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153 RESOLUTION 1999- 223R A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, DECLARING OFFICIAL INTENT TO REIMBURSE CERTAIN EXPENDITURES MADE PRIOR TO THE ISSUANCE OF TAX-EXEMPT OBLIGATIONS WHEREAS, the City of San Marcos, Texas (the "City"), anticipates the issuance of one or more series or issues of obligations (the "Obligations"), the interest on which will be excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended, in order to finance all or a portion of the properties, projects or programs described below (the "Projects"); WHEREAS, certain expenditures relating to the Projects will be paid prior to the issuance of the Obligations; WHEREAS, the City hereby certifies that such expenditures have not been made prior to the date of passage of this Resolution; WHEREAS, upon issuance of the Obligations, the City desires to reimburse these prior expenditures with proceeds of the Obligations; and WHEREAS, Section 1.150-2 of the Income Tax Regulations provides that an expenditure on the Projects may not be reimbursed from Obligation proceeds unless, along with other requirements, the City declares official intent to reimburse the expenditure prior to the date that the expenditure to be reimbursed was paid; Now, Therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: Section 1. The findings, determinations and certifications contained in the preambles hereof are incorporated herein for all purposes. Section 2. This Resolution is a declaration of official intent under Section 1.150-2 of the Income Tax Regulations by the City that it reasonably expects to reimburse the expenditures described in Section 3 with proceeds of debt to be incurred by the City, such debt to be issued on or before eighteen (18) months after the later of (i) the date the first expenditure is paid; or, (ii) the date on which the property is placed in service, but in no event three years after the first expenditure is paid. Section 3. The following is a general functional description of the Projects for which the expenditures to be reimbursed are paid and a statement of the maximum principal amount of debt expected to be issued for the purpose of paying the costs of the Projects. Proiect Descri{>tion Debt To Be Issued Wonder World Drive extension project $1,500,000 Section 4. Each of the expenditures described in Section 3 is a capital expenditure under general Federal income tax principles or a cost of issuance. R,ISANMARIRElMBRSMTlNOV99IDOCSlRESOL.WPD