R2010-137 - 2010-10-11A RESOLUTION THE CITY COUNCIL OF THE CITY
PEARLAND, TEXAS, DECLARING THE 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 $770,000.
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 201 and are currently
expected to have a maximum aggregate principal amount of $770,000 (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 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 "Expenditures";
RESOLUTION NO. R2010-137
WHEREAS, the money to be used to pay the 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 reasonably expects that the City will be reimbursed for 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:
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
$770,000 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.
P9
INFElue Itelowgil
TOM REID
MAYOR
ATTEST:
DARRIN M. COKER
CITY ATTORNEY
Exhibit "A"
Resolution No. R2010-137
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Asphalt Reclaimer
Fire Truck
Gradall Truck