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R-2012-177-2012-12-10RESOLUTION NO. R2012-177 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, DECLARING INTENTION TO REIMBURSE PROJECT EXPENDITURES FROM FUTURE CAPITAL LEASE PROCEEDS. WHEREAS, the City Council previously approved Resolution No. 2012-146 declaring intention to reimburse project expenditures from future capital lease proceeds in the amount of $2,100,000.00 for fiscal year 2013; WHEREAS, the City anticipates funding the additional purchase and upgrade of its radio system in the amount of $2,000,000.00 from future capital lease proceeds; WHEREAS, the City anticipates providing funds to permanently finance the capital costs of all of the Project(s) by issuing after the date hereof certain lease -purchase obligations, expected to be entered into by the City in fiscal year 2013 and are currently expected to have a maximum aggregate principal amount of $4,100,000.00 in 2013 (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 RESOLUTION NO. R2012-177 constituting expenditures properly chargeable to a capital account (under general federal income tax principles) in connection with the additional Project; 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 $4,100,000.00 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 2 RESOLUTION NO. R2012-177 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 10th day of December, A.D., 2012. ATTEST: Yom' RFING, Y S RETARY APPROVED AS TO FORM: DARRIN M. CO ER CITY ATTORNEY TOM REID MAYOR 3 RESOLUTION NO. R2012-177 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, DECLARING INTENTION TO REIMBURSE PROJECT EXPENDITURES FROM FUTURE CAPITAL LEASE PROCEEDS. WHEREAS, the City Council previously approved Resolution No. 2012-146 declaring intention to reimburse project expenditures from future capital lease proceeds in the amount of $2,100,000.00 for fiscal year 2013; WHEREAS, the City anticipates funding the additional purchase and upgrade of its radio system in the amount of $2,000,000.00 from future capital lease proceeds; WHEREAS, the City anticipates providing funds to permanently finance the capital costs of all of the Project(s) by issuing after the date hereof certain lease-purchase obligations, expected to be entered into by the City in fiscal year 2013 and are currently expected to have a maximum aggregate principal amount of $4,100,000.00 in 2013 (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 RESOLUTION NO. R2012-177 constituting expenditures properly chargeable to a capital account (under general federal income tax principles) in connection with the additional Project; 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 $4,100,000.00 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 2 RESOLUTION NO. R2012-177 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 10th day of December, A.D., 2012. 2-tj TOM REID MAYOR ATTEST: tof YI NG RING M ='_` \ Y S RETARY `U •-•M1 W N W NIA NNN.N . APPROVED AS TO FORM: DARRIN M. CO ER CITY ATTORNEY 3