Ord 1993-038 - Laserfiche WebLink

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/3e;F ¡: accordance with the provisions of Article 7l7k, Vernon's Annotated Texas Civil Statutes, as amended. IT IS OUR FURTHER OPINION, that the Bonds have been authorized, issued and delivered in accordance with the Constitution and laws of the State of Texas and constitute valid and legally binding special obligations of the City; that the Bonds, together with certain other bonds of the City described in the. Ordinance, are -~ equally secured by and payable from a first lien on and pledge of ¡ the Pledged Revenues, as defined in the Ordinance, which include the Net Revenues of the City's Electric Light and. Power System; and that the total indebtedness of the City, including the Bonds, does not exceed any constitutional or statutory limitation. The holders of the Bonds shall never have the right to demand payment thereof out of any funds raised or to be raised from taxation. The City has reserved the right, subject to terms and conditions set forth in the Ordinance, to issue additional bonds and obligations to be on a parity with the Bonds. BASED ON THE FOREGOING IT IS OUR FURTHER OPINION that interest on the Bonds will be excludable from gross income under Section lO3(a) of the Internal Revenue Code of 1986, as amended, and applicable regulations, published rulings and court decisions (collectively, the "Code"). It is our further opinion that the Bonds will not be "private acti vi ty bonds" wi thin the meaning of Section 141(a) of the Code. " ~ the Bonds will Accordlngly lnterest on not be treated as a preference item under the alternative minimum tax provisions of the Code as applicable to individuals and corporations, except that interest on the Bonds will be included in the "adjusted current earnings" of certain corporations for purposes of computing the alternative minimum tax and the environmental tax imposed on such corporations. The statutes, applicable regulations, published rulings of the Internal Revenue Service and court decisions on which such foregoing opinions are based are subject tc . change. 1 " These opinions are dependen't in part on future compliance by the City with certain post-issuance requirements of the Code, including the arbitrage rebate requirements. Failure to comp ly wi th such requirements may cause the interest on the Bonds to be includable in gross income retroactive to the date of issue. In this connection, various covenants and representations have been made by the City in the documents authorizing the issuance of the Bonds that are designed to provide assurance of compliance with such requirements, and for the purposes of these opinions, we assume compliance by the City therewith. In addition, such opinions are based upon representations and certifications of the City pertaining to the use, expenditure, and investment of the proceeds of the Bonds and are rendered in reliance upon the accuracy of the calculations contained in the report of KPMG Peat Marwick. 4583f -2-