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HomeMy WebLinkAboutR2010-020 2010-02-22RESOLUTION NO. R2010-20 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 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 2010 is approximately $50,000,000; 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 2010, 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 $50,000,000, 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 60 days prior to 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 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; 2 I1dL12992485.2 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 3 iI0U2992485.2 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. s 0� � T�M RE[� MAYO R ATTEST: 1 �h �/� ��I/ / �1�:, •la � I �y ' �i� � ,�,� � i . APPROVED AS TO FORM: l / 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