Res 1626 10/25/2022 Intent Reinburse OF C/
�`��pnmmnnanoa
.. ...
V r �
�u+F
-
T X A`'
"City of Choice
RESOLUTION NO. 1626
A RESOLUTION RELATING TO 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) designing. constructing,
renovating, .improving, updating, acquiring; enlarging, and: equipping City facilities :(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)thepayment 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, collectively with the costs of acquiring the.Project, the Engineering
Costs, and the Architectural Costs,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
$4,800,000 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 1.15072 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:
Rinds 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.
2
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.
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 extentof 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 off cially 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 require&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.
[The remainder of this page intentionally left blank]
3
PASSED AND ADOPTED on the 25th day of October, 2022.
CITY OF CIBOLO, TEXAS
Stosh Boyle
Mayor .
ATTEST:
Pe Cimics, TRMC
ggY.
City-Secretary
4