HomeMy WebLinkAboutR-2006-01 Sports Complex Joint Venture
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RESOLUTION NO. 2006- () J
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 Sports Complex Joint
Venture 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 $2,000,000 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 23rd day of January 2006.
ATTEST
CITY OF LA PORTE, TEXAS
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Alton Porter, Mayor
APPROVED: _ ~ I
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City Attorney
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City Se etary
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:
Januarv 23.2006
Appropriation
Requested By: Michael Dolb
Source of Funds: Nt A
Department: FINANCE
Account Number: NtA
Report:
Resolution: XX Ordinance:
Amount Budgeted:
Exhibits:
Resolution 2006-
Amount Requested:
NtA
Exhibits:
Budgeted Item:
Exhibits:
SUMMARY & RECOMMENDATION
The City of La Porte intends to issue Certificates of Obligation Bonds for the following projects:
Sports Complex Joint Venture
$ 2, 000,000
We are anticipating preliminary work to begin on these projects, and it is not desirable for us to
issue debt at this time. However, because we are moving forward with design and construction
phase services, we recommend the City Council approve a resolution that allows the City to
reimburse itself from future bond proceeds for expenditures that are made prior to the issuance of
the debt. This is a position that we have taken on several other projects in the past as
recommended by bond counsel and required by federal law.
The attached resolutions give us the option to reimburse ourselves from future bond proceeds for
certain costs associated with the above-mentioned projects.
Action Required bv Council: Approve resolutions declaring intention to reimburse certain
expenditures with borrowing proceeds.
Approved for City Council Ae:enda
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Date
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