HomeMy WebLinkAboutR-2007-03 borrowing proceeds for Main Street Project/$550,000 approximately
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A RESOLUTION DECLARING INTENTION
TO REIMBURSE PROJECT EXPENDITURES
WHEREAS, the City Council of the City of La Porte, Texas (the "City") has previously
approved, and the City is proceeding with its Main Street building project, the general purpose
and function of which is to provide space for (i) a visitor center, and (ii) offices for economic
development activities (the "Project"), the maximum aggregate cost of which is expected to be
approximately $550,000 dollars;
WHEREAS, the City anticipates providing funds to permanently finance the capital costs of
the Project by issuing after the date hereof its Certificates of Obligation, Series 2007 (the
"Certificates"), which are currently expected to have a maximum aggregate principal amount of
approximately $10,000,000, of which not more than $550,000 is expected to be used to pay costs of
the Project and costs of issuance of the Certificates;
WHEREAS, no funds of the City are, or are reasonably expected to be, allocated, reserved,
or otherwise set aside in the City's budget on a long-term basis to pay the costs ofthe Project;
WHEREAS, the Certificates will be payable from taxes levied, assessed and collected by
the City for the Certificates;
WHEREAS, the City anticipates that after the date hereof and prior to the issuance of the
Certificates, it will be obligated to pay certain costs constituting expenditures properly chargeable to
a capital account (under general federal income tax principles) in connection with the Project,
including expenditures for design, planning, and engineering, the aggregate amount of will not
exceed $50,000 (the "Expenditures");
WHEREAS, the money to be used to pay the Expenditures set forth in this Resolution is in
the City's (1) Hotel Motel Fund, the general purpose and function of which is pay expenditure s to
promote tourism in the city, and (2) Community Investment Fund, the general purpose and function
of which is to pay expenditures for economic development, and such money is not appropriated for
any other purpose;
WHEREAS, the City reasonably expects that it will be reimbursed for the Expenditures with
proceeds of the Certificates; and
WHEREAS, after the issuance of the Certificates, it will: (1) evidence each allocation of
proceeds of the Certificates to the reimbursement of the Expenditures with an entry in its books and
records maintained with respect to the Certificates, and (2) identify in such entry the actual prior
Expenditure being reimbursed or the fund from which the Expenditure was made.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LA PORTE, TEXAS, THAT:
HOU:2652721.1
Section 1. The City Council of the City hereby adopts the findings set out in the
preamble hereof and declares its intent within the meaning of Treasury Regulation S 1.150-2, as
promulgated under the Internal Revenue Code of 1986, as amended, to issue approximately
$10,000,000 principal amount of Certificates, a portion of which will be used to pay the costs of the
Project, of which a maximum amount of $50,000 is expected to be used to reimburse the City for
capital expenditures paid in connection with the Project prior to the issuance ofthe Certificates,
Section 2. The City will maintain this Resolution at the office of the City at 604 West
Fairmont Parkway, La Porte, Texas 77571, and make it continuously available for inspection by the
general public during normal business hours on business days beginning within 30 days after the
date ofthis Resolution.
PASSED AND APPROVED this February 12,2007.
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Mayor, City of La Porte
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City Secretary
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HOU:265272},}