R2005-0070 04-11-05RESOLUTION NO. R2005-70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, DECLARING INTENTION TO REIMBURSE
CAPITAL EXPENDITURES.
WHEREAS, the members of the City Council previously approved, and the City
of Pearland (the "City") is proceeding with the acquisition of City's capital equipment
(herein, the "Equipment"); and
WHEREAS, the City anticipates providing funds to finance the capital costs of
the Equipment using proceeds of a Capital Lease, which are currently expected to have
a maximum aggregate principle amount of $280,600.00 (herein, the "Lease"), all of
which is expected to be used for the acquisition of Equipment; and
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
cost of the Equipment; and
WHEREAS, the Lease will be payable from the City's Property Tax Revenue;
and
WHEREAS, the City anticipates that after the date hereof and prior to the release
of the Lease funds, 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 Equipment in the approximate amount of not more than
$280,600.00 (herein, the "Expenditures"); and
WHEREAS, the money to be used to pay the Expenditures set forth in this
Resolution exists in the 2004 operating funds, the general purpose and function of
which is to pay for certain Equipment and such money is not appropriated for any other
purpose; and
WHEREAS, after the issuance of the Lease proceeds, it will: (1) evidence each
allocation of proceeds of the Lease to the reimbursement of the Expenditures with an
RESOLUTION NO. R2005-70
entry in its books and records maintained with respect to the Bonds, and (2) identify in
such entry the actual prior Expenditure being reimbursed or the fund from which the
Expenditure was made.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the City Council hereby adopts the findings set out in the
preamble hereof and hereby states that this Resolution is a "declaration of official intent"
pursuant to and within the meaning of Treasury Regulation {}1.150-2, as promulgated
under the Internal Revenue Code of 1986, as amended, and declares its intent to issue
not more than $280,600.00 in Lease proceeds to pay the cost of the Equipment, of
which an approximate amount of $225,600.00 is expected to be used to reimburse the
City for capital expenditures paid in connection with the Equipment prior to the issuance
of the Lease proceeds.
Section 2. That the City Council will maintain this Resolution at the office of
the City where such records are generally kept and make it continuously available for
inspection by the general public during normal business hours on business day
beginning with 30 days after the date of this Resolution.
PASSED, APPROVED and ADOPTED this the ~
A.D., 2005.
11th day of
TOM REID
MAYOR
Apri 1
2
RESOLUTION NO. R2005-70
ATTEST:
~;,~FI-Y SECRETARY--
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
3
/ N.cv-22-04
From-Al len Center Lendin~
~12588760T
T-§25 P.002/005 F-904
Frost Bank
Post Ofh¢o Box 1315
Houston, Tcxa~ 77251.1315
713-SSS-7600
November 23= 2004
The City of Pearland
Purchasing DepaLrtmeat
Gordon Island, P~chasi.ug Officer
City Hall, Suite 252
3519 Liberty Drive
Pearland, TX 77581
RE: The Frost National Bank Lease in the Amount of $280,600
De~t Mr, I$Iand'
I am pleased to inform you that The Frost National Bank ("Lender") has agreed to extend a lease to tl~e City of
Pearland ("Borrower" or "Leasee"), subject to the following terms and condidorts:
A. TERNIS OF LEASE
1. Amount of Lease: $280,600.00
2. Fixed Interes~ Rate: 2.90% fixed, per annum.
Interest shall be computed on a per mmum basis of a year of 360 days and for tlxe actual number
of days elapsed.
3. Maturity Date: The Lease shall mature tkree years from the date ofuke Lease.
4. Repayment Schedule - Semi-Annual Payments: Principal mad fiaterest shall be due and payable
semi-,nnuall7, in arrears, in equal payments of $49,183.27.
5. Purchase Option: A purchase option of $1.00 will be available at t]~e end of lease.
6, Type of Tramacdon: This transaction is non-Bank Qualified
7. Net Lease: Tkis is a net lease transaction whereby insurance, maintenance, and any applicable
taxes are the responsibility of th~ Lessee. All manufacturer's guarantees and warranties Mil pass
onto the Lessee,
8- Insurance; Lessee will keep in affec, personal property damage insurance equal to thc cost of the
equipment and also mi~rnum liability insurmace of a combined single limit of at lea~t $500,000. Lessor will
be named as additional insured_
9. Funding Option: Frost 1Bank will provide at closing, a.u account from which disbursements would
A ~ubs~oia~? OI Oullen/Frost 8gnkcr.~. Inc. NYSE Synlboh CFR.
FY 2005 PROPOSED BUDGET
GENERAL FUND CAPITAL OUTLAY FUNDED BY OTHER SOURCES
Departments
Amount
2260 E M S
1 072-2260-565.80-00Ambulance Refurbishment
Subtotal $
58,600
58,600
3370 STREET & DRAINAGE 1 072-3370-565.71-00Replacement Dump Truck
2 072-3370-565.79-00 Replacement Back Hoe
Subtotal
62,000
55,OOO
62,000
TOTAL CAPITAL OUTLAY FUNDED BY OTHER SOURCES*
*Other Sources: Short Term Certificates of Obligation
$ 120,600
177F
FY 2005 PROPOSED BUDGET
WATER & SEWER FUND
CAPITAL OUTLAY FUNDED BY OTHER SOURCES
DEPARTMENTS
AMOUNT
4044 WATER & SEWER DISTRIBUTION 1 072-4044-565.79-00Replacement Mini Excavator
2 072-4044-565.79-00Replacement Back Hoe
Subtotal
47,000
58,000
105,000
TOTAL CAPITAL OUTLAY FUNDED BY OTHER SOURCES*
$ 105,000
*Other Sources: Short Term Certificates of Obligation
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