HomeMy WebLinkAboutResolution No. 97-22 A RESOLUTION DECLARING OFFICIAL INTENT TO
REIMBURSE CERTAIN EXPENDITURES MADE PRIOR TO
THE ISSUANCE OF TAX-EXEMPT OBLIGATIONS
WHEREAS, the City of The Colony, Texas (the "Issuer"), anticipates the issuance of one or
more series or issues of obligations (the "Obligations"), the interest on which will be excludable from
gross income under Section 103 of the Internal Revenue Code of 1986, as amended, in order to finance
all or a portion of the properties, projects or programs described below (the "Projects");
WHEREAS, certain expenditures relating to the Projects will be paid prior to the issuance of the
Obligations;
WHEREAS, the Issuer hereby certifies that such expenditures have not been made more than 60
days prior to the date of passage of this Resolution;
WHEREAS, upon issuance of the Obligations, the Issuer desires to reimburse these prior
expenditures with proceeds of the Obligations; and
WHEREAS, Section 1.150-2 of the Income Tax Regulations provides that an expenditure on the
Projects may not be reimbursed from Obligation proceeds unless, along with other requirements, the
Issuer declares official intent to reimburse the expenditure prior to the date that the expenditure to be
reimbursed was paid; Now, Therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS:
Section 1. The findings, determinations and certifications contained in the preambles hereof
are incorporated herein for all purposes.
Section 2. This Resolution is a declaration of official intent under Section 1.150-2 of the
Income Tax Regulations by the Issuer that it reasonably expects to reimburse the expenditures described
in Section 3 with proceeds of debt to be incurred by the Issuer, such debt to be issued on or before
eighteen (18) months after the later of (i) the date the first expenditure is paid; or (ii) the date on which
the property is placed in service, but in no event three years after the first expenditure is paid.
Section 3. The following is a general functional description of the Projects for which the
expenditures to be reimbursed are paid and a statement of the maximum principal amount of debt
expected to be issued for the purpose of paying the costs of the Projects.
Pr~eet Description: Debt Tn Re
Acquisition of Fire Department Equipment $25,000
Construction of
Water and Sewer System Improvements $100,000
C:kLG\CLIENTS\COLONY\COS98\DOCSLREIMB.RES
Cosntruction of Street Improvements $200,000
Section 4. Each of the expenditures described in Section 3 is a capital expenditure under
general Federal income tax principles or a cost of issuance.
Section 5. Except for proceeds of the Obligations, no funds are, or are reasonably expected
to be, reserved, allocated on a long-term basis, or otherwise set aside by the Issuer or by any member
of the same controlled group to pay for the expenditures described in Section 3.
PASSED AND APPROVED this _~_~F~4a~//~F_.Jc ~ /~/7 ·
C~7)O~xF THE COLONY, TEXAS
ATTEST:
City Secreta~
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