RESO 1993-08 - Reimburse ExpendituresRESOLUTION NO. 93 -08
A RESOLUTION DECLARING INTENTION TO REIMBURSE
CERTAIN EXPENDITURES WITH BORROWING
PROCEEDS.
WHEREAS the City of Huntsville, Texas (the "Issuer ") desires to pay capital expenditures
in connection with the planning, acquisition, construction, and equipping of
projects or facilities, to wit: closure of a landfill, construction of a transfer
station, and acquisition of trucks and trailers for the sanitation department
(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 at such
time as it issues obligations to finance the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS, 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 intents 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 $1,700,000 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 $1,700,000, are reasonably expected to be used to reimburse the
General 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 1.1013 -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 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 literally 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 this 4th day of May, 1993.
ATTF ST:
anna Welter, City Secretary
AP
Scott
AS T FORM:
nds, City Attorney
THE CITY OF HUNTSVILLE, TEXAS
W. H. Hodges, Mayor