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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 $3;000,000; and WHEREAS, the purpose of this Resolution is for the City to declare its "official intent" to reimburse itself for certain preliminary costs (incurred by or on behalf of the City and related to the Project) pursuant to Section 1.150-2 of the Regulations of the U.S. Department of Treasury promulgated pursuant to the provisions of the Internal Revenue Code of 1986, as amended; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the adoption of this Resolution is intended as the City's "official intent" to reimburse itself from the proceeds of tax-exempt indebtedness for preliminary costs of the Project and related expenses advanced by the City. PASSED and APPROVED this 7a' day of February, 2006. 0aqfluff 191 ll G .U"0 :}1_ ;• FAYETTEVILLE: ATTEST: :9sy RKANSP:•,r•fillYGT014 ••inteiCal ei.ei By: SONDRA SMITH, City Clerk By: APPROVED: DAN COODY, Mayor • FAYETTEVILLE THE CITY OF iFAVETTEVILLIE„ ARKAN$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. etuiessi Z/7/ok 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 o,e D to 17/ D to Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City Clerk's Office