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CC Resolution No. 1880 RESOLUTION NO. 1880 69 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, EXPRESSING INTENT TO FINANCE EXPENDITURES TO BE INCURRED; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF WHEREAS, the City of Baytown (the "City") is a Texas home-rule city and is authorized to issue obligations to finance its activities, the interest on which is excludable from gross income for federal income tax purposes ("tax-exempt obligations") pursuant to Section 103 of the Internal Revenue Code of 1986, as amended; and WHEREAS, the City is contemplating payment for the construction of signalization facilities for the intersection of Garth Road and Independence Blvd within the City (the "Project"); and WHEREAS, the City has concluded that it cannot currently issue tax-exempt obligations to finance the costs associated with the Project; and WHEREAS, the City desires to reimburse itself for the Project costs it is about to pay from the proceeds of obligations to be issued subsequent to the payment of the Project costs, either on its own behalf or through the Baytown Redevelopment Authority; and WHEREAS, the City has no other funds that are or will be allocated to the Project costs it is about to pay on a long-term basis; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS: Section 1: The City hereby expresses its intent to reimburse itself for all costs to be paid in connection with the Project from the proceeds of tax-exempt or taxable obligations to be issued subsequent to the payment of all or a portion of such costs. The maximum cost of the Project is ONE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($150,000.00). Section 2: In lieu of incurring debt at this time, the City intends to pay the costs associated with the Project from funds of the City received from the Baytown Municipal Development District. Section 3: The City expects that debt service on the tax-exempt or taxable obligations to be issued to reimburse the City for the costs to be paid in connection with the Project will be paid from the proceeds of contract revenue bonds payable from tax increment revenues issued by the Baytown Redevelopment Authority, or by bonds of the City payable from an ad valorem tax levied against all taxable property located within the City's boundaries. Section 4: This resolution shall take effect immediately from/ and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote o the City Council of the City of own this t 13"' day of September, 2007. S71 EPHEN H. DONCARLOS, Mayor LORR: 'G DY, City Clerk APPROVED AS TO FORM: NACIO RAMIREZ, SR., it Attcmey Rr.Karcm Fi lcs,01y CouncilAResolutions\20070,A TIRLIntent2 FinanceResol ution45igoal izaRon(a)Ganh&Indepeodence.doc