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HomeMy WebLinkAboutResolution 4192-03-2013 A Resolution NO. 4192-03-2013 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT WHEREAS, the City of Fort Worth, Texas (the "City") is a home-rule municipality and political subdivision of the State of Texas; WHEREAS, the City expects to pay from available funds expenditures in connection with the acquisition of fire equipment and vehicles (the "Project") prior to the issuance of obligations by the City in 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 it 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 series of obligations, with an aggregate maximum principal amount not to exceed $4,000,000, 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 obligations 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 this Statement more than three years after the date any expenditure which is to be reimbursed is paid. Adopted this 26th day of March, 2013. ART 0000 0000 00 000 ATTEST: 9 0 1 ,w 0 gem 0 By: .01 Y 00 00 4 Mary Kayser, City Secretary FoRTWoRM City of Fort Worth, Texas Mayor and Council Communication ,u;n maiw.. nenpwamwdiiuouoxraii rr .rr r nne rrri a rr.i„ur ui ii is rwauu �reiaawoo�ma✓o„ mrrm,,. .aar,�n,!rs, a✓mm rmra�n i ... urrvrr ia�awrrrmeau nr arcamur,rr as mrow.�nn bw�mcamrmmrtuammmmrmwmuurr�wo COUNCIL,ACTION: Approved on 3/26/2013 -'Resolution No. 4192.03-2013 a,, rt„rNrr,,urwuuu,rQruuUrrr»,,rr „u, ,w a re ar.wwrmmnmii a ... �mem r. coe¢a rmrwrum 'r. ,r„sm,... �rur%m rir rr iimvw.nx.xx mxn rennmw. r ,mnrArc n.m :.�urwr.a i,mxwvar rawnho mr muoanrrurm,».nnm DATE: Tuesday, March 26, 2013 REFERENCE NO.: **G-17840 LOG NAME: 1313 FIRE REIMB RES SUBJECT: Adopt Resolution Expressing Official Intent to Reimburse Costs of Acquiring Approximately the Amount of $4,000,000.00 of Fire Equipment and Vehicles (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt a resolution expressing official intent to reimburse costs of acquiring approximately the amount of$4,000,000.00 of fire equipment and vehicles. DISCUSSION: The Fire Department (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 that are 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, 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. In accordance with the provisions of the Financial Management Policy Statements, Staff anticipates presenting tax-supported debt issuances to the City Council for consideration in the upcoming months. If the debt is not issued within approximately three years to provide reimbursement for these expenses, the costs will no longer be reimbursable by issuing tax-exempt debt and the funding source will have to be made whole through other budgetary methods. FISCAL INFORMATION / CERTIFICATION: The Financial Management Services Director certifies that funds are available in the current capital budget, as appropriated, of the New Equipment Purchases Fund. FUND CENTERS: TO Fund/AccountJCenters FROM Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Horatio Porter (2379) Lisa Parks (6630) Additional Information Contact: Richard Neuhaus (6803) Logname: 1313 FIRE REIMS RES Page 1 of 1