R-00-10-26-13D1 - 10/26/2000R: \WPDOCS \RSSOLUTI \R01026D1 .WPD /ec
RESOLUTION NO. R- 00- 10- 26 -10D1
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,
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 $1,215,000 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.
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, and the Act.
RESOLVED this 26th day of October, 2000.
ATTEST:
l�
J E LAND, City Secretary
2.
4
RO� A. STLUKA, JR! , Mayor
Inh
City of Round Rock, Texas
Exhibit "A"
EQUIPMENT LIST
Li u f 1 I!►i
ESTIMATED
COST
DEPARTMENT DESCRIPTION[
Police Ford LTD Crown Victoria, pursuit 17 each @ $40,000 $680,000
Police Ford LTD Crown Victoria 4 each @ $30,000 120,000
Fire Command Vehicle 35,000
Street Dump Truck 65,000
Street 1 1 /2 Ton Utility Truck 42,000
Public Works Utility Vehicle 2 each @ $29,500 59,000
PARD 3 /4 Ton Pickup (3) 86,172
PARD 1 Ton Utility Bed Truck (3) 129,612
sub -total $1,216,784
Police / Fire Mobile Data Terminals 690.000
Grand Total $1,906,784
C:\MS Word \business \lease0l .doc
DATE: October 18, 2000
SUBJECT: City Council Meeting — October 20, 2000
ITEM: 13.D.1. Consider a resolution expressing official intent to reimburse cost of
acquiring certain vehicles and equipment. 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
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 replacement
criteria are met. For the current fiscal year, the equipment to be
financed is scheduled at $1,215,000.
Funding:
Payment of principal and interest for the three -year amortization of this obligation is funded
from the debt service portion of the property tax.
Benefit:
With a three -year payback, the impact on 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 wom equipment on a revolving basis.
History:
This program has been utilized for many years.