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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 o I ir.wili 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 f.'s Z W 2 W O ca L Q a U M O O N C1 O� O FIt- t- O M 0 0 0 C 0 0 g F ua f O O M N N COS �`MDD N M OW O p 1- CC O ON 8 0 0= 0' 0 0 � CCl CC. r Mml M 9 N N a 0 oo��ngoge�og00000 M z 0 ��' Woad ca O `n ��3wF1W� x0� 00 aO`a04� a¢�osa�z� Oo `a op�.� WaQax aO.W.I��W`t��>606�`nCW7QQ zo7 W L1o4wCaOFF-UUO�x�v� � V N 69 N rc 7 F z wwo 7 _ H a_=rc � i F W 3 ow w a a 0 a ' wom m omo 0 0 55 0g U u N $$ K K N 99 N N mm 00 N NOON IN0000 .ON'A ,99 N O N N O O O O O O O O O O O N N O O O N N O 0 0 0 N N � 10p N N n N O O O O N O O O O O 00029000000 n N I n N N I b N N M O N N O N M N N bw Now"- N N N O n O O O O O O O O O O O O N O O � O O N O O b ONO 0 0 N 0 0 0 N N W O�-NO NN q N NO, NOO N-00 N O N N aq � W_ OW WC J LL 0 W < a.az W p I- W K O F zgW m W W Z a om m I �a w O°'sr YO<gzz LL N W a Z z a' �' W O W Na ZM <O I 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