2011-007SALega1\0ur Documents\Ordinances\10\Reimbursement-WW equip bene reuse div.doc
ORDINANCE NO. 2011-007
AN ORDINANCE OF THE CITY OF DENTON, TEXAS TO DECLARE THE INTENT TO
REIMBURSE EXPENDITURES FROM THE UNRESERVED FUND BALANCE OF THE
WASTEWATER FUND WITH CERTIFICATES OF OBLIGATION WITH AN AGGREGATE
MAXIMUM PRINCIPLE AMOUNT EQUAL TO $500,000 TO ALLOW THE
WASTEWATER DEPARTMENT TO PURCHASE AND ACQUIRE EQUIPMENT FOR THE
BENEFICIAL REUSE DIVISION; 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 expenditures for purchase of equipment for
beneficial reuse division with unreserved fund balance of the Wastewater Fund and will be
reimbursed with Certificates of Obligations sold in Fiscal Year 2010-11; 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 Project; 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 $500,000 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 equipment for
beneficial reuse division 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
Wastewater Fund for the Project set forth in Attachment "A" to pay any costs of the Project shall
be reimbursed from Certificate of Obligation bond proceeds within the 2010-2011 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.
SECTION 4. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the day of dd Lid" 2011.
MARK A. - U S, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APP VED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY: r<-- " ZZ?
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