RES 1699 10/29/2024RESOLUTION NO. 1699
A RESOLUTION ESTABLISHING THE CITY'S INTENTION TO
REIMBURSE ITSELF FOR THE PRIOR LAWFUL EXPENDITURE OF
FUNDS FOR CAPITAL EXPENDITURES FROM THE PROCEEDS OF
ONE OR MORE SERIES OF TAX-EXEMPT OBLIGATIONS TO BE
ISSUED BY THE CITY FOR AUTHORIZED PURPOSES; AUTHORIZING
OTHER MATTERS INCIDENT AND RELATED THERETO; AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the City Council (the Governing Body) of the City of Cibolo, Texas (the
Issuer) has entered into or will enter into various contracts pertaining to the expenditure of lawfully
available funds of the Issuer to finance the costs associated with (i) making permanent public
improvements for public purposes (the Construction Costs), (ii) the payment of various
engineering costs, including design testing, design engineering, and construction inspection related
to the Construction Costs (the Engineering Costs), (iii) the payment of various architectural costs,
including preparation of plans and specifications and various other plans and drawings related to
the Construction Costs (the Architectural Costs), and (iv) the payment of various administrative
costs, including the fees of bond counsel, financial advisor, project manager, project consultant,
other professionals, and bond printer (the Administrative Costs and, together with the Construction
Costs, the Engineering Costs, and the Architectural Costs, which (collectively) constitute the costs
of the Issuer's project[s] that are the subject of this Resolution, the Project); and
WHEREAS, the provisions of Section 1201.042, as amended, Texas Government Code
(Section 1201.042) provide that the proceeds from the sale of obligations issued to finance the
acquisition, construction, equipping, or furnishing of any project or facilities, such as the Project,
may be used to reimburse the Issuer for costs attributable to such project or facilities paid or
incurred before the date of issuance of such obligations; and
WHEREAS, the United States Department of Treasury (the Department) released
Regulation Section 1.150-2 (the Regulations) which establishes when the proceeds of obligations
are spent and therefore are no longer subject to various federal income tax restrictions contained
in the Internal Revenue Code of 1986, as amended (the Code); and
WHEREAS, the Issuer intends to reimburse itself, within eighteen months from the later
of the date of expenditure or the date the property financed is placed in service (but in no event
more than three years after the original expenditures are paid), for the prior lawful capital
expenditure of funds from the proceeds of one or more series of tax-exempt obligations (the
Obligations) that the Issuer currently contemplates issuing in the principal amount not to exceed
$11,500,000 to finance a portion of the costs of the Project; and
WHEREAS, under the Regulations, to fund such reimbursement with proceeds of the
Obligations, the Issuer must declare its expectation ultimately to make such reimbursement before
making the expenditures; and
WHEREAS, the Issuer hereby finds and determines that the reimbursement for the prior
expenditure of funds of the Issuer is not inconsistent with the Issuer's budgetary and financial
circumstances; and
WHEREAS, the Governing Body hereby finds and determines that the adoption of this
Resolution is in the best interests of the residents of the Issuer; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CIBOLO, TEXAS
THAT:
SECTION 1: This Resolution is a declaration of intent to establish the Issuer's reasonable,
official intent under section 1.150-2 of the Regulations and Section 1201.042 to reimburse itself
from certain of the proceeds of the Obligations for any capital expenditures previously incurred
(not more than 60 days prior to the date hereof) or to be incurred with respect to the Project from
the Issuer's General Fund or other lawfully available funds of the Issuer.
SECTION 2: The Issuer intends to issue the Obligations and allocate within 30 days after
the date of issuance of the Obligations the proceeds therefrom to reimburse the Issuer for prior
lawful expenditures with respect to the Project in a manner to comply with the Regulations.
SECTION 3: The reimbursed expenditure will be a type properly chargeable to a capital
account (or would be so chargeable with a proper election) under general federal income tax
principles.
SECTION 4: The Issuer intends to otherwise comply, in addition to those matters
addressed within this Resolution, with all the requirements contained in the Regulations.
SECTION 5: This Resolution may be relied upon by the appropriate officials at the Office
of the Attorney General for the State of Texas and establishes compliance by the Issuer with the
requirements of Texas law and the Regulations.
SECTION 6: With respect to the proceeds of the Obligations allocated to reimburse the
Issuer for prior expenditures, the Issuer shall not employ an abusive device under Treasury
Regulation Section 1.148-10, including using within one year of the reimbursement allocation, the
funds. corresponding to the proceeds of the Obligations in a manner that results in the creation of
"replacement proceeds", as defined in Treasury Regulation Section 1.148-1, of the Obligations or
another issue of tax-exempt obligations.
SECTION 7: The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the Governing Body.
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SECTION 8: All orders and resolutions, or parts thereof, which are in conflict or
inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict,
and the provisions of this Resolution shall be and remain controlling as to the matters resolved
herein.
SECTION 9: This Resolution shall be construed and enforced in accordance with the laws
of the State of Texas and the United States of America.
SECTION 10: If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application of
such provision to other persons and circumstances shall nevertheless be valid, and the Governing
Body hereby declares that this Resolution would have been enacted without such invalid provision.
SECTION 11: It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, as amended, Texas Government Code.
SECTION 12: This Resolution shall be in force and effect from and after its final passage,
and it is so resolved.
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PASSED, ADOPTED AND APPROVED on the 29th day of October, 2024.
ATTEST:
CITY OF CIBOLO, TEXAS
/
Peggy Cimics, TRMC, City Secretary
ILISPECIALIZED PUBLIC FINANCE INC.
FINANCIAL ADVISORY SERVICES
$11,500,000*
City of Cibolo, Texas
Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 2025
(Guadalupe County, Texas)
Timetable of Events
January 2025
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December 2024
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ILISPECIALIZED PUBLIC FINANCE INC.
FINANCIAL ADVISORY SERVICES
$11,500,000*
City of Cibolo, Texas
Combination Tax and Limited Pledge Revenue
Certificates of Obligation, Series 2025
(Guadalupe County, Texas)
Timetable of Events
January 2025
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Date
Event
February 2025
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Event
City Council approves a Financing Plan and Notice of Intent
Tuesday, December 10, 2024 • Resolution for the issuance of the Obligations.
Thursday, December 12, 2024 • Request rating from S&P Global Ratings.
Wednesday, December 18, 2024 . First Publication of the Notice of Intent Resolution and City
posts it on their website.
Wednesday, December 25, 2024 • Second Publication of the Notice of Intent Resolution.
Friday, January 3, 2025 . Send 1st Draft of Notice of Sale/Preliminary Official Statement
("NOS/POS') to Bond Counsel.
Friday, January 10, 2025 • P` Draft of NOS/POS comments due from Bond Counsel.
Tuesday, January 14, 2025 • Send 21 Draft of the NOS/POS to all parties.
Wednesday, January 22, 2025 • 2nd Draft of the NOS/POS comments due from all parties.
TBD • Rating Agency Conference Call.
Friday, January 24, 2025 . Rating due from S&P.
Tuesday, January 28, 2025 o NOS/POS to distribution list and post on website. Order CUSIPs.
Tuesday, February 11, 2025 . Bids received for the Obligations; Execution of the Official Bid
Wednesday, February 19, 2025 • Send transcript to Texas Attorney General.
Wednesday, March 5, 2025 • Receive Texas Attorney General Preliminary Approval Letter.
Wednesday, March 12, 2025 • Closing. Delivery of the Obligations and Receipt of Proceeds.
*Preliminary, subject to change.
17721 Rogers Ranch Pkwy, Suite 140 • San Antonio Texas 78258 a Phone: (210) 239-0204
March 2025
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City Council approves a Financing Plan and Notice of Intent
Tuesday, December 10, 2024 • Resolution for the issuance of the Obligations.
Thursday, December 12, 2024 • Request rating from S&P Global Ratings.
Wednesday, December 18, 2024 . First Publication of the Notice of Intent Resolution and City
posts it on their website.
Wednesday, December 25, 2024 • Second Publication of the Notice of Intent Resolution.
Friday, January 3, 2025 . Send 1st Draft of Notice of Sale/Preliminary Official Statement
("NOS/POS') to Bond Counsel.
Friday, January 10, 2025 • P` Draft of NOS/POS comments due from Bond Counsel.
Tuesday, January 14, 2025 • Send 21 Draft of the NOS/POS to all parties.
Wednesday, January 22, 2025 • 2nd Draft of the NOS/POS comments due from all parties.
TBD • Rating Agency Conference Call.
Friday, January 24, 2025 . Rating due from S&P.
Tuesday, January 28, 2025 o NOS/POS to distribution list and post on website. Order CUSIPs.
Tuesday, February 11, 2025 . Bids received for the Obligations; Execution of the Official Bid
Wednesday, February 19, 2025 • Send transcript to Texas Attorney General.
Wednesday, March 5, 2025 • Receive Texas Attorney General Preliminary Approval Letter.
Wednesday, March 12, 2025 • Closing. Delivery of the Obligations and Receipt of Proceeds.
*Preliminary, subject to change.
17721 Rogers Ranch Pkwy, Suite 140 • San Antonio Texas 78258 a Phone: (210) 239-0204