Title
Consider a resolution expressing official intent to reimburse certain expenditures for vehicles and equipment.
Body
This resolution will allow fleet and equipment purchases to move forward using existing cash and then reimburse the funds once Limited Tax Notes are issued. The City’s practice has been to acquire these items with cash and subsequently finance them for five years through a tax-exempt limited tax note issuance. This type of financing allows the City to replace equipment and rolling stock in a timely manner as requirement criteria are met. The adopted FY2023-24 budget of $4,800,000 assumed the lease funding for these vehicle and equipment purchases.
This resolution is required to meet IRS rules and regulations regarding the use of tax-exempt funds.
Staff recommends approval
Cost: $4,800,000
Source: General Self-Financed Purchases