R-2005-10 Bayshore water/sewer replacement project

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RESOLUTION NO. 2005- IV RESOLUTION DECLARING INTENTION TO REIMBURSE CERTAIN EXPENDITURES WITH BORROWING PROCEEDS WHEREAS, the City of La Porte, Texas (the "Issuer") desires to pay expenditures in connection with the design, planning, acquisition, construetion, equipping, and/or renovating the project or facilities described as the Bayshore WaleI' ,I Sewer Replacement project (the "Project"). WHEREAS, Article 717k-6, Vernon's Texas Civil Statutes, as amended ("Article 717k-6"), permits the Issuer to use the proceeds of obligations to reimburse the Issuer for costs attributable to the Project paid or incurred before the date or issuance of sllch obligations: and WHEREAS, the Issuer finds, considers, and declares that the reimbursement of the Issuer for the payment of such expenditures will be appropriate and consistent with the objectives of the Issuer's programs and, as such. chooses to declare its intention, in accordance with the provisions of Seetion I. I 50-2 of the Treasury Regulations, to reimburse itsel l' for such payments at sueh time as it issues obligations to finance the Project. NOW, THERFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS THAT: Section I. This Resolution declares the intent of the Issuer (0 reimburse the expenditures for the Project with the proceed of obligations. The Issuer presently intends to reimburse the expenditure by incurring obligations issued under Tl'\as law, the il,terest on which is excludable from gross income undcr Section I O~ or the Internal Revenue Code ,,1' I 0S6, as <lmended. Section 2. The Issuer reasonabl~i e\pects to incur debt. in one or more scries of obligations, in an aggregate maximum principal amount now expected to be equal to 5350.000 for the purpose of paying the costs orthe Project. Section 3. The Issuer intends to reimburse the expenditures hereunder not later than] S months after the date of the original expellditure is paid or the date the Project is placed in service or abandoned, but in no event morc than thrce years aner the original expenditure is paid unless the Project is a construction project for which the Issuer and a licensed architect or engineer have certified that at least five years are necessary to complete lhe Project in which event the maximum reimbursement period is five years after the date of the original expenditure. Section 4. The Issuer intends that this Resolution satisfy the official intent requirement set forth in Section 1.150-2 or the TreasUl'Y Regulations and evidences its intentions under Article 7l7k-6. Section 5. This resolution shall be liberally construed to evidence the intent of the Issuer to comply with state law and federal income tax law in the issuance of tax-exempt obligations for the Project. PASSED AND APPROVED this the 27lh day of June 2005. V::t7~ Alton Porter, Mayor ATTEST APPROVED: t.fll ~4J 114d/ City Secretary ~-r~~ City Attorney