R-2015-196 2015-11-09RESOLUTION NO. R2015- 196
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 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 $21.900,000.00;
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 2016 and currently
expected to have a maximum aggregate principal amount of $22.800,000.00 (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 $12.200,000.00;
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 2016 and currently expected
to have a maximum aggregate principal amount of $13,100.000.00 (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;
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 $4,900.000.00;
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
bonds (the "W/S Bonds"), expected to be issued by the City in fiscal year 2016 and
currently expected to have a maximum aggregate principal amount of $5,800.000.00,
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");
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 and
Governmental Capital Project Funds, the general purpose and function of which is to
pay general operating and maintenance expenditures and construction 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 and Governmental 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
issue approximately $22.800,000.00 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 $13,100,000.00 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 $5.800.000.00 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.
PASSED, APPROVED and ADOPTED this the 9th day of November, A.D.,
2015.
ATTEST:
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
Resolution No. R2015-196
Exhibit "A: through "C"
Exhibit A
FINANCED FACILITIES AND IMPROVEMENTS
PERMANENT IMPROVEMENT BONDS
Cullen/FM518 Detention Pond
Old Townsite Drainage
Independence Park Phase 1
Delores Fenwick Nature Center
Centennial Park Phase 2
Tom Reid Library Expansion
Bailey Road (Veterans to FM1128)
Old Alvin Rd Widening (Plum to McHard)
Hughes Ranch Road (Cullen to Smith Ranch)
Fite Road (Veterans to McLean)
Max Road (Hughes Ranch to Reid Blvd)
Regency Park Subdivision Paving
Kirby Dr. Expansion (Broadway to CR59)
McHard Rd Extension (Mykawa to Cullen)
Smith Ranch Rd Extension (Hughes Ranch to
Broadway)
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Exhibit B
FINANCED FACILITIES AND IMPROVEMENTS
CERTIFICATES OF OBLIGATION
Centennial Park Phase 2
Shadow Creek Ranch Trail
Green Tee Terrace Trail
Independence Park
Tom Reid Library Expansion
City Hall Complex Renovations
Orange Street Service Center
Fire Station No. 1
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Exhibit C
FINANCED FACILITIES AND IMPROVEMENTS
WATER/SEWER BONDS
Toll Road Utility Relocation
FM521 Waterline (Broadway to Mooring Pointer)
Hughes Ranch Rd Water Line
McHard Rd Trunk Sewer (Garden to Southdown WWTP)
Lift Station Program
JHEC WWTP Expansion
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