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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? i Page 2 of 2 O O ~ <Q O Ln ,.0. C Lf1. d a~ ld E w of O N o _a Q LL L L (n ~ ~:d CC Y 3 v z ~ ai ai ~ u L i+ O Vj J w 'C O O > a C CL m O co 0 v 0 co 2 a z W 2 V H H a O T O N 00 T O T T T rT r J_ LL w x N x Q a~ E U m a