HomeMy WebLinkAbout032653 RES - 01/25/2022RESOLUTION NO.
RESOLUTION RELATING TO ESTABLISHING THE CITY'S
INTENTION TO REIMBURSE ITSELF FOR THE PRIOR LAWFUL
EXPENDITURE OF FUNDS FROM THE PROCEEDS ONE OR MORE
SERIES OF TAXABLE OR TAX-EXEMPT OBLIGATIONS TO BE
ISSUED BY THE CITY IN AN AGGREGATE AMOUNT NOT TO
EXCEED $207,789,617 FOR AUTHORIZED PURPOSES RELATING TO
CONSTRUCTING VARIOUS CITY 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 (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 (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, 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
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 Issuer intends to reimburse itself for the prior lawful capital expenditure
of funds from the proceeds of one or more series of taxable or tax-exempt obligations (the
Obligations) that the Issuer currently contemplates issuing in an amount not to exceed
$207,789,617 to finance a portion of the costs of the Project; and
WHEREAS, 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
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
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032653
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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 to reimburse itself from certain of the proceeds of the Obligations for any capital
expenditures previously incurred 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 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 3. The Issuer intends to otherwise comply with those matters addressed within
this Resolution.
SECTION 4. 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.
SECTION 5. 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 6. 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 7. This Resolution shall be construed and enforced in accordance with the laws
of the State of Texas and the United States of America.
SECTION 8. 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 9. 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 10. 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 25th day of January, 2022.
C Y OF CORPUS CHRISTI, TEXAS
Mayor
ATTEST:
City Secretary
(CITY SEAL)
APPROVED THIS 25th DAY OF JANUARY, 2022:
Miles Risley, City Attorn
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THE STATE OF TEXAS )(
COUNTY OF NUECES )(
I, 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 25th day of
January, 2022, relating to establishing the City's intention to reimburse itself in an amount not to
exceed $207,789,617 for the prior lawful expenditure of funds relating to constructing various
capital improvements to City property, 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 25th day of January, 2022.
City Secretary
(CITY SEAL)
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That the foregoing resolution was read and passed on this the 25th day of January, 2022, by the
following vote:
Billy Lerma
Roland Barrera
Gil Hernandez
Paulette Guajardo
John Martinez
N12. --
Ben Molina
Greg Smith
Mike Pusley
Michael Hunter
PASSED AND APPROVED, this the 25th day of January, 2022.
ATTEST:
Rebecca Huerta
City Secretary
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Paulette Guajardo
Mayor
03 2 653.
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized
representative), hereby certify to the City Council and other appropriate officers that the money required
for the current fiscal year's portion of the contract, agreement, obligation or expenditure described
below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has
not been appropriated for any other purpose. Future payments are subject to annual appropriation
by the City Council.
City Council Action Date: January 25, 2022 Legistar Item No. 22-0144
Agenda Item:
Resolution relating to establishing the City's intention to reimburse itself from future issuances
of Utility System Revenue bonds in an amount not to exceed $207,789,617 for Utility System
expenditures budgeted in the Fiscal Year 2021-2022 Capital Improvement Plan but incurred
before the issuance of the bonds.
Amount Required:
Fund Name
Account No.
Fund No.
Org. No.
Project No.
Amount
Total
Certification Not Required
Director of Financial Services
Date: 1 13 1 1().