HomeMy WebLinkAbout3-9-2000-13.12a - Resolution - 03/09/2000 RESOLUTION NO. 3-9-2000-13.12a
RESOLUTION DECLARING INTENTION TO REIMBURSE CERTAIN
EXPENDITURES WITH PROCEEDS FROM DEBT
WHEREAS, the City of College Station (the "Issuer") desires to make
expenditures in connection with the site analysis and master plan services for the City
Center 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 bonds to reimburse the Issuer for costs
attributable to the Project paid or incurred before the date of issuance of the bonds; and
WHEREAS, the Issuer finds, considers, and declares that the reimbursement of
the Issuer for the payment of such capital 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 1.103-18 of the Treasury Regulations, to
reimburse itself for such payments as such time as it issues obligations to finance the
Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF COLLEGE STATION THAT:
Section 1. This Resolution declares the intention of the Issuer to reimburse the
expenditures for the Project with the proceeds of a borrowing. The Issuer presently
intends to reimburse the expenditure by incurring debt, 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, with an aggregate maximum principal amount now estimated to be equal to
$1,560,000 for the purpose of paying the costs of the Project. A portion of the proceeds
received by the Issuer in an amount estimated not to exceed $40,000 are reasonably
expected to be used to reimburse the General Government Project Fund from which such
capital expenditures are expected to be made for the Project.
Section 3. The Issuer intends that this Resolution satisfy the official intent
requirement set forth in Section 1.103-18 of the Treasury Regulations and evidences its
intentions under Article 717k-6. The Issuer has no funds or sources of funds, other than
the proceeds of the debt to be incurred, which the Issuer has or reasonably expects to be
reserved, allocated on a long-term basis, or otherwise set aside in the Issuer's budget or
other financial policies with respect to the expenditures to be reimbursed.
Section 4. All costs to be reimbursed pursuant hereto will be capital expenditures
within the meaning of Section 1.103-18(c)(2)(iii) of the Treasury Regulations. None of
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Section 4. All costs to be reimbursed pursuant hereto will be capital expenditures
within the meaning of Section 1.103-18(c)(2)(iii) of the Treasury Regulations. None of
the expenditures to be reimbursed pursuant to this Resolution have been allocated to
expenditures entered on the books and records of the Issuer earlier than the date on which
such expenditures are paid. Moreover, no debt obligations will be issued by the Issuer in
furtherance of this Resolution after a date which is later than one year after the later of(l)
the date the expenditures are paid or (2) the date on which the property, with respect to
which such expenditures were made, is placed in service.
Section 5. The Issuer declares that this Resolution will be maintained as a public
record available for inspection by all persons in accordance with the provisions of Article
6252-17a, Vernon's Texas Civil Statutes and that no later than 30 days after this date, this
Resolution will be made available for inspection by all members of the general public at
the offices of the Issuer.
Section 6. This Resolution shall be liberally construed to evidence the intent of
the Issuer to comply with state and federal income tax law in the issuance of tax exempt
obligations for the Project.
PASSED AND APPROVED THIS 9th DAY OF MARCH, 2000.
APPROVED:
L-yrm ~lcllhane'y, Mayc}r /
AT, TEST: ~
Connie Hooks, City Secretary
APPROVED:
arg C ty
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