R2007-113 2007-07-23
RESOLUTION NO. R2007-1l3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
DECLARING THE INTENTION TO REIMBURSE PROJECT EXPENDITURES.
WHEREAS, the City Council of the City of Pearland, Texas (the "City") has previously
approved, and the City is proceeding with its program to expand the Southwest Environmental
Center Wastewater Treatment Plant, located in the City (the "Project");
WHEREAS, the City anticipates providing funds to permanently finance the capital costs
of the Project by issuing after the date hereof its Water and Sewer System Revenue Bonds,
Series 2008, which are currently expected to have a maximum aggregate principal amount of
approximately $17,000,000 (the "Bonds"), of which not more than $11,000,000 is expected to be
used for the Project and cost of issuance;
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 ofthe Project;
WHEREAS, the Bonds will be payable from revenues received from the operation of the
City's water and wastewater system and collected by the City;
WHEREAS, the City anticipates that, after the date hereof and prior to the issuance of the
Bonds, 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 in the
aggregate amount of not more than $11,000,000 (herein, the "Expenditures"), tor costs related to the
expansion of the Southwest Environmental Center Wastewater Treatment Plant;
WHEREAS, the funds to be used to pay the Expenditures set forth in this Resolution are in
the City's General Fund, the general purpose of which is to pay operation and maintenance
expenditures of the City, and other lawfully available funds of the City, including funds for the
payment of water, sewer and wastewater operation and maintenance and excluding proceeds of the
City's outstanding tax-exempt bonds and amounts currently on hand dedicated to the payment of
debt service on the City's outstanding tax-exempt bonds (collectively herein, the "Fund"), and such
funds have been earmarked by the City for expenditures other than the Expenditures;
WHEREAS, the City reasonably expects that it will be reimbursed for the Expenditures
with proceeds of the Bonds; and
WHEREAS, after the issuance of the Bonds, the City will: (i) evidence each allocation of
proceeds of the Bonds to the reimbursement of the Expenditures with an entry in its books and
records maintained with respect to the Bonds, and (ii) identify in such entry the actual prior
Expenditure being reimbursed or the fund from which the Expenditure was made.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, THAT:
Section 1. The City Council hereby adopts the findings set out in the preamble hereof
and declares its intent within the meaning of Treasury Re!,>ulation S 1.150-2, as promulgated under
the Internal Revenue Code of 1986, as amended, to issue the Bonds to pay the costs of Project, of
which a maximum amount of $11,000,000 is expected to be used to reimburse the City for the
Expenditures paid in connection with Project prior to the issuance of the Bonds.
Section 2. The City will maintain this Resolution at the office of the City located at
3519 Liberty Drive, Pearl and, Texas, where such records are generally kept and make it
continuously available for inspection by the general public during normal business hours on
business days beginning within thirty (30) days after the date of this Resolution.
PASSED AND APPROVED this 23rd day of July, 2007.
~qrn) ~
Mayor
City of Pearland, Texas
(SEAL)
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