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R-96-02-08-10D - 2/8/1996The City reasonably expects to incur debt, as one or more RESOLUTION NO. R- 96- 02- 08 -10D WHEREAS, the City of Round Rock, Texas (the "City ") is a home rule city within the State of Texas; and WHEREAS, at an election held within the City on January 20, 1996, the voters approved the issuance of bonds for various projects as further set forth in the Resolution Canvassing Bond and Charter Amendment Election Returns adopted by the City Council on January 25, 1996; and WHEREAS, the City expects to make expenditures in connection with certain of the projects approved by the voters at the election held on January 20, 1996 as further described on Exhibit "A" attached hereto (the "Project ") prior to the issuance of obligations to finance the Project; and WHEREAS, the City finds, considers, and declares that the reimbursement of the City for the payment of such expenditures will be appropriate and consistent with the lawful objectives of the City and, as such, chooses to declare its intention, in accordance with the provisions of Section 1.150 -2 of the Treasury Regulations, to reimburse itself for such payments at such time as it issues obligations to finance the Project; Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, separate series of bonds, with an aggregate maximum principal C:\ UPOOCS \RSSOLUTI \RSSO2080.XP0 /kg I. amount equal to Seven Hundred Thousand and No /100 ($700,000.00) Dollars for the purpose of paying the costs of the Project. II. All costs to be reimbursed pursuant hereto will be capital expenditures. No tax - exempt obligations will be issued by the City in furtherance of this Resolution after a date which is later than 18 months after the later of 1) the date the expenditures are paid; or 2) the date on which the property, with respect to which such expenditures were made, is placed in service. III. The foregoing notwithstanding, no tax - exempt obligations will be issued pursuant to this Resolution more than three years after the date any expenditure which is to be reimbursed is paid. RESOLVED this 8th day of February, 1996. ATTEST: E LAND, City Secretary 2. CHARLES CUYPER, Mayor City of Round Rock, Texas Exhibit " A " The following projects which may be financed by one or more separate series of bonds: Bowman Road extension and Improvements DATE: February 6, 1996 SUBJECT: City Council Meeting, February 8, 1996 ITEM: 10. D. Consider a resolution expressing official intent to reimburse costs related to various capital improvements. STAFF RESOURCE PERSON: David Kautz As previously discussed with the Council, it is important that the voter authorized extension of Bowman Road begin as soon as possible. The costs incurred for this extension will be advanced by the General Fund and reimbursed by a future genera! obligation bond sale. The federal tax code regulations require the City to express its intent to reimburse any capital costs associated with the above project. That is the purpose of the attached resolution. Staff recommends approval of the resolution.