Loading...
HomeMy WebLinkAboutRES 10-310 A.10 RESOLUTION NO. 10-310 RESOLUTION CONCERNING CERTIFICATES OF OBLIGATION, SERIES 2011, AND OFFICIAL INTENT TO USE PROCEEDS THEREFROM TO REIMBURSE THE CITY FOR ORIGINAL EXPENDITURES PAID PRIOR TO THE ISSUE DATE OF SUCH CERTIFICATES ON PROJECTS TO BE FINANCED THEREBY WHEREAS, the City of Beaumont, Texas (the "City") desires and intends to construct, and make improvements within the City and to expand and improve City streets, drainage, buildings, parks and other capital improvements located within the City described in Exhibit A attached hereto (collectively, the "Project"); and WHEREAS, in order to finance and pay the costs of the Project, the City intends to issue Certificates of Obligation, Series 2011 in the maximum aggregate principal amount of up to $36,000,000 (the "Obligations"), payable from ad valorem taxes and any other sources pledged to the payment thereof; and WHEREAS, the City reasonably expects to pay a portion of the capital expenditures for the Project prior to the issue date of the Obligations from other available sources ("Original Expenditures") WHEREAS, the City finds, intends and declares that this resolution and order 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 some of the Original Expenditures in connection with the Project paid prior to the issuance of the Obligations; and WHEREAS, the City Council, on behalf of 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 and order 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 improvement 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 Original Expenditures 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 adopts this resolution on behalf of the City of its official intent to a. Issue the Obligations after the date hereof to provide for the financing of the Project, in the maximum aggregate principal amount up to $36,000,000, if the City Council determines that the terms of such financing are 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; C. Pay such Original Expenditures on the Projects as are necessary to be incurred and paid prior to the issue date of the Obligations; d. Pay such Original Expenditures out of one or more of the following funds or accounts: Streets and Drainage Improvement Fund e. Reimburse the City out of proceeds of the Obligations, when issued, for Original Expenditures paid not more than sixty (60) days prior to the date of adoption of this resolution of official intent; f. 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. The City Manager and Chief Financial Officer are authorized to make reimbursement allocations from the proceeds of the Obligations in writing that evidences the use of such proceeds to reimburse the Original Expenditures paid not more than sixty(60) days prior to the date of adoption of this resolution of Official Intent and to do so in compliance with the requirements of Treasury Regulation Section 1.150-2. Section 3. This resolution shall constitute the official declaration of Official Intent by the City pursuant to which the City declares that it intends to reimburse itself out of the proceeds of the Obligations for Original Expenditures as provided herein, and is made pursuant to Treasury Regulation Section 1.150-2 and generally with the laws and regulations of the federal income tax -2- laws governing the issuance of tax-exempt obligations. Section 4. This resolution and order and the declaration of official intent herein shall be available for public inspection at all times at the City's business 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 Council of the City. [The remainder of this page is intentionally left blank] -3- PASSED AND APPROVED this 7h day of December, 2010. THE CITY OF BEAUMONT,TEXAS By: _64&zl—&q� MAYOR ATTEST: LMA CITY CLERK THE CITY OF BEAUMONT, TEXAS ��.. QOM'\�,111 1fi111 -4-