R2007-158 2007-10-08
RESOLUTION NO. R2007 -158
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, DECLARING 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 capital equipment acquisition
program, the general purpose and function of which is to the acquisition of certain
capital equipment (herein, the "Project"), the maximum aggregate cost of which is
expected to be approximately $1,000,000;
WHEREAS, the City anticipates providing funds to permanently finance the capital
costs of the Project by issuing after the date hereof certain lease-purchase obligations (the
"Obligations") expected to be entered into by the City in 2008, which are currently
expected to have a maximum aggregate principal amount of approximately $1,000,000, all
of which is expected to be used to pay costs of the Project and costs of issuance of the
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 to pay the costs of the Project;
WHEREAS, the Obligations will be payable from debt service taxes lewied,
assessed and collected by the City and water and sewer revenues assessed and conected
by the City for the Obligations;
WHEREAS, the City anticipates that after the date hereof and prior to the issuance
of the Obligations, it will be obligated to pay certain costs constituting expenditures
properly chargeable to a capital account (under general federal income tax principlHs) in
connection with the Project, including expenditures for the equipment listed on Exhibit A
hereto as General Expenditures, in the aggregate amount of not more than $600,000;
WHEREAS, the money to be used to pay the General Expenditures set forth in this
Resolution is in the City's General Fund, the general purpose and function of which is to
pay operating and maintenance expenditures of the City and such money is not
appropriated for any other purpose;
WHEREAS, the City anticipates that after the date hereof and prior to the issuance
of the Obligations, it will be obligated to pay certain costs constituting expenditures
properly chargeable to a capital account (under general federal income tax principlEls) in
connection with the Project, including expenditures for the equipment listed on Exhibit A
hereto as Water/Sewer Expenditures, in the aggregate amount of not more than
$400,000;
WHEREAS, the money to be used to pay the Water/Sewer Expenditures set forth
in this Resolution is in the City's Water/Sewer Fund, the general purpose and function of
which is to pay operating and maintenance expenditures of the City's water and Sl9wer
system and such money is not appropriated for any other purpose;
HOU:2732949.2
RESOLUTION NO. R2007 -158
WHEREAS, the City reasonably expects that the City will be reimbursed for the
General Expenditures and the Water/Sewer Expenditures (collectively, the "Expenditures")
with proceeds of the Obligations;
WHEREAS, after the issuance of the Obligations it will: (1) evidence each
allocation of proceeds of the Obligations to the reimbursement of the Expenditures with
separate entries in its books and records maintained with respect to the Obligations, and
(2) identify in such entries the actual prior Expenditures being reimbursed or the func! from
which the Expenditures was 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, to issue
approximately $1,000,000 principal amount of Obligations, all of which will be used to pay
the costs of the Project, all of which is expected to be used to reimburse the City for capital
expenditures paid in connection with the Project prior to the issuance of the Obligations
and to pay costs of issuance of the 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.
,~~"\~'~R'[~'~'!I';
_~i<~*"~"""":'7:,~q).
f~/ \,~\
'I-' .~-
\0\ ./enJ
'b ..:..... ........ f
ATTE-:>J. ........ ,_,-
"'(, ,\......
''''UHI~ll''~'
PASSED, APPROVED, AND ADOPTED this the 8th day of October, A.D., 2007.
~Rw
TOM REID
MAYOR
C
APPROVED AS TO FORM:
~~ t1 . ~
DARRIN M. COKER
CITY ATTORNEY
2
HOU:2732949.2
HOU:2732949.2
Exhibit "A"
Resolution No. R2007-158
Exhibit A
Description of Expenditures To Be Reimbursed
General Expenditures
$600,000
Digital In-Car Video System
Case DXT Loader
Ambulance
Water/Sewer Expenditures
$400,000
Excavator
Generator