R-94-04-28-9E - 4/28/1994TEXAS,
KS \RESOLUTION
RSO4284E
RESOLUTION NO. R-
WHEREAS, the City Council of the City of Round Rock (the
"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,
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 $300,000.00.
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.
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 28th day of April, 1994.
LAND, City Secretary
2.
•
CHARLES CULP °P 77 Mayor
City of Round Roc , 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 1993 — 94 Operating Budget.
The equipment is used for general governmental purposes.
DATE: April 26, 1994
SUBJECT: City Council Meeting, April 28, 1994
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 authorizes a program whereby capital equipment is acquired through a
tax— exempt lease— purchase. In this program, the equipment is purchased by the City and
the City is then reimbursed for the equipment through a lease— purchase agreement. The
City repays the lease— purchase obligation in three years.
The Federal tax code requires the City to adopt a resolution expressing its intent to
participate in this reimbursement program. Properly executing this requirement permits
the lease— purchase obligation to be structured with tax— exempt status.
Staff recommends approving the resolution.