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;
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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");
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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
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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.
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RESOLUTION NO. R2013-164
PASSED, APPROVED and ADOPTED this the 14th day of October, A.D., 2013.
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TOM 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. 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
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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
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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
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