R2010-020 - 2010-02-22RESOLUT�ON NO. R20'10-20
A RES�LUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, DECLARING INTENTION TO REIMBURSE
PROJECT EXPENDITURES,
WHEREAS, the City Council of the City of Pear{and, Texas (the "City") has
previou�[y �pprove�[, and th� City E� pro���ding with its �apital equipment acquisition
program, the general purpose and function of which is to make certain capital
improvements described in Exhi�it A hereto (here�n, the "Project"), the maximum
aggregate amaunt for which the City expects ta spend in 2010 is approximately
$50,000,000;
WHEREAS, the City anticipates providing funds to permaner�tly finance the capital
costs ofi the Project by issuing after the c�ate her�of certain �ax-exempf o�ligations (the
"Obligafions") expected to be issued by the City in 2010, inc{uding i#s Certificates af
Obligation, its General Of�ligation Bonds and it Water and Sewer System Revenue Bonds
(collecti�ely, the "Obligafions") which are currently expected fo have a maximum
aggregate principal amaun� of approximately $50,000,000, all of the proceeds of which are
expected to be used ta pay costs of fhe Project and costs of issuance of the Obligations;
WHEREAS, no funds of the City are, or are reasonab{y expected to be, allocated,
reserved, or otherwise set aside En the City's budget ta pay the costs o# the Projecfi;
WHEREAS, fhe Obl�gafions will be payable from debt service taxes leviec�,
assessed and collected by the City and water and sewer sysfem revenues assessed ar�d
collected by the City fpr the �bligations;
WHEREAS, the City anticipates �hat 6� days prior to the date hereo# and prEOr to
the issuance of the Certificates of Obligation, it will be obligafed to pay cer�ain casts
constitufing exp�nditures properly chargeable fa a capita[ account (under general federal
income tax princip[es) in connection with th� Project, including expenditures fior �he
equipment listed an Exhibit A hereto as Ge�eral Expenditures, in the aggregat� amoun� of
not more thar� $75�,000;
WHEREAS, the money to be used to �ay the Genera[ Expenditures set forth in this
R@SOIL1ti0E1 i5 iii tll2 CI�/ G�neral Fund, the general purpose and function of which is to
pay operating and maintenanc� expenditures af the City and other lawfulfy available funds
of the City, anci sUCh funds are not appropriated for any other purpose;
WHEREAS, �he City antic�pates that 60 days prior ta the date hereaf and prior to
the issuance of the General �bligation Bor�ds, it will be obligated fo pay certain costs
const�tu�ing expenditures proper{y chargeabie fo a capital account (under general federal
income fiax principles) �n connec#ion wifh the P� including expend�tures for th�
equipment lis�ed on Exhibit A hereto as Street/Raad Expendit€ares, in the aggregate
amount of not more than $5,100,000;
WHEREAS, the money to be used to pay the Street/Road Expendifures set forth �n
this Resolution is in the City's General Funci, the general purpase an� function of which is
to pay operating and ma�ntenance expenditures of the City and other IawFully available
funds o# the City, and such funds are not appropriated for a�y other purpose;
WHEREAS, tt�e City anficipates tha� 6Q days priar to the dat� hereof and prior to
fhe issuance of the Water and Sewer System Revenue Bonds, it wili be obligated to pay
certain costs constifiuting expendit�ares praperly chargeable fo a capital account (under
general federal income tax principles) in connection with the Project, including
expenc�itures for the equipment [isted on Exhibif A hereta as Water/Sewer Expenditures in
the aggregate amount of not more than $2,700,000;
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WHEREAS, the maney to be used to pay the Water/Sewer Expendit€ares set forth
in this Resolutian is in �he City's WaterlSewer Fund, the general purpose and function of
which is to pay operafing ar�d maintenance expenditures of the City's water and sewer
system and other lawFully available funds of the City, and such funds are nat appropriated
for any other purpose;
WHEREAS, the City reasonably expects thaf the City wil[ be reimbursed for the
General Expenditures, the StreetslRaads Expenditures an� the Water/Sewer
Expendifures (collecti�ely, the "Expenditures") wifh proceeds of the Obligations;
WHEREAS, after the issuance of the Obligations if wilL (1) evidence each
ailocation of praceeds of the Obligations to the reimbUrsement of the Expenditures with
separate entries in its books and recards maintained with respect to fhe Obligations, and
(2) identify in such entries the actual prior Expenditures being reimbursed or the f�nd from
which the Exper�ditures was made.
BE IT RESOI.VED BY THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS;
Section 1. The City Caunci! here�y adopts �he findings set out in the preamble
hereof and declares its intent wifhin the meaning of Treasury Regulation § 1.150-2, as
promulgated under the 1n�ernal Re�er�ue Code of 1986, as amend�d, to �ssue
approximately $5Q,000,000 principal amaunt of Obligations, al! of which will be used to pay
the costs of the Project, all of which �s ex�ected to he used fo reimb�rse the City for capital
expenditures paid in connection with the Project prior ta the issuance of the Obligations
and fo pay costs of issuance of the O�ligations.
Secfiion 2. The City will maintain th�s Resolufiion at the off�ce of the City at 3519
Liberty Dri�e, Pearland, Texas 7758� and make it continuously a�ailable far inspection by
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the general public during norma{ business hours on business days beginning within 30
days after t�e dafe of this Resolution.
PASSED, APPROVED and ADOPTED this #he 22 day o February, A.D., 2010.
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T�M RE[�
MAYO R
ATTEST:
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APPROVED AS TO FORM:
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DARRIN M. C�KER
GITY ATTORNEY
�
Hou:z���ass.z
Exhibit "q"
Resolution No. R2�10-20
Exhibit A
Description of Egpenditures To Be Reimbursed
General Egpenditures
Public buildings, parks and �'�re department
improvements
��sa,oao
StreetlRoad Expenditures $5,100,a00
Street and Road Improvements
WaterlSewer Egpenditures $2,700,040
Lift Stations and �ewer System
Improvements
HOU:29924$52