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RESOLUTION NO. 0`2 8168
RELATING TO ESTABLISHING THE CITY'S INTENTIONS TO
REIMBURSE ITSELF FOR THE PRIOR LAWFUL EXPENDITURE OF
FUNDS FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED BY
THE CITY FOR COSTS ASSOCIATED WITH HOLLY ROAD STREET
IMPROVEMENTS; AUTHORIZING 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 the costs associated with
constructing Holly Road street improvements (including mobilization, limited milling,
application of tack coat, asphalt overlay from the toe of the gutter, manhole adjustment,
and striping), 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 the payment of various administrative costs,
including the fees of bond counsel, financial advisor, other professionals, project
manager, and printing costs (the Administrative Costs) [the Construction Costs,
Engineering Costs, the Architectural Costs, and Administrative Costs collectively
constitute costs -of the project (the Project)]; and
WHEREAS, the provisions of Section 1201.042, as amended, Texas
Government Code 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 is paid), for the
prior lawful capital expenditure of funds from the proceeds of the Issuer's "Combination
Tax and Limited Pledge Certificates of Obligation, Series 2009" (the Obligations) that
the Issuer currently contemplates issuing in an approximate amount of $10,000,000 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 making the expenditures; and
028168
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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 citizens 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 1.150-1 of the Regulations 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) with respect to the Project from
the Issuer's General Fund.
SECTION 2: The Issuer intends to issue the Obligations and allocate within 30
days after the date of issue 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 reimbursement 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 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 1.248-10, 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.
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SECTION 9: This Resolution shall be construed and enforced in accordance with
the laws 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.
PASSED, ADOPTED AND APPROVED on this the 12th day of May, 2009.
ATTE
``
Armando Chapa, City Secretary
(CITY SEAL)
Approved as to form: May 4, 2009
ewe;
Lisa Ag , Assistant City Attorney
CITY V CORPUS CHRISTI, ZEXAS
H r Garrett,(Mayor
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Corpus Christi, Texas
/`4of
, 2009
The above resolution was passed by the following vote:
Henry Garrett
Melody Cooper
Larry Elizondo, Sr.
Mike Hummell
Bill Kelly
Priscilla G. Leal
John E. Marez
Nelda Martinez
Michael McCutchon
f
Aty-
028168