HomeMy WebLinkAbout033083 RES - 06/27/2023033083
RESOLUTION NO.
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 $11,500,000
FOR AUTHORIZED PURPOSES; 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) designing, demolishing,
constructing, renovating, improving, reconstructing, restructuring and extending streets and
thoroughfares and related land and right-of-way sidewalks, streetscapes, collectors, drainage,
landscape, signage, acquiring lands and rights-of-way necessary thereto or incidental therewith,;
(2) the purchase of materials, supplies, equipment, machinery, landscaping, land, and rights-of-
way for authorized needs and purposes relating to the aforementioned projects (the Construction
Costs), (3) the payment of various engineering costs, including design testing, design engineering,
and construction inspection related to the Construction Costs (the Engineering Costs), (4) 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
(5) 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 $11,500,000 to finance a portion of the costs of the Project; and
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SCANNED
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
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,
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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
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 27th day of June, 2023.
ATTEST:
City Secretary
(CITY SEAL)
APPROVED THIS 27th day of June, 2023:
ZLX
Miles Risley, City Attorney
CITY OF CORPUS CHRISTI, TEXAS
Signature page to the Resolution
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THE STATE OF TEXAS )(
COUNTY OF NUECES )(
I, the undersigned, City Secretary of -the City of Cotiis Christi,endo hereby certify tha�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 27th day of June,
2023, relating to establishing the City's intention to reimburse itself in an amount not to exceed
$11,500,000 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 27th day of June, 2023.
City Secretary
(CITY SEAL)
Signature page to the Resolution
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That the foregoing resolution was read and passed on this the 27th day of June, 2023, by the
following vote:
Paulette Guajardo —kVJim Klein
Roland Barrera ____kMike Pusley
Sylvia Campos Everett Roy
Gil Hernandez Dan Suckley
Michael Hunter
PASSED AND APPROVED, this the 27th day of June, 2023.
ATTEST:
Rebdcca Huerta
City Secretary
Paulette Guajardo
Mayor
Signature page to the Resolution
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033003