HomeMy WebLinkAboutReimbursement of Capital Expenditures
Augusta Richmond GA
DOCUMENT NAME: 'K e.. i vv1 bJ r5e- n e-n 1- 6 f Le- () i +0-- (
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DOCUMENT TYPE: r;) {
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YEAR: r g 01
BOX NUMBER: I,
FILE NUMBER: /:J- Lo 7 G
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NUMBER OF PAGES:
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RESOLUTION DECLARING OFFICIAL INTENT OF
REIMBURSEMENT OF CAPITAL EXPENDITURES
BE IT RESOLVED by the Augusta-Richmond County Commission-
Council (the "Governing Body") of Augusta-Richmond County (the
"Governmental Unit"), as follows:
Section 1. Recitals. (a) The Internal Revenue Service has
issued Section 1.150-2 of the Income Tax Regulations (the
"Regulations") dealing with the issuance of obligations, all or a
portion of the proceeds of which are to be used to reimburse the
Governmental Unit for project expenditures made by the Governmental
Unit prior to the date of issuance of the obligations.
(b) The Regulations generally require that the Governmental
Unit make a declaration of its official intent to reimburse itself
for such prior expenditures out of the proceeds of a subsequently
issued borrowing, that the borrowing occur and the reimbursement
allocation be made from the proceeds of such borrowing within 18
months of the payment of the expenditure or, if longer, within 18
months of the date the project is placed in service or abandoned
but in no event more than three years after the expenditure is
paid, and that the expenditure be a capital expenditure.
(c) This Governing Body has determined that it is necessary
and in the best interests of the Governmental Unit to acquire
certain (1996 Sheriff's Department Vehicles) described on Schedule
A hereto (the "Equipment). The Governmental Unit intends to
finance all or a portion of such Equipment cost through the
entering into of a lease-purchase agreement, the interest on which
is intended to be excludable from the gross income of ~he recipient
for federal income tax purposes (the "Lease"). The Governmental
Unit expects to make expenditures for costs relating to the
Equipment after the date of this resolution (or has made such
expenditure no longer than 60 days prior to the date of this
resolution) and prior to the entering into of such Lease.
Section 2. Official Intent Declaration. The Governmental
Unit reasonably expects to reimburse the expenditures it will make
or has made in the last 60 days for costs of the acquisition of
Equipment out of the proceeds of the Lease to be incurred by the
Governmental Unit in a maximum principal amount of $2,069,273.95
after the date of payment of all or a portion of such acquisition
costs. All reimbursed expenditures shall be capital expenditures
as defined in Section 1.150-1(h) of the Regulations.
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Section 3. Reimbursement Allocations. The Governmental
Unit's financial officer shall be responsible for making a written
reimbursement allocation described in the Regulations, being
generally the transfer of the appropriate amount of proceeds of the
Lease to reimburse the source of temporary financing used by the
Governmental Unit to make payment of the prior costs of the
Equipment. Each allocation shall be evidenced by an entry on the
official books and records of the Governmental Unit maintained for
the Lease, shall specifically identify the actual prior expenditure
being reimbursed or, in the case of reimbursement of a fund or
account in accordance with Section 1.150-2, the fund or account
from which the expenditure was paid. Such allocation shall be made
within 30 days of the issuance of the Lease.
Adopted this ~ day of , 1996.
~afJI~
MAY 13 '96 14:00 FR GE CAPITAL CORP.
407 667 0086 TO 17068212520
P.02/02
"
RESOLUTlON OEClARING OFACIAlINTENT OF
REIMBURSEMENT OF CAPITAl EXPeNDITURES
BE IT RESOLVED by the
(the -Govemmenlal Unite). as followS:
(the -Governing Body-) of
Section 1. RtlCitJl/s. (al The Internal Revenue service has issued Section 1.150-2 of the
Income Tax RegulationS (the -Regulations-' dealing with the issuance of obligations, all or a ponion
of the proceeds of which are to be used to reimburse the Governmental Unit fOt' project expenditures
m~e by the Governmental Unn prior 10 the date of issuance of the obligations.
(b) The Regulations generally require that the Govemm1!ntal Unit make a declaration of its
official intent to reimburse itself fo( such pdor expenditures out of the proceeds of a subsequently
issued borrowing, that the borrowing occur and the reimbursement allocation be made from the
proceeds of such borrowing within 18 months of the payment of the expenditure or, if longer, wittlin
, 8 months of me date dle project is placed in service or abandoned but in no event more than three
years after the expenditure is paid. and that the expenditure be a capital expendi1ure.
tc) Thi$ Governing Body has determined that it is n~cessary and in ,he best interests of
the Govemmental Unit ~o aCQuire C$ttain (Insert Descti(ltiot'l of Function of Eauioment) described on
Schedule A hereto (the -Equipmen,"l, The Governmental Unit intends to finance all or a portion of
such EQuipment cost through the entering into of a lease-purchase agreement the interest on which
is intended to be excludable from the O(OSS income of the recipient for federal income tax purposes
(the -Lease-). The Governmental Unit expects to make expenditures for costS relating to the
Equipment after the date of thiS resolution tor has made such expenditure no lonoer than 60 days prio(
to the date of this resolution) and prior to the entering into of such Lease.
Section 2. (}ffidaIlntiJlft DtlClaration, The Governmental Unit reasonably expectS to reimburse
the exPenditures it will make or has made in the last 60 dayS for COStS of the acquisition of EQuipment
out of the proceeds of ~l.ease to be incurred by the Governmental Unit in 3 maximum principal
amount Of $~, 01.09 ,.;n!l. \1ier the date of payment at all or a portion of such aCQuisition costS. All
reimbu(sed expenditunt$ shall be capital eXPenditures as defined in Section 1.150-1lhl of the
Regulations.
Section 3. Reimlu1r$t1ment .A/loation$. The Govemmental Unit's fi~ncial officer shall be
responsible for making" written reimbursement allocation described in the Regulations, being generaUy
the transfer of the appropriate amount of prOCHds of the Lease to reimburse the source of temporary
financing used by the Govemment4l1 Unit to make payment of the prior costs of the EQuipment. Each
.,lIocation Shall be evidenced by an envy on the off'lCial books and records of the Governmental Unit
maintained for the lease. shall specifICill", identify the aCtual prior expenditure being reimbursed Dr,
in the case of reimbursement of a fund or account in accordance with section 1,150-2, the fund or
~Ccounl from which the expenditure was paid. Such allocation shall be made within 30 days of the
issuance of the Lease.
Adopted thiS _ day of
.199_.
Chairperson
Attest:
\doc:\offlct..in\
** TOTAL PAGE.02 **
BOARD OF COMMKSSKONERS
A. 8, McKIE, JR,
Comptroller
(706) 821-2429
FINANCE DEPARTMENT
ACCOUNTING DEPARTMENT
COLLECTION DEPARTMENT
821-2429
621-2334
821,2580
ROOM 207 - FINANCE DEPARTMENT
ROOM 105 - ACCOUNTING DEPARTMENT
ROOM 215 - COLLECTION DEPARTMENT
CITY,COUNTY MUNICIPAL 8LDG, (11)
AUGUSTA, GEORGIA 30911
May 2, 1996
Honorable Jerry Brigham, Chairman
Finance Committee
Re: Lease Purchase of 1996 Police Vehicles
Dear Mr. Brigham:
Banc One Kentucky Leasing Corporation has agreed to finance $2,028,182.65 for new
police vehicles. We have used this firm in the past as their service has been excellent. The unique
aspect of this financing is the terms are a little different in that the payback dates are annual
deferred, for one year. In other words, we accept delivery now, pay the dealer now, do not make
our first payment until May 1997. There will be two subsequent payments in May, 1998 and
1999. This arrangement is favorable in that our revenues will.pick-up significantly in 1997. We
recommend approval. .
Your consideration in this matter is greatly appreciated.
. If you have any further questions, feel free to contact me.
..~
Johnn tchell
Budget Analyst
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1996 Police Vehicles - Ford Grown Vie's Bane 1
05-02-1996 Pg
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Compounding period...:
Annual
Nominal annual rate..:
Effective annual rate:
Periodic rate........:
Equivalent daily rate:
6.500 %
6~500 %
6.5000 %
0.01806 %
CASH FLOW DATA
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Event
Date
Amount
# Period End-date
------------------------------------------------------------------------------
1 Loan 05-15-96 2,028,183 1
2 Payment 05-15-97 765,793 3 Annual 05-15-99
AMORTIZATION SCHEDULE - Normal amortization 360 day year
Pmt Date Payment Interest Principal Balance
Loan 05-15-1996 2,028,183
1996 totals 0 0 0
1 05-15-1997 765,793 131,832 633,961 1,394,222
1997 totals 765,793 131,832 633,961
2 05-15-1998 765,793 90,624 675,169 719,053
1998 totals 765,793 90,624 675,169
3 05-15-1999 765,793 46,740 719,053 0
1999 totals 765,793 46,740 719,053
Grand totals ,2,297,379 269,196 2,028,183