Agenda 04/27/1999 - Laserfiche WebLink

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purposes: (i) the City is a governmental unit with general taxing powers, (ii) no"bond" which is part of the issue of the Lease Obligations is'a private activity bond, (iii) 95% or more of the net proceeds of such issue are to be used for local governmental activities of the issuer within the jurisdiction of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the issuer), (iv) the aggregate face amount of all tax-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 lesser 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 govemmental unit, as provided in Section 141 (c) of the Code; provided, however, that if the City and the City Council receive 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 covenants. 7. The recitals to this resolution are hereby incorporated by reference and are declared to be legislative findings of the City Council in connection with the City Council's decision to acquire and finance the Equipment. 8. This resolution shall be effective immediately upon its adoption.