R-13-10-24-G6 - 10/24/2013RESOLUTION NO. R -13-10-24-G6
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 $1,600,000.00 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.
0112.1304;00284560
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 24th day of October, 2013. ,.
ATTEST:
. (1[0,t8±SARA L. WHITE, City Clerk
2
KY) /L. -------
ALAN MCGRAW, Mayor
City of Round Rock, Texas
r -ROUND ROCK.
,
PURPOSE- PASSIM PROSPERITY
City of Round Rock
Agenda Item Summary
Agenda Number: G.6
Title: Consider a resolution expressing official intent to reimburse cost of
acquiring certain vehicles and equipment.
Type: Resolution
Governing Body: City Council
Agenda Date: 10/24/2013
Dept Director: Cheryl Delaney, Finance Director
Cost:
Indexes: General Debt Service Fund
Attachments: Resolution, Lease Listing FY2014
Text of Legislative File 13-833
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 $1,600,000. Payment of principle and interest for the three year amortization of this
obligation is funded from the debt service portion of the property tax.
Staff recommends approval.
City of Round Rock Page 1 Printed on 10/18/2013
City of Round Rock
Eligible Capital Lease Items 2013-2014
Department Description Quantity Budgeted Cost
Police
Fire
Patrol Vehicles
Vehicle
General Services Forklift
General Services Truck F-250
PARD Loader
11
1
1
1
1
$ 495,000
25,000
35,000
58,000
75,000
PARD Loader 1 133,000
Human Resources Truck, F-150 Extended Cab 1 22,000
Transportation Truck, F-450 with Utility Bed 1 34,000
Fire Pumper Truck 1 571,000
Fire Brush Truck 1 152,000
Total $ 1,600,000