R2009-002 - 2009-01-05RESOLUTION NO. R2009-2
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 capital equipment acquisition program, the general
purpose and function of which is to make certain capital improvements described in Exhibit A
hereto (herein, the "Project"), the maximum aggregate amount for which the City expects to
spend in 2009 is approximately $72,500,000;
WHEREAS, the City anticipates providing funds to permanently finance the capital costs of
the Project by issuing after the date hereof certain tax-exempt obligations (the "Obligations")
expected to be issued by the City in 2009, including its Certificates of Obligation, its General
Obligation Bonds and it Water and Sewer System Revenue Bonds (collectively, the "Obligations")
which are currently expected to have a maximum aggregate principal amount of approximately
$65,000,000, all of the proceeds of which are expected to be used to pay costs of the Project and
costs of issuance of 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 to pay the costs of the Project;
WHEREAS, the Obligations will be payable from debt service taxes levied, assessed and
collected by the City and water and sewer system revenues assessed and collected by the City for
the Obligations;
WHEREAS, the City anticipates that after the date hereof and prior to the issuance of the
Certificates of Obligation, 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, including expenditures for the equipment listed on Exhibit A hereto as Education and Road
Expenditures, in the aggregate amount of not more than $10,500,000;
WHEREAS, the money to be used to pay the Education and Road Expenditures set forth in
this Resolution is in the City's General Fund, the general purpose and function of which is to pay
operating and maintenance expenditures of the City and other lawfully available funds of the City,
and such funds are not appropriated for any other purpose;
WHEREAS, the City anticipates that after the date hereof and prior to the issuance of the
General Obligation 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, including expenditures for the equipment listed on Exhibit A hereto as General
Expenditures, in the aggregate amount of not more than $29,500,000;
WHEREAS, the money to be used to pay the General Expenditures set forth in this
Resolution is in the City's General Fund, the general purpose and function of which is to pay
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operating and maintenance expenditures of the City and other lawfully available funds of the City,
and such funds are not appropriated for any other purpose;
WHEREAS, the City anticipates that after the date hereof and prior to the issuance of the
Water and Sewer System Revenue 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, including expenditures for the equipment listed on Exhibit A hereto
as Water/Sewer Expenditures in the aggregate amount of not more than $7,500,000;
WHEREAS, the money to be used to pay the Water/Sewer Expenditures set forth in this
Resolution is in the City's Water/Sewer Fund, the general purpose and function of which is to pay
operating and maintenance expenditures of the City's water and sewer system and other lawfully
available funds of the City, and such funds are not appropriated for any other purpose;
WHEREAS, the City reasonably expects that the City will be reimbursed for the Education
and Road Expenditures, the General Expenditures and the Water/Sewer Expenditures (collectively,
the "Expenditures") with proceeds of the Obligations;
WHEREAS, after the issuance of the Obligations it will: (1) evidence each allocation of
proceeds of the Obligations to the reimbursement of the Expenditures with separate entries in its
books and records maintained with respect to the Obligations, and (2) identify in such entries the
actual prior Expenditures being reimbursed or the fund from which the Expenditures was made.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF CITY COUNCIL OF
THE CITY 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 approximately $47,500,000 principal
amount of Obligations, all of which will be used to pay the costs of the Project, all of which is
expected to be used to reimburse the City for capital expenditures paid in connection with the
Project prior to the issuance of the Obligations and to pay costs of issuance of the Obligations.
Section 2. The City will maintain this Resolution at the office of the City at 3519
Liberty Drive, Pearland, Texas 77581 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 Resolution.
PASSED AND APPROVED this 5`" day of January, 2009.
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Mayor
City of Pearland, Texas
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Exhibit "A"
Resolution No. R2009-2
Exhibit A
Description of Expenditures To Be Reimbursed
Education and Road Expenditures $ 10,500,000
University of Houston - Pearland Campus
Cullen Parkway Improvements
General Expenditures $ 29,500,000
Cowart Creek Diversion
Town Ditch III
Veterans/Walnut Drainage
East Mary's Creek Detention
Natatorium/Recreation Center
Cullen Parkway Improvements
McHard Road. Extension
Dixie Farm Rd. Phase II
Bailey/Veterans to FM 128
Water/Sewer Expenditures $ 7,500,000
City of Houston Connection
GCWA Water Purchase
TOTAL 47.500.000
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