1997-09-08 Regular Meeting of City Council

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...-. :r. RESOLUTION NO. 97-07 e C(Q)rPW RESOLUTION DECLARING INTENTION TO REIMBURSE CERTAIN EXPENDITURES WITH BORROWING PROCEEDS WHEREAS, the City of La Porte, Texas (the Klssuer") desires to pay expenditures in connection with the design, planning, acquisition, construction, equipping, and/or renovating the project or facilities described as the Sanitary Sewer Trunk Main and Lift Station' Facilities to Southeast La Porte project (the Project). WHEREAS, Article 717k-6, Vernon's Texas Civil Statutes, as amended CUArticle 717k-6j, 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 of issuance of such 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 Section 1.150-2 of the Treasury Regulations, to reimburse itself for such payments at such time as it issues obligations to finance the Project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS THAT: Section 1. This Resolution declares the intention of the Issuer to reimburse the expenditures for the Project with the proceeds of obligations. The Issuer presently intends to reimburse the expenditure by incurring obligations issued under Texas law the interest on which is excludable from gross income under section 103 of the Intemal Revenue Code of 1986, as amended. Section 2. The Issuer reasonably expects to incur debt, in one or more series of obligations, in an aggregate maximum principal amount now estimated to be equal to $4,250,000 for the purpose of paying the costs of the Project. Section 3. The Issuer intends to reimburse the expenditures hereunder not later than 18 months after the date the original expenditure is paid or the date the Project is placed in service or abandoned, but in no event more than three years after 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 the 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 of the Treasury Regulations and evidences its intentions under Article 717k-6. Section 5. This Resoluti(m 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 8th day of September, 1997. 1rST: 0 III ':id i 0 ll-t~ft ~. /f'ULt'i"1 ity Secretary crT'(" F LA PORTE, TEXAS .& /~t . '_/ Nrman Malone, Mayor - ;L' APPROVED: G- ~/ .~), /' <,j. ~!-,.)f- C'(., I Le.~~'~ City Attorney -\ .. \,,~