R2008-005 2008-01-14
RESOLUTION NO. R2008-5
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 program to construct a City
facility to be used for economic development and education (the "Project");
WHEREAS, the City anticipates providing funds to permanently finance the
capital costs of the Project by issuing after the date hereof its Certificates of Obligation,
Series 2008A, which are currently expected to have a maximum aggregate principal
amount of approximately $11,000,000 (the "Obligations"), all of the proceeds of which
are 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
of the Project;
WHEREAS, the Obligations will be payable from ad valorem taxes on property
located in the City;
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 principles) in
connection with the Project in the aggregate amount of not more than $500,000 (herein,
the "Expenditures"), for costs of the Project including costs for preliminary design,
surveying, engineering and professional services expenditures related to the Project;
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,
HOU:2761263.2
RESOLUTION NO. R2008-5
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 Obligations; and
WHEREAS, after the issuance of the Obligations, the City will: (i) evidence each
allocation of proceeds of the Obligations to the reimbursement of the Expenditures with an
entry in its books and records maintained with respect to the Obligations, 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:
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 91.150-2, as
promulgated under the Internal Revenue Code of 1986, as amended, to issue the
Obligations 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 Obligations.
Section 2. 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.
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RESOLUTION NO. R2008-5
PASSED, APPROVED, and ADOPTED this the 14th day of January, A.D., 2008.
ATTEST:
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TOM REID
MAYOR
APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
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