HomeMy WebLinkAboutResolution 4309-04-2014 A Resolution
NO. 4309-04-2014
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, in an amount not to exceed $4,000,000.00;
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 $4,000,000.00, 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 I" day of April 2014. A" paooF!RO 4
ATTEST: r _ 00 000,
y{
O a-f o
0- 0 o zo Al
op Az
y _ _ _ 000000000
b
Mary KJe ty Secretary
O R T DTI i
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/1/2014 - Resolution No, 4309-04-2014
,,,,,,
DATE: Tuesday, April 01, 2014 REFERENCE NO.: G-18168
LOG NAME: 13FY14 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 the attached 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 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 July or August 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.
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/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
James Mauldin (2438)
Additional Information Contact: Scott Hanlan (6803)
Logname: 13FY14 FIRE RFIMB RES :Page 1 of 1