R2008-070 2008-05-12RESOLUTION NO. R2008-70
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 new
Water SurFace Plant, located in the City (the "Project");
WHEREAS, the City anticipates providing funds to purchase land for the Project
by issuing after the date hereof its Water and Sewer System Revenue Bonds, Series
2009, which are currently expected to have a maximum aggregate principal amount of
approximately $20,000,000 (the "Bonds"), a portion of the proceeds 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 long-term basis to pay the cost
of the Project;
WHEREAS, the Bonds will be payable from revenues received from the operation
of the City's water and wastewater system and other funds collected by the City;
WHEREAS, the City anticipates that, no more than 60 days prior to 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 not more than
$2,500,000 (herein, the "Expenditures"), for costs related to the purchase of land to be
used as the site for the Project;
WHEREAS, the funds to be used to pay the Expenditures set forth in this
Resolution are in (a) the City's water and sewer operating fund, the general purpose of
which is to pay the maintenance and operation expenditures of the City's water and sewer
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RESOLUTION NO. R2008-70
system and (b) the City's available water and sewer capital project funds (collectively
herein, the "Fund"), and amounts in the Fund 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.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PEARLAND, TEXAS, THAT:
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 §1.150-2, as
promulgated under the Internal Revenue Code of 1986, as amended, to issue the
Bonds to pay the costs of Project, of which a maximum amount of $2,500,000 is
expected to be used to reimburse the City for the Expenditures paid in connection with
Project prior to the issuance of the Bonds.
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.
PASSED, APPROVED and ADOPTED this the 12t" day of May, A.D., 2008.
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RESOLUTION NO. R2008-70
ATTEST:
UN R IN , T
ITY CRETA Y
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
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