R-01-11-08-14F18 - 11/8/2001\WORLDOX \O: \WDOX \RESOLUTI \R11108P.18 /ec
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RESOLUTION NO. R-01-11-08-14F18
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 $675,000 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.
RESOLVED this 8th day of November, 2001.
MARTINEZ, City ar
CHRISTINE R. y y
2.
ROB `T A. STLUKA, JR. Mayor
City of Round Rock, Texas
List of equipment which may be used for reimbursement from the annual lease program (FY 2001 -02).
DEPARTMENT
Police
Street
Vehicle Maintenance
Public Works
PARD
Public Works
EQUIPMENT LIST
10 -17 -01
DESCRIPTION
Ford LTD Crown Victoria, pursuit, 18 each @ $30,000
Dump Truck
1 '/z Ton Utility Truck
Ton Pickup 3 each @ $20,000
3 /4 Ton Pickup
Ton Pickup
ESTIMATED COST
$ 540,000
75,000
45,000
60,000
24,500
20,000
TOTAL $764,500
DATE: November 2, 2001
SUBJECT: City Council Meeting — November 8, 2001
ITEM: 14.F.18. Consider a resolution expressing official intent to reimburse cost of
acquiring certain vehicles and equipment
Resource: David Kautz, Finance Director
History:
Funding: N/A
Cost: N/A
Source of Funds: N/A
Outside Resources: N/A
Impact/Benefit:
Public Comment: N/A
Sponsor: N/A
In accordance with the operating budget, certain equipment is acquired
with cash and subsequently financed for three years through a tax -
exempt capital lease. 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 in a timely manner as replacement criteria are met.
For the current fiscal year, the equipment to be financed is scheduled
at $675,000. With a three -year payback, the impact on any one
operating budget is minimized Additionally, the tax- exempt capital
lease rates offer a very favorable cost of capital to the City.