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INTEROFFICE MEMORANDUM
Date: 03/28/2025
To: The Honorable Mayor and City Council
Through: Ronald Burton, CPM, City Manager
From: Lynda"Lyn" Boswell, M.A., ICMA-CM, Finance Director
RE: P.O. 7325 —Intent to Reimburse
Introduction:
The Public Utilities Department has an immediate need for a vactor truck per PR24248.
Background:
The Finance Department evaluated the difference between doing a lease with Kinloch
Equipment Supply or purchasing this item outright. After evaluating the calculations, it would
save the city over $200k to purchase this item rather than lease. Knowing that there were no
funds to cover that today, and knowing that a meter program was imminent, finance conferred
with our financial advisor. As a result,we are wrapping the meter program and vactor truck into
one bond amount in the future. The cost of repayment of that bond will be because of the
implementation of the meter program with more accurate readings.
Budget Impact:
This creates an obligation of repayment in the future back to the general fund for the vactor truck
costs of$496,313 and annual service fee of$12,000 referenced in PR 24248.
Recommendation:
It is recommended that the City Council approve Proposed Ordinance 7325 to create an intent
to reimburse from the Water and Sewer Fund (410) back to General Fund (001).
I
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"Remember, we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
P.O. No. 7325
4/8/2025 DM
ORDINANCE NO.
AN ORDINANCE DECLARING AN INTENT TO REIMBURSE THE CITY
OF PORT ARTHUR FOR CERTAIN FUNDS EXPENDED IN
CONNECTION WITH THE CITY'S FUNDING OF EQUIPMENT AND
IMPROVEMENTS TO THE CITY'S WATER METER SYSTEM FROM
PROCEEDS OF CERTAIN NOTES TO BE ISSUED BY THE CITY
WITHIN ONE YEAR
WHEREAS, the City of Port Arthur, as permitted by Section 1.150-2 of the Treasury
Regulations,desires reimbursement from proceeds from the issuance of certain notes and any other
expenses in connection with the City purchasing equipment and providing improvements to the
City's water meter system (together, the "Improvements") within the City limits, in one or more
series in an aggregate maximum principal amount not to exceed $12,000,000.
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR,TEXAS:
Section 1. That the City Council hereby finds and adopts the recitals set forth above.
Section 2. That the City hereby declares its intention to issue its notes to reimburse itself,
plus any additional expenses in connection with the Improvements,not to exceed$12,000,000 for
the expenditures described in the recitals hereof.
Section 3. That if any Section, paragraph, clause or provision of this Ordinance shall for
any reason be held to be invalid or unenforceable, the invalidity or enforceability of such section,
paragraph, clause, or provision shall not affect any of the remaining provisions of this Ordinance.
Section 4. That it is hereby found, determined and declared that a sufficient written notice
of the date,hour,place and subject of the meeting of the City Council at which this Ordinance was
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adopted was posted at a place convenient and readily accessible at all times to the general public
at the City for the time required by law preceding this meeting, as required by the Open Meetings
Act, Chapter 551, Texas Government Code, as amended, and that this meeting has been open to
the public as required by law at all times during which this Ordinance and the subject matter thereof
has been discussed, considered and formally acted upon. The City Council further ratifies,
approves and confirms such written notice and the contents and posting thereof.
Section 5. That all prior orders,resolutions, and ordinances, or parts thereof, inconsistent
herewith are hereby repealed to the extent of such inconsistency.
READ,ADOPTED AND APPROVED on this day of , A.D., 2025,
at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES:
Mayor:
Councilmembers:
•
NOES:
CITY OF PORT ARTHUR:
Thurman Bill Bartie,
Mayor
ATTEST:
Sherri Bellard,TRMC
City Secretary
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APPROVED AS TO FORM:
Roxann Pais Cotroneo,
City Attorney
APPROVED FOR ADMINISTRATION:
Ronald B n, M
City Manager
Lyn "Lyn"Boswell, M.A., ICMA-CM
Director of Finance
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