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HomeMy WebLinkAbout033785 RES - 10/21/2025RESOLUTION NO. [ ] 0 3 3 7 A RESOLUTION RELATING TO ESTABLISHING THE CITY'S INTENTION TO REIMBURSE ITSELF FOR THE PRIOR LAWFUL EXPENDITURE OF FUNDS RELATING TO ANY CAPITAL EXPENDITURES FROM THE PROCEEDS OF ONE OR MORE SERIES OF TAX-EXEMPT OR TAXABLE OBLIGATIONS TO BE ISSUED BY THE CITY IN AN AGGREGATE AMOUNT NOT TO EXCEED $169,500,000 FOR AUTHORIZED PURPOSES, INCLUDING THE EVANGELINE GROUNDWATER RIGHTS PROJECT; AUTHORIZING OTHER MATTERS INCIDENT AND RELATED THERETO; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council (the Governing Body) of the City of Corpus Christi, Texas (the Issuer) has entered into or will enter into various contracts pertaining to the expenditure of lawfully available funds of the Issuer to finance costs associated with: (1) constructing, improving, enlarging, repairing, and extending the City's combined utility system and the purchase of equipment, supplies, machinery, and other personal property relating to the System, including the purchase of groundwater rights (the Construction Costs); (2) the payment of various engineering costs, including design testing, design engineering, and construction inspection related to the Construction Costs (the Engineering Costs); (3) the payment of various architectural costs, including preparation of plans and specifications and various other plans and drawings related to the Construction Costs (the Architectural Costs); and (4) the payment of various administrative costs, including the fees of bond counsel, financial advisor, project manager, project consultant, other professionals, and bond printer (the Administrative Costs) [the Construction Costs, the Engineering Costs, the Architectural Costs, and the Administrative Costs collectively constitute the costs of the projects that are the subject of this Resolution (the Project)]; and WHEREAS, the provisions of Section 1201.042, as amended, Texas Government Code (Section 1201.042) provide that the proceeds from the sale of obligations issued to finance the acquisition, construction, equipping, or furnishing of any project or facilities, such as the Project, may be used to reimburse the Issuer for costs attributable to such project or facilities paid or incurred before the date of issuance of such obligations; and WHEREAS, the United States Department of Treasury (the Department) released Regulation Section 1.150-2 (the Regulations) which establishes when the proceeds of obligations are spent and therefore are no longer subject to various federal income tax restrictions contained in the Internal Revenue Code of 1986, as amended (the Code); and WHEREAS, the Issuer intends to reimburse itself, within eighteen months from the later of the date of expenditure or the date the property financed is placed in service (but in no event more than three years after the original expenditures are paid), for the prior lawful capital expenditure of funds from the proceeds of one or more series of tax-exempt or taxable obligations (the Obligations) that the Issuer currently contemplates issuing obligations in the principal amount of not to exceed $169,500,000 to finance a portion of the costs of the Project; and WHEREAS, under the Regulations, to fund such reimbursement with proceeds of the Obligations, the Issuer must declare its expectation ultimately to make such reimbursement before draft SCANNED making the expenditures; and WHEREAS, the Issuer hereby finds and determines that the reimbursement for the prior expenditure of funds of the Issuer is not inconsistent with the Issuer's budgetary and financial circumstances; and WHEREAS, the Governing Body hereby finds and determines that the adoption of this Resolution is in the best interests of the residents of the Issuer; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS THAT: SECTION 1. This Resolution is a declaration of intent to establish the Issuer's reasonable, official intent under section 1.150-2 of the Regulations and Section 1201.042 to reimburse itself from certain of the proceeds of the Obligations for any capital expenditures previously incurred (not more than 60 days prior to the date hereof) or to be incurred with respect to the Project from the Issuer's General Fund or other lawfully available funds of the Issuer. SECTION 2. The Issuer intends to issue the Obligations and allocate within 30 days after the date of issuance of the Obligations the proceeds therefrom to reimburse the Issuer for prior lawful expenditures with respect to the Project in a manner to comply with the Regulations. SECTION 3. The reimbursed expenditure will be a type properly chargeable to a capital account (or would be so chargeable with a proper election) under general federal income tax principles. SECTION 4. The Issuer intends to otherwise comply, in addition to those matters addressed within this Resolution, with all the requirements contained in the Regulations. SECTION 5. This Resolution may be relied upon by the appropriate officials at the Office of the Attorney General for the State of Texas and establishes compliance by the Issuer with the requirements of Texas law and the Regulations. SECTION 6. With respect to the proceeds of the Obligations allocated to reimburse the Issuer for prior expenditures, the Issuer shall not employ an abusive device under Treasury Regulation Section 1.148-10, including using within one year of the reimbursement allocation, the funds corresponding to the proceeds of the Obligations in a manner that results in the creation of replacement proceeds, as defined in Treasury Regulation Section 1.148-1, of the Obligations or another issue of tax-exempt obligations. SECTION 7. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the Governing Body. SECTION 8. All ordinances and resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. SECTION 9. This Resolution shall be construed and enforced in accordance with the laws draft of the State of Texas and the United States of America. SECTION 10. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the Governing Body hereby declares that this Resolution would have been enacted without such invalid provision. SECTION 11. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, as amended, Texas Government Code. SECTION 12. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. [The remainder of this page intentionally left blank] draft PASSED, ADOPTED AND APPROVED on this the pl F day of Off- , 2025. CITY OF CORPUS CHRISTI, TEXAS ATTEST: (CITY SEAL) APPROVED THIS a Nay of v� , 2025: AL. ,Vk City Attorney Signature page to the Resolution S-1 033785 T CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS COUNTIES OF NUECES, ARANSAS, KLEBERG AND SAN PATRICIO CITY OF CORPUS CHRISTI THE UNDERSIGNED HEREBY CERTIFIES that: 1. On the 21 st day of October, 2025, the City Council (the Council) of the City of Corpus Christi, Texas (the City) convened in regular session at its regular meeting place at the City Hall (the Meeting), the duly constituted members of the Council being as follows: Paulette Guajardo Mayor Everett Roy Councilmember, District 1 Sylvia Campos Councilmember, District 2 Eric Cantu Councilmember, District 3 Kaylynn Paxson Councilmember, District 4 Gil Hernandez Councilmember, District 5 Roland Barrera Councilmember, At Large Mark Scott Councilmember, At Large Carolyn Vaughn Councilmember, At Large and all of such persons were present at the Meeting, except the following: 1,0A thus constituting a quorum. Among other business considered at the Meeting, the attached Resolution (the Resolution) entitled: A RESOLUTION RELATING TO ESTABLISHING THE CITY'S INTENTION TO REIMBURSE ITSELF FOR THE PRIOR LAWFUL EXPENDITURE OF FUNDS RELATING TO ANY CAPITAL EXPENDITURES FROM THE PROCEEDS OF ONE OR MORE SERIES OF TAX-EXEMPT OR TAXABLE OBLIGATIONS TO BE ISSUED BY THE CITY IN AN AGGREGATE AMOUNT NOT TO EXCEED $169,500,000 FOR AUTHORIZED PURPOSES, INCLUDING THE EVANGELINE GROUNDWATER RIGHTS PROJECT; AUTHORIZING OTHER MATTERS INCIDENT AND RELATED THERETO; AND PROVIDING AN EFFECTIVE DATE was introduced and submitted to the Council for passage and adoption. After presentation and due consideration of the Resolution, a motion was made by Councilmember tSo.(f (O that the Resolution be finally passed and adopted in accordance with the City's Home Rule Charter. The motion was seconded by Councilmember S and carried by the following vote: voted "For" a voted "Against" 0 abstained all as shown in the official Minutes of the Council for the Meeting. 300127551.1 2. The attached Resolution is a true and correct copy of the original on file in the official records of the City; the duly qualified and acting members of the Council of the City on the date of the Meeting are those persons shown above, and, according to the records of my office, each member of the Council was given actual notice of the time, place, and purpose of the Meeting and had actual notice that the Resolution would be considered; and the Meeting and deliberation of the aforesaid public business was open to the public, and written notice of said meeting, including the subject of the Resolution, was posted and given in advance thereof in compliance with the provisions of Chapter 551, as amended, Texas Government Code. 300127551.1 2 IN WITNESS WHEREOF, I have signed my name officially and affixed the seal of the City, this 21 st day of October, 2025. City of Corpus Christi, Texas (SEAL) Signature page to the Secretary Certificate S- 1 300127551.1