R2011-025 - 2011-02-14RESOLUTION 2011 -25
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 improvement program, the general purpose
and function of which is for the construction of capital projects and improvements to be owned
and used by the City (herein, the "Project the maximum aggregate cost of which is expected to
be approximately $20,000,000 for General Obligation Bonds;
WHEREAS, the City anticipates providing funds to permanently finance the capital costs of
the Projects by issuing after the date hereof general obligation bonds, expected to be issued by the
City in fiscal years 2011 and 2012 and are currently expected to have a maximum aggregate
principal amount of $6,150,000 in 2011 and $14,250,000 in 2012 (herein, the "Bonds all of which
is expected to be used to pay costs of the Project and costs of issuance of the Bonds;
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 Bonds will be payable from debt service taxes levied, assessed and
collected by the City for the Bonds;
WHEREAS, the City anticipates that no more than 60 days prior to the date hereof and prior
to the issuance of the 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 projects listed on Exhibit A hereto as
"Expenditures";
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 Bonds; and
WHEREAS, after the issuance of the Bonds, the City will: (1) evidence each allocation of
proceeds of the Bonds to the reimbursement of the Expenditures with separate entries in its books
and records maintained with respect to the Bonds, 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
HOU:3092724.1
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the Internal Revenue Code of 1986, as amended, to issue approximately $20,000,000 principal
amount of Bonds, 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 Bonds and to
pay costs of issuance of the Bonds.
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.
I-IOU:3092724.1
PASSED AND APPROVED this 14 day of February, 2011.
Sonia Webb
Deputy City Secretary
City of Pearland, Texas
p,ing
Tom Reid
Mayor
City of Pearland, Texas
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HOU:3092724.1
Exhibit A
Description of Expenditures To Be Reimbursed
Cowart Creek Diversion
Hickory Slough Drainage
Cullen/FM518 Regional Detention Pond
Max Road Sports Complex
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