R2019-261 2019-10-14RESOLUTION NO. R2019-261
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 $216,000,000.00;
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 2020 and currently
expected to have a maximum aggregate principal amount of $216,000,000.00 (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
4145-1916-21433
RESOLUTION NO. R2019-261
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
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 $216,000,000.00 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
4145-1916-21433
RESOLUTION NO. R2019-261
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 14th day of October, A.D., 2019.
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ATTEST:
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MARIA444ds
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GUEZ
INTERIM CITY SECRETARY
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
4145-1916-2143 3
TOM REID
MAYOR
RESOLUTION NO. R2019-261
EXHIBIT A
Description of Expenditures to be Reimbursed
PROJECT BUDGET EXPECT TO
REIMBURSE
Orange Street Service Center Phase 2 $968,000 $968,000
Fire Station #4 1435,000 1,435,000
City Hall Annex Roof 945,000 945,000
PSB Back -Up Power Redundancy for Critical Facility 875,000 875,000
Safe Routes to School 788,400 788,400
SH 288 NB Frontage 5600,000 5,600,000
Traffic Signal Upgrades Program 450,000 450,000
Certificates of Obligations Total 11,061,400 11,061,400
Mykawa Road Widening - BW8 to FM 518
McHard Rd Extension - Mykawa Rd to Cullen Pkwy
Smith Ranch Road Expansion (CR 94) - Hughes Ranch to
Broadway
2007 General Obligation Total
Shadow Creek Ranch Park Phase II
Shadow Creek Trail Phase II
Shadow Creek Library
Shadow Creek Parkway Landscaping, Street Lighting &
Sidewalks
Shadow Creek Ranch Sidewalk Extensions
TIRZ Reimbursable Certificates of Obligation Total
881,600 881,600
7,850,263 7,850,263
2,340,881 2,340,881
11,072,744 11,072,744
9,070000 9,070,000
250000 250,000
1,000600 1,006000
915,000 915,000
205,237 205,237
11,440,237 11,440,237
Piper Road Drainage 1,151,000 1,151,000
Mimosa Acres Drainage Improvements 1,690,000 1,690,000
Willowcrest Subdivision Drainage Improvements 2,086,000 2,086,000
West Lea Subdivision Drainage Improvements 5,492.000 5,492,000
Park Equipment Recapitalization Program 1,006000 1606000
Animal Services Shelter 7,125,000 7,126000
Fire Training Burn Building Phase 1 130,000 130,000
Street Reconstruction 3,075,000 3,075,000
Pearland Parkway Traffic Improvements 1,124,000 1,124,000
Pearland Parkway Traffic Circle Modifications 3,272600 3,272,000
Bailey Road Expansion - Veterans Dr to Main 1,360000 1,360,000
2019 General Obligation Total 27,505,000 27,505,000
Orange Street Service Center Phase 2
Surface Water Plant Phase 1 (10 MGD)
Southdown Plant Ground Storage Tank Replacement
Barry Rose WRF Expansion
Willowcrest Subdivision Sanitary Sewer
Longwood Water Reclamation Facility Decommissioning
Hughes Ranch Gravity Trunk Sewer
Miller Ranch Regional Lift Station Odor Control &
Rehabilitation
Sanitary Sewer Rehabilitation
TOTAL
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Revenue Bonds Total
777,000 777,000
107,600,000 107600600
2,350,000 2,350000
28900,000 28.900,000
1,300,000 1.300,000
9,000,000 9,000000
1,755,000 1,755,000
945,000 945,000
1600000 1,500.000
154,127,000 154,127,000
$216206,38 $216206,381
1
RESOLUTION NO. R2019-261
4145-1916-21433