Title
Consider a resolution expressing official intent to reimburse cost of acquiring certain vehicles and equipment.
Body
In accordance with the operating budget, certain equipment is acquired with cash and subsequently financed for three years through a tax-exempt leasing agreement. Because of the tax-exempt nature of the financing, Internal Revenue Service regulations require the City to state its intentions before the transactions are completed. This type of financing allows the City to acquire new equipment and replace equipment and rolling stock in a timely manner as requirement criteria are met. This request will not exceed a dollar amount of $1,600,000. Payment of principle and interest for the three year amortization of this obligation is funded from the debt service portion of the property tax.
Recommended Action
Staff recommends approval.