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Ord. 0900 1999-05-10ORDINANCE NO. 900 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, DECLARING INTENTION TO REIMBURSE PROJECT EXPENDITURES; HAVING A SAVINGS CLAUSE, A SEVERABILITY CLAUSE, AND A REPEALER CLAUSE; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council has previously approved, and the City is proceeding with a project (the "Project") to improve and extend the City's water and sewer system (the "System"), the maximum aggregate cost to the City of which is expected to be approximately $7,000,000.00; WHEREAS, the City anticipates providing funds to permanently finance the capital costs of the Project by issuing after the date hereof the Water and Sewer System Revenue Bonds, Series 1999 (the "Bonds"), which are currently expected to have a maximum aggregate principal amount of approximately $7,000,000.00 (herein, the "Bonds"), all of which is expected to be used for the Project; 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 Tong -term basis to pay the cost of the Project; WHEREAS, the Bonds will be payable from impact fees and revenues of the System, assessed and collected by the City for the Bonds; 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 approximately $500,000.00 (herein, the "Expenditures"); 1 ORDINANCE NO. 900 WHEREAS, the money to be used to pay the Expenditures set forth in this Ordinance is in the Impact Fee Fund (herein, the "Fund"), the general purpose and function of which is to collect the impact fees paid to the City in connection with use of the System and such money is not appropriated for any other purpose; WHEREAS, the City reasonably expects that the City will be reimbursed for the Expenditures with proceeds of the Bonds; and WHEREAS, after the issuance of the Bonds, the City will: (1) 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 (2) identify in such entry the actual prior expenditure being reimbursed or the fund from which the expenditure was made; now, therefore, BE IT ORDAINED 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 hereby states that this Ordinance is a "declaration of official intent" pursuant to and within the meaning of Treasury Regulation §1.150-2, as promulgated under the Internal Revenue Code of 1986, as amended, and declares its intent to issue approximately $7,000,000.00 principal amount of Bonds to pay the costs of the Project, of which a maximum amount of $500,000.00 is expected to be used to reimburse the City for capital expenditures paid in connection with the Project prior to the issuance of the Bonds. Section 2. The City will maintain this Ordinance at the office of the City at 3519 Liberty Drive, Pearland, Texas, 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 Ordinance. 2 ORDINANCE NO. 900 Section 3. It is hereby officially found and determined that the meeting at which this Ordinance was adopted was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as required by the Open Meetings Law, Chapter 551, Texas Government Code, as amended. Section 4. Savings. All rights and remedies which have accrued in favor of the City under this Ordinance and amendments thereto shall be and are preserved for the benefit of the City. Section 5. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid, unconstitutional or otherwise unenforceable by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions thereof. Section 6. Repealer. All ordinances and parts of ordinances in conflict herewith are hereby repealed but only to the extent of such conflict. Section 7. Effective Date. This Ordinance shall become effective from and after its passage on second and final reading. tk PASSED and APPROVED on FIRST READING this the v.' day of pr1 � ,A.D.,1999. ATTEST: TOM REID MAYOR 3 ORDINANCE NO. 900 PASSED and APPROVED ON SECOND AND FINAL READING this the May day of , A. D., 1999. APPROVED AS TO FORM: CaAAA,„--nA, DARRIN M. COKER CITY ATTORNEY .y/ TOM REID MAYOR 4