1997-11-24 Regular Meeting of City Council

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. RESOLUTION NO. 97- 1.<<;<<:>>!PV RESOLUTION DECLARING INTENETION TO REIMBURSE CERTAIN EXPENDITURES WITH BORROWING PROCEEDS WHEREAS, the City of La Porte, Texas (the "Issuer") de...ires to pay expenditures in connection with the design, planning, acquisition, construction, equipping, and/or renovating the project or facilities described as the FIOI Drainuge Project (the project), WHEREAS, Article 717k-6, Vernon's Texas Civil Statute..., 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 of issuance of such obi igations; and WHEREAS, the Issuer tinds, 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 till' such payments at such time as it issuers obligations to tinance the Project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS THAT: Section I, This Resolution declared the intention of the Issm:r to reimburse the expenditures for the Project with the proceeds of ohligation, The Issuer presently intends to reimburse the expenditure by incurring obligations issued under Texas law the interest un which is excludable from gross income under section t03 of the Internal Revenm: Code of 1986, as amended, Section 2, The Issuer reasonably expects to incur debt, in one or more series of obligatk~ns, in an aggregate maximum principal amount now estimated to he equal to $2,000,000,00 for the purpose of paying the costs of the Project. . Section 3. The Issuer intends to reimhurse the exptmditures hereunder not later than 18 months after the date the original expenditure is paid 1.11' the date the Project is placed in service or abandoned, but in no event more than three years after the original expent.liture is paid unless the Project is a construction project for which the Issuer and a licensed architect or engineer have certitied that at least tivt: years are necessary to complete the Project in which event the maximum reimhursement period is tive years after the date of the original expenditurt:. 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 7171 k-6, Section 5. This Resolution shall be liherally construed to evidence the intent of the Issuer to comply with state law and federal income tax law in the issuance uf tax-exempt obligations till' the Project. PASSED AND APPROVED this the 24lh day of November, 1997 ATf~tu () I }1l11t1; ~ha A, Gillett, City Secretary