HomeMy WebLinkAbout1-27-2000-13.05 - Resolution - 01/27/2000RESOLUTION NO. 1-27-2000-13.05
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 design, planning, acquisition of land, for the purchase of equipment,
materials, and services associated with parks improvements (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 $12,360,000 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 $25,000 are reasonably expected to be used to
reimburse the Park Capital 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.
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Section 4:
Section 5:
Section 6:
term basis, or otherwise set aside in the Issuer's budget or other financial
policies with respect to the expenditures to be reimbursed.
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 (1) 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.
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.
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 27th DAY OF JANUARY, 2000.
APPROVED:
Lynn i~cllhaney, Mayor
TEST:
Cormie Hooks, City Secretary
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