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HomeMy WebLinkAboutRES 99-344 Z99- 3Z114,1 RESOLUTION CONCERNING ISSUANCE OF REVENUE BONDS OR OTHER TAX EXEMPT OBLIGATIONS TO FINANCE THE EXPANSION, IMPROVEMENT, REPAIR, RENOVATION AND RELATED IMPROVEMENTS TO THE WATERWORKS AND SEWER SYSTEM WHEREAS, the City of Beaumont, Texas (the "City" ) desires to expand, improve, renovate, repair and make related improvements to the City' s waterworks and sewer system (the "System") located within the City (the "Project") ; and WHEREAS, in order to finance and pay the costs of the Project, the City intends to issue revenue bonds or other tax- exempt obligations in the aggregate principal amount of up to $20, 000, 000 (the "Obligations") , in one or more installments and series, and payable from net revenues of the System and any other sources pledged to the payment thereof; and WHEREAS, in view of rising construction costs, the necessity of compliance with administrative regulations, the necessity of acquiring materials 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 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 and property for the Project, and construction and development costs associated with the Project; and 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 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 $20, 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 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 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 $20, 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; 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 and order 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 -2- 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 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 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. PASSED AND APPROVED this _q;6w-_ day of , 1999 . THE CITY OF BEAUMONT, TEXAS By: Mayor ATTEST: CITY CLERK THE CITY OF BEAUMONT, T XAS Wr -3-