1991-038City of Southlake, Texas
RESOLUTION NO. 91-38
A RESOLUTION RELATING TO THE REIMBURSEMENT OF
CITY FUNDS EXPENDED FOR COSTS OF ACQUIRING
LAND FOR MUNICIPAL PURPOSES AND/OR
ADMINISTRATIVE FACILITIES FROM THE PROCEEDS OF
SALE OF TAX EXEMPT OBLIGATIONS; AND RESOLVING
OTHER MATTERS INCIDENT AND RELATED THERETO.
WHEREAS, the City of Southlake, Texas (the "City") intends to
acquire land to be used for municipal purposes, and proposes to
issue tax-exempt debt to finance the cost of such land; and
WHEREAS, prior to issuing its debt obligations, the City will
incur certain costs in connection with the acquisition of the
land; and
WHEREAS, the City plans to reimburse itself for expenditures made
in connection with the acquisition of the site prior to the
issuance of its tax-exempt obligations; and
WHEREAS, proposed regulations issued under the Internal Revenue
Code of 1986 (the "Code") imposed certain requirements in order
that such reimbursement is treated as an expenditure of bond
proceeds for federal tax law purposes, including the taking of
official action by the adoption of a resolution evidencing the
City's intention to reimburse City funds expended for a project
or purpose to be financed with the proceeds of sale of tax exempt
obligations; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE,
TEXAS:
Section 1: That the following proposed reimbursement plan is
approved:
1.The City intends to reimburse itself for expenditures to
be made to acquire and retain rights to purchase land by
incurring debt the interest on which is excludable from gross
income under section 103 of the Internal Revenue Code of 1986.
2. The expenditures for the land are anticipated to
aggregate approximately $200,000. The land consists of one
tract containing approximately 10 acres, which is located in
the City. The City plans to use such site for municipal
purposes and/or administrative facilities.
3. The City expects to use proceeds from certificates of
obligation to be issued by the City as the source of funds to
pay the reimbursement expenditures. The City expects to pay
debt service on the certificates of obligation from -the
general tax revenues.
City of Southlake, Texas
RESOLUTION NO. 91-38
Page 2
Section 2: This Resolution will be available for inspection by
the general public at the main administrative office of the City
during normal business hours on each business day through and
including the date of issue of the certificates of obligation.
PASSED AND APPROVED this the &) day of lZb_l 1991.
i xv,,,,,
Sandra L. LeGrand
City Secretary
APPROVED AS TO FORM:
4)k 04es",
City Attorney
City of Southlake, Texas
CITY OF SOUTHLAKE, TEXAS
By:
ry Fcke iyo r