HomeMy WebLinkAbout2010-045\\codadldepartmeiitsllegallorir documentslordinancesll Olfixed asset reimbursemeiit ❑rd. doc
ORDINANCE NO. 2010-045_
AN ORDINANCE OF THE CITY OF DENTON, TEXAS TO DECLARE THE INTENT TO
REIMBURSE EXPENDITURES FROM THE GENERAL FUND WITH CERTIFICATES OF
OBLIGATION WITH AN AGGREGATE MAXIMUM PRINCIPAL AMOUNT EQUAL TO
$5085185 TO ALLOW FOR THE IMPLEMENTATION OF A FIXED ASSET MODULE IN
THE JD EDWARDS FINANCIAL SYSTEM AND THE PURCHASE OF A MUNICIPAL
COURT SOFTWARE SYSTEM; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Denton (the'lssuef) is a municipal corporation and political
subdivision of the State of Texas; and
WHEREAS, the issuer expects to pay expenditures in connection with the upgrade of the
JD Edwards module for tracking fixed assets and depreciation cost expenses across the
organization, and to purchase a more superior court software program in terms of data
management and report writing capabilities for Municipal Court (the `Project§) prior to the
issuance of tax-exempt obligations 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, in accordance with the
provisions of Section 1.150-2 Treasury Regulations, to reimburse itself for such payments at
such time as it issues the tax-exempt obligations to finance the Projects; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS;
SECTION 1. The Issuer reasonably expects to incur debt, as one or more series of
obligations, with an aggregate maximum principal amount equal to $508,185 to allow for the
implementation of a fixed asset system and the purchase of a municipal court software system_.
SECTION 2. All costs to be reimbursed pursuant hereto will be capital expenditures and
will come from the issuance of tax-exempt certificates of obligation. The funding required for
the fixed asset system. is $250,000 and the municipal court software system is $258,185, for a
total issuance of $508,185. No tax-exempt 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 (1) the date the
expenditures are paid or (2) the date on which the property, with respect to which such
expenditures were made, is placed in service. The foregoing not withstanding, no tax-exempt
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 3. The request for reimbursement is due to the timing of these projects, which
are scheduled to proceed prior to the bond sale for this fiscal year. The bond sale for these CDs
will occur in late spring and by approving this request will allow the projects to be executed as
planned without delay.
Ilcodadldepartmentsllegallour documentslordinances\I OT1xed asset reimbursement ord. doc
SECTION 4. The findings set forth in the preamble of this Ordinance are incorporated
by reference into the body of this Ordinance as if fully set forth herein. This ordinance shall
become effective immediately upon its passage and a proval.
PASSED AND APPROVED this the day of d&Q f
, 2010.
MARK . AiaiRbuGH MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
APPROVED AS To LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
Page 2 of 2