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HomeMy WebLinkAboutPR 15366: FINANCE EXPENDITURES TO BE INCURRED PERTAINING TO BONDS AUTHORIZED BY THE VOTERS AND TO BE ISSUEDMemorandum City of Port Arth ur, Texas Finance Department To: Steve Fitzgibbons, City From: Rebecca Underhill, Ass' Date: July 8, 2009 Subject: Resolution # 15366 a e , ~,. ist t ger Proposed Resolution 15366 allows the City to reimburse general funds for purchases and contracts that are for activities related to bond projects. The City has $8 million in bond authorization remaining from the 2007 bond election. Included in this authorization is $1.5 million for the renovations at the police department. This contract is expected to be awarded soon. The bond authorization also includes $1.6 million for drainage projects. In May 2009, the City Council authorized the purchase of a Gradall at $315,000 to be used for these drainage activities. These bonds are expected to be issued later this year. P. R. NO. 15366 JJA 07/08/09 RESOLUTION NO. A RESOLUTION EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED AS IT PERTAINS TO BONDS AUTHORIZED BY THE VOTERS AND TO BE ISSUED WHEREAS, the City of Port Arthur, Texas (the "City"), is a home-rule city of the State of Texas, authorized to issue obligations to finance its activities pursuant to the Texas Government Code and other laws of the State of Texas, the interest on which is excludable from gross income for federal income tax purposes ("tax-exempt obligations") pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"); and WHEREAS, the City will make, or has made not more than 60 days prior to the date hereof, payments with respect to the acquisition, construction, reconstruction or renovation of the property listed on Exhibit A attached hereto; and WHEREAS, the City desires to reimburse itself for the costs associated with the property listed on Exhibit A attached hereto from the proceeds oftax-exempt obligations to be issued subsequent to the date hereof; and WHEREAS, the City reasonably expects to issue tax-exempt obligations to reimburse itself for the costs associated with the property listed on Exhibit A attached hereto; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. The City reasonably expects to reimburse itself for all costs that have been or will be paid subsequent to the date that is 60 days prior to the date hereof and that are to be paid in connection with the acquisition, construction, reconstruction or renovation of the property listed on Exhibit A attached hereto from the proceeds oftax-exempt obligations to be issued subsequent to the date hereof. Section 2. The City reasonably expects that the maximum principal amount of tax-exempt obligations issued to reimburse the City for costs associated with the property listed on Exhibit A attached hereto will not exceed $1,815,000. Section 3. All resolutions and parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict only. Section 4. If any word, phrase, clause, sentence, paragraph, section or other part of this resolution or the application thereof to any person or circumstance shall ever be held to be invalid or unconstitutional by any court of competent jurisdiction, the remainder of this resolution and the application of such word, phrase, clause, sentence, paragraph, section, or other part of this resolution to any other person or circumstance shall not be affected thereby. READ, ADOPTED, AND APPROVED, this 14th day of July, 2009, AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Deloris Prince, Mayor ATTEST: Terri Hanks, City Secretary APPROVED AS TO FORM: Mark Sokolo ,City Attorney (tom BEHALF pl/~ APPROVED FOR ADMINISTRATION: ve Fitzgibbons, City Manager K.- ~ .. Rebecca Underhill, Assistant City Manager Z:\Finance\Resolutions\City of Port Arthur- Reimbursement resolution (2008).DOC EXHIBIT A DESCRIPTION OF PROPERTY Item or Fund--Described by Character, Type or Purpose Public Safety Improvements Purchase of Grade-all Amount--Described by Cost, Quantity or Size $1,500,000.00 $ 315,000.00