Resolutions

RESOLUTION NO. 2008-17

A RESOLUTION EXPRESSING THE INTENT OF THE CITY OF ELKINS, ARKANSAS TO REIMBURSE PRELIMINARY COSTS PERTAINING TO THE CONSTRUCTION OF BETTERMENTS AND IMPROVEMENTS TO THE WATER SYSTEM OF THE CITY OF ELKINS, ARKANSAS FROM THE PROCEEDS OF THE ISSUANCE OF SALES AND USE TAX BONDS; AND OTHER MATTERS PERTAINING THERETO.

WHEREAS, the City of Elkins, Arkansas (the "City") intends to issue sales and use tax bonds (the "Bonds") to finance the cost of construction improvements to the water system of the City (the "Project"); and

WHEREAS, the City has determined that certain planning and design tasks pertaining to the Project, including, but not limited to engineering studies, feasibility studies, engineering design, site preparation, and preliminary construction work, may he performed and costs incurred prior to the issuance of the Bonds; and

WHEREAS, the City desires to express its intent to reimburse preliminary Project costs from the proceeds of the Bonds, and desires to make such reimbursement in compliance with Treasury Regulations Section 1.150-2;

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City:

Section 1. That the City intends to finance the Project from the issuance of sales and use tax bonds (the "Bonds'") in the amount of approximately $6,000,000 pursuant to Amendment No. 62 to the Constitution of the State of Arkansas, and Arkansas Code Annotated, Title 14, Chapter 164, Subchapter 3.

Section 2. That the City expects to incur preliminary Project costs prior to the issuance of the Bonds, including, but not limited to engineering studies, feasibility studies, engineering design, site preparation, and preliminary construction work; and, further, that the City expects to reimburse such preliminary Project costs from the proceeds of the Bonds.

Section 3. That the preliminary Project will initially be paid from water and sewer funds of the City.

THIS RESOLUTION adopted this 17th day of June, 2008.