HomeMy Public PortalAbout2001_10_23_r177The Town of
l eesburg,
lrglnla
PRESENTED October 23, 2001
RESOLUTION NO. 2001-177 ADOPTED October 23, 2001
A RESOLUTION: AUTHORING THE IJEASE FINANCING OF CERTAIN VEHICLES
AND OTHER EQUIPMENT
WHEREAS, the budget for Fiscal Year 2002 included the lease purchase financing of
$539, 500 in automotive and public works equipment items; and
WHEREAS, bids were received on October 1, 2001 from Ford Motor Credit Company,
Sun Trust Bank and First Municipal Credit Corporation in response to our Invitation to Bid for
the financing of capital equipment items; and
WHEREAS, based on the bids received, it is recommend that the lease purchase
financing be awarded to Sun Trust Bank; and
WHEREAS, the Town Council of the Town of Leesburg, Virginia ("Town") has
determined that it is necessary and advisable to acquire certain vehicles and equipment
("Project") for the Town and to obtain financing for the Project through a financing lease
providing financing for the Project in the maximum principal amount of $539,500 ("Lease").
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia:
1. Approval of Proposal to Provide Financing. The proposal of Sun Trust Bank
to provide financing for the Project at an annual interest rate of 2.87% with
the three equal annual principal payments is hereby accepted and approved.
2. Authorization and Execution of Documents. The Town Council authorizes
and directs the Town Manager and the Director of Finance of the Town, or
either of them, to execute on behalf of the Town, the Lease, in substantially
the form on file with the Director of Finance and, if required, the Clerk or any
Deputy Clerk of the Town Council is authorized and directed to affix or to
cause to be affixed the seal of the Town to the Lease and to attest such seal.
Such officers or their designees are authorized to execute and deliver on
behalf of the Town such instruments, documents or certificates, and to do and
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A RESOLUTION: AUTHORIZING LEASE FINANCING OF CERTAIN VEHICLES
perform such things and acts, as they shall deem necessary or appropriate to
carry out the transaction authorized by this Resolution or contemplated by the
Lease; and all of the foregoing, previously done or performed by such officers
or agents of the Town, are in all respects approved, ratified and confirmed.
Nature of Obligation. The obligation of the Town to make payments under
the Lease is subject to appropriation each year by the Town Council. Nothing
in this Resolution or the Lease shall constitute a debt or a pledge of the faith
or credit of the Town.
Designation for Bank Qualification. The Town Council designates the Lease
as a "qualified tax-exempt obligation" eligible for the exception from the
disallowance of the deduction of interest by financial institutions allocable to
the cost of carrying tax-exempt obligations in accordance with the provisions
of Sections 265(b)(3) of the Internal Revenue Code of 1986, as amended. The
Town and any of its "subordinate entities" do not reasonably anticipate
issuing more than $10,000,000 in tax-exempt obligations during calendar year
2001 and during such calendar year the Town will not designate more than
$10,000,000 of qualified tax-exempt obligations pursuant to such Section
265(b)(3).
5. Effective date. This resolution shall be in effect upon its passage.
PASSED this 23rd day of October 2001.
B. J. X~/,a/bb, Mayor
Town of Leesburg
ATTEST:
lerk of Council
R:leasefinance
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A RESOLUTION: AUTHORIZING IJEASE FINANCING OF CERTAIN VEHICLES
At a regular meeting of the Town Council of the Town of Leesburg, Virginia, held on the
23rd day of October 2001, the following Town Council members were recorded as present:
PRESENT:
Councilmembers George Atwell, Mervin Jackson, Leonard McDonald, David
Schmidt, Robert Zoldos, Kristen Umstattd and Mayor
Webb.
On a motion by Mervin Jackson, seconded by, Vice-Mayor Kristen Umstattd, the
attached resolution was adopted by a majority of the members of the Town Council by a roll call
vote, the votes being recorded as follows:
MEMBER
George Atwell
Mervin Jackson
Leonard McDonald
David Schmidt
Kristen Umstattd
Robert Zoldos
Mayor B. J. Webb
VOTE
Aye
Aye
Aye
Aye
Aye
Aye
Aye