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HomeMy WebLinkAboutResolution 3743-06-2009A Resolution NO 3743-06-2009 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE COSTS OF PHASE II OF THE ENTERPRISE RESOURCE PLANNING PROJECT (ERP) WHEREAS, the City of Fort Worth, Texas, (the `City") is a home-rule mumcipalrty and political subdivision of the State of Texas, and WHEREAS, the Crty desires to replace the current legacy financial accounting systems with an integrated enterprise solution called an Enterprise Resource Planning system (the `ERP") and WHEREAS, the City expects to pay from available funds expenditures incurred m connection with the planning, acquisition and implementation of Phase II ERP prior to the issuance of obligations by the City for the financing of the ERP and WHEREAS, the City finds, considers and declares that the reimbursement of the City for such expenditures will be appropriate and consistent with the lawful objectives of the City and, as such, chooses to declare its intention, m 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 ERP NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS, THAT Section 1 The City reasonably expects rt will incur debt, as one or more serves of obligations, for the purpose of paying the aggregate costs of the ERP Section 2 All costs to be reimbursed pursuant hereto are expected to be capital expenditures. No tax-exempt obligations will be issued by the City m furtherance of this Statement after the date of which are 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 the Statement more than three years after the date any expenditure which is to be reimbursed is paid. ORT WORT T RESOLUTION NO 3743 06 2009 Adopted this 2ND day of June 2009 APPROVEp ATTEST ~rrl`i CITY COUNCIL ~r: ..~•-~_ ,~,~ . n ~ ~7 JUN 0 ~ 2009 By y NI'a~rty Hendrix Ctty~Secretary a. •f ~ ~ e4 •~ mow, ~ t,, t ,~(~ ~'`...~ ti .t,`r~r' y,~yS '4 4 ~~~~ City Secretary of the Cify of Fort Worth, Texas ORT WORT T City of Fort Worth, Texas Mayor and Council Communication „ ~ ~ r ~ ~~ .~. COUNCIL ACTION: Approved on 6/2/2009 Res. No.'3743-06-20.09 DATE Tuesday June 02 2009 LOG NAME 13REIMBRESLERP REFERENCE NO G-16583 SUBJECT Adopt a Resolution Expressing Official Intent to Reimburse Costs of the Enterprise Resource Planning Project, Phase II RECOMMENDATION It is recommended that the City Council adopt a resolution expressing official intent to reimburse costs of the Enterprise Resource Planning Project, Phase II DISCUSSION In Fiscal Year 2007 the City of Fort Worth (City) embarked on an initiative to replace existing legacy financial and administrative information systems with an integrated enterprise solution commonly known as an Enterprise Resource Planning system (ERP) The ERP initiative is a massive multi-year project requiring extensive City staff involvement and significant financial commitment from City Council The ERP system will help improve the efficiency and accuracy of the City's business process After a thorough assessment of competing priorities and City resources the ERP project was divided into two phases In May 2007 the City Council authorized staff to begin Phase I of the ERP project, which addresses the City's Human Resources and Payroll systems Phase II addresses the City's financial management systems The implementation of Phase I began December 2008 and it is scheduled to go live in March of 2010 Phase II will commence with the completion of the 2008 Comprehensive Annual Financial Report (CAFR) and run concurrently with Phase I It is anticipated that the ERP system will go live in the first quarter of Fiscal Year 2013 A resolution has been prepared stating the City's intent to issue debt for the planning acquisition and implementation of the City's ERP System Adoption of the resolution gives the City the option of reimbursing itself for project expenditures incurred in connection with the ERP Phase II from the proceeds of debt issuance This resolution does not obligate the City to issue debt nor does it determine the total amount of the debt issued It simply reserves the right to the City should the City Council consider the financing strategy to be in the City's interests In the coming months the City Council will be asked to take additional steps to issue the debt. FISCAL INFORMATION /CERTIFICATION The Financial Management Services Director certifies that there is no immediate fiscal impact of approving the resolution Upon issuance of debt, the City may utilize debt proceeds for expenditures related to the planning acquisition and implementation of the ERP project as early as 60 days prior to the passage of this resolution Logname• I3REIMBRESLERP Page 1 of 2 FUND CENTERS TO Fund/Account/Centers CERTIFICATIONS Submitted for City Manager's Office by. Originating Department Head. Additional Information Contact: FROM Fund/Account/Centers Karen Montgomery (6222) Lena Ellis (8517) Mae Gray-Rossi (8325) Logname 13REIMBRESLERP Page 2 of 2