R-2015-003 2015-01-12RESOLUTION NO. R2015-3
A Resolution of the City Council of the City of Pearland, Texas,
declaring intention to reimburse project expenditures from future
capital lease proceeds or from other financing sources.
WHEREAS, the City is proceeding with its capital equipment acquisition
program, the general purpose and function of which is for the acquisition of certain
municipal equipment to be owned and used by the City (herein, the "Project"), the
maximum aggregate cost of which is expected to be approximately $3,630,000.00;
WHEREAS, the City anticipates providing funds to permanently finance a portion of
the capital costs of the Project by issuing after the date hereof, certain lease -purchase
obligations or other financing sources, expected to be entered into by the City in fiscal year
2015 and in fiscal year 2016 and are currently expected to have a maximum aggregate
principal amount of $1,675,000.00 in 2015 and $1,000,000 in 2016 (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 general fund revenues or debt
service taxes levied, assessed and collected by the City for the Obligations; and water -
sewer revenues billed 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
constituting expenditures properly chargeable to a capital account (under general federal
HOU:3359383.1
RESOLUTION NO. R2015-3
income tax principles) in connection with the Project, including expenditures for the
equipment listed on Exhibit A hereto as "General Expenditures";
WHEREAS, the money to be used to pay the General 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 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
constituting expenditures properly chargeable to a capital account (under general federal
income tax principles) in connection with the Project, including expenditures for the
equipment listed on Exhibit A hereto as "Water/Sewer Expenditures";
WHEREAS, the money to be used to pay the Water/Sewer 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 City's water and
sewer system 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:
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RESOLUTION NO. R2015-3
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 $950,000.00 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
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 12th day of January. A.D., 2015.
•-=Arli?? C-4
ATTEST:
APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
HOU:3359383. I
TOM REID
MAYOR
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Resolution No. R2015-3
Exhibit "A"
Exhibit A
Description of Expenditures To Be Reimbursed
General Expenditures
Enterprise Resource Management System (Financial/Community
Development Software and Hardware)
Water -Sewer Expenditures
Sewer Vacuum Truck
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