From
Caroline Siskowic
Title
Resolution declaring expectation to reimburse expenditures with proceeds of future debt in the amount of $588,000 for expenses for the Fire Department fire engine replacement.
Presenter
Clif Nelson, Fire Chief
Recommend Action
Approve
Analysis
The purchase of a fire engine for the Fire Department was approved by City Council at the November 1, 2011 council meeting, however, the funding mechanism via bond sale will not occur until early 2013. Therefore, a reimbursement resolution is necessary. The total cost for this capital item is $588,000 comprised of $532,935 for the engine and $55,065 for tools and equipment.
By approving the commitment to make this purchase at the November 1, 2011 council meeting, the City experienced a $5,000 multi-truck discount in addition to a $32,276 savings from a price increase.
Financial Consideration
Interim funding is available from the unobligated fund balance in the Fire Capital Projects Fund (400591) WO #01300801 (Engine Replacement #E9).
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, DECLARING EXPECTATION TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR A FIRE ENGINE REPLACEMENT
WHEREAS, the City of Grand Prairie, Texas (the "Issuer") intends to issue debt for the purchase of one fire engine, (the "Project") and further intends to make certain capital expenditures with respect to the Project and currently desires and expects to reimburse the capital expenditures with proceeds of such debt;
WHEREAS, under Treas. Reg. 1.150-2 (the "Regulation"), to fund such reimbursement with proceeds of tax-exempt obligations, the Issuer must declare its expectation to make such reimbursement; and
WHEREAS, the Issuer desires to preserve its ability to reimburse the capital expenditures with proceeds of tax-exempt obligations.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Grand Prairie, Texas that the Issuer reasonably expects to reimburse capital expenditures with respect to the Project with proceeds of debt hereafter to be incurred by the Issuer, and that this resolution shall constitute a declaration of official intent under the Regulation. The maximum principal amount of obligations expected to be issued for the Project is $588,000.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 16TH DAY OF OCTOBER, 2012.