HomeMy WebLinkAboutRES 97-298 '7C �7- ;�%/
RESOLUTION CONCERNING ISSUANCE OF
BONDS OR OTHER TAX EXEMPT OBLIGATIONS TO FINANCE
STREET AND DRAINAGE IMPROVEMENTS,
EQUIPMENT PURCHASES AND OTHER CAPITAL IMPROVEMENTS
WHEREAS, the City Council of the City of Beaumont, Texas (the "City") desires
to make and provide for street and drainage improvements, equipment purchases and
other capital improvements within and on behalf of the City (the "Project"); and
WHEREAS, in order to finance and pay the costs of the Project, the City intends
to issue its certificates of obligations, general obligation bonds or other tax-exempt
obligations in the aggregate principal amount of approximately $22,000,000 (the
"Obligations"), in one or more installments and series; and
WHEREAS, in view of rising construction costs, the necessity of acquiring
materials, equipment and other property for the Project and the necessity of employing
certain professionals in connection with the development of the Project, it is considered
essential and necessary for the City to employ and pay certain professionals, acquire
materials, equipment and other property for the Project and begin construction of and
work on the Project prior to the completion of the issuance of the Obligations; and
WHEREAS, it is the City's intention to reimburse itself out of the proceeds of the
Obligations for all expenses and costs paid by the City prior to the issuance of the
Obligations that are incurred and paid in connection with the development of the
Project, including but not limited to expenses and fees paid for engineering and other
professional services, acquisition costs associated with obtaining materials, property
and equipment for the Project, and construction and development costs associated with
the Project; and
WHEREAS, the City finds, intends and declares that this resolution shall
constitute its official binding commitment and official declaration of intent made
pursuant to the Internal Revenue Code of 1986, as amended (the "Code") and the
regulations pertaining thereto, including but not limited to Treasury Regulation Section
1.150-2, whereas, subject to the terms hereof, the City declares that it intends to
reimburse itself out of the proceeds of the Obligations for the expenses and costs paid
in connection with the development of the Project prior to the issuance of the
Obligations, and the City declares its intent and commits to issue the Obligations, in
one or more series, in the maximum aggregate principal amount of up to $22,000,000
for the purpose of financing the costs of acquisition, expansion, renovation,
construction, reconstruction, repairs, equipping, furnishing and improvement of the
Project, and expenses and costs of the City in connection with the issuance of the
Obligations; and
WHEREAS, the City finds, considers and declares that the issuance and sale of
the Obligations in the amount and for the purposes set forth will be appropriate and
consistent with the objectives of the City and the laws authorizing the issuance of the
Obligations, and that the adoption of this resolution is and constitutes and is intended
as (1) an inducement to proceed with providing for the acquisition, expansion,
renovation, construction, reconstruction, repairs, equipping, furnishing and
improvennent of the Project, and (2) the taking of affirmative official action by the City,
acting by and through the City Council, toward the issuance of the Obligations and the
reimbursement to the City out of the proceeds of the Obligations for costs and
expenses paid in connection with the Project prior to the issuance of the Obligations, all
within the meaning of federal income tax laws and regulations with respect to issuance
of tax-exempt obligations; and
WHEREAS, the City has given notice of the meeting at which this Resolution is
to be adopted as required by the Texas Open Meetings Law, Chapter 551 of the Texas
Government Code Annotated Vernon's 1994, as amended.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF BEAUMONT, TEXAS, THAT:
Section 1. Subject to the terms hereof, the City Council agrees on behalf of the
City that it will:
a. Issue the Obligations in one or more series, after the date hereof to
provide for the financing of the Project, in the maximum aggregate principal
amount up to $22,000,000, if the City Council determines that the terms of such
financing are authorized and in the City's best interest;
b. Take such action and authorize the execution of such documents
as may be necessary in connection with the issuance of the Obligations,
providing, among other things, for payment of the principal of, interest on,.paying
agents' charges and other fees, if any, on the Obligations, and the acquisition,
expansion, renovation, construction, reconstruction, repairs, equipping,
furnishing, improvement, use and operation of the Project, all as shall be
authorized, required or permitted by law and shall be satisfactory to the City; and
C. Take or cause to be taken such other actions as may be required
to implement the aforesaid undertakings or as the City may deem appropriate in
pursuance thereof.
Section 2. This resolution shall constitute the official declaration of intent by the
City pursuant to which the City declares that it intends to reimburse itself out of the
proceeds of the Obligations for expenses and costs paid by the City prior to the
issuance of the Obligations in connection with the development of the Project, including
but not limited to expenses for engineering fees and other professional fees, and costs
for acquisition of materials, equipment and property for the Project and construction
and development costs related to the Project. This declaration is made pursuant to
Treasury Regulation Section 1.150-2 and generally with the laws and regulations of the
federal income tax laws governing the issuance of tax-exempt obligations.
Section 3. This resolution and the declaration of official intent herein shall be
available for public inspection at all times at the City Clerk's Office and shall remain
available for public inspection until the Obligations are issued and thereafter this
resolution shall be maintained as part of the permanent records of the City.
PASSED AND APPROVED this day of UZ� s�yn. �, 1997.
r"
MAYOR, THE CITY OF BEAUMONT, TEXAS
AT ST:
CITY CLERK, TfiJE CITY 40F BEAUMONT, TEXAS
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