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A RESOLUTION DECLARING THE INTENT OF THE CITY OF JONESBORO, ARKANSAS TO MAKE CERTAIN EXPENDITURES TOWARD CAPITAL IMPROVEMENTS AND TO REIMBURSE ITSELF FOR SUCH EXPENDITURES FROM THE PROCEEDS OF BONDS; AND PRESCRIBING OTHER MATTERS RELATING THERETO
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WHEREAS, the City of Jonesboro, Arkansas (the "City") proposes to construct extensions and improvements to streets and roads, with related improvements and for expenditures related thereto; and
WHEREAS, it is appropriate that the City assure that its power to issue bonds the interest on which is exempt from federal income tax will, under applicable Treasury Regulations, be preserved, and adoption of this Resolution serves that purpose;
NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Jonesboro, Arkansas:
SECTION 1: The City Council declares its intent to authorize and appropriate the sum of not to exceed $1,500,000.00 (the "Expenditure") for the purpose of constructing extensions and improvements to streets and roads, with related improvements and for expenditures related thereto (the "Project").
The City hereby declares its intent to reimburse the City for the Expenditure from the proceeds of bonds of the City heretofore approved by the electors of the City (the "Bonds") and, further, declares as follows:
a. Proceeds of the Bonds will be applied to reimburse the City for the Expenditure within eighteen (18) months after the later of (a) the date of the Expenditure or (b) the date on which the Project is placed in service and, in any event, within three (3) years after the date of the making of the Expenditure.
b. The City is aware of no reason which would cause it to expect that the Expenditure would be reimbursed from any source other than the proceeds of the Bonds.
c. The City is aware of no reason which would cause it to believe that the Expenditure will not be reimbursed from proceeds of the Bonds.
d. The City is aware of nothing in the budget or financial circumstances of the City which is inconsistent with the intent and declaration of the City Council is aware of no reason to expect that funds other than proceeds of the Bonds will be reserved or allocated on a long-term basis or otherwise set aside for the Expenditure pursuant to budgetary or financial policies of the City.
e. The Expenditure will be a "capital expenditure" within the meaning of applicable Treasury Regulations or will constitute a portion of the costs of issuance of the Bonds.
SECTION 2: This Resolution is adopted to document compliance with applicable Treasury Regulations, including Treas. Reg. 1.150.2.
SECTION 3: This Resolution shall be in effect upon its adoption and approval.
ADOPTED this September 18th, 1995.