R-10-07-08-9B1 - 7/8/2010RESOLUTION NO. R -10-07-08-9B1
WHEREAS, the City of Round Rock, Texas previously declared its intention, in accordance
with the provisions of Section 1.150-2 of the Treasury Regulations, to reimburse itself for payments it
made in connection with acquiring certain vehicles and equipment prior to the issuance of obligations
to finance the vehicles and equipment, and such declaration of intention to repay was evidenced by
Resolution No. R -09-10-08-9D2 dated October 8, 2009, and the aggregate maximum principal amount
was equal to $1,290,000.00 for the purpose of paying the costs of the vehicles and equipment, and
WHEREAS, the City (the "Issuer") now expects to pay additional expenditures of $20,569.00
in connection with acquiring the vehicles and equipment (the "Property") prior to the issuance of
obligations to finance the Property, bringing the aggregate maximum principal amount equal to
$1,310,569.00, 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 $1,310,569.00 for the purpose of
paying the costs of the Property.
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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.
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 July, 2010.
ATTEST:
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SARA L. WHITE, City Secretary
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ALAN MCGRAW, Mayor
City of Round Rock, Texas
ROUND ROCK, TEXAS
PURPOSE. PASSION. PROSPERITY.
Agenda Item No. 9B1.
City Council Agenda Summary Sheet
Consider a resolution expressing official intent to reimburse cost of acquiring certain vehicles
Agenda Caption: and equipment.
Meeting Date: July 8, 2010
Department: Finance Department
Staff Person making presentation: Cheryl Delaney
Finance Director
Item Summary:
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. This will increase the
original amount of $1,290,000 by $20,569 for a total amount of $1,310,569.
Strategic Plan Relevance:
Goal 8: Maintain and enhance public confidence, satisfaction and trust in City government
Cost: $1,310,569A
Payment of principle in interest for the three year amortization of this obligation is
Source of Funds: funded from the debt service portion of the property tax.
Date of Public Hearing (if required): N/A
Recommended Action: Staff recommends approval of this resolution.