2010-296s:\legal\our documents\ordinances1101reimbursement ord-electric fund 111610.doc
ORDINANCE NO. 2010-296
AN ORDINANCE OF THE CITY OF DENTON, TEXAS TO DECLARE THE INTENT TO
REIMBURSE EXPENDITURES FROM THE UNRESERVED FUND BALANCE OF THE
ELECTRIC FUND WITH CERTIFICATES OF OBLIGATION WITH AN AGGREGATE
MAXIMUM PRINCIPAL AMOUNT EQUAL TO $11,752,000 TO ALLOW DENTON
MUNICIPAL ELECTRIC TO CONTINUE FUNDING ONGOING CAPITAL
EXPENDITURES FOR EXPANSION OF THE DISTRIBUTION AND TRANSMISSION
ELECTRIC FACILITIES.
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 expenditures related to the ongoing capital
expansion of the distribution and transmission facilities of Denton Municipal Electric, which was
approved in the FY 2010-11 Capital Improvement Program Budget and are described in
Attachment "A"; 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 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 $11,752,000 for the purpose
of paying the costs of the Project, as set forth in the attached Attachment "A", which is made a
part of this Ordinance for all purposes as if incorporated word for word herein.
SECTION 2. All costs to be reimbursed pursuant hereto will be for the ongoing capital
expansion of the distribution and transmission facilities of Denton Municipal Electric as
authorized by Section 271.045(a)(1) of the Texas Local Government Code. 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 are made, is placed in service. That all
amounts expended from the Unreserved Fund Balance of the Electric Fund for the Project set
forth in Attachment "A" to pay any costs of the Project shall be reimbursed from Certificates of
Obligation proceeds within the 2010-11 fiscal year.
SECTION 3. The foregoing notwithstanding, 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.
sAlegahour documentslordinances1101reimbursement ord-electric fund I 1161 O.doc
SECTION 4. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
B
AP OVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
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BY:
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