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HomeMy WebLinkAboutResolution_43-20_11/12/2020RESOLUTION 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. 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. RESOLUTION Date 43-20 11 /12/20 Motion Council Member Frank D'Ambra Second Vice -Mayor Kyle Stone FOR AGAINST ABSENT CONFLICT Mayor Abigail Brennan ❑x ❑ ❑ ❑ Vice -Mayor Kyle Stone IE ❑ ❑ ❑ Council Member Laurie Brandon ❑ ❑ ❑x ❑ Council Member Frank D'Ambra ❑x ❑ ❑ ❑ Council Member Bruce Prince ❑x ❑ ❑ ❑ The Mayor thereupon declared the Resolution duly passed and adopted. MAYOR OF TEQUESTA: .0gailt nna ATTEST: SEAL >° INCORPORATE �- � ' 1 � �,r�.��f--- l's� � ENE 4, �°'�•� Lori McWilliams, MMC Village Clerk 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.