(A) The City Municipal Building Corporation may issue, sell and deliver its bonds pursuant to the applicable laws of the state, may encumber any real property or equipment acquired by it for the purpose of financing the improvements and equipping of such municipal facilities and may enter into contracts for the sale of the bonds and the improvements to and acquisition of such municipal facilities.
(B) The city reasonably expects that tax-exempt obligations issued by or on behalf of the city, including First Mortgage Bonds, Series 2005, of the City Municipal Building Corporation, as well as bonds and temporary loan warrants of the city, will not exceed $10,000,000 in calendar year 2005. The First Mortgage Bonds, Series 2005, in the amount of $1,240,000 are designated as qualified tax-exempt obligations for the purposes of I.R.C. § 265(b) of 1986, being 26 U.S.C. § 265(b).
(C) The city reasonably expects that tax-exempt obligations issued by or on behalf of the city, including the First Mortgage Bonds of the City Municipal Building Corporation, as well as bonds and temporary loan warrants of the city, will not exceed $5,000,000 in the calendar year 2005. Pursuant to I.R.C. § 148(f)(4)(D) of 1986, being 26 U.S.C. § 148(f)(4)(D), as amended, the city irrevocably allocates to the City Municipal Building Corporation $1,240,000 of its $5,000,000 limit for the purpose of qualifying for the small governmental exception to the rebate requirement.
(Prior Code, § 2.60.080) (Res. passed 10-18-2004)