HomeMy WebLinkAbout18-06 RESOLUTIONRESOLUTION NO. 18-06
A RESOLUTION OF INTENT REGARDING THE REIMBURSEMENT
OF CERTAIN COSTS AND EXPENSES INCURRED IN CONNECTION
WITH THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF
FIRE STATION IMPROVEMENTS WITHIN THE CITY
WHEREAS, the City of Fayetteville, Arkansas (the "City") desires to obtain
financing for the acquisition, construction and equipping of certain fire station facilities (the
"Project"); and
WHEREAS, the total costs of the Project, including expenses associated with the
financing thereof, are presently estimated to be approximately $3,431,000.00; and
WHEREAS, the City does not currently have adequate funds on hand to pay the
estimated costs of the Project and related expenses; and
WHEREAS, the City presently intends to obtain the necessary funds to accomplish
the Project and to pay related expenses through the issuance of tax-exempt indebtedness in
principal amount not to exceed $3;000,000; and
WHEREAS, the purpose of this Resolution is for the City to declare its "official
intent" to reimburse itself for certain preliminary costs (incurred by or on behalf of the City
and related to the Project) pursuant to Section 1.150-2 of the Regulations of the U.S.
Department of Treasury promulgated pursuant to the provisions of the Internal Revenue Code
of 1986, as amended;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the adoption of this Resolution is intended as the City's "official
intent" to reimburse itself from the proceeds of tax-exempt indebtedness for preliminary costs
of the Project and related expenses advanced by the City.
PASSED and APPROVED this 7a' day of February, 2006.
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FAYETTEVILLE:
ATTEST: :9sy RKANSP:•,r•fillYGT014 ••inteiCal
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By:
SONDRA SMITH, City Clerk
By:
APPROVED:
DAN COODY, Mayor
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FAYETTEVILLE
THE CITY OF iFAVETTEVILLIE„ ARKAN$A$
DEPARTMENTAL CORRESPONDENCE
TO: Fayetteville City Council
THROUGH: Dan Coody, Mayor
FROM: Stephen Davis, Finance & Internal Services Directo
DATE: January 19, 2006
SUBJECT: Amendment 78 Fire Station (s) Bond Program: Approval of
Resolution of Intent to Reimburse
Recommendation
Staff recommends approval of the resolution of intent to reimburse.
Background
The Citizens of Arkansas approved, at the General Election in 2000, Amendment 78 to the Arkansas
Constitution. Amendment 78 provides, in part, authorization for cities to enter into short-term bond
issues and capital lease agreements that are supported by the general revenues of the city. City
Councils are authorized to execute these debt instruments without a public vote. The Arkansas
Constitution limits the debt to no more than five (5) years and to no more than five (5%) per cent of
the assessed value of taxable property within the city. The City of Fayetteville approved a Debt
Management Policy on November 5, 2002 (Resolution 173-02) that established the policy and
underlying analysis that must be completed prior to initiating any debt agreements.
On November 7, 2002 the City of Fayetteville advertised and solicited requests for qualifications
(RFQ) for Bond Counsel Services and solicited requests for proposals (RFP) for Underwriter
Services and Leasing Services. The City of Fayetteville Debt Committee (established by Resolution
173-02) received the responses to the request for qualifications and request for proposals in January,
2003. The Debt Committee selected Gordon Wilbourn of Kutak Rock as Bond Counsel, Dennis
Hunt of Stephens, Inc and Crews and Associates as Bond Underwriter(s) and Bank of America
(BOA) Leasing for leasing services. Agreements with each of these service providers will be
developed and submitted to City Council for consideration and approval.
Discussion
The City has identified the need for an additional fire station and relocation of another fire station to
improve response times to calls -for -service.
JADcht Financing\Fire Station Bond Program Wire Station Bond Program_Resolution of Intent to Reimburse.doc
Approval of the Resolution of Intent to Reimburse will enable the City to pay for services rendered
in developing these fire station projects and when Amendment 78 bonds are issued, submit invoices
to the bond trustee for reimbursement. The Amendment 78 bond issue will be funded from a
portion of the existing city sales tax used for capital.
]:\Debt Financing\Fire Station Bond Program\Fire Station Bond Program_Resolution of Intent to Rcimburse.doc
RESOLUTION NO.
A RESOLUTION OF INTENT REGARDING THE REIMBURSEMENT
OF CERTAIN COSTS AND EXPENSES INCURRED IN CONNECTION
WITH THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF
FIRE STATION IMPROVEMENTS WITHIN THE CITY
WHEREAS, the City of' Fayetteville, Arkansas (the "City") desires to obtain
financing for the acquisition, construction and equipping of certain fire station facilities (the
"Project"); and
WHEREAS, the total costs of the Project, including expenses associated with the
financing thereof, are presently estimated to be approximately $ ; and
WHEREAS, the City does not currently have adequate funds on hand to pay the
estimated costs of the Project and related expenses; and
WHEREAS, the City presently intends to obtain the necessary funds to accomplish
the Project and to pay related expenses through the issuance of tax-exempt indebtedness in
principal amount not to exceed $3,000,000; and
WHEREAS, the purpose of this Resolution is for the City to declare its "official
intent" to reimburse itself for certain preliminary costs (incurred by or on behalf of the City
and related to the Project) pursuant to Section 1.150-2 of the Regulations of the U.S.
Department of Treasury promulgated pursuant to the provisions of the Internal Revenue Code
of 1986, as amended;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the adoption of this Resolution is intended as the City's "official
intent" to reimburse itself from the proceeds of tax-exempt indebtedness for preliminary costs
of the Project and related expenses advanced by the City.
PASSED and APPROVED this 7`" day of February, 2006.
APPROVED: it
By:
DAN COODY, Mayor
ATTEST:
By:
SONDRA SMITH, City Clerk
RESOLUTION NO.
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A RESOLUTION OF INTENT REGARDING THE REIMBURSEMENT
OF CERTAIN COSTS AND EXPENSES INCURRED IN CONNECTION
WITH THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF
FIRE STATION IMPROVEMENTS WITHIN THE CITY
WHEREAS, the City of Fayetteville, Arkansas (the "City") desires to obtain
financing for the acquisition, construction and equipping of certain fire station facilities (the
"Project"); and
WHEREAS, the total costs of the Project, including expenses associated with the
financing thereof, are presently estimated to be approximately $3,431,000.00; and
WHEREAS, the City does not currently have adequate funds on hand to pay the
estimated costs of the Project and related expenses; and
WHEREAS, the City presently intends to obtain the necessary funds to accomplish
the Project and to pay related expenses through the issuance of tax-exempt indebtedness in
principal amount not to exceed $3,000,000; and
WHEREAS, the purpose of this Resolution is for the City to declare its `official
intent" to reimburse itself for certain preliminary costs (incurred by or on behalf of the City
and related to the Project) pursuant to Section 1.150-2 of the Regulations of the U.S.
Department of Treasury promulgated pursuant to the provisions of the Internal Revenue Code
of 1986, as amended;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section I: That the adoption of this Resolution is intended as the City's `official
intent" to reimburse itself from the proceeds of tax-exempt indebtedness for preliminary costs
of the Project and related expenses advanced by the City.
PASSED and APPROVED this 7`h day of February, 2006.
ATTEST:
By:
SONDRA SMITH, City Clerk
APPROVED.
By:
DAN COODY, Mayor
• t=f
•
Clarice Pearman -IRes 18=06 Page 1
From: Clarice Pearman
To: Davis, Steve
Subject: Res. 18-06
Steve,
Attached is a copy of the resolution passed February 7, 2006 regarding the fire station costs and
expenses reimbursement.
Stephen Davis
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
Contracts
7 -Feb -06
City Council Meeting Date
FIS Director
Division
Action Required:
Finance & Internal Services
Department
Approval of a resolution of intent to reimburse for City expenses incurred in advance of a Fire Station Construction
Bond issue.
This resolution provides the mechanism for the City to be reimbursed for expenses associated with developing
replacement and new fire stations from bond proceeds.
$o.00
Cost of this request
Account Number
Project Number
Budgeted Item
Category/Project Budget
Funds Used to Date
Remaining Balance
Budget Adjustment Attached
Program Category / Project Name
Program / Project Category Name
Sales Tax Capital Imp. Fund
Fund Name
Depart ent Director
f dL
ate
City Attorney
Fina Internal Services
Mayor
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D to
17/ D
to
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Received in City Clerk's Office