R2017-226 2017-11-13RESOLUTION NO. R2017-226
A Resolution of the City Council of the City of Pearland, Texas, declaring
intention to reimburse project expenditures from proceeds of future
taxexempt Permanent Improvement Bonds, Certificates of Obligation, and
Water/Sewer Bonds
WHEREAS, the City plans to make certain capital expenditures described on Exhibit A
(herein, the "PIB Project"), the maximum aggregate cost of which is expected to be approximately
$7,500,000.00;
WHEREAS, the City anticipates providing funds to permanently finance these capital costs
of the PIB Project by issuing after the date hereof certain Permanent Improvement Bonds and
currently expected to have a maximum aggregate principal amount of $8,000,000.00 (herein, the
"PIBs"), the proceeds of which are expected to be used to pay costs of the PIB Project and costs
of issuance of the PIBs;
WHEREAS, the City plans to make the capital expenditures described on Exhibit B
(herein, the "CO Project"), the maximum aggregate cost of which is expected to be
approximately $8,500,000.00;
WHEREAS, the City anticipates providing funds to permanently finance these capital costs
of the CO Project by issuing after the date hereof certain Certificates of Obligation and currently
expected to have a maximum aggregate principal amount of $9,000,000.00 (herein, the
"Obligations"), all of which is expected to be used to pay costs of the CO Project and costs of
issuance of the Obligations;
WHEREAS, the City plans to make certain capital expenditures for its water and sewer
system described on Exhibit C (herein, the "W/S Project"), the maximum aggregate cost of which
is expected to be approximately $46,000,000.00;
WHEREAS, the City anticipates providing funds to permanently finance the capital costs
of the W/S Project by issuing after the date hereof certain water and sewer revenue bonds (the
"W/S Bonds") and currently expected to have a maximum aggregate principal amount of
$46,500,000.00, the proceeds of which are expected to be used to pay costs of the W/S Project
and costs of issuance of the W/S Bonds;
WHEREAS, no funds of the City are, or are reasonably expected to be, allocated,
reserved, or otherwise set aside in the City's budget on a long-term basis to pay the costs of the
PIB Project, the CO Project or the W/S Project;
WHEREAS, the PIBs and the Obligations will be payable from certain revenues and ad
valorem taxes levied, assessed and collected by the City to pay debt service on the PIBs and the
Obligations;
WHEREAS, the W/S Bonds will be payable from revenues of the City's water and sewer
system;
WHEREAS, the City anticipates that no more than 60 days prior to the date hereof and
prior to the issuance of the PIBs, Obligations and W/S Bonds it will be obligated to pay certain
costs constituting expenditures properly chargeable to a capital account (under general federal
income tax principles) in connection with the PIB Project, the CO Project or the W/S Project (the
"Expenditures");
WHEREAS, the money to be used to pay the Expenditures described in Exhibits A and
B of this Resolution for the PIB and CO Projects is in the City's General Fund, the general
purpose and function of which is to pay general operating and maintenance expenditures of the
City and such money is not appropriated for any other purpose;
WHEREAS, the City reasonably expects that the City will reimburse the General Fund for
the Expenditures with proceeds of the PIB and the Obligations, respectively; and
WHEREAS, the money to be used to pay the Expenditures described in Exhibit C of this
Resolution for the W/S Projects is in the City's Water and Sewer Revenue Fund and City's Water
and Sewer Capital Project Funds;
WHEREAS, the City reasonably expects that the City will reimburse the Water and Sewer
Revenue Fund and Water and Sewer Capital Project Funds with proceeds of the W/S Bonds; and
WHEREAS, after the issuance of the PIBs, Obligations and W/S Bonds the City will: (1) evidence
each allocation of proceeds of the PIBs, Obligations and W/S Bonds to the reimbursement of the
respective Expenditures with separate entries in its books and records maintained with respect to
the PIBs, Obligations and W/S Bonds and (2) identify in each such entry the actual prior
Expenditures being reimbursed or the fund from which the Expenditures were made; now
therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. The City Council hereby adopts the findings set out in the preamble
hereof and declares its intent within the meaning of Treasury Regulation § 1.150-2, as
promulgated under the Internal Revenue Code of 1986, as amended (the "Code"), to issue
approximately $8,000,000.00 principal amount of PIBs, which will be used to pay the costs of the
PIB Project or to reimburse the City for Expenditures paid in connection with the PIB Project prior
to the issuance of the Bonds and to pay costs of issuance of the PIBs.
Section 2. The City Council hereby adopts the findings set out in the preamble
hereof and declares its intent within the meaning of Treasury Regulation § 1.150-2, as
promulgated under the Code, to issue approximately $9,000,000.00 principal amount of
Obligations, which will be used to pay the costs of the CO Project or to reimburse the City for
Expenditures paid in connection with the CO Project prior to the issuance of the Obligations and
to pay costs of issuance of the Obligations.
Section 3. The City Council hereby adopts the findings set out in the preamble
hereof and declares its intent within the meaning of Treasury Regulation § 1.150-2, as
promulgated under the Code, to issue approximately $46,500,000.00 principal amount of W/S
Bonds, which will be used to pay the costs of the W/S Project or to reimburse the City for
Expenditures paid in connection with the W/S Project prior to the issuance of the W/S Bonds and
to pay costs of issuance of the W/S Bonds.
Section 4. The City will maintain this Resolution at the office of the City at 3519
Liberty Drive, Pearland, Texas 77581 and make it continuously available for inspection by the
general public during normal business hours on business days beginning within 30 days after the
date of this Resolution.
PASSED, APPROVED and ADOPTED this th- 13th day of November, A.D., 2017.
ATTEST:
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NG L FNG,TRtiIC,
RY
Y SEC ETA
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
D ' RICK REED
MAYOR PRO -TEM
Resolution No. R2017-226
Exhibit A
Description of PIB Project
BUDGETED
PROJECT EXPENSES
Southeast Quadrant of Old Townsite Drainage 1,500,000
Mykawa Road Widening - BW8 to FM 518 2,240,720
Hughes Ranch Road (CR 403) - Cullen to Smith Ranch Road 2,856,000
Smith Ranch Road Extension (CR 94) - Hughes Ranch Road
to Broadway 716,000
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Exhibit B
Description of CO Project
PROJECT
Drainage PER for Future Bond Referendum
Shadow Creek Ranch Trail (Nature Park to Kirby Dr)
Green Tee Terrace Trail
Parks PER for Future Bond Referendum
Orange Street Service Center Phase 1
Fire Station #8
Fire Station #1
Facilities PER for Future Bond Referendum
Fire Station #7
Old Alvin Road Widening - Plum Street to McHard Road
Max Road Expansion - Hughes Ranch to Reid Blvd.
Street PER for Future Bond Referendum
Intersection Improvements
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Resolution No. R2017-226
BUDGETED
EXPENSES
500,000
380,000
1,285,983
300,000
344,000
1,169, 000
350,000
300,000
1,485,000
540,000
880,000
300,000
750,000
Resolution No. R2017-226
Exhibit C
Description of W/S Project
BUDGETED
PROJECT EXPENSES
Orange Street Service Center Phase 1 516,000
FM 521 Water Line - Broadway to Mooring Pointe 1,215,000
Surface Water Plant Phase 1 (10 MGD) 8,650,000
FM 521 Ground Storage Tank Expansion 3,600,000
Water Meter Changeout 7,275,000
McHard Rd Trunk Sewer (Garden to Southdown
WRF) 1,990,000
Barry Rose WRF Expansion 6,380,000
Mykawa Lift Stations 5,551,620
JHEC WRF Expansion 6,520,000
Green Tee 1 to Riverstone Wastewater
Diversion (Longwood Service Area Phase 1) 482,500
Lift Station Program 863,000
Sanitary Sewer Rehabilitation 1,000,000
Reflection Bay Lift Station Bar Screen 1,725,000
C-1