HomeMy WebLinkAboutDocumentation_Regular_Tab 15_11/12/2020 Agenda Item #15.
Regular Council
STAFF MEMO �
Meeting: Regular Council - Nov 12 2020
Staff Contact: Hugh Dunkley, Finance Director Department: Finance
RESOLUTION 43-20, A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA DECLARING ITS INTENT TO REIMBURSE THE GENERAL FUND,
BUILDING FUND AND WATER FUND FROM THE PROCEEDS OF A FUTURE LEASE-PURCHASE
FINANCING FOR CERTAIN CAPITAL EXPENDITURES APPROVED IN THE FISCAL YEAR 2021
BUDGET; EXPRESSING THE INTENT FOR PURPOSES OF COMPLIANCE WITH UNITED
STATES TREASURY REGULATION SECTION 1.150-(2)(E); PROVIDING FOR THE ISSUANCE BY
THE VILLAGE OF TAX EXEMPT DEBT IN ONE OR MORE SERIES IN AN AGGREGATE
PRINCIPAL AMOUNT NOT EXCEEDING $479,600 TO PAY THE COST OF SUCH CAPITAL
EXPENDITURES; AND PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.
The Village's FY2021 adopted budget contains certain capital expenditures that will be financed with
the proceeds of tax-exempt debt, namely via lease financing. IRS regulations require that the Village
timely adopt an official intent that an original expenditure will be reimbursed with the proceeds of a
future debt issue. This declaration of official intent must not be later than 60 days after payment of the
original expenditure.
POTENTIAL MOTION / DIRECTION REQUESTED
Staff recommends Council's passage of the resolution expressing its intent for the Village to be
reimbursed with future lease-purchase proceeds.
,ATTACHMENTS:=Md
LEASE PURCHASE REIMBURSEMENT RESOLUTION ADA
EXHIBIT A Lease Purchase Intent FY21 ADA
Page 335 of 478
Agenda Item #15.
RESOLUTION 43-20
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA DECLARING ITS INTENT TO REIMBURSE THE
GENERAL FUND, BUILDING FUND AND WATER FUND FROM THE
PROCEEDS OF A FUTURE LEASE-PURCHASE FINANCING FOR
CERTAIN CAPITAL EXPENDITURES APPROVED IN THE FISCAL
YEAR 2021 BUDGET; EXPRESSING THE INTENT FOR PURPOSES OF
COMPLIANCE WITH UNITED STATES TREASURY REGULATION
SECTION 1.150-(2)(E); PROVIDING FOR THE ISSUANCE BY THE
VILLAGE OF TAX EXEMPT DEBT IN ONE OR MORE SERIES IN AN
AGGREGATE PRINCIPAL AMOUNT NOT EXCEEDING $479,600 TO
PAY THE COST OF SUCH CAPITAL EXPENDITURES; AND
PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.
WHEREAS, Village of Tequesta, Florida (the "Village") authorized the lease-
purchase of various capital equipment in its approved budget for Fiscal Year 2021; and
WHEREAS, the Village reasonably expects to finance the costs of such Capital
Expenditures from the proceeds of a future lease-purchase financing to be issued in
one or more series the interest on which is intended to be excludable from gross income
for federal income tax purposes (the "Tax Exempt Financing"); and
WHEREAS, the Village expects to initially pay certain costs of these Capital
Expenditures with funds other than proceeds of the Tax Exempt Financing (the
"Advanced Funds") and to reimburse itself for such expenditures with proceeds from the
Tax Exempt Financing.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, THAT:
SECTION 1. AUTHORITY. This Resolution is adopted pursuant to Section
1.150-(2)(e) of the United States treasury regulations and other applicable provisions of
law.
SECTION 2. FINDINGS. The members of the Village Council hereby find,
determine and declare as follows:
A. The Village is authorized under law to issue the Tax Exempt Financing for
the valid public purpose of paying the cost of the Capital Expenditures listed in Exhibit
A.
B. It is necessary, desirable, convenient and in the interest of the Village that
the Capital Expenditures be financed as contemplated in this Resolution.
C. The Village expects to pay certain costs of the Capital Expenditures with
Advanced Funds before the issuance of the Tax Exempt Financing.
Page 336 of 478
Agenda Item #15.
SECTION 3. EXPRESSION OF INTENT. The Village reasonably expects to use
the proceeds of the Tax Exempt Financing to reimburse itself for expenditures
described herein made with the Advanced Funds. This Resolution is a declaration of
the official intent of the Village in that regard, within the contemplation of Section 1.150-
(2)(e) of the Income Tax Regulations promulgated by the United States Department of
the Treasury.
SECTION 4. MAXIMUM AMOUNT OF DEBT. The maximum principal amount
of the Tax Exempt Financing reasonably expected to be issued to finance the cost of
the Capital Expenditures is $479,600.
SECTION 5. FURTHER ACTION. The officers and employees of the Village are
hereby authorized as are its legal and financial consultants, to do all acts and things
required of them by this Resolution, including but not limited to engaging underwriters or
lenders, and financial advisor(s), for the Tax Exempt Financing for the full, punctual and
complete performance of all the terms, covenants and agreements contained herein or
necessary or convenient to the issuance of the Tax Exempt Financing as provided
herein.
SECTION 6. EFFECTIVE DATE. This Resolution shall take effect immediately
upon its adoption.
Page 337 of 478
Agenda Item #15.
EXHIBIT A
Maximum principal amount of tax-exempt debt: $479,,600
General Fund ($416,900)
Police Vehicles (4) - $149,600
IT — SAN Replacement Project - $267,300 (a)
Building Fund ($19,800)
IT — SAN Replacement Project - $19,800 (a)
Water Fund ($42,900)
IT — SAN Replacement Project - $42,900 (a)
(a) Total estimated cost for SAN Replacement Project amounts to$330,000.
Page 338 of 478
