Resolution 2006-015 - Laserfiche WebLink

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Section 7. Tax Covenants, Arbitrage Matters, Reimbursement and Continuin Disclosure. 7.01. General Tax. Covenant. The City covenants and agrees with the registered owners from time to time of the Obligations that it will not take, or permit to be taken by any of its officers, employees or agents, any actions that would cause interest on the Obligations to become includable in gross income of the recipient under the Internal Revenue Code of 1986, as amended (the Code) and applicable Treasury Regulations (the Regulations), and covenants to take any and all actions within its powers to ensure that the interest on the Obligations will not become includable in gross income of the recipient under the Code and the Regulations. In particular, the City covenants and agrees that all proceeds of the Obligations will be expended solely for the payment of the costs of acquisition and installation of capital equipment to be owned and maintained by the City and used in the City's general governmental operations. The City shall not enter into any lease, use or other agreement with any non - governmental person relating to the use of the equipment or security for the payment of the Obligations which might cause the Obligations to be considered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code. 7.02. Certification. The Mayor and City Manager being the officers of the City charged with the responsibility for issuing the Obligations pursuant to this Resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code and applicable Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Obligations which make it reasonable to expect that the proceeds of the Obligations will not be used in a manner that would cause the Obligations to be "arbitrage bonds" within the meaning of the Code and Regulations. 7.03. Axbitrage Rebate. It is hereby found that the City has general taxing powers, that no Bond is a "private activity bond" within the meaning of Section 141 of the Code, that 95% or more of the net proceeds of the Bonds are to be used for local governmental activities of the City, and that the aggregate face amount of all tax - exempt obligations (other than private activity bonds) issued by the City and all subordinate entities thereof during the year 2006 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to the provisions of Section 148(f)(4)(D) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code. 7.04. Reimbursement. The City certifies that the proceeds of the Obligations will not be used by the City to reimburse itself for any expenditure with respect to the equipment which the City paid or will have paid more than 60 days prior to the issuance of the Obligations unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150 -2 of the Regulations; provided that this certification shall not apply (i) with respect to certain de minimis expenditures, if any, with respect to the equipment meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) with respect to "preliminary expenditures" for the equipment as defined in Section 1.150 - 2(f)(2) of the Regulations which in the aggregate do not exceed 20% of the "issue price" of the Obligations. 12