R-09-10-08-9D2 - 10/8/2009RESOLUTION NO. R -09-10-08-9D2
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 $1,290,000.00 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\SCC1nts\0112\0905\MONICIPAL\R91008D2.D0C/rrr.c
III.
The foregoing notwithstanding, no tax-exempt obligation will be
issued pursuant to this Resolution more than three years after the
date any expenditure which is to be 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 and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter 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 8th day of October, 2009.
ATTEST:
SARA L. WHITE, City Secretary
2
yle,
ALAN MCGRAW, Mayor
City of Round Rock, Texas
Eligible Capital Lease Items 2009-2010
Department Description Quantity Budgeted Cost
Police Marked Patrol Vehicle 10 $405,100
Police Unmarked Patrol SUV 2 $75,684
Police Unmarked CID Vehicle 2 $52,924
Police Unmarked K-9 SUV 2 $77,218
Fire Fire Apparatus 1 $490,500
Fire Rescue Truck Chasis 1 $49,500
Street Backhoe 1 $101,556
Planning Replacement 1/2 ton truck 1 $16,890
Engineering F-150 Supercab Truck 1 $20,628
$1,290,000
DATE: October 1, 2009
SUBJECT: City Council Meeting — October 8, 2009
ITEM: 9D2. Consider a resolution expressing official intent to reimburse costs of acquiring
vehicles and equipment.
Department:
Staff Person:
Justification:
Finance
Cheryl Delaney, 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 $1,290,000.00.
Funding:
Cost: $1,290,000.00
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: NA