HomeMy WebLinkAboutResolution No. R2025-37 RESOLUTION NO. R2025-37
A RESOLUTION OF THE CITY OF COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS, AUTHORIZING THE CITY MANAGER TO
EXECUTE A FINANCE CONTRACT WITH GOVERNMENT CAPITAL
CORPORATION FOR THE FINANCING OF A LADDER TRUCK AND
RELATED APPURTENANCES FOR THE FRIENDSWOOD VOLUNTEER
FIRE DEPARTMENT IN AN AMOUNT NOT TO EXCEED TWO MILLION
TWO HUNDRED NINETY-NINE THOUSAND SIX HUNDRED EIGHTY-
NINE AND NO/100 DOLLARS ($2,299,689.00); AUTHORIZING ADVANCE
FUNDING AND EXPRESSING INTENT TO FINANCE EXPENDITURES TO
BE INCURRED; AND PROVIDING FOR THE EFFECTIVE DATE.
WHEREAS, the City of Friendswood (the "City") desires to enter into a certain Finance
Contract by and between the City and Government Capital Corporation ("GCC") for the purpose
of financing a ladder truck and related appurtenances (collectively the "Financed Project") for the
Friendswood Volunteer Fire Department; and
WHEREAS,the City desires to reimburse itself for the costs associated with the Financed
Project from the proceeds of obligations to be issued subsequent to the date hereof, and
WHEREAS, the City desires to designate City Manager Morad Kabiri as an authorized
signer of the Finance Contract;NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
STATE OF TEXAS:
Section 1. The facts and matters set forth in the preamble of this resolution are hereby
found to be true and correct.
Section 2. That the City Council hereby authorizes the City Manager to enter into a
Finance Contract with Government Capital Corporation and to execute other necessary documents
for the purpose of financing the Financed Project subject to the following:
PropertyPublic Equipment Costs $2,299,689.00
Annual Term 10 payments
Interest Rate 4.355%
Payment Amount $288,239.62
Payments Beginning September 1, 2026, & annually thereafter
Section 3. The City reasonably expects to reimburse itself for costs that have been or
will be paid subsequent to the date that is sixty (60)days prior to the date hereof and that are to be
paid in connection with the Financed Project from the proceeds of the obligations to be issued
subsequent to the date hereof in accordance with Treasury Regulation § 1.150-2, as promulgated
under the Internal Revenue Code of 1986, as amended.
Section 4. That the City reasonably expects that the maximum principal amount of the
obligations issued to reimburse the City for costs associated with the Financed Project will not
exceed the TWO MILLION TWO HUNDRED NINETY-NINE THOUSAND SIX HUNDRED
EIGHTY-NINE AND NO/100 DOLLARS ($2,299,689.00).
Section 5. That unless otherwise advised by bond counsel, any reimbursement
allocation will be made not later than eighteen(18)months after the later of(i)the date the original
expenditure is paid or(ii) the date on which the Financed Project to which the expenditure relates
is placed in service or abandoned, but in no event more than three (3) years after the original
expenditure.
Section 6. This resolution shall be effective immediately upon its passage and
approval.
INTRODUCED,READ,AND PASSED by the affirmative vote of the City Council of the
City of Friendswood on this the 1'day of December, 2025.
IKE OREM N, Mayor
ATTEST:
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RAQtELLqARTI14EZ, City Secr ; —r ,.
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APPROVED AS TO FORM: , d'� Q2
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KAREN L. HORNER, City Attorney
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