STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: April 10, 2024
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Jack Ireland
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SUBJECT
Title
Authorize a five-year Public Property Finance Contract ("Finance Contract"), with two one-year renewal options, for the financing of personal property purchases - JPMorgan Chase Bank, N.A., most advantageous qualifying proposer of three - Not to exceed $200,000 ($60,000 upfront legal costs, plus annual legal fees of $20,000) - Financing: General Fund (subject to annual appropriations)
Body
BACKGROUND
This resolution will authorize the execution of a Finance Contract providing financing for the purchase of capital equipment, fleet, and technology items. The City utilizes a Finance Contract as a means to purchase or otherwise acquire, use, and finance public property, pursuant to the Public Property Finance Act, Texas Local Government Code ?? 271.001 - 271.009. Additionally, the use of a tax-exempt Finance Contract providing a line of credit permits more cost-efficient use of financing as funds are borrowed to closely match the amount and timing of the payment for equipment, or "just-in-time" borrowing. Currently, Finance Contract interest rates are comparable to tax-exempt short-term note issuance and the initial and annual costs of the program are less than other types of debt issuance, such as tax-exempt commercial paper. There are no fees for financial advisory, rating agency, paying agent, or liquidity facility services since the Finance Contract is considered a private placement. The only expense associated with the program is for legal services, such as reviewing the Finance Contract and issuing an opinion that the lease is a tax-exempt obligation.
The following items are financed using the Finance Contract program, including but not limited to:
* Sanitation collection and landfill veh...
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