R2008-099 2008-07-28RESOLUTION 2008-99
A RESOLUTION 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 portion of State Highway
288 Frontage Road (the "Project");
WHEREAS, the City anticipates providing funds to permanently finance the capital costs
of the Project by issuing after the date hereof its (a) Certificates of Obligation, Series 2009, (the
"Series 2009 Certificates"), which are currently expected to have a maximum aggregate principal
amount of approximately $24,000,000, a portion of which is expected to be used to pay a portion
of the costs of the Project and costs of issuance o the Series 2009 Certificates, and (b) General
Obligation Bonds, Series 2009 (the "Series 2009 Bonds"), which are currently expected to have a
maximum aggregate principal amount of approximately $31,000,000, a portion of which is
expected to be used to pay a portion of the costs of the Project and costs of issuance of the Series
2009 Bonds. (The Series 2009 Certificates and the Series 2009 Bonds will be referred to herein
collectively as the "Obligations");
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, both the Series 2009 Certificates and the Series 2009 Bonds 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
Series 2009 Certificates, 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 $990,000 (herein, the "Certificate Expenditures"),
for costs of the Project including costs for construction and construction management by the Texas
Department of Transportation;
WHEREAS, the City anticipates that, after the date hereof and prior to the issuance of the
Series 2009 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 $1,305,000 (herein, the "Bonds Expenditures" and
collectively with the Certificate Expenditures, the "Expenditures"), for costs of the Project including
costs for construction and construction management by the Texas Department of Transportation;
WHEREAS, the funds to be used to pay the Expenditures are in the City's General Fund,
the general purpose of which is to pay the general operation and maintenance expenditures of the
City, 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
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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,THAT:
Section I. The City Council hereby adopts the findings set out in the preamble hereof
and declazes its intent within the meaning of Treasury Regulation § 1.150-2, as promulgated under
the Intemal Revenue Code of 1986, as amended, to issue the Series 2009 Certificates to pay a
portion of the costs of Project, of which a maximum amount of $990,000 is expected to be used to
reimburse the City for the Certificate Expenditures paid in connection with Project prior to the
issuance of the Series 2009 Certificates.
Section 2. 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 Series 2009 Bonds to pay a portion of
the costs of Project, of which a maximum amount of $1,305,000 is expected to be used to reimburse
the City for the Bond Expenditures paid in connection with Project prior to the issuance of the
Series 2009 Bonds.
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 AND APPROVED this 28`h day of July, 2008.
vYrv
Mayor
City of Pearland, Texas
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