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RESOLUTION NO. 97- 14'
OR' h , f\I A L
RESOLUTION DECLARING INTENETION 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 FIOI Drainuge 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 issuers obligations to finance the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS TH AT:
Section I. 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 serial; of obligations, in an
aggregate maximum principal amount now estimated to be equal to $2,000,000.00 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 servil:e 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 certitied that at least tive years are necessary to
complete the Project in which event the maximum reimbursement period is tive 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 7171 k-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 241h day of November, 1997
ATTEST: .J1
L~?l~~eP~;ty S~~
Knox. W. Askins, City Attorney