HomeMy WebLinkAbout2011-04-03-R • C Lo 0 T-03-' 7495 70570-003
RESOLUTION AUTHORIZING AND APPROVING EXECUTION
OF AN EQUIPMENT LEASE-PURCHASE AGREEMENT WITH
BANCORPSOUTH EQUIPMENT FINANCE,A DIVISION OF BANCORPSOUTH
BANK
FOR THE PURPOSE OF LEASE-PURCHASING CERTAIN EQUIPMENT
U IEREAS,the The City Council of The City of Batesville, Arkansas, the Governing
Body (the "Governing Body") of City of Batesville, Arkansas (the "Lessee"), acting for and on
the behalf of the Lessee hereby finds,determines and adjudicates as follows:
1. The Lessee desires to enter into an Equipment Lease-Purchase Agreement with the
Exhibits attached thereto in substantially the same form as attached hereto as Exhibit "A" (the
"Agreement") with BancorpSouth Equipment Finance, a division of BancorpSouth Bank (the
"Lessor")far the purpose of presently purchasing the equipment as described therein for the total
cost specified therein (collectively the "Equipment") and to purchase such other equipment from
time to time in the future upon appropriate approval;
2. The Lessee is authorized pursuant to "The City and County Government Development
Bond and Short-Terra Financing Amendment" to the Constitution of the State of Arkansas to
acquire tangible personal property with an expected useful life of more than one (1) year by
Lease-Purchase agreement and pay interest thereon by contract for a tenn not to exceed five(5)
years;
3. It is in the best interest of the residents served by Lessee that the Lessee acquire the
Equipment pursuant to and in accordance with the terms of the Agreement;and
4. It is necessary for the Lessee to approve and authorize the Agreement.
5. The Lessee desires to designate the Agreement as a qualified tax-exempt obligation of
Lessee for purposes of Section 265(b)(3)of the Internal Revenue Code of 1986(the"Code").
NOW.THEREFORE, BE IT RESOLVED by this Governing Body for and on behalf of the
Lessee as follows:
Section 1. The Agreement and Exhibits attached thereto in substantially the same form as
attached hereto as Exhibit"A" by and between the Lessor and the Lessee is hereby approved and
(the "Authorized Officer") is hereby authorized and directed to execute
said Agree ent on behalf of the Lessee.
Section 2.The Agreement is being issued in calendar year CZ0
Section 3. Neither any portion of the gross proceeds of the Agreement nor the Equipment
identified to the Agreement shall be used (directly or indirectly) in a trade or business carried on
by any person other than a governmental unit, except for such use as a member of the general
public.
Section 4. No portion of the rental payments identified in the Agreement (a) is secured,
directly or indirectly, by property used or to be used in a trade or business carried on by a person
other than a governmental unit, except for such use as a member of the general public, or by
payments in respect of such property; or (b) is to be derived from payments (whether or not to
• Lessee) in respect of property or borrowed money used or to be used for a trade or business
carried on by any person other than a governmental unit.
Section 5.No portion of the gross proceeds of the Agreement are used (directly or indirectly)
to make or finance loans to persons other than governmental units.
Section 6. Lessee hereby designates the Agreement as a qualified tax-exempt obligation for
purposes of Section 265(b)of the Code.
Section 7. In calendar year Lessee has designated
$ q& (oka Op of tax-exempt obligations (including the Agreement) as
qualified tax-exempt obligations. including the Agreement herein so designated, Lessee will not
designate more than $10,000,000 of obligations issued during calendar year O 1/ as
qualified tax-exempt obligations.
Section 8. Lessee reasonably anticipates that the total amount of tax-exempt obligations
(other than private activity bonds)to be issued by Lessee during calendar year will
not exceed$10,000,000.
Section 9. For purposes of this resolution, the amount of Tax-exempt obligations stated as
either issued or designated as qualified tax-exempt obligations includes tax-exempt obligations
issued by all entities deriving their issuing authority from Lessee or by an entity subject to
substantial control by Lessee,as provided in Section 265(b)(3)(E) of the Code.
Section 10.The assessed value of taxable property located within the municipality or county
is$ (���Jr��, �Id 4� as determined by the last completed tax assessment.
Section 11. The aggregate principal amount of short-term financing obligations incurred by
Lessee, including the obligations under the Agreement, does not exceed five percent (51/6), if
Lessee is a municipality, or two and one-half percent (2A'/2%), if Lessee is a county, of the
assessed value of taxable property located within the municipality or county, as determined by
the last completed tax assessment.
Section 12. The Authorized Officer is further authorized for and on behalf of the Governing
Body and the Lessee to do all things necessary in furtherance of the obligations of the Lessee
pursuant to the Agreement, including execution and delivery of all other documents necessary or
appropriate to carry out the transactions contemplated thereby in accordance with the terms and
provisions thereof.
Adopted this 25th day of April, 2011
/LL-4
Rick Elumba ayor
Attest:
A'r) �
Denise M. Johnston, City Clerk