From
Tannie Camarata, Cash & Debt Manager
Title
Resolution Declaring Expectation to Reimburse Expenditures with Proceeds of Future Debt for improvements and additions to Central Park
Presenter
Diana G. Ortiz, Chief Financial Officer
Recommended Action
Approve
Analysis
The city held a sales tax election on May 10, 2014 to approve the use of one-fourth of one percent (0.25%) of sales tax for improvements to the Central Park facilities including recreation center facilities; indoor and outdoor water park facilities, playground facilities, trails, amphitheaters and other park and recreation facilities related to the Central Park facilities generally located at the corner of Warrior and State Highway 161 South and related infrastructure. The sales tax does not go into effect until October 1, 2015.
Funds for the project will come from a future bond sale scheduled for late 2015, after the sales tax goes into effect. However, the design work for the project is scheduled to begin in October 2014. The reimbursement resolution below provides for funding the design work and declaring the City's intent to issue debt in the future. The resolution was prepared by Norton Rose Fulbright the City's Bond Counsel.
Financial Consideration
None at this time.
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, DECLARING EXPECTATION TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT
WHEREAS, the City of Grand Prairie, Texas (the "Issuer") intends to issue debt for improvements and additions to Central Park generally located at the corner of Warrior and State Highway 161 South that are planned for use for providing park and recreation facilities including a recreation center, indoor and outdoor water park facilities, playground facilities, trails, amphitheaters and other park and recreation facilities related to the Central Park facilities and related infrastructure (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. ยง 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 and/or taxable obligations.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. 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 $75,000,000.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 14th DAY OF OCTOBER, 2014.