HomeMy WebLinkAbout1999-159ORDINANCE NO 9Y_/J_
AN ORDINANCE TO DECLARE THE INTENT TO REIMBURSE EXPENDITURES FROM
THE RETAINED EARNINGS OF THE WATER FUND WITH REVENUE BONDS SO THAT
TWO PHASES OF A NEW WATER LINE PROJECT, MORE FULLY DESCRIBED IN THE
BODY OF THIS ORDINANCE, MAY BE COMMENCED, DECLARING AN EMERGENCY
AND AMENDING THE 1998-99 CAPITAL IMPROVEMENT BUDGET TO ALLOW THE
FUNDING OF PHASE I AND PHASE II OF THE HIGHWAY 377 WATER DISTRIBUTION
SYSTEM UPGRADE, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton (the "Issuer") is a municipal corporation/political subdi-
vision of the State of Texas, and
WHEREAS, the Issuer expects to pay expenditures in connection with the design, plan-
ning, and construction of Phase I and Phase II of a new water line project, the Highway 377 wa-
ter distribution system upgrade, (the "Project") described in Exhibit "A", which is attached
hereto and made a part of this ordinance for all purposes, prior to the issuance of revenue bonds
to finance the design and construction of a water line from Denton to Crawford Road, 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 objec-
tives 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 revenue bonds to finance the Project, and
WHEREAS, the expenditures for the Project will be disbursed in the interim from the
retained earnings of the water fund, which is not appropriated at present in the 1998-99 capital
improvement budget for such use, and
WHEREAS, after the budget was adopted, the City learned that Denton County Fresh
Water Supply District No 1A and Denton County Fresh Water Supply District No 5 (the "Dis-
tracts") had annexed nearly 500 acres of land within the City of Denton's extraterritorial jurisdic-
tion, corporate limits, and certificated water and wastewater service area, threatening to encroach
on the City's service area, interfere with its water supply, and to interfere with its ability to exer-
cise land use controls over the area, resulting in the City filing a lawsuit in 1999 to set aside the
Districts' annexation of the area, all of which could not have reasonably been foreseen at the
time of the adoption of the 1998-99 capital improvement budget, which actions could signifi-
cantly adversely impact the City's plans and strategies to manage future growth, and which cre-
ates an emergency and a grave public necessity that the budget be amended to fund this project
to construct Phase I and Phase II of a water transmission line south along Highway 377 from
Denton near Bent Creek Estates to Hamilton Road and from Hamilton Road to Crawford Road
near the proposed development known as Willow Lakes, and
WHEREAS, Sec 8 08 of the Denton City Charter provides that in case of grave public
necessity, emergency expenditures to meet unusual and unforeseen conditions, which could not
by diligent thought and attention have been included in the original budget, may be authorized by
the affirmative vote of at least five of the members of the City Council as an amendment to the
original capital improvement budget, and
WHEREAS, the City Council finds that a grave public necessity exists which requires
emergency expenditures for this new water project and the amendment of the 1998-99 City of
Denton capital improvement budget, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
S_,ECTION I That the findings set forth in the above preambles to this ordinance are true
and correct and are hereby adopted
SECTION II That the Issuer reasonably expects to incur debt, as one or more series of
obligations, with an aggregate maximum principal amount equal to $2,606,000 for the purpose of
paying the costs of the Project, as set forth in Exhibit "A"
SECTION III That all expenditures to be reimbursed pursuant hereto will be for design
and construction of capital improvements No tax-exempt obligations will be issued by the Is-
suer 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
SECTION IV That the foregoing notwithstanding, no tax-exempt obligation will be is-
sued pursuant to this ordinance more than three years after the date any expenditure which is to
be reimbursed is paid
SECTION V That the 1998-99 capital improvement budget of Issuer is amended up to
the amounts listed in Exhibit "A", to provide for adjustments to the water capital improvement
budget Accordingly, the 1998-99 capital improvement budget is hereby amended by transferring
the sum of $2,606,000 from the retained earnings of the water fund, Account No 620-5601 to
the water capital improvement fund Immediately upon the sale and receipt of the proceeds from
the revenue bonds the sum of $2,606,000 or the actual amount transferred to the water capital
improvement fund shall be transferred to the retained earnings of the water fund, Account No
620-5601 If for any reason these adjustments to the water capital improvement fund do not fully
cover the expenditures anticipated in Exhibit "A", the City Manager is authorized to provide
such funds from the retained earnings of the water fund
SECTION VI That the City Secretary is directed to attach a copy of this ordinance to the
original capital improvement budget and cause this amendment to be published once in the
Denton Record -Chronicle
SECTION VII That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the �� � day of 994�: 1999
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ATTEST
JENNIFER WALTERS, CITY SECRETARY
Mato PIA L . 0I 1000 , 1111
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BY
F\SIIAROD\DBPiLLCL\Ow DacumenW\ONinanca\99\mmbumemrnt ord wmer pro�ale dac
Attachment A
### CAPITAL IMPROVEMENT PROJECT !! 99-n481.13
PROJ TITLE (0 DISTRIBUTION SYSTEM UPGRADE (HWY 377)
ESTIMATED COST $2,608 (z 1000) GROUP ASSIGNMENT
DESCRIPTION HWY-377 BENT CREEK ESTATES 20 INCH
PURPOSE This project will enable City of Denton to supply water to the new
developments to the southern part of Denton along HWY 377
Phase I Bent Crack Estates to Hamilton Rd —8,500 LF
Total Cost $1,072,000
Phase 11 Hamilton to Crawford Rd 14,600 LF
Total Cost $1,534,000
ENCUMBRANCES
BOND REV AIC
OTHER
TOTAL
TOTAL 1ST YR
$2600 $0 $0
$0
$2606
TOTAL 2ND YR
$0 $0 $0
$0
$0
TOTAL 3RD YR
$0 $0 $0
$0
$0
GRAND TOTAL
42606 $0 $0
$0
42606
ENCUMBRANCE DATES Encumbered as spent
PHASE
DATE
AMOUNT
OBJECT if
Land Purchase
07199
$ 211
9002
Design
09199
$ 172
Soso
Inspection
01100
$ 03
8062
Construction
01100
$2170
9138
ENCUMBRANCETOTAL
$2006
COMMENTS
This Is a multiyear project
beginning In
1999
Encumbrances prior to 1999
Current CIP
Total Project Budget
4
23,000 LF
CASH EXPENDITURES
BOND
REV
AIC
OTHER
TOTAL
$2606
$0
$0
$0
$2606
$0
$0
$0
$0
$0
$0
80
$0
$0
$0
$2606
$0
$0
$0
$2606
$0
$2,606,0c0
$2,606,000
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