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HomeMy WebLinkAboutRES 13-108 RESOLUTION NO.13-108 WHEREAS, the City of Beaumont declared an intent to acquire certain equipment as a capital expenditure with reimbursement to be funded from proceeds of a lease purchase agreement. The equipment hereinafter called "PROPERTY" is generally described below: One (1) Pavement Recycler-Mixer $282,231.60 One (1) Digger Derrick $224,008.00 One (1) Boring Machine $131,125.47 One (1) Gradall $307,313.07 and, WHEREAS, the City of Beaumont may pay certain capital expenditures in connection with the Property prior to its receipt of proceeds of the lease-purchase agreement(s) described below for such expenditures; and, WHEREAS, the City of Beaumont reasonably anticipated that it would make expenditures with respect to the Property in the principal amount not exceeding the amount stated above for which the Lessee may or expects to enter into one or more Lease- Purchase Agreements with a financial institution; and, WHEREAS,Treasury Department and Internal Revenue Service Regulations do not allow the proceeds of a tax-exempt borrowing to be spent on working capital; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: Section 1. The City of Beaumont finds and determines that the foregoing recitals are true and correct. Section 2. This Resolution is adopted by the City of Beaumont for the purpose of establishing compliance with the requirements of Section 1.150-2 of Treasury Regulations. This Resolution does not bind the City of Beaumont to make any expenditure, incur any indebtedness, or proceed with the purchase of the Property. Section 3. The City of Beaumont expects the City of Beaumont will pay certain capital expenditures in connection with the Property prior to the receipt of the Lease Purchase Proceeds for the Property. Section 4. The City of Beaumont hereby declares the City of Beaumont's official intent to use the Lease Purchase Proceeds to reimburse itself for the above described Property expenditures. Section 5. This Resolution shall take effect from and after its adoption. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 14th day of May, 2013. ����� tea► I�,�,� M yor ecky es - ,I of1 S�