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R-2013-164-2013-10-14 RESOLUTION NO. R2013-164 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, DECLARING INTENTION TO REIMBURSE PROJECT EXPENDITURES FROM PROCEEDS OF FUTURE TAX- EXEMPT OBLIGATIONS, BONDS, AND WATER/SEWER BONDS WHEREAS, the City plans to make the capital expenditures described on Exhibit A (herein, the "Project"), the maximum aggregate cost of which is expected to be approximately $4,100,000.00; WHEREAS, the City anticipates providing funds to permanently finance these capital costs of the Project by issuing after the date hereof certain Certificates of Obligation, expected to be issued by the City in fiscal year 2014 and currently expected to have a maximum aggregate principal amount of $4,500,000.00 (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, the City plans to make certain capital expenditures described on Exhibit B (herein, the "Project"), the maximum aggregate cost of which is expected to be approximately $19,700,000.00; WHEREAS, the City anticipates providing funds to permanently finance these capital costs of the Project by issuing after the date hereof certain Permanent Improvement Bonds, expected to be issued by the City in fiscal years 2014 and 2015 and currently expected to have a maximum aggregate principal amount of $20,500,000.00 (herein, the "Bonds"), the proceeds of which are expected to be used to pay costs of the Project and costs of issuance of the Bonds; HOU:3361586.1 RESOLUTION NO. R2013-164 WHEREAS, the City plans to make certain capital expenditures for its water and sewer system described on Exhibit C (herein, the "Project"), the maximum aggregate cost of which is expected to be approximately $17,100,000.00, which are in addition to the $2,400,000.00 of expenditures with respect to which the City has previously adopted a reimbursement resolution; WHEREAS, the City anticipates providing funds to permanently finance the capital costs of the Project by issuing after the date hereof certain water and sewer revenue bonds (the "W/S Bonds"), expected to be issued by the City in fiscal year 2014 and currently expected to have a maximum aggregate principal amount of$17,500,000.00, the proceeds of which are 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 Obligations and Bonds will be payable from certain revenues and ad valorem taxes levied, assessed and collected by the City to pay debt service on the Obligations; WHEREAS, the W/S Bonds will be payable from revenues of the City's water and sewer system; WHEREAS, the City anticipates that no more than 60 days prior to the date hereof and prior to the issuance of the Obligations, Bonds, and W/S 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 (the "Expenditures"); HOU:3361586.1 RESOLUTION NO. R2013-164 WHEREAS, the money to be used to pay the Expenditures described in this Resolution for the Obligation and Bond Projects 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 reimburse the General Fund for the Expenditures with proceeds of the Obligations; and WHEREAS, the money to be used to pay the Expenditures described in this Resolution for the W/S Projects is in the City's Water and Sewer Revenue Fund and City's Water and Sewer Capital Project Funds; WHEREAS, the City reasonably expects that the City will reimburse the Water and Sewer Revenue Fund and Water and Sewer Capital Project Funds with proceeds of the Bonds; and WHEREAS, after the issuance of the Obligations, Bonds and W/S Bonds the City will: (1) evidence each allocation of proceeds of the Obligations, Bonds and W/S Bonds to the reimbursement of the Expenditures with separate entries in its books and records maintained with respect to the Obligations, Bonds, and W/S 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: 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 $4,500,000.00 principal amount of Obligations, all of which will be used to 3 HOU:3361586.1 RESOLUTION NO. R2013-164 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 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 $20,500,000.00 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 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 promulgated under the Internal Revenue Code of 1986, as amended, to issue approximately $17,500,000.00 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 Water/Sewer Bonds and to pay costs of issuance of the 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. 4 HOU:3361586.1 RESOLUTION NO. R2013-164 PASSED, APPROVED and ADOPTED this the 14th day of October, A.D., 2013. (1=t11_, TOM TOM REID MAYOR ATTEST: / ,nMq N�•• Ii / `kQ�,ARL,gNos R, YO4 G L011. '* I `', J\RMr" , ' = , 4,.- X= =s» CI SEC''TT ARY �.�''> APPROVED AS TO FORM: r / DARRIN M. COKER CITY ATTORNEY 5 HOU:3361586.1 Resolution No. R2013-164 Exhibit "A" Exhibit A Description of Expenditures To Be Reimbursed BUDGET INTENT TO PROJECT BONDS REIMBURSE CO's SCR Trail 38,994 38,994 Green Tee Trail 86,987 86,987 Fire #3 2,822,423 2,822,423 Fire #2 473,460 473,460 CH Complex 372,952 372,952 Hillhouse Phase 2 300,000 150,000 Total CO's 4,094,816 3,944,816 HOU:3361586.1 RESOLUTION NO. R2013-164 Resolution No. R2013-164 Exhibit "B" Exhibit B Description of Expenditures To Be Reimbursed BUDGET INTENT TO PROJECT BONDS REIMBURSE PIB Drainage Cullen Regional Detention 3,708,000 220,000 OTS Drainage 483,000 195,000 Piper Drainage & Sidewalks 114,588 65,000 Total Drainage 4,305,588 480,000 Park Improvements Max Road Soccer 2,626,320 2,626,320 Shadow Creek Ranch 6,067,600 4,720,000 Centennial Park 1,373,658 730,000 Total Parks 10,067,578 8,076,320 Street Improvements Max Road 190,838 190,838 Fite Road 73,513 73,513 McHard Rd 530,015 300,000 Kirby Dr. 1,226,000 1,226,000 Hughes Ranch Rd 1,065,000 1,065,000 Regency Park Paving 245,161 245,161 CR59 Expansion 2,004,612 2,004,612 Total Streets 5,335,139 5,105,124 Total PIB's 19,708,305 13,661,444 7 HOU:3361586.I RESOLUTION NO. R2013-164 Resolution No. R2013-164 Exhibit "C" Exhibit C Description of Expenditures To Be Reimbursed BUDGET INTENT TO PROJECT BONDS REIMBURSE W/S Bonds McHard Rd 16" Waterline 6,883,997 6,883,997 SH35 WL 518 to Magnolia 1,500,000 1,500,000 Far NW WWTP 6,832,000 1,500,000 Mykawa Scott LS 358,205 358,205 Longwood Service Area 644,190 70,000 West Oaks LS Retirement 143,350 143,350 Oak Brook Estates LS 256,190 50,000 Plnd Heights LS 255,024 75,000 McHard Rd Trunk Sewer 225,745 90,500 Total W/S Revenue Bonds 17,098,701 10,671,052 8 HOU:3361586.1