HomeMy WebLinkAbout06-22-95-C-5 - Resolution - 06/22/1995RESOLUTION DECI~RING IN~EN~ION TO REIMBURSE CERTAIN EXPENDITURES WITH
BORROWING PROCEEDS
RESOLUTION NO. 6-22-95-C-5
WHEREAS, the City of Colleqe Station (the "Issuer") desires to pay
capital expenditures in connection with the design, planning,
acquisition, construction, equipping, and/or renovating the project or
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 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 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 $6,025,000.00 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 $1,500,000.00, are reasonably
expected to be used to reimburse the Utility 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. Ail 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.
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.
EXHIBIT 'A'
Subject Project Description:
Electrical Distribution Underground Feeder and Thoroughfare Lighting
Construction
Construction on University Drive, College Station, Texas.
PASSED AND APPROVED THIS
22nd DAY OF June , 1995.
APPROVED:
LarryJ J.~_~r, ~or