R-98-11-12-10D1 - 11/12/1998RESOLUTION NO. R- 98- 11- 12 -1OD1
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 "), as
listed in the attached Exhibit "A ", 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 $500,000 for the
purpose of paying the costs of the Property.
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I.
II.
s`
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.
m.
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.
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 12th day of November, 1998.
ATTEST:
ANNE LAND, City Secretary
2.
IV.
CHARLES CUPP PER, Mayor
City of Round Rock, Texas
Exhibit A
EQUIPMENT LIST
Schedule of budgeted equipment (Operating Budget, fy99) subject to reimbursement
from the lease financing program:
DEPARTMENT DESCRIPTION
E AT COST
Planning & Community Develop. Compact Pickup $ 14,000
Building Inspection /: Ton Pickup 21,000
Police Unmarked Vehicle 23,000
Police 14 - Marked Vehicles 378,000
Police Unmarked Vehicle 23,000
Fire 2 - Utility Vehicles 46,000
PARD Stake Bed Truck 27,000
PARD 2 -' /z Ton Pickups 38,000
Public Works Yz Ton Pickup 19,000
Street Skid Loader 29,000
Street Water Truck 55,000
Street Dump Truck 72,000
Street 2 — 3 /4 Ton Pickups 40,000
Street Bucket Truck 60,000
Vehicle Maintenance Shop Service Truck 62,000
DATE: November 6, 1998
SUBJECT: City Council Meeting, November 12, 1998
ITEM: 10. D. 1. Consider a resolution expressing official intent to reimburse
costs 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. Staff Resource
Person: David Kautz, Finance Director.
This type of financing allows the City to replace equipment and rolling stock on a timely basis as
replacement criteria are met.
The cost of the equipment is spread over a period of 3 years, thus minimizing the impact on any one
operating budget . Additionally, the tax - exempt lease rates offer a very favorable cost of capital to
the City. For the current fiscal year, the equipment to be financed is scheduled at $500,000.
Annual debt service on this amount, assuming 5% financing is less than $184,000.