R2005-0193 12-12-05
RESOLUTION NO. R2005-193
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 improvements
(herein, the "Improvements"); and
WHEREAS, the City anticipates providing funds to finance the capital costs of
Water/Sewer Improvements using proceeds of the 2006 Water & Sewer Revenue
Bonds and the 2001 General Obligation Bond, which are currently expected to have a
minimum aggregate principle amount of $40,000,000.00 (herein, the "Bonds"); 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 Improvements; and
WHEREAS, the Bonds will be payable from the 2006 Water and Sewer Revenue
Bonds and the 2001 General Obligation Bond; and
WHEREAS, the City anticipates that after the date hereof and prior to the release
of the Bonds 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 Improvements in the approximate amount of not more than
$12,000,000.00 (herein, the "Expenditures"); and
WHEREAS, the money to be used to pay the Expenditures set forth in this
Resolution exists in the 2005 operating funds, the general purpose and function of
which is to pay for certain Improvements and such money is not appropriated for any
other purpose; and
WHEREAS, after the issuance of the Bond proceeds, it will: (1) evidence each
allocation of proceeds of the Bonds to the reimbursement of the Expenditures with an
RESOLUTION NO. R2005-193
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 S1.150-2, as promulgated
under the Internal Revenue Code of 1986, as amended, and declares its intent to issue
at least $40,000,000.00 in Bond proceeds to pay the cost of the Improvements, of which
an approximate amount of $12,000,000.00 is expected to be used to reimburse the City
for capital expenditures paid in connection with the Improvements prior to the issuance
of the Bond 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 12th day of December
A.D., 2005.
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TOM REID
MAYOR
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RESOLUTION NO. R2005-193
ATTEST:
APPROVED AS TO FORM:
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DARRIN M. COKER --------
CITY ATTORNEY
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