R2007-170 2007-10-22
RESOLUTION NO. R2007 -170
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 construct certain
water and sewer lines located in the City, including the City of Houston water line, the
SH35 north sewer line and the Cullen water line (collectively, the "Projects");
WHEREAS, the City anticipates providing funds to permanently finance the
capital costs of the Projects 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 $17,630,000 (the "Bonds"), of which not
more than $6,400,000 is expected to be used for the Projects;
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 Projects;
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 Projects in the aggregate amount of not more than $6,400,000 (herein, the
"Expenditures"), for costs related to the Projects;
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RESOLUTION NO. R2007-170
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.
WHEREAS, on July 23, 2007, the City previously approved a resolution to use
proceeds of the Bonds to reimburse prior expenditures for the expansion of the City's
Southwest Environmental Center Wastewater Treatment Plant in the amount not
exceeding $11,000,000, which amount is in addition to the Expenditures described herein.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PEARLAND, TEXAS:
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RESOLUTION NO. R2007 -170
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 91.150-
2, as promulgated under the Internal Revenue Code of 1986, as amended, to issue the
Bonds to pay the costs of Projects, of which a maximum amount of $6,400,000 is
expected to be used to reimburse the City for the Expenditures paid in connection with
Projects prior to the issuance of the Bonds.
Section 2. That the City will maintain this Resolution at the office of the City
located at 3519 Liberty Drive, Pearland, 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, APPROVED and ADOPTED this the 22nd day of October, A.D., 2007.
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TOM REID
MAYOR
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APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
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