Agenda 04/27/1999 - Laserfiche WebLink

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04/23/99 16:26 FAX ~ 006/007 the jurisdiction of the issuer), (iv) the aggregate face mount of all m-exempt bonds (other than private activity bonds and bonds deemed designated pursuant to the provisions of Section 148(f)(4)(D)(iii) and (iv) of the Code) issued by the City during the calendar year 1999 (and notes and bonds issued by any subordinate entity of the City) is not reasonably expected to exceed $5,000,000, except that~ pursuant to the provisions of Section 148(f)(4)(D)(vii) of the Code, this amount of $5,000,000 is increased by the l~sser of $5,000,000 or so much of the aggregate face amount of all the tax-exempt bonds (other than private activity bonds) issued by the City during the calendar year 1999 (and notes and bonds issued by any subordinate entity of the City) attributable to Financing the construction (within the meaning of Section 148(f)(4)(C) of the Code) of public school facilities. 6. The City Council covenants that the City shall not permit the proceeds of the Lease Obligations to be used in any manner that would result in (a) 10% or more of such proceeds being used in a trade or business carded on by any person other than a governmental unit, as provided in Section 141 (b)of the Code, provided that no more than 5% of such proceeds may be used in a trade or business unrelated to the City's use of the Equipment, (b) 5% or more of such proceeds being used with respect to any "output facility" (other than a facility for the furnishing of water), within the meaning of Section 141(b)(4) of the Code, or (c) 5% or more of such proceeds being used directly or indirectly to make or finance loans to any persons other than a governmental unit, as provided in Section 141 (c) of the Code; provided, however, that if the City receives an opinion of nationally recognized bond counsel that any such covenants need not be complied with to prevent the interest on the Lease Obligations from being includable in the gross income for Federal income tax purposes of the registered owner thereof under existing law, the City need not comply with such covenmxts. 7. The City has paid and will pay certain expenditures (the "Expenditures") in connection with the purchase and installation of the Equipmere and has determines that it is necessanf to reimburse the City for the Expenditures from the proceeds of the Lease Obligations. The City Council hereby declares its intent to reimburse the City with the proceeds of the Lease Obligations forthe Expenditures with respect to the Equipment made on and after Febnm~ 27, 1999, which date is no more than 60 days prior to the date hereof. The City Council reasonably expects on the date hereof that it will reimburse the Expenditures from the proceeds of the Lease Obligations. The maximum principal amount of the Lease Obligations expected to be issued for the Equipment is $1,02 1,700. 8- The recitals to this r~solution are hereby incorporated by reference and are declared to be legislative findings of the City Council in connection with the City Conheirs decision to acquire and finance the Equipment 9. This resolution 'shall be effective immediately upon its adoption.