HomeMy WebLinkAbout26-1487ORDINANCE NO.26- 1487
AN ORDINANCE OF THE CITY OF DENTON TO DECLARE THE INTENT TO
REIMBURSE CAPITAL PROGRAM EXPENDITURES OF GENERAL GOVERNMENT
($40,767,690), THE SOLID WASTE UTILITY ($5,265,000), THE WATER UTILITY
($51,550,080), THE WASTEWATER UTILITY ($49,524,482), AND THE ELECTRIC
UTILITY ($59,490,000) WITH TAX -PREFERRED OBLIGATIONS (CERTIFICATES OF
OBLIGATION AND GENERAL OBLIGATION BONDS) WITH AN AGGREGATE
MAXIMUM PRINCIPAL AMOUNT NOT TO EXCEED $206,597,252; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Denton (the "Issuer") is a municipal corporation/political
subdivision of the State of Texas; and
WHEREAS, the Issuer expects to pay, or have paid on its behalf, expenditures in
connection with the ongoing capital expansion of the General Government, and Solid Waste,
Water, Wastewater and Electric utility projects approved as part of the FY 2026-27 Capital
Improvement Program Budget and described on Exhibit "A" hereto (collectively, the "Projects")
prior to the issuance of Certificates of Obligation and General Obligation Bonds which are tax-
exempt obligations, tax -credit obligations or obligations for which a prior expression of intent to
finance or refinance is required by Federal or state law to finance the Projects; and
WHEREAS, the Issuer finds, considers, and declares that the reimbursement of the Issuer
for the payment of such expenditures will be appropriate and consistent with the lawful objectives
of the Issuer and, as such, chooses to declare its intention to reimburse itself for such payments at
such time as it issues the obligations to finance the Projects; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings set forth in the above preamble to this Ordinance are true and
correct and are hereby adopted.
SECTION 2. The Issuer reasonably expects to incur debt, as one or more series of tax-
exempt obligations, tax -credit obligations or obligations for which a prior expression of intent to
finance or refinance is required by Federal or state law (collectively and individually, the "Tax -
Preferred Obligations"), with an aggregate maximum principal amount equal to $206,597,252for
the purpose of paying the costs of the Projects as described in Exhibit "A" attached hereto and
incorporated by reference herein for all purposes.
SECTION 3. All costs to be reimbursed pursuant hereto will be capital expenditures. No
Tax -Preferred Obligations will be issued by the Issuer in furtherance of this ordinance after a date
which is later than 18 months after the later of (i) the date the expenditures are paid or (ii) the date
on which the property, with respect to which such expenditures were made, is placed in service.
SECTION 4. The foregoing notwithstanding, no Tax -Preferred Obligation will be issued
pursuant to this ordinance more than three years after the date any expenditure which is to be
reimbursed is paid.
SECTION 5. The foregoing Sections 3 and 4 notwithstanding, all costs to be reimbursed
with qualified tax credit obligations shall not be paid prior to the date hereof and no tax credit
obligations shall be issued in furtherance of this ordinance after 18 months of the date the original
expenditure is made.
SECTION 6. This Ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made by Suzi Rumohr
seconded by Nick Stevens
The ordinance was passed and approved by the following vote [4 - 0 - U ]
Aye
Mayor Chris Watts:
Jordan E. Villarreal, District 1:
Nick Stevens, District 2:
Suzi Rumohr, District 3: �—
Joe Holland, District 4:
George Ferrie, At Large Place 5:
Jill Jester, At Large Place 6:
and
Nay Abstain Absent
PASSED AND APPROVED this the 131" day of October, 2026.
CHRIS WATTS, MAYOR
ATTEST:
KRISTI GILBERT, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
Digitally signed by
Susan Keller Susan Keller
Date: 2026.09.25
BY: 10:53:33-05'00'
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EXHIBIT A
CAPITAL IMPROVEMENT PROJECT LISTING
SERIES 2027 - NOI Ordinance
FY 26-27
Category
Support
CIP Budget/RO
GENERAL OBLIGATION PROJECTS (2023 Bond Election):
Proposition C Parks System Improvements
T
$ 5,000,000
Proposition E Affordable Housing
T
$ 300,000
Proposition F Active Adult Center
T
$ 250,000
Proposition G South Branch Library
T
$ 250,000
$ 5,800,000
CERTIFICATES OF OBLIGATION PROJECTS (Internal Service - Self -Supported):
Technology Services Improvements
R
1 8,017,690
$ 8,017,690
CERTIFICATES OF OBLIGATION PROJECTS (General Government - Tax Supported):
Facility Improvements
T
$ 5,250,000
Fire Station 10
T
8,450,000
Traffic/Transportation Improvements
T
4,500,000
Fleet Vehicle/Equipment Replacements
T
5,500,000
Streets Roadway Improvements
T
3,250,000
$ 26,950,000
CERTIFICATES OF OBLIGATION PROJECTS (Solid Waste):
Building Construction Transfer Station 1
Vehicles - New Additions
R
R
$ 1,400,000
3,865,000
$ 5,265,000
CERTIFICATES OF OBLIGATION PROJECTS (Water):
Booster Pump Stations
R
$ 42,689
Field Service Replacement
R
500,000
Oversize Water Lines
R
2,671,880
Replace Lines
R
20,002,800
Taps, Fire Hydrants, & Meters
R
9,275,768
Plant Improvements
R
14,510,050
Transmission Lines
R
4,546,893
$ 51,550,080
CERTIFICATES OF OBLIGATION PROJECTS (Wastewater):
Collection System Upgrade
R
$ 1,733,000
Lift Station Improvements
R
10,945,001
Oversize Lines
R
2,840,000
Taps, Fire Hydrants, & Meters
R
255,000
Replace Lines
R
28,456,781
Plant Improvements
R
5,294,700
$ 49,524,482
CERTIFICATES OF OBLIGATION PROJECTS (Electric):
Automated Meter Reading
R
$ 1,940,000
Building Construction/Fencing
R
1,500,000
Distribution Substations
R
7,250,000
Distribution Transformers
R
17,000,000
Feeder Extensions & Improvements
R
12,875,000
New Residential & Commercial
R
9,450,000
Power Factor Improvement
R
250,000
Street Lighting
R
695,000
Transmission Lines
R
1,020,000
Transmission Substations
R
4,610,000
Technology - Software&Hardware
R
2,400,000
Electric Relocation
R
500,000
$ 59,490,000
TOTAL GOs $ 5,800,000
TOTAL COs $ 200,797,252
GRAND TOTAL $ 206,597,252