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HomeMy WebLinkAboutResolution - 2002-R0350 - Resolution To Reimburse Expenditures For Public Works - 09/17/2002Resolution No. 2002-RO350 September 17, 2002 Item No. 54 A RESOLUTION declaring expectation to reimburse expenditures for costs of public works projects in the North Overton Area Tax Increment Financing Reinvestment Zone with proceeds of future debt. WHEREAS, the City of Lubbock, Texas (the "City") plans to issue tax exempt obligations to finance the costs of public works projects in North Overton Area Tax Increment Financing Reinvestment Zone, City of Lubbock, Texas, to wit: street improvements, including land acquisition, drainage, utilities, signage, lighting, curbs, gutters, landscaping, park improvements and storm sewer improvements (collectively, the "Projects"); and WHEREAS, prior to the issuance of such obligations, the City will make expenditures for the Projects from existing funds on hand, and it is the intent of the City to reimburse such funds with the proceeds of sale of such obligations; and WHEREAS, under Trees. Reg. - 1.150-2 (the 'Regulation"), an official intent to reimburse expenditure with the proceeds of tax exempt obligations must be made within 60 days of the date of the original expenditure; and WHEREAS, the City desires to preserve its ability to reimburse the expenditures with proceeds of tax-exempt obligations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS THAT the City reasonably expects to reimburse capital expenditures with respect to the Projects paid with funds on hand from the proceeds of sale of tax exempt obligations hereafter to be issued, and this resolution shall constitute a declaration of official intent under the Regulation. The maximum principal amount of tax exempt obligations expected to be issued for the Projects is $3,270,000. PASSED AND ADOPTED this Sept. 17 , 2002. CITY OF LUBBOCK, TEXAS T. J. Patte son, Senior Council Member ATTEST: City Secretary LUBBOCK TIF C_02002_REIM RES (2).DOC City Manager's Office InterOffice Memo To: Bob Cass, City Manager From: Andy Burcham, Cash & Debt Manager Date: September 5, 2002 Subject: Agenda Comments — September 17, 2001 City Council Meeting CITY OF LUBBOCK AGENDA ITEM SUMMARY ITEM &SUBJECT: # Consider a resolution declaring expectation to reimburse expenditures with proceeds of future debt. BACKGROUND/DISCUSSION: The City of Lubbock plans to issue tax exempt obligations to finance the costs of public works projects in North Overton Area Tax Increment Financing Reinvestment Zone for the purpose of street improvements, including land acquisition, drainage, utilities, signage, lighting, curbs, gutters and landscaping ("Projects'). Prior to the issuance of these obligations, the City will make expenditures for the Projects from existing funds on hand, and it is the intent of the City to reimburse such funds with the proceeds of sale of such obligations. The bond proceeds are expected to be delivered within the 2003-2004 fiscal year. The City must declare its intent to reimburse bond -funded construction costs that are incurred prior to the bond issuance for the costs to be eligible for reimbursement with bond proceeds. SUMMARY/RECOMMENDATION: This resolution allows reimbursement of authorized costs incurred in advance of the bond issuance in order that projects may be completed within prescribed timeframes. Staff recommends approval of this resolution to reimburse no more than $1,010,000.