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HomeMy WebLinkAboutRes 2009-07 Declaring Official Intent to Reimburse Expenditures from Proceeds of Tax-Exempt ObligationsRESOLUTION NO. 2009-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST UNIVERSITY PLACE, TEXAS, DECLARING OFFICIAL INTENT TO REIMBURSE EXPENDITURES FROM PROCEEDS OF TAX-EXEMPT OBLIGATIONS. WHEREAS, the City of West University Place, Texas (City), is eligible to issue its bonds, obligations and other evidences of indebtedness pursuant to Section 103(a) of the Internal Revenue Code of 1986 (Code); and WHEREAS, the City is authorized, pursuant to the Code and the regulations promulgated thereunder, specifically Section 1.150-2, to reimburse a prior expenditure of the City from the proceeds of bonds or other obligations; and WHEREAS, the City desires to declare its official intent to reimburse a prior expenditure from the proceeds of tax-exempt bonds or other obligations to be issued by the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF WEST UNIVERSITY PLACE, TEXAS: 1. Findings. It is hereby found and declared that the facts recited in the preamble to this Resolution are true and correct in all material respects. 2. Declaration of Official Intent. It is hereby officially declared that the City intends to reimburse any and all amounts expended by the City after the date of this Resolution for acquisition of properties adjacent to the West University Place Fitness Center, including contingencies and all related expenses, from the proceeds of tax-exempt bonds, obligations or other evidences of indebtedness which are expected to be issued in connection therewith and which shall be issued by the City no later than eighteen months after the later of (a) the date the expenditure is paid, or (b) the date the project is placed into service or abandoned, but in no event more than three years after the original expenditure is paid. 3. Sources of Funds. a. The expenditure of funds for the purpose described above has not been budgeted by the City and is expected to be made from existing reserves. b. The reimbursement bonds or obligations are expected to be repaid by a pledge of ad valorem taxes levied on all property within the City. 4. Amount of Reimbursement. It is reasonably expected that the amount to be expended for the purposes described above and reimbursed from the proceeds of bonds, obligations or other evidences of indebtedness will not exceed $800,000.00. PASSED, APPROVED, and ADOPTED this day of May, 2009. WEST `1r Of C, Bob Kelly, Mayo City of West University Place; Texas TMma Lenz City Secretary City of West University Place, Texas APPROVED AS TO FORM: Alan P. Petrov, City Attorney City of West University Place, Texas 2