R-11-10-06-11A1 - 10/6/2011RESOLUTION NO. R -11-10-06-11A1
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 $500,000.00 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.
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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 6th day of October, 2011.
ATTEST:
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SARA L. WHITE, City Secretary
2
ALAN MCGRAW, Mayor
City of Round Rock, Texas
Eligible Capital Lease Items 2011-2012
Department Description Quantity Budgeted Cost
Police Unmarked Patrol Vehicle's 2 $54,906
Police Motorcycle, Patrol 1 $19,000
PARD Mower, Riding 1 $9,504
PARD Mower, Riding 72" 1 $21,000
Fire Rescue Truck 1 $125,000
Fire Pickup Truck, F-450 1 $45,000
Public Works Pickup Truck, F-250 1 $39,000
I.T.&C. Servers 7 $73,000
$386,000
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EXHIBIT
„A„
City Council Agenda Summa=ry Sheet
Agenda Item No. 11A1.
Consider a resolution expressing official intent to reimburse the cost of acquiring certain
Agenda Caption: vehicles and equipment.
Meeting Date: October 6, 2011
Department: Finance
Staff Person making presentation: Cheryl Delaney
Finance Director
Item Summary:
The City leasing program is used to provide an efficient and effective way to replace and acquire new equipment for
general funds operations including the fire truck replacement program. In accordance with the operating budget,
certain equipment is acquired with cash and subsequently financed for three years through a tax-exempt leasing
agreement. Because of the tax-exempt nature of the financing, Internal Revenue Service regulations require the City
to state its intentions 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 request
will not exceed a dollar amount of $500,000.00. Payment of principal and interest for the three year amortization of
this obligation is funded from the debt service portion of the property tax. Actual lease funds will not be funded
until summer of 2012.
Cost: $500,000
Source of Funds: General Debt Service Fund
Date of Public Hearing (if required): N/A
Recommended Action: Approval