From
Cheryl Davenport
Title
Resolution declaring expectation to reimburse expenditures with proceeds of future debt for the acquisition and installation of a water well related to park improvements.
Presenter
Diana G, Ortiz, CFO
Recommended Action
Approve
Analysis
This resolution provides the mechanism to issue bonds in FY 2017-2018 to reimburse expenditures incurred in the current fiscal year for the acquisition and installation of a water well related to park improvements.
Financial Consideration
Funding is available in the Parks Capital Project Fund (317193) for a total amount not to exceed $2,000,000 which includes costs of issuance.
Body
A RESOLUTION DECLARING EXPECTATION TO REIMBURSE EXPENDITURES FOR THE ACQUISITION AND INSTALLATION OF A WATER WELL WITH PROCEEDS OF FUTURE DEBT
WHEREAS, the City of Grand Prairie, Texas (the “Issuer”) intends to issue debt for the acquisition and installation of a water well related to park improvements (the “Project”) and further intends to make certain capital expenditures with respect to the Project and currently desires and expects to reimburse the capital expenditures with proceeds of such debt;
WHEREAS, under Treas. Reg. § 1.150-2 (the “Regulation”), to fund such reimbursement with proceeds of tax-exempt obligations, the Issuer must declare its expectation to make such reimbursement; and
WHEREAS, the Issuer desires to preserve its ability to reimburse the capital expenditures with proceeds of tax-exempt obligations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE ISSUER THAT the Issuer reasonably expects to reimburse capital expenditures with respect to the Project with proceeds of debt hereafter to be incurred by the Issuer, and that this resolution shall constitute a declaration of official intent under the Regulation. The maximum principal amount of obligations expected to be issued for the Project is $2,000,000.
PASSED AND APPROVED this the1st day of August, 2017.