R-99-10-28-10C1 - 10/28/1999RESOLUTION NO. R- 99- 10- 28 -10C1
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,
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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 $525,000 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, and the Act.
RESOLVED this 28th day of October, 1999.
ATTEST:
ANNE LAND, City Secretary
2.
ROBERT A. STLUKA, JR., Mayor
City of Round Rock, Texas
EQUIPMENT LIST
Possible equipment to be used for reimbursement of expenditures to acquire vehicles and equipment.
DEPARTMENT DESCRIPTION ESTIMATED COST
Building Inspection / Ton Pickup $ 20,319
Police 11- Patrol Vehicles 275,000
Police 3 - Unmarked Vehicles 80,000
PARD 3- 7' Riding Mowers 36,000
PARD 10" Riding Mower 25,000
PARD 6 Yd Dump Truck 54,366
PARD Utility Truck 40,504
PARD '/., Ton Truck 28,124
PARD Van, Passenger 24,674
Human Resources Passenger Sedan 15,394
Street Skid Steer Loader 29,000
Street Roller 35,000
Street % Ton Pickup 28,124
Street 2- Dump Trucks 120,000
Street Light Duty Truck 20,000
TOTAL $ 831,505
DATE: October 21, 1999
SUBJECT: City Council Meeting — October 28, 1999
ITEM: 10.C.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. 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
$525,000. Staff Resource Person: David Kautz, Finance Director.