R2023-169 2023-07-10RESOLUTION NO. R2023-169
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
$6,143,000;
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 2024 and currently expected to
have a maximum aggregate principal amount of $6,143,000 (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 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 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
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RESOLUTION NO. R2023-169
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 $6,143,000 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 10th day of July, A.D., 2023.
________________________________
J.KEVIN COLE
MAYOR
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RESOLUTION NO. R2023-169
ATTEST:
________________________________
FRANCES AGUILAR, TRMC, MMC
CITY SECRETARY
APPROVED AS TO FORM:
________________________________
DARRIN M. COKER
CITY ATTORNEY
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RESOLUTION NO. R2023-168
EXHIBIT A
Description of Expenditures to be Reimbursed
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