R-2015-004 2015-01-12RESOLUTION NO. R2015-4
A Resolution of the City Council of the City of Pearland, Texas,
declaring intention to reimburse project expenditures from proceeds
of future tax-exempt permanent improvement bonds, certificates of
obligation, and water/sewer revenue bonds.
WHEREAS, the City plans to make certain capital expenditures described on
Exhibit A (herein, the "PIB Project"), the maximum aggregate cost of which is expected
to be approximately $19,600,000.00;
WHEREAS, the City anticipates providing funds to permanently finance these
capital costs of the PIB Project by issuing after the date hereof certain Permanent
Improvement Bonds, expected to be issued by the City in fiscal year 2015 and currently
expected to have a maximum aggregate principal amount of $20,200,000.00 (herein, the
"PIBs"), the proceeds of which are expected to be used to pay costs of the PIB Project
and costs of issuance of the PIBs;
WHEREAS, the City plans to make the capital expenditures described on Exhibit B
(herein, the "CO Project"), the maximum aggregate cost of which is expected to be
approximately $11,100,000.00;
WHEREAS, the City anticipates providing funds to permanently finance these
capital costs of the CO Project by issuing after the date hereof certain Certificates of
Obligation, expected to be issued by the City in fiscal year 2015 and currently expected
to have a maximum aggregate principal amount of $11,400,000.00 (herein. the
"Obligations"), all of which is expected to be used to pay costs of the CO Project and
costs of issuance of the Obligations;
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RESOLUTION NO. R2015-4
WHEREAS, the City plans to make certain capital expenditures for its water and
sewer system described on Exhibit C (herein, the "W/S Project"), the maximum aggregate
cost of which is expected to be approximately $2,200,000.00:
WHEREAS, the City anticipates providing funds to permanently finance the capital
costs of the W/S 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 2015 and
currently expected to have a maximum aggregate principal amount of $2,500,000.00, the
proceeds of which are expected to be used to pay costs of the W/S Project and costs of
issuance of the W/S 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 PIB Project, the CO Project or the W/S Project;
WHEREAS, the PIBs and the Obligations will be payable from certain revenues
and ad valorem taxes levied, assessed and collected by the City to pay debt service on
the PIBs and 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 PIBs, Obligations 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 PIB Project, the CO
Project or the W/S Project (the "Expenditures");
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RESOLUTION NO. R2015-4
WHEREAS, the money to be used to pay the Expenditures described in Exhibits
A and B of this Resolution for the PIB and CO 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; and
in the City's Capital Project Funds;
WHEREAS, the City reasonably expects that the City will reimburse the General
Fund and the City's Capital Project Funds; for the Expenditures with proceeds of the PIB
and the Obligations, respectively; and
WHEREAS, the money to be used to pay the Expenditures described in Exhibit C
of 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
W/S Bonds; and
WHEREAS, after the issuance of the PIBs, Obligations and W/S Bonds the City
will: (1) evidence each allocation of proceeds of the PIBs, Obligations and W/S Bonds to
the reimbursement of the respective Expenditures with separate entries in its books and
records maintained with respect to the PIBs, Obligations 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 (the "Code"), to
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RESOLUTION NO. R2015-4
issue approximately $20,200,000.00 principal amount of PIBs, all of which will be used to
pay the costs of the PIB Project or to reimburse the City for the Expenditures paid in
connection with the PIB Project prior to the issuance of the Bonds and to pay costs of
issuance of the PIBs.
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 Code, to issue approximately $11,400,000.00 principal amount of
Obligations, all of which will be used to pay the costs of the CO Project or to reimburse
the City for the Expenditures paid in connection with the CO Project prior to the issuance
of the Obligations and to pay costs of issuance of the Obligations.
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 Code, to issue approximately $2,500,000.00 principal amount of
W/S Bonds, all of which will be used to pay the costs of the W/S Project or to reimburse
the City for the Expenditures paid in connection with the W/S Project prior to the issuance
of the W/S Bonds and to pay costs of issuance of the W/S 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. R2015-4
PASSED, APPROVED and ADOPTED this the 12th day of January, A.D. 2015.
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TOM REID
MAYOR
ATTEST:
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
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RESOLUTION NO. R2015-4
Exhibit A
Resolution No. R2015-4
Exhibit "A"
Description of Expenditures to be Reimbursed
PROJECT
PIB
Drainage
Cowart Creek Diversion
OTS Drainage
Total Drainage
Park Improvements
Shadow Creek Ranch Park
Centennial Park
Independence Park
Delores Fenwick NC
Total Parks
Facilities
Tom Reid Library
Total Facilities
Street Improvements
Max Road
Fite Road
McHard Rd Extension
Kirby Dr. Expansion
Hughes Ranch Rd
Regency Park Paving
Bailey Road
Smith Ranch Road
Industrial Drive Realignment
Total Streets
Total PIBs
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A-1
BUDGET EXPECT TO
BONDS REIMBURSE
1,524,159
2,312,200 1,083,000
3,836,359 1,083,000
2,116,834 2,116,834
1.504,936 1,504,936
179,810 179,810
158,000 158,000
3,959,580 3,959,580
3,395,000 1,592,025
3,395,000 1,592,025
849,685 849,685
679,810 679,810
771,094 771,094
738,545 738,545
200,000 200,000
2,766,600 1,152,750
1,067,480 1,067,480
65,643 65,643
1,190,000 670,000
8,328,857 6,195,007
19,519,796 12,829,612
RESOLUTION NO. R2015-4
Exhibit B
Resolution No. R2015-4
Exhibit "B"
Description of Expenditures to be Reimbursed
PROJECT
CO's
Centennial Park
SCR Trail
Green Tee Trail
Fire Station #2
CH Complex
Orange St. Service Center
Tom Reid Library
OTS Sidewalks
Total CO's
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B-1
BUDGET EXPECT TO
BONDS REIMBURSE
223,064
23,147
21,037
3,669,954
4,397,699
2,120,000
412,300
200,000
11,067,201
223,064
23,147
21,037
3,669,954
400,000
233,200
82,460
200,000
4,852,862
RESOLUTION NO. R2015-4
Exhibit C
Resolution No. R2015-4
Exhibit "C"
Description of Expenditures to e Reimbursed
PROJECT
W/S Bonds
Regency Park Water Line
Green Tee to Riverstone Diversion
SWEC Filter and Bar Screen
Total W/S Revenue Bonds
C-1
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BUDGET EXPECT TO
BONDS REIMBURSE
579,230
324,170
1,240,000
2,143,400
579,230
32,417
611,647