Ord. 0986 2000-09-11ORDINANCE NO. 986
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, DECLARING INTENTION TO REIMBURSE PROJECT EXPENDI-
TURES; 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 of Pearland is
proceeding with the City's Shadow Creek Ranch Wastewater Treatment Plant (herein, the
"Project") and the maximum aggregate cost of which is expected to be approximately
$10,000,000; and
WHEREAS, the City anticipates providing funds to permanently finance the capital
costs of the Project by issuing after the date hereof its Permanent Improvement Bonds (the
"Bonds") expected to be issued in 2001, which are currently expected to have a maximum
aggregate principal amount of approximately $10,000,000 (herein, the "Bonds"), all of
which is expected to be used for the Project; and
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; and
WHEREAS, the Bonds will be payable from taxes levied, assessed and collected
by the City for the Bonds; and
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 $1,200,000 (herein, the
"Expenditures"); and
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ORDINANCE NO. 986
WHEREAS, the money to be used to pay the Expenditures set forth in this
Ordinance is in the General Fund (herein, the "Fund"), the general purpose and function
of which is to pay the operation and maintenance expenses of the City and such money
is not appropriated for any other purpose; and
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 $10,000,000 principal amount of Bonds to pay the costs of the Project, of
which a maximum amount of $1,200,000 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.
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ORDINANCE NO. 986
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.
PASSED and APPROVED on FIRST READING this the 28th day of
August
ATTEST:
, A. D., 2000.
TOM REID
MAYOR
PASSED and APPROVED ON SECOND AND FINAL READING this the 11 day
of September
ATTEST:
, A. D., 2000.
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TOM REID
MAYOR
ORDINANCE NO. 986
APPROVED AS TO FORM:
n.,,;._ k C 4._
DARRIN M. COKER
CITY ATTORNEY
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