DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
A Resolution authorizing reimbursement of funds previously expended from the proceeds of a future Master Tax-Exempt Lease/Purchase Agreement for equipment for various departments to be entered into by and between the City of San Antonio and a financial institution selected by the City; and enacting other provisions incident and related to the subject and purpose of this Resolution
SUMMARY:
This Resolution authorizes reimbursement of funds previously expended from the proceeds of a future Master Tax-Exempt Lease/Purchase Agreement for equipment for various departments to be entered into by and between the City of San Antonio and a financial institution selected by the City; and enacts other provisions incident and related to the subject and purpose of this Resolution.
BACKGROUND INFORMATION:
Approval of this Reimbursement Resolution will enable the City to reimburse itself for project expenditures of up to $17,000,000 for Fire equipment, Solid Waste equipment, and a police helicopter to be funded by proceeds of a 2018 Master Tax-Exempt Lease Purchase Agreement but expended prior to receipt of lease proceeds.
The Texas Government Code, as amended, provides that proceeds from the sale of public securities, such as the lease proceeds, that are issued to finance the acquisition, construction, equipping, or furnishing of any project or facilities, may be used to reimburse the issuer, for costs attributable to such project or facilities paid or incurred before the date of issuance of such obligations.
The United States Department of Treasury Regulation Section 1.150-2 establishes when the proceeds of obligations are spent and therefore are no longer subject to various federal income tax restrictions contained in the Internal Revenue Code of 1986, as amended (the "Code"). This Reimbursement Resolution is necessary to meet the requirements of the Cod...
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