HomeMy WebLinkAboutOrdinance No. 875 ORIGINAL
CITY OF THE COLONY, TEXAS
O DIN , C . NO. 75"
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS AUTHORIZING THE CITY MANAGER TO
EXECUTE OF A LETTER AGREEMENT WITH FIRST INTERSTATE
BANK OF TEXAS FOR $350,000 FOR THE PURCHASE OF CERTAIN
EQUIPMENT; AUTHORIZING A TAX LEVY FOR PAYMENT OF THE
NOTE; DESIGNATING THE NOTE AS A QUALIFIED TAX EXEMPT
OBLIGATION; PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY,
TEXAS:
Section 1. Pursuant to authority granted under Chapter 271, subchapter A, Texas
Local Government Code, as amended, the City Council of the City of The Colony hereby
authorize the City Manager to enter into a letter agreement with First Interstate Bank of
Texas for $350,000 for the purchase of personal property to be secured by a Note, the
execution and delivery of which is also herein authorized, said agreement being attached
hereto and incorporated herein and labeled Exhibit "A".
Section 2. That the personal property to be purchased is contained in Exhibit "B"
which is attached hereto and incorporated herein.
Section 3. Tax Levy_ for Payment of the Note_ (a) The City Council hereby declares
and covenants that it will provide and levy a tax legally and fully sufficient for payment of
the Note, it having been determined that the existing and available taxing authority of the
City for such purpose is adequate to permit a legally sufficient tax in consideration of all
other outstanding obligations of the City.
(b) In order to provide for the payment of the debt service requirements of the
Note, being (i) the interest on the Note, and (ii) a sinking fund for its payment at maturity
or a sinking fund of two percent per annum (whichever amount is greater), there is hereby
levied for the current year and each succeeding year thereafter, while the Note or interest
thereon remain outstanding and unpaid, an ad valorem tax on each one hundred dollars
valuation of taxable property within the City at a rate sufficient, within the limit prescribed
by law, to pay such debt service requirements, fully allowance being made for delinquencies
and costs of collection.
Capital Financing,1995
(c) The tax levied by this Section shall be assessed and collected each year and
deposited into an interest and sinking fund (the "Interest and Sinking Fund") for the
payment of the debt service requirements on the Note, and the tax shall not be diverted to
any other purpose.
Section 4. Federal Tax Covenants. (a) The City hereby represents that the proceeds
of the Note are needed at this time for the purposes specified in Section 1 hereof,; that
based on current facts, estimates and circumstances, it is reasonably expected that final
disbursement of the proceeds of the Note will occur within three years after the date the
Note is delivered to the Bank (the "Delivery Date") that substantial binding obligations to
commence such projects will be incurred within six months of the Delivery Date and that
the accomplishment of the projects w\for which the Note is executed and delivered will
proceed with due diligence to completion; that it is not reasonably expected that the
proceeds of the Note or money deposited in the Interest and Sinking Fund will be used or
invested in a manner that would cause the Note to be or become an "arbitrage bond", within
the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the
"Code"); and that, except for the Interest and Sinking Fund, no other funds or accounts have
been established or pledged to the payment of the Note.
(b) The City will not take any action or fail to take any action with respect to the
investment of the proceeds of the Note or any other funds of the City, including amounts
received from the investment of any of the foregoing, which act or omission based upon the
facts, estimates, and circumstances known on the Delivery Date, would result in constituting
the Note an "arbitrage bond", within the meaning of Section 148(0 of the Code, and the City
will not take any deliberate action motivated by arbitrage that would have such result.
(c) The City will not take any action of fail to take any action which act or omission
would (i) result in the interest on the Note being includable in gross income for federal tax
purposes; (ii) result in the Note being treated as a "private activity bond" within the
meaning of Section 141(a) of the Code; or (iii) result in the note being treated as "federally
guaranteed" within the meaning of Section 149(b) of the Code.
(d) The City will comply with the provisions of Section 148 (f) of the Code (relating
to paying certain excess earnings of investment proceeds of the Note to the United States)
and the regulations promulgated thereunder.
(e) The Note is hereby designated as a "qualified tax-exempt obligation" for the
purposes of section 265(b)(3) of the Code. In this regard, neither the City nor any of its
Cal~ital Financing.1995
subordinate entities, if any, reasonably expect to issue in excess of $10,000,000 aggregate
amount of tax-exempt obligatiom (other than obligations not taken into account pursuant
to section 265(b)(3)(C)(ii) during the calendar year in which the Note is delivered, and the
City hereby covenants not to designate more than $10,000,000 aggregate amount of tax-
exempt obligations as qualified tax-exempt obligations during the calendar year in which the
Note is delivered.
(f) Proper officers of the City are hereby directed to make, execute and deliver
certifications as to facts, estimates and circumstances in existence as of the Delivery Date
and stating whether there are any facts, estimates or circumstances that would materially
change the City's current expectations.
Section 5. That this ordinance shall take effect immediately upon approval, and it
is so ordained.
P&SSED AND APPROVED by the City Council of the City of The Colony, Texas
this d~ day of ~-~~/~.. , 1995.
ATI'EST:
Patti A. Hicks, TRMC, City Secretary
APPROVED AS TO FORM:
city ' tt~om~v
Capital Financing. 1995
EXHIBIT "B"
CITY OF THE COLONY
CAPITAL OUTLAY REQUESTS
1994-95 BUDGET YEAR
General Fund
GENERAL ADMINISTRATION
1 486SX Computer w/VGA Monitor/Cabling ................ $ 1,300
12 Conference Room Chairs ............................ 3,600
1 Computer Printer .......................... 700
1 Telephone System ........................ i. i. 1111111'81000
1 Trac Presentor (Council) .................. 300
Total
............................................ $13,900
CITY SECRETARY DEPARTMENT
1 Computerized Code of Ordinances (Software) ............. $ 2,000
1 Wireless Microphone & Accessories 700
Total .....................
............................................ $ 2,700
PERSONNEL DEPARTMENT
1 Secretarial Chair
.................................. $ 250
Total
............................................. $ 250
FINANCE DEPARTMENT
1 486SX Computer w/VGA Monitor
...................... $ 1,100
1 Application Software Upgrades
1 Calculator ......................... 2,000
1 Additional Computer Hub .................... 300
Total
............................................ $ 3,550
MUNICIPAL COURT
1 Vehicle for City Marshal
Total ............................. $11,800
............................................ $11,800
PARKS AND RECREATION DEPARTMENT
1 Network Computer System w/printers ................... $19,500
1 Rec-trac Software Package
1 Backpack Granular Blower ........................... 15,000
............................... 900
132
1 Stainless Sprayer ..................................... 230
1 Front End Loader Box Bade .......................... 30,000
1 Utility Vehicle
...................................... 12,000
Total
........................................... $ 77,630
AQUATIC PARK
1 Awnings $
1 Tot Dock ............ i ........................... 1,350
........................... 1,800
1 Computer Workstation ' ' 4,490
1 Lawn Mower ................................
1 Swim Lift
......................................... 3,000
I Spinal Rescue Board ................................... 200
2 Radios
1 Emergency Sp Response Kit ............................ 250
Total
............................................. $12,540
INSPECTIONS DEPARTMENT
I File Cabinet ......... $
1 Storage Cabinet ..... i ' 'i ................ 250
............... 250
1 Blueline Machine .................................... 1,000
1 Flat File for Plats & Plans ................................ 750
Total
............................................. $ 2,250
ANIMAL WILDLIFE PROTECTION DEPARTMENT
1 16 x 16 Storage Shed ............................... $1,500
1 Desk Top Copy Machine & Work Table ................... 1,410
1 Desk & 2 Chairs
...................................... 940
1 Computer printer
Total ...................................... 320
............................................. $ 4,170
FIRE DEPARTMENT
1 Fax Machine
..................................... $ 600
Firefighting Turn Out Equipment ........................ 12,000
3 Flex Pack Pump Units .................................. 600
1 1000' 1 3/4" Attack Fire Hose ........................... 2,040
1 Rescue Tools and Equipment Package
2 Zip Nuts .................... 8,900
.......................................... 1,500
1 Essentials of Firefighting Curriculum Package ............... 1,500
133
1 800 mHz Portable Radios
.............................. 1,300
22 Pagers ...................
1 Ut ty Bed .... 8,250
Total ........................................ 3,650
............................................ $ 40,340
POLICE DEPARTMENT
5 Police Vehicles
So .... ' .................................. $71,000
1 nware ~ysmm ................................. 400
1 Secretarial Chair ............ ' 400
1 Filing Cabinet (2 drawer) ....~..iiiiiiiii~i~iii~iii~iii~1120
9 Protective Vests ................................... 5,000
1 Temperature A ert System (K-9) ........................... 200
2 Shotguns ......................................... 400
2 Transport Bets & I Lock Anklet ........................... 190
5 Portable Shoulder Mikes
................................ 400
7 Push Bumpers
Total ...................................... 910
............................................ $79,020
LIBRARY
2 Air Conditioning Units ............................... $ 3,520
4 Multi-line Telephone ................................ 1,200
1 Telephone System Card ..................... 230
2 Computer Workstations ............................... 4,000
1 Network Hub ...................................... 250
1 E son Letter Mach ne & Dyes .......................... 1,000
Total
............................................ $10,200
PUBLIC WORKS DEPARTMENT
1 3/4 Ton Pickup Truck
1 Fertilizer Spreader ............................... $14,450
1 110 Volt Generator ..................................... 400
Total ................................... 450
............................................ $16,300
GENERAL FUND TOTAL .............................. $273,650
134
CITY OF THE COLONY
CAPITAL OUTLAY REQUESTS
199~95BUDGETYEAR
En~rprise Fund
WATER DISTRIBUTION DEPARTMENT
1 3/4 Ton Pickup Truck
1 1/2 Ton Extended Cab Pickup Truck ........... i. ~. i]~]~i $14,50
14,500
1 Reciprocating Saw .................................... 800
1 Hydraulic Jackhammer .... 2
~ .... ' ................... ,500
I 172 Self-priming Transfer Pump ........................... 650
1 2" Self-priming Trash Pump
Total ............................. 950
............................................ $ 33,900
WATER PRODUCTION DEPARTMENT
1 1/2 Ton Pickup Truck
Total ................................ $10,500
........................................... $10,500
UTILITY ADMINISTRATION
1 Central Cash Collection System Software
................ $ 8,000
1 Data Storage Unit
Total .....................................400
............................................ $ 8,400
VEHICLE MAINTENANCE DEPARTMENT
1 V4" Right Angle Drill
1 Heavy Duty 3/4" Socl~;t'~;t'iiiiiiill .................. $ 230
1 Door Hinge Wrench Set ..................... 650
Total ................................. 300
............................................. $1,180
ENTERPRISE FUND TOTAL ............................ $ 53,980
170
CITY OF THE COLONY
CAPITAL OUTLAY REQUESTS
1994-95 BUDGET YEAR
Stewart Creek Park
4 Park Benches
.................................... $ 1,100
6 Picnic Tables .( i (~r; i(; ~;3~t;;~ ~);3~1~)' .' .' .' .' .' .' .' .' .' .' .' .' .' .' .' .' .' 3,000
1 10' Gang Plan~< ;~ii 1,500
15 Trash Cans ..............
6 Grills & Fire Rings ........ '. · ........................ 1,130
1,380
Stewart Creek Park Total
.............................. $ 8,110
196