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R2003-0060 04-14-03RESOLUTION NO. R2003-60 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, DECLARING INTENTION TO REIMBURSE PROJECT EXPENDITURES. WHEREAS, the members of the City Council previously approved, and the City of Pearland (the "City") is proceeding with the City's property tax supported capital improvement Project (herein, the "Project"), the general purpose and function of which is to provide for the acquisition, construction, repair and improvement of City water and sewer facilities; and WHEREAS, the City anticipates providing funds to finance the capital costs of the Project by issuing after the date hereof its Water and Sewer Revenue Bonds, Series 2003, which are currently expected to have a maximum aggregate principle amount of $9,500,000 (herein, the "Bonds"), all of which is expected to be used for the Project and cost of issuance; 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 water and sewer revenues 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 approximate amount of not more than $6,500,000 (herein, the "Expenditures"); and RESOLUTION NO. R2003-60 WHEREAS, the money to be used to pay the Expenditures set forth in this Resolution exists in the 2002 General Obligation Bond fund, the general purpose and function of which is to pay for certain capital projects and such money is not appropriated for any other purpose; and WHEREAS, after the issuance of the Bonds, it 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. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Council hereby adopts the findings set out in the preamble hereof and hereby states that this Resolution 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 not more than $9,500,000 in principle amount of Bonds to pay the cost of the Project, of which an approximate amount of $6,500,000 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. Section 2. That the City Council will maintain this Resolution at the office of the City where such records are generally kept and make it continuously available for inspection by the general public during normal business hours on business day beginning with 30 days after the date of this Resolution. RESOLUTION NO. R2003-60 PASSED, APPROVED and ADOPTED this the __ A.D., 2003. 14th day of April TOM REID MAYOR ATTEST: APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY FUND 67 WATER AND SEWER REVENUE BONDS McHard Water Dixie Farm Water & Sewer SH35 Water & Sewer West Lea Fite / Wagon Trail Wagon Wheel Hickory Creek Colonial Acres 200,000.00 20,000.00 160,000.00 4,000,000.00 400,000.00 1,000,000.00 250,000.00 300,000.00 Total 6,330,000.00