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HomeMy WebLinkAboutResolution - 2013-R0363 - Intent To Reinburse Self For Capital Expenditures Using Tax Exempt Obligations - 10/24/2013Resolution No. 2013-RO363 October 24 2013 Item No. 5.2 RESOLUTION EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED WHEREAS, the City of Lubbock, Texas (the "Issuer") is a political subdivision of the State of Texas authorized to finance its activities by issuing debt obligations, the interest on which is excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended (the "Obligations"); WHEREAS, the Issuer will make, or has made not more than 60 days prior to the date hereof, payments for capital expenditures with respect to the acquisition, construction, reconstruction or renovation of the projects listed on Exhibit A attached hereto; WHEREAS, the Issuer has concluded that it does not currently desire to issue Obligations to finance costs associated with the projects listed on Exhibit A attached hereto; WHEREAS, the Issuer desires to reimburse itself for capital expenditures associated with the projects listed on Exhibit A attached hereto from the proceeds of Obligations to be issued subsequent to the date hereof, and WHEREAS, the Issuer reasonably expects to issue Obligations to reimburse itself for the costs associated with the projects listed on Exhibit A attached hereto. NOW, THEREFORE, be it resolved that: Section 1. The Issuer reasonably expects to reimburse itself for capital expenditures that have been or will be paid subsequent to the date that is 60 days prior to the date hereof, but not more than 18 months after the date hereof, and that are to be paid in connection with the acquisition, construction, reconstruction or renovation of the projects listed on Exhibit A attached hereto from the proceeds of Obligations to be issued subsequent to the date hereof. Section 2. The Issuer reasonably expects that the maximum principal amount of Obligations issued to reimburse the Issuer for the costs associated with the property listed on Exhibit A attached hereto will not exceed $130,000,000. HOU:3359599.1 ADOPTED THIS 24th day of October , 2013, by the City Council of the City of Lubbock, TX. WCAMERTSON, MAYOR ATTEST: 'yReScca Garza ecretary APPROVED AS TO CONTENT: (�" m�' Pamela Moon Executive Director of Finance APPROVED AS TO FORM: L Jerry V. yle, Jr. Bond Counsel HOU 3359599 1 EXHIBIT A Cost Estimate Certificates of Obligation Airport Runway 17R/35L Construction Phase II $ 2,638,446 Central Business District TIF Underground Utilities 2,472,148 Parks Park Playground Replacement 793,163 Mose Hood Park Restroom 300,000 Gateway 98th Street - University Avenue to US 87 1,560,348 Internal Service Upgrade 800 MHZ Radio System to P25 Compliance 3,490,000 Public Safety Multi -Company Fire Station No. 19 1,000,000 Animal Shelter Expansion 400,000 Streets Sign Upgrades and Replacement 150,000 Traffic Signal Controllers 300,000 Street Maintenance Program 9,622,300 Communication System Expansion 350,000 Solid Waste Southside Office Building Expansion 275,380 Wastewater Sewer Line Replacement 390,000 Sewer Lines Ahead of Street Paving 250,000 Water Reclamation Plant Replacements 300,000 SEWRP Solids Handling Facility Improvements 40,000,000 South Lubbock Sanitary Sewer Expansion Phase II 1,000,000 SEWRP Emergency Generator and Switch Gear 926,517 Office/Warehouse Replacement Facility - WW 1,250,000 Water Water Line Replacements 500,000 Water Lines Ahead of Street Pavings 800,000 Water Meter Replacements 450,000 Locate and Replace Water Valves 700,000 BCWF Supply Line/Pumping System 16,000,000 Pump Station Emergency Electric Generators 5,700,000 Taste and Odor Control 100,000 South Lubbock Water Treatment Plant Expansion 1,000,000 Electrical Distribution Oil Contact Recloser Units 250,000 Office/Warehouse Facility Replacement - Water 1,250,000 Total Certificates of Obligation 94,218,302 EXHIBIT A Master Lease Purchase 13,673,293 Total $ 128,641,595 Cost Estimate Revenue Bonds Lubbock Power and Light Substation Land Acquisition 2,000,000 230 kV Transmission Loop 6,300,000 69 kV Transmission Line Reconductoring 1,500,000 Cooke Station Outage 4,850,000 Massengale Outage 1,500,000 Brandon Outage 3,500,000 General Plant Outage 1,100,000 Total Revenue Bonds 20,750,000 Master Lease Purchase 13,673,293 Total $ 128,641,595