RES 2006-16TOWN OF 'TROPHY CLUB
RESOLUTION 2006 - 16
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
TROPHY CLUB, TEXAS, STATING AN INTENT TO LIMIT
GENERAL OBLIGATION BOND SALES OR OTHER DEBT
FALLING UNDER THE 1986 FEDERAL TAX BILL'S DEFINITION
OF QUALIFYING DEBT IN CALENDAR YEAR 2006 TO NO
MORE THAN TEN MILLION DOLLARS ($10,000,000); AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, At the September 11, 2006 meeting of the Town Council of
the Town of Trophy Club, the Council, per Ordinance 2006-33, authorized
approximately $78,000 of debt financing; and
WHEREAS, In order for .this debt to be considered mur~icipal debt and
therefore the interest income from this debt to be exempt from Federal Income
Tax to investors, the Town is required to pass a resolution stating an intent to
limit General Obligation bond debt or other debt falling under the 1986 Federal
Tax Bill's definition of Qualifying Debt in calendar year 2006 (hereinafter
"Qualifying Debt"); and
WHEREAS, The Town of Trophy Club has neither the intent nor
authorization to sell additional Qualifying Debt in excess of $1 0,000,000.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COllNClL OF
THE TOWN OF TROPHY CLUB, TEXAS:
Section 1. That the foregoing premises are hereby adopted as findings.
Section 2. That the Town of Trophy Club has no intent to sell more than
$1 0,000,000 of General Obligation bonds or other debt falling under the Tax Bill's
definition of Qualifying Debt during calendar year 2006.
Section 3. That, this Resolution shall become effective from and after
its date of passage in accordance with law.
PASSED AND APPROVED by the Town Council of the Town of Trophy
~ -
Club, Texas, this the 18th day of ~eptember, 2006.
Mayor
Town of Trophy Club, Texas
ATTEST:
Town of ~ro~hy Club, Texas
[SEAL]
APPROVED AS TO FORM:
Town Attorney
Town of Trophy Club, Texas