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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 Council of the City of Jonesboro, Arkansas (the City) proposes to construct street and road extensions and improvements, with related improvements; and
WHEREAS, it is appropriate that the City Council assure that the power of the City 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 of the City of Jonesboro, Arkansas:
Section 1. The City Council authorizes and appropriates the sum of not to exceed $5,000,000 (the Expenditure) for the purpose of constructing street and road extensions and improvements, with related improvements (the Project).
The City Council hereby declares its intent to reimburse itself for the Expenditure from the proceeds of bonds 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 Council 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 Council 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 Council 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 to finance the Expenditure with the Bonds. 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 Council.
e. The bonds will be issued in the principal amount of at least $5,000,000.
f. 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.
PASSED AND ADOPTED this 19th day of February, 1996.