RESO 1993-18 - Reimburse ExpendituresRESOLUTION NO. 93 -18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HUNTSVILLE, TEXAS, DECLARING INTENTION TO
REIMBURSE CERTAIN EXPENDITURES WITH
BORROWING PROCEEDS; AND MAKING OTHER
FINDINGS AND PROVISIONS RELATED THERETO.
WHEREAS The City of Huntsville, Texas (the "Issuer "), desires to pay 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 "); and
WHEREAS Article 717k -6, Vernon's Texas Civil Statutes, as amended ( "Article 717k -6 "),
permits the Issuer to use the proceeds of obligations 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 provisions 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 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 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 reasonably expects to incur debt, in one or more series of obligations,
in an aggregate maximum principal amount now estimated to be equal to
$1,600,000 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
$295,000, 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 has 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.
Passed and approved this 30th day of November, 1993.
THE CITY OF HUNTSVILLE
W. H. Hodges, Mayor
ATTEST:
Danna Welter, City Secretary
APPROVED AS TO FORM:
Scott Bounds, City Attorney