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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