R2010-001 - 2010-01-11 Resolution No. 2010 -1
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 for the acquisition of certain capital equipment to be owned and
used by the City (herein, the "Project the maximum aggregate cost of which is expected to be
approximately $1,650,000;
WHEREAS, the City anticipates providing funds to permanently finance the capital costs of
the Project by issuing after the date hereof certain lease purchase obligations (the "Obligations
expected to be entered into by the City in fiscal year 2010 and are currently expected to have a
maximum aggregate principal amount of $1,650,000 (herein, the "Obligations all of which is
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 on a long -term basis 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 revenues assessed and collected by the City for the
Obligations;
WHEREAS, the City anticipates that no more than 60 days prior to the date hereof and prior
to the issuance of the Obligations, 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";
WHEREAS, the money to be used to pay the General Expenditures described in this
Resolution is in the City's General Fund, the general purpose and function of which is to pay
general operating and maintenance expenditures of the City and such money is not appropriated for
any other purpose;
WHEREAS, the City anticipates that no more than 60 days prior to the date hereof and prior
to the issuance of the Obligations, 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
WHEREAS, the money to be used to pay the Water /Sewer Expenditures described 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 such money is
not appropriated for any other purpose;
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Resolution No. 2010 -1
WHEREAS, the City reasonably expects that the City will be reimbursed for the General
Expenditures and the Water /Sewer Expenditures (collectively, the "Expenditures with proceeds of
the Obligations; and
WHEREAS, after the issuance of the Obligations, the City 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 each
such entry the actual prior Expenditures being reimbursed or the fund from which the Expenditures
were 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 approximately $2,350,000 principal
amount of Obligations, all of which will be used to pay the costs of the Project or to reimburse the
City for the 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 llthday of January 2010.
«xJ
Pia
Mayor
City of Pearland, Texas
Agee
iti Secret.
of Pe d, Texas/
i
(sF)
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Z3\ if Stns`
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Resolution No. 2010-1
Exhibit A
Description of Expenditures To Be Reimbursed
General Expenditures
Voice over IP Switches
Fire Truck
Tractor and Cab
Generators
Gradall
Water/Sewer Expenditures
Generators
Impellers
Booster Pumps
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