HomeMy WebLinkAbout029210 RES - 09/13/2011RESOLUTION NO.
A RESOLUTION RELATING TO ESTABLISHING THE CITY'S
INTENTION TO REIMBURSE ITSELF IN AN AMOUNT NOT TO
EXCEED $49,300,000 FOR THE PRIOR LAWFUL EXPENDITURE OF
FUNDS FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS TO
BE ISSUED BY THE CITY FOR AUTHORIZED PURPOSES RELATING
TO CONSTRUCTING IMPROVEMENTS TO THE CITY'S STREETS;
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 (i) constructing, street
improvements and the purchase of equipment, supplies, machinery, and other personal property
relating to the street improvements, being those street improvements approved at an election held
on November 4, 2008 (the Construction Costs), (ii) the payment of various engineering costs,
including design testing, design engineering, and construction inspection related to the
Construction Costs (the Engineering Costs), (iii) 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 (iv) the payment of various administrative
costs, including the fees of bond counsel, financial advisor, project manager, 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 project
that is the subject of this Resolution (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 are paid), for the prior lawful capital
expenditure of funds from the proceeds of one or more series of tax-exempt obligations (the
Obligations) that the Issuer currently contemplates issuing in an amount not to exceed
$49,300,000 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
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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 1.150-2 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) 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.
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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.
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PASSED, ADOPTED AND APPROVED on this the 13th day of September, 2011.
ATTEST:
City Secretary
(CITY SEAL)
APPROVED THIS 13TH DAY OF SEPTEMBER, 2011:
,X)
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CITY OF CORPUS CHRISTI, TEXAS
Mayor
Lisa Aguilar ssistant City Attorney
For the City Attorney
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THE STATE OF TEXAS )(
COUNTY OF NUECES )(
1, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the
above and foregoing is a true, full and correct copy of a Resolution passed by the City Council of
the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on the 13th day of
September, 2011, relating to establishing the City's intention to reimburse itself in an amount not
to exceed $49,300,000 for City street improvements, which Resolution is duly of record in the
minutes of said City Council, and said meeting was open to the public, and public notice of the
time, place and purpose of said meeting was given, all as required by Texas Government Code,
Chapter 551.
EXECUTED UNDER MY HAND AND SEAL of said City, this the 13th day of September,
2011.
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Corpus Christi, Texs
of
, 2011
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla G. Leal
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
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