R-2012-051-2012-04-09 RESOLUTION NO. R2012-51
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 improvement program,
the general purpose and function of which is for the construction of improvements to the
City's parks, streets, library and drainage (herein, the "Parks, Streets and Drainage
Project and Street, Library Project" Exhibit A), the maximum aggregate amount for
which the City expects to spend in fiscal year 2012 is approximately $3,775,000;
WHEREAS, the City anticipates providing funds to permanently finance the capital
costs of the Parks, Streets and Drainage Project by issuing after the date hereof general
obligation bonds, expected to be issued by the City in 2012 and are currently expected to
have a maximum aggregate principal amount of $4,600,000 (herein, the "General
Obligation Bonds"), all of which is expected to be used to pay costs of the Parks, Streets
and Drainage Project and costs of issuance of the General Obligation Bonds;
WHEREAS, the City anticipates providing funds to permanently finance the capital
costs of the Street and Library Projects by issuing after the date hereof certificates of
obligation, expected to be issued by the City in 2013 and are currently expected to have a
maximum aggregate principal amount of $5,500,000 (herein, the "Certificates of
Obligation"), all of which is expected to be used to pay costs of Street and Library Projects
and costs of issuance of the Certificates of Obligation;
WHEREAS, the City Council of the City has previously approved, and the City is
proceeding with another capital improvement program, the general purpose and
function of which is for the construction of improvements to the City's water and sewer
systems (herein, the "Water System Project" Exhibit A), the maximum aggregate
amount for which the City expects to spend in fiscal year 2012 is approximately
$2,900,000;
WHEREAS, the City anticipates providing funds to permanently finance the capital
costs of the Water System Project by issuing after the date hereof water and sewer
system revenue bonds, expected to be issued by the City in 2012 and are currently
expected to have a maximum aggregate principal amount of $8,500,000 (herein, the
"Water System Bonds"), all of which is expected to be used to pay costs of the Water
System Project and costs of issuance of the Water System 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 Parks, Streets, Drainage, Library Projects or the Water System Project;
RESOLUTION NO. R2012-51
WHEREAS, the General Obligation Bonds and Certificates of Obligations will be
payable from debt service taxes levied, assessed and collected by the City for the General
Obligation Bonds and Certificates of Obligation;
WHEREAS, the Water System Bonds will be payable from revenues charged and
collected by the City from its Water and Sewer System for the Water System Bonds;
WHEREAS, the City anticipates that no more than 60 days prior to the date hereof
and prior to the issuance of the General Obligation 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 Parks, Streets, and Drainage
Project, including expenditures for the improvements listed on Exhibit A hereto as "Parks,
Streets and Drainage Project Expenditures";
WHEREAS, the City anticipates that no more than 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 principles) in connection with the Street, Library Projects, including
expenditures for the improvements listed on Exhibit A hereto as "Street, Library Project
Expenditures";
WHEREAS, the City anticipates that no more than 60 days prior to the date hereof
and prior to the issuance of the Water System 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 Water System Project, including
expenditures for the improvements listed on Exhibit A hereto as "Water System Project
Expenditures";
WHEREAS, the money to be used to pay the Parks, Streets and Drainage Project
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 money to be used to pay the Street, Library Project 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 money to be used to pay the Water System Project Expenditures
described in this Resolution is in the City's Water/Sewer Fund, the general purpose and
function of which is to pay general operating and maintenance expenditures of the
system and such money is not appropriated for any other purpose;
WHEREAS, the City reasonably expects that the City will be reimbursed for the
Parks, Streets and Drainage Project Expenditures with proceeds of the General Obligation
Bonds;
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RESOLUTION NO. R2012-51
WHEREAS, the City reasonably expects that the City will be reimbursed for the
Street, Library Project Expenditures with proceeds of the Certificates of Obligation;
WHEREAS, the City reasonably expects that the City will be reimbursed for the
Water System Project Expenditures with proceeds of the Water System Bonds;
WHEREAS, after the issuance of the General Obligation Bonds, the City will: (1)
evidence each allocation of proceeds of the General Obligation Bonds to the
reimbursement of the Parks and Streets Project Expenditures with separate entries in its
books and records maintained with respect to the General Obligation Bonds, and (2)
identify in each such entry the actual prior Parks, Streets and Drainage Project
Expenditures being reimbursed or the fund from which such Expenditures were made;
WHEREAS, after the issuance of the Certificates of Obligation, the City will: (1)
evidence each allocation of proceeds of the Certificates of Obligation to the reimbursement
of the Street Project Expenditures with separate entries in its books and records
maintained with respect to the Certificates of Obligation, and (2) identify in each such entry
the actual prior Street Project Expenditures being reimbursed or the fund from which such
Expenditures were made;
WHEREAS, after the issuance of the Water System Bonds, the City will: (1)
evidence each allocation of proceeds of the Water System Bonds to the reimbursement of
the Water System Project Expenditures with separate entries in its books and records
maintained with respect to the Water System Bonds, and (2) identify in each such entry
the actual prior Water System Project Expenses being reimbursed or the fund from which
such Expenses 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 $4,600,000 principal amount of General Obligation Bonds, which will be
used to pay the costs of the Parks, Streets and Drainage Project or to reimburse the City
for the Expenditures paid in connection with the Parks, Streets and Drainage Project prior
to the issuance of the General Obligation Bonds and to pay costs of issuance of the
General Obligation Bonds.
Section 2. 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 $5,500,000 principal amount of Certificates of Obligation, which will be used
to pay the costs of the Street, Library Project or to reimburse the City for the Expenditures
paid in connection with the Street Project prior to the issuance of the Certificates of
Obligation and to pay costs of issuance of the Certificates of Obligation.
Section 3. 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
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RESOLUTION NO. R2012-51
promulgated under the Internal Revenue Code of 1986, as amended, to issue
approximately $8,500,000 principal amount of Water System Bonds, which will be used to
pay the costs of the Water System Project or to reimburse the City for the Expenses paid
in connection with the Water System Project prior to the issuance of the Water System
Bonds and to pay costs of issuance of the Water System Bonds.
Section 4. 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, APPROVED and ADOPTED this the 9th day of April, A.D., 2012.
TOM REID
MAYOR
ATTEST:
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APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
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RESOLUTION NO. R2012-51
Exhibit A
Description of Expenditures To Be Reimbursed
Parks, Streets, and Drainage Project Expenditures- General
Obligation
$ 900,000 Park Improvements
$ 800,000 Street Improvements
$1,000,000 Drainage Improvements
Street, Library Project Expenditure — Certificates of Obligation
$ 525,000 Street Improvements
$ 550,000 Library Improvements
Water System Project Expenditures
$ 650,000 Water System Improvements
$2,250,000 Wastewater System Improvements
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