R-93-01-14-9E - 1/14/1993"Issuer ") desires to finance the costs of acquiring certain public
facilities, improvements and equipment, as provided in Exhibit "A"
attached hereto and incorporated herein (the "Project "); and
WHEREAS, the Issuer intends to finance the acquisition of the
Project or portions of the Project with the proceeds of the sale of
obligations the interest upon which is excluded from gross income for
federal income tax purposes (the "Obligations "); and
WHEREAS, prior to the issuance of the Obligations the Issuer
desires to incur certain expenditures with respect to the Project from
available monies of the Issuer which expenditures are desired to be
reimbursed by the Issuer from a portion of the proceeds of the sale of
the Obligations, Now Therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
SECTION 1. The Issuer hereby states its intention and reasonably
expects to reimburse Project costs incurred prior to the issuance of
the Obligations with proceeds of the Obligations. Exhibit "A"
describes either the general character, type, purpose, and function of
the Project, or the fund or account from which Project costs are to be
paid and the general functional purpose of the fund or account.
SECTION 2. The reasonably expected maximum principal amount of
the Obligations is $289,500.00.
SECTION 3. This resolution is being adopted on or prior to the
date (the "Expenditures Date or Dates ") that the Issuer will expend
monies for the portion of the Project costs to be reimbursed from
proceeds of the Obligations.
SECTION 4. The expected date of issue of the Obligations will be
within one year of the later of the Expenditure Date or Dates and the
date the Project is placed in service.
RS01143E
RESOLUTION NO. i€ 93- C/- 1'-/ - 9E
WHEREAS, the City Council of the City of Round Rock (the
SECTION 5. Proceeds of the Obligations to be used to reimburse
for Project costs are not expected to be used directly or indirectly
to pay debt service with respect to any obligation (other than to pay
current debt service coming due within the next succeeding one year
period on any tax - exempt obligation of the Issuer (other than the
Obligations)) or to be held as a reasonably required reserve or
replacement fund with respect to an obligation of the Issuer or any
entity related in any manner to the Issuer, or to reimburse any
expenditure that was originally paid with the proceeds of any
obligation, or to replace funds that are or will be used in such
manner.
SECTION 6. This resolution is consistent with the budgetary and
financial circumstances of the Issuer, as of the date hereof. No
monies from sources other than the Obligation issue are, or are
reasonably expected to be reserved, allocated on a long -term basis, or
otherwise set aside by the Issuer (or any related party) pursuant to
their budget or financial policies with respect to the Project costs.
To the best of our knowledge, this City Council is not aware of the
previous adoption of official intents by the Issuer that have been
made as a matter of course for the purpose of reimbursing expenditures
and for which tax - exempt obligations have not been issued.
SECTION 7. This resolution is adopted as official action of the
Issuer in order to comply with Treasury Regulation §1.103 -18 and any
other regulations of the Internal Revenue Service relating to the
qualification for reimbursement of Issuer expenditures incurred prior
to the date of issue of the Obligations, is part of the Issuer's
official proceedings, and will be available for inspection by the
general public at the main administrative office of the Issuer.
SECTION 8. All the recitals in this Resolution are true and
correct and this City Council so finds, determines and represents.
ATTEST:
RESOLVED this 14th day of January, 1993.
E LAND, City Secretary
2.
MIKE ROBINSON, Mayor
City of Round Rock, Texas
Exhibit A
Description of the Project
The equipment acquired through this program has been approved
by the Council and is itemized in the Capital Outlay Section
of the fiscal 1992 — 93 Operating Budget.
The equipment is used for general governmental purposes.
DATE: January 12, 1993
SUBJECT: City Council Meeting, January 14, 1993
ITEM: 9. E. Consider a resolution authorizing the Mayor to enter into a tax— exempt
leasing program.
STAFF RESOURCE PERSON: David Kautz
STAFF RECOMMENDATION:
The Operating budget contains a program whereby capital equipment is acquired through a
tax— exempt lease— purchase program. In this program, the equipment is purchased by the
City and is then reimbursed for the equipment through a lease— purchase agreement. The
City pays the lease— purchase note off in three years.
New regulations in the federal tax code require the City to first adopt a resolution
expressing its intent to participate in this reimbursement program.
Staff recommends approving the resolution.