R2006-128 08-21-06
RESOLUTION NO. R2006-128
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, DECLARING THE INTENTION TO REIMBURSE CAPITAL
EXPENDITURES.
WHEREAS, City Council has previously approved, and the City of Pearland, Texas
is proceeding with its capital improvement program, the general purpose of which is for
the purchase of materials, supplies, equipment, machinery, buildings, land and rights-of-
way for authorized needs and purposes in the City, including specifically construction of a
new public safety facility and improvement and renovation of certain existing City facilities
(collectively, the "Project"), the maximum aggregate cost of which is expected to be
approximately $17,250,000; and
WHEREAS, the City anticipates providing funds to permanently finance the capital
costs of the Project by issuing after the date hereof the City of Pearland, Texas
Certificates of Obligation, Series 2007 (the "Certificates"), which are currently expected to
have a maximum aggregate principal amount of approximately $17,250,000, of which
approximately $17,250,000 is expected to be used to pay costs of the Project and costs
of issuance of the Certificates; 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 costs
of the Project; and
WHEREAS, the Certificates will be payable from taxes levied, assessed and
collected by the City for the Certificates; and
WH EREAS, the City anticipates that after the date hereof and prior to the issuance
of Certificates, it will be obligated to pay certain costs constituting expenditures properly
chargeable to a capital account (under general federal income tax principles) in
RESOLUTION NO. R2006-128
connection with the Project, including architectural seNices and similar construction costs
for a public safety facility, in the aggregate amount of not more that $400,000 (herein, the
"Expenditures"); and
WHEREAS, the money to be used to pay the Expenditures set forth in this
Resolution is in the City's General Fund, the general purpose and function of which is to
fund maintenance and operating expenditures of the City, and such money is not
appropriated for any other purpose; and
WHEREAS, the City reasonably expects that the City will be reimbursed for the
Expenditures with proceeds of the Certificates; and
WHEREAS, after the issuance of the Certificates, the City will: (1) evidence each
allocation of proceeds of the Certificates to the reimbursement of the Expenditures with
an entry in its books and records maintained with respect to the Certificates, 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 declares its intent within the meaning of Treasury Regulation ~
1.150-2, as promulgated under the Internal Revenue Code of 1986, as amended, to issue
approximately $17,250,000 principal amount of Certificates a portion of which will be used
to pay the costs of the Project, of which a maximum amount of $400,000 is expected to
be used to reimburse the City for capital expenditures paid in connection with the Project
prior to the issuance of the Certificates.
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RESOLUTION NO. R2006-128
Section 2. That the City will maintain this Resolution at the City Hall 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 21st day of August, A.D., 2006.
~~U
TOM REID
MAYOR
ATTEST:
APPROVED AS TO FORM:
~ at--
DARRIN M. COKER
CITY ATTORNEY
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