HomeMy WebLinkAboutR-1999-22
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RESOLUTION NO. 99-i 2
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RESOLUTION DECLARING INTENTION TO REIMBURSE CERTAIN EXPENDTIURES 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 facility
described as the City Hall Addition (known as 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 issuers
obligations to finance the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNOL OF THE CITY OF LA PORTE, TEXAS
THAT:
Section 1. This Resolution declared the intention of the Issuer to reimburse the expenditures for
the Project with the proceeds of obligation. 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 estimated to be equal to $1,500,000 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 the original expenditure is paid or the date the Project are placed in service or
abandoned, but in no event more than three years after the original expenditure is paid unless the
Project are 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 7171k-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 26th day of April, 1999
ATIEST:
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Mart a A. Gillett, clty Secretary
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No an L. Malone, Mayor
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Knox. W. Askins, City Attorney