ORDINANCE NO. 250472
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Sponsor: Mayor Quinton Lucas
Authorizing the Director of Finance to accept a proposal of Banc of America Public Capital Corp (“BAPCC”) to finance the acquisition of Police Vehicles 2026 (“Project”); estimating revenue and appropriating $6,682,640.00 in Fund 3230 the Equipment Lease Capital Acquisition Fund; recognizing revenue and appropriating $6,670,640.00 in Fund 3230 the Equipment Lease Capital Acquisition Fund of the Board of Police Commissioners; reducing revenue and appropriations in the amount of $755,000.00 in Fund 2320 the Public Safety Sales Tax Fund of the Board of Police Commissioners; reducing transfer appropriations in the amount of $755,000.00 in Fund 2320 the Public Safety Sales Tax Fund; increasing appropriations for debt service in the amount of $755,000.00 in Fund 2320 the Public Safety Sales Tax Fund; designating requisitioning authorities; approving lease counsel in connection with the transaction; declaring the intent of the City to reimburse itself from the lease purchase proceeds for certain expenditures; authorizing the Director of Finance to modify accounts; authorizing the Director of Finance to close project accounts; and recognizing this ordinance as having an accelerated effective date.
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WHEREAS, members of the Kansas City Police Department utilize Police Vehicles daily in response to emergency calls for service, crime scenes, traffic enforcement and other law enforcement related activities; and
WHEREAS, the average age and mileage of Kansas City Police Vehicles is over 10 years with 120,000 miles which includes Ford Crown Victoria sedans produced prior to 2012; and
WHEREAS, the Kansas City Police Department requires a modernized fleet, with a prioritization on patrol vehicles, to provide safe and effective services to the citizens of Kansas City; and
WHEREAS, the cost of acquisition and implementation of the Project is expected to be financed under the Master Lease Purchase Agreement (“Lease”) with BAPCC by one (1) draw upon the Lease; and
WHEREAS, the payment of scheduled debt service payments on the draw made under the Lease will be made by annual appropriation of monies from the City’s Public Safety Sales Tax revenues over a successive eight (8) year period; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the Director of Finance is authorized to accept the proposal of BAPCC for the financing of the Project through one (1) draw upon the Lease in an approximate principal amount not to exceed $ 6,682,640.00.
Section 2. That the revenue in the following account of Fund No. 3230, the Equipment Lease Acquisition Fund, is hereby estimated in the following amount:
KCMBU-AL-3230-120000-583000 Lease Proceeds $6,682,640.00
Section 3. That the sum of $6,682,640.00 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3230, the Equipment Lease Acquisition Fund, to the following accounts:
KCMBU-AL-3230-129996-X Transfer to KCPDU Component Unit $6,670,640.00
KCMBU-AL-3230-129620-G Cost of Issuance 12,000.00
TOTAL $6,682,640.00
Section 4. That the revenue in the following account of KCPDU Fund No. 3230, the Equipment Lease Acquisition Fund, is hereby estimated in the following amount:
KCPDU-AL-3230-210000-599900 Transfer from Primary Govt. $6,670,640.00
Section 5. That the sum of $6,670,640.00 is hereby appropriated from the Unappropriated Fund Balance of KCPDU Fund No. 3230, the Equipment Lease Acquisition Fund, to the following account:
KCPDU-AL-3230-211222-E Police Patrol Vehicles 2026 $6,670,640.00
Section 6. That the sum of $755,000.00 is hereby reduced from the following account of KCPDU Fund No. 2320, the Public Safety Sales Tax Fund, in the following account:
KCPDU-26-2320-211222-E Motor Vehicles 2026 $ 755,000.00
Section 7. That the revenue in the following account of KCPDU Fund No. 2320, the Public Safety Sales Tax Fund, is hereby reduced in the following amount:
KCPDU-26-2320-210000-599900 Transfer from Primary Govt. $ 755,000.00
Section 8. That the sum of $755,000.00 is hereby reduced from the following account of KCMBU Fund No. 2320, the Public Safety Sales Tax Fund, in the following account:
KCMBU-26-2320-129996-X Transfer to KCPDU Component Unit $ 755,000.00
Section 9. That the sum of $755,000.00 is hereby appropriated from the Unappropriated Fund Balance of KCMBU Fund No. 2320, the Public Safety Sales Tax Fund, to the following account:
KCMBU-26-2320-129850-G Police Vehicles 2026 $ 755,000.00
Section 10. That the Director of Finance is designated as requisitioning authority for Account Nos. KCMBU-AL-3230-129996, KCMBU-AL-3230-129620 and KCMBU-26-2320-129850 and that the Board of Police Commissioners is designated as the requisition authority for Account No. KCPDU-AL-3230-211222.
Section 11. That the City approves Kutak Rock LLP to serve as lease counsel for the City in connection with the financing of the Project.
Section 12. That the City Council hereby declares its official intent to reimburse itself for certain expenditures made within sixty (60) days prior to or on and after the date of this Ordinance with respect to appropriations in Section 3 and Section 5 (collectively the “Appropriations”) with the proceeds of bonds expected to be issued by the City. The maximum principal amount of bonds expected to be issued for the Appropriation is not to exceed $6,682,640.00. This constitutes a declaration of official intent under Treasury Regulation 1.150-2.
Section 13. That the Director of Finance is hereby authorized to modify the previously approved estimated revenues and appropriations in Sections 2, 3, 4, 5, 6, 7, 8, and 9 as required to correctly record the budgetary amounts finalized through the execution of the draw upon the Lease.
Section 14. That the Director of Finance is hereby authorized to close project accounts, encumbrances and retainage related to the accounts in Section 3 and Section 5, and return the unspent portion to the fund balance from which it came upon the earliest of: (i) Project’s completion; (ii) final maturity of financing, or (iii) five years after issuance.
Section 15. This Ordinance is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(C) of the City Charter in that it appropriates money, and shall take effect in accordance with that section.
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I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.
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Tammy L. Queen
Director of Finance
Approved as to form:
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Samuel Miller
Assistant City Attorney