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HomeMy WebLinkAboutResolution 3894-06-2010A Resolution NO 3894-06-2010 OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT WHEREAS, the City of iFort Worth, Texas (the 'City") is a home-rule municipality and political subdivision of the State of Texas, WHEREAS, the Crty expects to pay from available funds expenditures in connection with the acquisition of fire equipment and vehicles (the 'Project") pnor to the issuance of obhgations by the City m connection with the financing of the Project; WHEREAS, the City finds, considers, and declares that the reimbursement of the City for the payment of such expenditures will be appropriate and consistent with the lawful objectives of the City 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 rt issues obligations to finance the Project; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS Section 1 The City reasonably expects it will incur debt, as one or more serves of obligations, with an aggregate maximum principal amount not to exceed $4 100 000 for the purpose of paying the aggregate costs of the Project. Section 2 All costs to be. reimbursed pursuant hereto will be capital expenditures. No tax-exempt obhgations will be issued by the City in furtherance of this Statement 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. Section 3 The foregoing notwithstanding, no tax-exempt obligation will be issued pursuant to tlus Statement more than three years after the date any expenditure which is to be reimbursed is paid. Adopted this 15th day of June 2010 ATTEST f~fi~r?r 4 ~~ - ~ ~~ -. ~` B y '_' ~. _ __-_t!~ -_--_ .--__ ~ ~~ ~, Marty Hen rix /City Secret~ar-y ~~ ~ ~ i ~`• k' .. ~. ~~ w° of~r ~ ~{ M ~.,y ~~ffr~I*~ ~L_~! 1 ORT W0 CITY OUNCiI .iUN 15 2010 W~~~ CitWy of Fort Worth, Texas City of Fort Worth, Texas Mayor and Council Communication _-- ~. COUNCIL ACTION: Approved on 6!15/2010 -Res. No. 3894-06-2010 DATE Tuesday June 15 2010 LOG NAME 1310 FIRE REIMB RES REFERENCE NO G-16959 SUBJECT Adopt a Resolution Expressing Official Intent to Reimburse Costs of Acquiring Fire Equipment and Vehicles RECOMMENDATION It is recommended that the City Council adopt a resolution expressing official intent to reimburse costs of acquiring fire equipment and vehicles DISCUSSION The Fire Department is currently on a Fleet Rotation Plan that calls for approximately $4 million worth of vehicle and equipment purchases per year This plan allows the department to rotate out of the fleet vehicles too old or too costly to continue utilizing for public safety The city has financed such purchases in the past via issuance of Equipment Notes and Certificates of Obligation The City generally issues tax-supported debt after the Certified Appraisal Rolls are available in late July Because of the lengthy delay between order time and order fulfillment with fire trucks however the department cannot wait until August or September to place the new orders To accommodate this concern staff recommends adopting the attached resolution stating the City's intent to purchase fire equipment and vehicles and to reimburse itself through the issuance of debt at a later date Staff anticipates presenting tax-supported debt issuances to City Council for its consideration in August of this year FISCAL INFORMATION /CERTIFICATION The Financial Management Services Director certifies that there is no immediate fiscal impact of approving the resolution FUND CENTERS TO Fund/Account/Centers FROM Fund/Account/Centers ~__ - - i _. CERTIFICATIONS Submitted for City Manager's Office b~ Karen Montgomery (6222) Originating Department Head. Lena Ellis (8517) Additional Information Contact: James Mauldin (2438) Logname• 1310 FIRE REIMB RES Page 1 of 1