HomeMy Public PortalAboutResolution 33-94 Borrowing of Fundsf
}
RESOLUTION NO.33-94
A RESOLUTION OF THE CITY OF MCCALL, VALLEY COUNTY, IDAHO, RELATING TO
ADMINISTRATION; AUTHORIZING THE BORROWING FOR FUNDS FOR THE LEASE OF CERTAIN
ELECTRONIC, AUTOMOTIVE AND CONSTRUCTION EQUIPMENT; STATING THE TERMS AND
CONDITIONS OF THE BORROWING; AND AUTHORIZING THE EXECUTION OF DOCUMENTS.
WHEREAS:
The Mayor and Council, in adopting the budget for the fiscal year which began October 1, 1994, have
determined the need to purchase certain electronic, construction and automotive equipment including:
computers, electronic imaging system, backhoe, motor grader, pickup truck, police patrol units and other
items, for the efficient delivery of city services.
The Mayor and Council find and declare that these items are ordinary, necessary and replacement
equipment within the meaning of Section 3, Article VIII of the Idaho Constitution.
NOW,THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF
MCCALL, as follows:
Section 1. That the Mayor and Clerk be, and the same are hereby authorized and directed to
execute a lease agreement to obtain the electronic equipment at a purchase price not to exceed $65,000 for
three years at 5.75 percent per annum.
Section 2. That the Mayor and Clerk be, and the same are hereby authorized and directed to.
execute a lease agreement to obtain the automotive and construction equipment at a purchase price not to
exceed $480,000 for 4 years at 5.95 percent per annum.
Section 3. That West One Bank, Idaho is designated as the financing institution for the agreements
described in sections 1 and 2.
PASSED AND APPROVED this 27th day of October 1994.
Al"1'EST :
Mayor
1 psi Uifh lies un_;
DATE
MUNICIPALITY
Schedule 1
Repayment 1
Repayment 2
Schedule 2
Repayment 1
Repayment 2
Small Issuer
Exemption
Title
EESTQNE
BANK
MUNICIPAL EQUIPMENT FINANCING
PROPOSAL FOR
CITY OF MCCALL
October 18, 1994
City of McCall, Idaho
Electronic Equipment
* Total project cost $60,400.00
* Downpayment of $6,040.00 (10% of cost)
* Annual payments starting 10-01-95
* 3 annual payments of approximately $20,163.00
* Annual percentage rate of 5.75%*
* 5 annual payments of approximately $12,835.00
* Annual percentage rate of 5.95%*
Automotive and Construction Equipment
* Total project cost $477,300.00
* Downpayment of $97,680.00 (20% of cost)
* Would prefer to group equipment together on
like delivery dates
* 4 annual payments
* Annual percentage rate of 5.95%*
* 6 annual payments
* Annual percentage rate of 6.35%*
* These rates are good for 30 days
The annual percentage rate and payment amounts
in this proposal are predicated on the Citys'
qualifying for the "small issuer exemption"
under the Tax Reform Act of 1986, Code Section
265 (6) (3) . To qualify, the City must
covenant that it reasonably expects to issue
not more than a total of $10 million in debt
obligations during the 1994 calendar year.
Title to the equipment is vested in the City
during the term of the lease. When the final
payment is made, the City will own all
equipment "free and clear"- there is no
residual to pay.
Terms of Proposal The terms in this proposal are committed for
30 days, after which rates may change subject
to money market fluctuations. This proposal
does not represent a commitment to finance;
any such commitment is contingent upon credit
approval.
Attorneys opinion The City's legal counsel must opine that the
municipality is a body corporate and politic
under the laws of the state and that the
agreement has been duly authorized and
executed and that the person signing the
agreement is authorized to do so on behalf of
the municipality.
Council minutes The City will need to provide a copy of the
City Council Meeting minutes authorizing the
financing with West One Bank, Idaho and
stating:
* The specific type of equipment and its
original cost.
* The lease terms, payment amount and annual
percentage rate.
* The name of the individual authorized to
sign the lease documents.
The Councils unanimous approval is required
Financial Data The City will need to provide a copy of its
current and most recent financial statement
and budget if they are not already on file
with West One Bank, Idaho.
Insurance
The City will need to insure the equipment
throughout the financing term to casualty and
properly damage, with West One Bank, Idaho
named as Loss Payee. The coverage of the
casualty insurance must at all times equal at
least the amount necessary to make all
remaining payments due under the financing
agreement.
" r "
I R S C o m p l i a n c e
T h e C i t y w i l l b e r e q u e s t e d t o f u r n i s h a c o p y
o f I R S f o r m 8 0 3 8 - G o r 8 0 3 8 - G C f o l l o w i n g
d i s b u r s e m e n t o f f u n d s .
T h a n k y o u f o r g i v i n g W e s t O n e B a n k , I d a h o t h e
o p p o r t u n i t y t o p a r t i c i p a t e . I f y o u s h o u l d h a v e
a n y q u e s t i o n s c o n c e r n i n g t h i s p r o p o s a l , p l e a s e
c o n t a c t m e .
S i n c e r e l y ,
/ a r t b t i
K a r e n S m e l s e r
L o a n O f f i c e r I I