R-89-1345 - 9/28/1989ATTEST:
WHEREAS, the City of Round Rock has previously entered into
agreements with Citicorp for the lease /purchase of various computer
equipment, and
WHEREAS, the City and Citicorp now desire to amend certain
provisions of said agreements, said amendments being financially
beneficial to both parties, Now Therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City amendments to existing lease /purchase agreements
with Citicorp, a copy of said amendments being attached hereto and
incorporated herein.
RESOLVED this day of September, 1989.
0 14/tit;
JO E LAND, City Secretary
GDRS09289E
RESOLUTION NO. /345R-
MIKE ROBINSON, Mayor
City of Round Rock, Texas
.'E
DATE: September 25, 1989
SUBJECT: Council Agenda, September 28, 1989
ITEM: 11E. Consider a resolution authorizing the Mayor to
execute amendments to the existing Lease /Purchase
Agreement.
STAFF RESOURCE PERSON: David Kautz
STAFF RECOMMENDATION:
To amend the existing Lease /Purchase Agreements (for various durable
operating equipment) by removing the "subject to annual appropriation"
clauses there by obligating revenues for the full term of the contract.
This action allows payment of the remaining lease installments from
accumulated Debt Service Fund Balance and removes the obligation from
the General Fund.
The Effective Tax Rate calculation has not and will not be affected
by this amendment.
Treating leases for equipment and rolling stock in this manner is
a cheaper alternative than issuing other forms of short term debt,
such as contractual obligations.
The attached recommendation from the City attorney and leasing
company approval are provided in support of this proposal.
Citicorp North America, Inc.
A subsidiary of Citicorp
1900 E. Golf Road -11th Floor
Schaumburg, IL 60173
312/706 -9100
November 8, 1989
David Kautz, CGFO
Finance Director
The City of Round Rock
221 East Main Street
Round Rock, TX 78664
Dear David:
Please find enclosed one set of amendments to the lease
agreements between Citicorp and the City of Round Rock, Texas
which you requested of Citicorp to execute.
Citicorp has retained the other set for our files. If I can be
of further assistance to you, please call.
Sincerely,
Benny ep
Assistant Vice President
BAJ:brm
Encl.
/345
CITICORP ONORTH AMERICA
cc: L.ec t c
CITICORP 0
This Amendment, which shall be in effect as of the 1st day of
October, 1989, is attached hereto and made a part of the State and
Municipal Lease /Purchase Agreement dated April 29, 1987, by and
between Citicorp North America, Inc., formerly Citicorp Industrial
Credit, Inc., hereinafter called "Lessor" and the City of Round Rock,
Texas, hereinafter called "Lessee ".
Paragraph 5 of the Lease /Purchase Agreement, entitled
Non - appropriation of Funds, shall be amended by deleting all
language in Paragraph 5, and substituting the following
language:
LESSOR:
5. TAX LEVY. A special Interest and Sinking
Fund (the "Interest and Sinking Fund ") is hereby
created solely for the benefit of the lease, and
the Interest and Sinking fund shall be
established and maintained by the City at an
official depository bank of the City. The
Interest and Sinking Fund shall be kept separate
and apart from all other funds and accounts of
the City, and shall be used only for paying the
interest on and principal of the lease. All ad
valorem taxes levied and collected for an on
account of the lease shall be deposited, as
collected, to the credit of the Interest and
Sinking Fund. During each year while the lease or
interest thereon are outstanding and unpaid, the
governing body of the City shall compute and
ascertain a rate and amount of ad valorem tax
which will be sufficient to raise and produce the
money required to pay the interest on the lease
as such interest comes due, and to provide and
maintain a sinking fund adequate to pay the
prinicipal of the lease as such princiapal comes
due (but never less than 2% each year); and said
tax shall be based on the latest approved tax
rolls of the Issuer, with full allowance being
made for tax delinquencies and the cost of tax
collection.
IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment
to be executed in their names by their duly authorized
representatives.
CITICORP NORTH AMERICA, INC.
formerly CITICORP INDUSTRIAL
CREDIT, INC.
By:
P i ed Name:
Ti e: JAMLS R. LAMP(
vice rresiaent
Date: cl P h cc
C- AMENDMENT
AMENDMENT
LESSEE:
CITY OF ROUND ROCK, TEXAS
By: / a I
Mike Robinson, Mayor
City of Round Rock, Texas
ATTEST:
By: JIIAIl -..A./
J�� E LAND, City Secretary
AMENDMENT
This Amendment, which shall be in effect as of the 1st day of
October, 1989, is attached hereto and made a part of the State and
Municipal Lease /Purchase Agreement dated September 29, 1987, by and
between Citicorp North America, Inc., formerly Citicorp Industrial
Credit, Inc., hereinafter called "Lessor" and the City of Round Rock,
Texas, hereinafter called "Lessee ".
Paragraph 5 of the Lease /Purchase Agreement, entitled
Non - appropriation of Funds, shall be amended by deleting all
language in Paragraph 5, and substituting the following
language:
5. TAX LEVY. A spacial Interest and Sinking
Fund (the "Interest and Sinking Fund ") is hereby
created solely for the benefit of the lease, and
the Interest and Sinking fund shall be
established and maintained by the City at an
official depository bank of the City. The
Interest and Sinking Fund shall be kept separate
and apart from all other funds and accounts of
the City, and shall be used only for paying the
interest on and principal of the lease. All ad
valorem taxes levied and collected for an on
account of the lease shall be deposited, as
collected, to the credit of the Interest and
Sinking Fund. During each year while the lease or
interest thereon are outstanding and unpaid, the
governing body of the City shall compute and
ascertain a rate and amount of ad valorem tax
which will be sufficient to raise and produce the
money required to pay the interest on the lease
as such interest comes due, and to provide and
maintain a sinking fund adequate to pay the
prinicipal of the lease as such princiapal comes
due (but never less than 2% each year); and said
tax shall be based on the latest approved tax
rolls of the Issuer, with full allowance being
made for tax delinquencies and the cost of tax
collection.
IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment
to be executed in their names by their duly authorized
representatives.
LESSOR:
CITICORP NORTH AMERICA, INC.
formerly CITICORP INDUSTRIAL
CREDIT, INC.
C- AMENDME2
LESSEE:
CITY OF ROUND ROCK, TEXAS
By:
/t° /&
Date: By:
ATTEST:
JO
Mike Robinson, Mayor
City of Round Rock, Texas
E
LAND, City Secretary
This Amendment, which shall be in effect as of the 1st day of
October, 1989, is attached hereto and made a part of the State and
Municipal Lease /Purchase Agreement dated September 27, 1988, by and
between Citicorp North America, Inc., formerly Citicorp Industrial
Credit, Inc., hereinafter called "Lessor" and the City of Round Rock,
Texas, hereinafter called "Lessee ".
LESSOR:
C- AMENDME3
Paragraph 5 of the Lease /Purchase Agreement, entitled
Non - appropriation of Funds, shall be amended by deleting all
language in Paragraph 5, and substituting the following
language:
5. TAX LEVY. A special Interest and Sinking
Fund (the "Interest and Sinking Fund ") is hereby
created solely for the benefit of the lease, and
the Interest and Sinking fund shall be
established and maintained by the City at an
official depository bank of the City. The
Interest and Sinking Fund shall be kept separate
and apart from all other funds and accounts of
the City, and shall be used only for paying the
interest on and principal of the lease. All ad
valorem taxes levied and collected for an on
account of the lease shall be deposited, as
collected, to the credit of the Interest and
Sinking Fund. During each year while the lease or
interest thereon are outstanding and unpaid, the
governing body of the City shall compute and
ascertain a rate and amount of ad valorem tax
which will be sufficient to raise and produce the
money required to pay the interest on the lease
as such interest comes due, and to provide and
maintain a sinking fund adequate to pay the
prinicipal of the lease as such princiapal comes
due (but never less than 2% each year); and said
tax shall be based on the latest approved tax
rolls of the Issuer, with full allowance being
made for tax delinquencies and the cost of tax
collection.
IN WITNESS WHEREOF, Lessor and Lessee have caused this Amendment
to be executed in their names by their duly authorized
representatives.
CITICORP NORTH AMERICA, INC.
formerly CITICORP INDUSTRIAL
CREDIT, INC.
Date: iagl59
AMENDMENT
LESSEE:
CITY OF ROUND ROCK, TEXAS
By:
P'ted Name: Mike Robinson, Mayor
Title: 1AMESR.CANNON City of Round Rock, Texas
Vice President
By:
ATTEST:
By:
JO E LAND, City Secretary