TO: Mayor and Commissioners
FROM: Henry M. Dachowitz, Chief Financial Officer
THROUGH: Terrence R. Moore, ICMA-CM
DATE: January 7, 2025
Title
RESOLUTION NO. 18-25: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA DECLARING ITS OFFICIAL INTENT TO REIMBURSE THE CENTRAL GARAGE FUND - TRANSPORTATION SERVICES, WITH THE PROCEEDS DERIVED FROM THE EXECUTION AND DELIVERY OF ONE OR MORE FUTURE LEASE PURCHASE AGREEMENT(S) BETWEEN THE CITY, AS LESSEE, AND A THIRD PARTY VENDOR AS LESSOR, IN AN AGGREGATE PRINCIPAL AMOUNT IN AN ESTIMATED NOT TO EXCEED AMOUNT OF $3,826,244 FOR CERTAIN CAPITAL EXPENDITURES APPROVED IN THE FISCAL YEAR 2024-2025 BUDGET; EXPRESSING THE INTENT FOR PURPOSES OF COMPLIANCE WITH UNITED STATES TREASURY REGULATION 1.150-2(E); PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.
Body
Recommended Action:
Recommendation
Motion to approve Resolution No. 18-25 declaring an official intent to reimburse the Central Garage Fund with the proceeds from tax-exempt lease purchase proceeds in an aggregate principal amount of not to exceed $3,826,244 for certain capital expenditures approved in the Fiscal Year (FY) 2024-25 approved budget.
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Background:
The City’s FY 2024-25 adopted budget contains certain capital expenditures that will be financed with the proceeds of capital lease. IRS regulations require that the City timely adopt a resolution expressing its official intent that an original expenditure will be reimbursed with the proceeds of a future debt issue (lease financing). This declaration of official intent must not be later than 60 days after payment of the original expenditure.
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source/Financial Impact:
Central Garage Fund/Lease Purchase Proceeds: 501-00-000-384.103
Time Sensitive:
N/A