HomeMy WebLinkAboutR-2001-19
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RESOLUTION NO. ~ t!JDI - , CJ
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, construction, equipping, and/or renovating the project or facilities described as the Little
Cedar Bayou Wastewater Treatment Plant Sludge Handling Facilities Improvements 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 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, THERFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS
THAT:
Section 1. This Resolution declares the intent of the Issuer to reimburse the expenditures for the Project
with the proceed 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 Internal 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 expected to be equal to $3,500,000 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 of 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 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 lih day of November 2001.
CITy...0F LA PORTE, TEXAS
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ATTEST
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City ecretary
Norman Malone, Mayor
City Attorney
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:
Appropriation
Requested By: S. Gillett
Source of Funds: N/A
Department: Public Works
Account Number: N/A
Report:
Resolution: XX Ordinance:
Amount Budgeted:
Exhibits:
Resolution
Amount Requested:
N/A
Exhibits:
Budgeted Item:
Exhibits:
SUMMARY & RECOMMENDATION
The Little Cedar Bayou Solids Handling Project, at the City's wastewater treatment plant, is a
proposed bond project in the upcoming election. The federal Internal Revenue Code and State
Law permit the City the option of reimbursing itself for pre-bond issuance expenses if a
resolution declaring this intention is passed. The attached resolution meets this requirement.
The purpose of the attached resolution is to leave the City with the option of reimbursing itself
for expenses incurred prior to issuance of bonds on the above mentioned project. At the time the
bonds are sold, the City can decide whether to reimburse itself or not.
Action Required bv Council: Approve resolution declaring intention to reimburse certain
expenditures with borrowing proceeds.
Approved for City Council Ae:enda
cRuf~ ~ ~
Robert T. Herrera, City Manager
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Date