HomeMy WebLinkAbout05-11-94-2.2 - Resolution - 05/11/1994Cl so£ution
5-11-94-2.2
RESOLUTION DECLARING INTENTION TO REIMBURSE CERTAIN EXPENDITURES WITH
BORROWING PROCEEDS
WHEREAS, the City of College Station (the "Issuer") desires to pay expenditures in
connection with the design, planning, acquisition, construction, equipment, and/or renovating the
project of facilities described in Exhibit A attached hereto (the "Project");
WHEREAS, Article 717K-6, Vernon's Texas Civil Statutes, as amended ("Article 717k-
6"), permits the Issuer to use the proceeds of obligation 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 provision 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, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL 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 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 reasonable expects to incur debt, in one or more series of
obligations, in an aggregate maximum principal amount now estimated to be equal to $2,365,000
for the purpose of paying the costs of the Project. A portion of the proceeds of the obligations
received by the Issuer in an amount now estimated at $2,365,000, is expected to be used to
reimburse the Issuer for expenditures which are expected to be made for 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 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 on Exhibit A 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 and federal income tax law in the issuance of tax exempt obligations for the
Project.
Approved: Attest:
Larry Connie Hooks, City Secretary
EXHIBIT A
Items
College Station Business Park
Engineering & Inspections
Construction Contract I
Paving, Drainage, Water
and Wastewater
Sidewalks & Trails
Landscaping
Contingency
Total
Phase I
Revised
Budget Budget
$210,000 $210,000
1,515,000 1,200,000
205,000 205,000
656,200 656,200
93,800 93,800
$2,680,000 $2,365,000