R2018-192 2018-10-22 RESOLUTION NO. R2018-192
A Resolution of the City Council of the City of Pearland, Texas, declaring
intention to reimburse project expenditures from proceeds of future tax-
exempt obligations.
WHEREAS, the City plans to make certain capital expenditures described on Exhibit A
(herein, the "Project"), the maximum aggregate cost of which is expected to be approximately
$88,500,000.00;
WHEREAS, the City anticipates providing funds to permanently finance these capital costs
of the Project by issuing after the date hereof certain certificates of obligation and tax-exempt
bonds, expected to be issued by the City in fiscal year 2019 and currently expected to have a
maximum aggregate principal amount of $88,500,000.00 (herein, the"Tax-Exempt Obligations"),
the proceeds of which are expected to be used to pay costs of the Project and costs of issuance of
the Tax-Exempt Obligations;
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 Project;
WHEREAS, the Tax-Exempt Obligations will be payable from certain revenues and ad
valorem taxes levied, assessed and collected by the City to pay debt service on the Tax-Exempt
Obligations;
WHEREAS, the City anticipates that no more than 60 days prior to the date hereof and
prior to the issuance of the Tax-Exempt Obligations will it be obligated to pay certain costs
constituting expenditures properly chargeable to a capital account (under general federal income
tax principles) in connection with the Project (the "Expenditures");
WHEREAS, the money to be used to pay the Expenditures described in Exhibit
A of this Resolution for the Project 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; and in the City's Capital Project Funds;
WHEREAS, the City reasonably expects that the City will reimburse the General
Fund and the City's Capital Project Funds, respectively, for the Expenditures with proceeds of the
Tax-Exempt Obligations; and
RESOLUTION NO. R2018-192
WHEREAS, after the issuance of the Tax-Exempt Obligations the City will: (1) evidence
each allocation of proceeds of the Tax-Exempt Obligations to the reimbursement of the respective
Expenditures with separate entries in its books and records maintained with respect to the Tax-
Exempt Obligations 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
$88,500,000.00 aggregate principal amount of Tax-Exempt Obligations, all of which will be used to
pay the costs of the Project or to reimburse the City for the Expenditures paid in connection with
the Project prior to the issuance of the Tax-Exempt Obligations and to pay costs of issuance of the
Tax-Exempt Obligations.
Section 2. 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 the 22nd day of October, A.D., 2018.
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TOM REID
MAYOR
ATTEST:
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RESOLUTION NO. R2018-192
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
RESOLUTION NO. R2018-192
EXHIBIT A
Description of Expenditures to be Reimbursed
PROJECT BUDGET EXPECT TO
REIMBURSE
Orange Street Service Center Phase 1 $2,546,876 $2,546,876
Fire Station#7 1,000,000 1,000,000
Orange Street Service Center Phase 2 392,000 392,000
Safe Routes to School 420,000 420,000
SH288 Northbound Frontage Road-CR 59 to FM 518(Broadway) 3,185,000 3,185,000
Broadway at Dixie Farm Intersection Improve. 1,220,000 1,220,000
D.L.Smith Area Drainage Improvements 2,100,000 2,100,000
Recreation Center&Natatorium Generator&Improvements 1,000,000 1,000,000
Mykawa Road Widening-BW8 to FM 518 881,600 881,600
Hughes Ranch Road(CR 403)-Cullen to Smith Ranch 4,169,950 4,169,950
McHard Rd Extension-Mykawa Rd to Cullen Pkwy 7,021,772 7,021,772
Smith Ranch Road Expansion(CR 94)-Hughes Ranch to Broadway 1,517,093 1,517,093
Piper Road Drainage 1,240,000 1,240,000
Mimosa Acres Drainage Improvements 945,000 945,000
Willowcrest Subdivision Drainage Improvements 1,700,000 1,700,000
West Lea Subdivision Drainage Improvements 550,000 550,000
Park Equipment Recapitalization Program 500,000 500,000
Independence Park Phase II 1,020,000 1,020,000
Animal Services Shelter 817,000 817,000
Street Reconstruction 2,175,000 2,175,000
Pearland Parkway Traffic Improvements 230,000 230,000
Pearland Parkway Traffic Circle Modifications 1,050,000 1,050,000
Bailey Road Expansion-Veterans Dr to Main 1,775,000 1,775,000
Shadow Creek Ranch Park Phase II 1,080,000 1,080,000
Fire Station#8 12,245,000 12,245,000
Shadow Creek Library 1,760,000 1,760,000
Shadow Creek Parkway Landscaping,Street Lighting&Sidewalks 915,000 915,000
Orange Street Service Center Phase 1 3,820,314 3,820,314
Orange Street Service Center Phase 2 588,000 588,000
Surface Water Plant Phase 1(10 MGD) 11,550,000 11,550,000
FM 521 Ground Storage Tank Expansion 1,600,000 1,600,000
Bailey Water Plant Improvements 4,240,000 4,240,000
McHard Rd Trunk Sewer(Garden to Southdown WRF) 1,990,000 1,990,000
Sanitary Sewer Rehabilitation 1,500,000 1,500,000
Surface Water Plant Phase 1(10 MGD) 9,450,000 9.450.000
TOTAL $88,194,605 $88,194,605