HomeMy WebLinkAbout126-99 RESOLUTION•
RESOLUTION NO 126-99
A RESOLUTION EXPRESSING THE INTENT OF THE CITY OF
FAYETTEVILLE, ARKANSAS, TO REIMBURSE CERTAIN
EXPENDITURES OF THE CITY PERTAINING TO THE
PLANNING, DESIGNING, FINANCING, ACQUIRING,
CONSTRUCTING, AND EQUIPPING OF A WASTEWATER
TREATMENT PROJECT WITH THE PROCEEDS OF AN ISSUE
OR ISSUES OF TAX-EXEMPT BONDS TO BE ISSUED BY THE
CITY; AND STATING OTHER MATTERS PERTAINING
THERETO
WHEREAS, the City of Fayetteville, Arkansas, (the "City") intends to (i) construct a new
wastewater treatment plant in the western portion of the City, (ii) renovate its existing wastewater
treatment plant, and (iii) make associated modifications to its wastewater collection system (the
"Project") to serve the growing needs of the residents of the City; and
WHEREAS, the City presently intends to finance a portion of the costs of planning,
designing, acquiring, constructing, and equipping the Project through the issuance of one or more
series of tax-exempt bonds of the City (the "Bonds"); and
WHEREAS, the City has determined the need to expend its funds to pay certain costs of the
Project prior to the issuance of the Bonds, and
WHEREAS, in order to utilize the proceeds of tax-exempt bonds to reimburse original
expenditures made by the City with respect to the Project, it is necessary under the Internal Revenue
Code of 1986, as amended (the "Code") and the U.S. Treasury Regulation Section 1.150-2 that the
City make a present declaration of its official intent to make such reimbursement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FAYETTEVILLE, ARKANSAS:
Section 1. That the City intends to issue its Bonds in one or more series in aggregate
pnncipal amount not to exceed $25 million under the constitution and laws of the State of Arkansas
to finance a portion of the costs of planning, designing, acquiring, constructing, and equipping the
Project.
Section 9. That the City intends to utilize a portion of the proceeds of the Bonds to
reimburse itself for certain expenditures made by the City prior to the issuance of the Bonds with
respect to the planning, designing, acquiring, constructing, and equipping of the Project.
Section i, That the City intends this resolution to be its declaration of "official intent"
under the Code and U.S. Treasury Regulation Section 1.150-2 to reimburse certain original
expenditures with respect to the Project.
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Resolution No 126-99
PASSED AND APPROVED this day of October , 1999.
ATTEST:/�nn
By: O s� 5 XS ea,—
Heather Wff, City Clerk
Fred Hanna, Mayor
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STAFF REVIEW FORM
X AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
FOR THE FAYETTEVILLE CITY COUNCIL MEETING OF OCTOBER 5, 1999
FROM:
KEVIN CROSSON ADMINISTRATIVE SERVICES
NAME
DIVISION DEPARTMENT
ACTION REQUIRED: APPROVAL OF REIMBURSEMENT RESOLUTION ALLOWING THE CITY OF FAYETTEVILLE TO
REIMBURSE ITSELF CERTAIN EXPENDITURES PAID DIRECTLY FROM THE OPERATING AND CAPITAL BUDGETS OF THE CITY
FOR THE WASTEWATER TREATMENT PROJECT FROM TAX-EMEMPT BOND PROCEEDS ONCE THE PROJECT HAS
PROCEEDED TO THAT POINT. THIS WILL ALLOW THE CITY TO BE REIMBURSED IF WE SO CHOOSE AT THE TIME WE
STRUCTURE A FINANCING PLAN.
COST TO CITY:
0.00
COST OF THIS REQUEST
N/A
ACCOUNT NUMBER
N/A
PROJECT NUMBER
N/A N/A
CATEGORY/PROJECT BUDGET CATEGORY/PROJECT NAME
N/A N/A
FUNDS USED To DATE PROGRAM NAME
N/A N/A
REMAINING BALANCE FUND
BUDGET REVIEW:
BUDGETED ITEM _ BUDGET ADJUSTMENT ATTACHED
BUDGET COORDINATOR ADMINISTRATIVE SERVICES DIRECTOR
CONTRACT/GRANT/LEASE REVIEW: GRANTING AGENCY:
ACCOUNTING MANAGER DATE ADA COORDINATOR DATE
CT' ATTORNEY DATE INTERNAL AUDITOR DATE
PURCHASING OFFICER DATE
STAFF RECOMMENDATION:
DIVISION HEAD
PARRT/DIR3
)OR DATE
V •
DATE CROSS REFERENCE
NEw ITEM: YES No
PREY ORD/RES /i'
DATEG
9/2y/ 1 ORIG CONTRACT DATE:
DATE
ADMvCS DIRECT
AYOR
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FAYETTEVI LLE
THE CITY OF FAYETTEVILLE. ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO: Fayetteville City Council
THRU: Fred Hanna, Mayor lit
FROM: Kevin Crosson, Administrative Services Director DATE: September 20, 1999
SUBJ: Reimbursement Resolution for Wastewater Project Expenses
The City has, to date, spent approximately $5 million in expenses directly related to our
wastewater treatment plant expansion project. This amount includes —$3 million for the land
acquisition project, $1 million for the ultraviolet (UV) disinfection system, and —$1 million for the
facilities plan and related contract amendments. All of these expenses were paid directly from
operating and capital budgets.
We recommend that the City Council approve the attached reimbursement resolution. While we
currently do not have a financing plan in place for the project, this resolution will allow staff the
flexibility to reimburse our operating and capital budgets from tax-exempt bond proceeds, once
the project has proceeded to that point. This resolution does not commit the City Council to any
particular financing instrument, and it does not require that we be reimbursed for those expenses.
It simply allows us to be reimbursed if we so choose at the time we structure a financing plan.
You will note that Section 1 includes an amount not to exceed $25 million. This is a conservative
figure that, in addition to the expenses discussed above, will allow staff the ability to be
reimbursed for the engineering contracts on the project that will be coming to the City Council in
early 2000, and additional improvements that could be completed prior to the main expansion
project.
If you have any questions regarding this resolution or this project feel free to contact either myself
or Charles Venable, Director of Public Works. Thank you.
•
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Kevin Crosson, Administrative Services Director
From: Heather Woodruff, City Clerk
Date: October 11, 1999
Attached is a copy of the resolution regarding the reimbursement of expenditures pertaining to
the Wastewater Treatment Project for your records. The original will be microfilmed and filed
with the City Clerk.
cc. Yolanda Fields, Intemal Auditor