HomeMy WebLinkAboutRESOLUTION NO. 2011-24
RESOLUTION NO. 2011-24
APPROVING AND AUTHORIZING A LEASE PURCHASE AGREEMENT
WHEREAS, the City of Fairfax (the “City”), in the County of Linn, State of Iowa, has
heretofore proposed to enter into a lease or lease-purchase agreement (the “Lease Purchase
Agreement”) in the principal amount not to exceed $47,650, pursuant to the provisions of
Section 364.4 of the Code of Iowa, for the purpose of acquiring a skid loader, and has published
notice of the proposed action and has held a hearing thereon on April 12, 2011, and the Council
may now authorize the Lease Purchase Agreement in the amount as published;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Fairfax, Iowa, as
follows:
Section 1. The City Council hereby determines to enter into the Lease Purchase
Agreement with Altorfer, Inc., as lessor (the “Lessor”), in substantially the form that has been
placed on file with the City Clerk, providing for a lease to the City in the principal amount of
$47,650, for the purpose set forth in the preamble hereof.
Section 2. The Lease Purchase Agreement is hereby approved, and the Mayor and
City Clerk are hereby authorized to execute the Lease Purchase Agreement on behalf of the City
and also to execute all related documents.
Section 3. The City hereby pledges the faith, credit, revenues and resources and all of
the real and personal property of the City for the full and prompt payment of the payments due
on the Lease Purchase Agreement.
Section 4. It is the intention of the City that interest payable under the Lease
Purchase Agreement be and remain excluded from gross income for federal income tax purposes
pursuant to the appropriate provisions of the Internal Revenue Code of 1986, as amended, and
the Treasury Regulations in effect with respect thereto (all of the foregoing herein referred to as
the “Internal Revenue Code”). In furtherance thereof, the City covenants to comply with the
provisions of the Internal Revenue Code as they may from time to time be in effect or amended
and further covenants to comply with the applicable future laws, regulations, published rulings
and court decisions as may be necessary to insure that the interest payable under the Lease
Purchase Agreement will remain excluded from gross income for federal income tax purposes.
Any and all of the officers of the City are hereby authorized and directed to take any and all
actions as may be necessary to comply with the covenants herein contained.
The City hereby designates the Lease Purchase Agreement as a “Qualified Tax Exempt
Obligation” as that term is used in Section 265(b)(3)(B) of the Internal Revenue Code.
Section 5. All resolutions or parts thereof in conflict herewith are hereby repealed to
the extent of such conflict.
Passed and approved April 12, 2011.
AYES: Beer, Frieden, Otto, and Magers
NAYS: None
ABSENT: Wainwright
Jason Rabe, Mayor
Attest:
Cynthia Stimson, City Clerk/Treasurer