R-2007-03 borrowing proceeds for Main Street Project/$550,000 approximately

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R.e!J)ltLh~ J...ti:If, D3 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