budget is minimized.
Additionally, the tax-exempt lease rates offer a very favorable cost of capital to the City.
This program permits scheduled replacement of worn equipment on a revolving basis.
Public Comment: N/A