From
Becky L. Brooks, Asst CFO
Title
Resolution declaring expectation to reimburse expenditures with proceeds from the issuance of future debt for fire-fighting facilities and equipment, library facilities, new construction and renovations to municipal facilities, and street improvements including related costs of rights of way and costs incidental to street improvements as outlined in the adopted CIP
Presenter
Diana G, Ortiz, CFO
Recommended Action
Approve
Analysis
This resolution provides the mechanism to issue bonds in FY 2018-2019 to reimburse expenditures incurred in the current fiscal year to expend items related to the adopted Capital Improvement Program (CIP).
Financial Consideration
Funding for reimbursement will occur when debt is issued and funds delivered approximately December 6, 2018.
Body
A RESOLUTION DECLARING EXPECTATION TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT
WHEREAS, the City of Grand Prairie, Texas (the “Issuer”) intends to issue debt for (i) acquiring, constructing, improving and equipping fire-fighting facilities and library facilities, (ii) constructing, improving and equipping existing municipal facilities and (iii) constructing street improvements, including drainage, landscaping, curbs, gutters, sidewalks, entryways, pedestrian pathways, signage, traffic signalization and street noise abatement incidental thereto and the acquisition of land and rights-of-way therefor (collectively, 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 ISSUER 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 $45,000,000.
PASSED AND APPROVED this the 18st day of September 2018.