2011-154
%(+$1$%$1$-"$%.1,
2011154
AdditionalFileExists
AdditionalFileContainsRecordsNotPublic,AccordingtothePublicRecords
Act
Other
%(+$2#§º«(´¯º¯§²¹
AmendedbyOrdinanceNo.201321909/10/13JR
s:\legallour documentslordinances1111street improvement fund proposed ordinance.doc
ORDINANCE NO. 2011-154
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
ESTABLISHING A STREET IMPROVEMENT FUND; DEFINING AND COMMITTING
CERTAlN FEES AND OTHER REVENUES OF THE CITY; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton elects to establish a Special Revenue
Fund to be called the Street Improvement Fund; and
WHEREAS, the Governmental Accounting Standards Board ("GASB") has adopted
Statement 54, which states that Special Revenue Funds are used to account for and report the
proceeds of specific revenue sources that are restricted or committed to expenditures for
specified purposes other than debt service or capital projects; and
WHEREAS, the City of Denton budgeted $12,839,642 in franchise fees for FY 2010-11
in the General Fund and the City Council of the City of Denton elects to commit 100% of any
increase in franchise fees over the FY 2010-11 budgeted level to account for street maintenance
and improvement activities in the fiscal year ending September 30, 2012; and
WHEREAS, the City Council of the City of Denton elects to commit 39.6% of the
franchise fees (for example, $5,086,802 based on FY 2010-11 budgeted revenue) previously
accounted for in the General Fund for street maintenance and improvement activities in the fiscal
year ending September 30, 2012; and
WHEREAS, the City Council of the City of Denton elects to commit street cut fees and
other related revenues, including interest income to provide a dedicated funding mechanism to
account for street maintenance and improvement activities; and
WHEREAS, the City Council of the City of Denton elected to issue Certificates of
Obligation in lieu of Utility System Revenue bonds due to the interest cost savings that can be
achieved; and
WHEREAS, the City Council of the City of Denton has determined that the interest cost
savings associated with the issuance of Certificates of Obligation in lieu of Utility System
Revenue bonds should be transferred from each of the respective utility funds to the newly
created Street Improvement Fund; and
WHEREAS, the City Council of the City of Denton elects to commit the interest cost
savings from the issuance of Certificates of Obligation to provide a dedicated funding
mechanism to account for street maintenance and improvements activities; and
WHEREAS, the City Council of the City of Denton elects to commit $921,779 from the
General Fund unassigned fund balance for the fiscal year ending September 30, 2011; and
s:Uegal\our documents\ordinances111\street improvement fund proposed ordinance.doc
WHEREAS, the City Council of the City of Denton elects to establish the Street
Improvement Fund in conjunction with its financial statements beginning with fiscal year ending
September 30, 2012; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council hereby creates the Street Improvement Fund, an official
fund of the City of Denton, Texas.
SECTION 2. That if any section, subsection, paragraph, sentence, clause, phrase or word
in this ordinance, or application thereof to any person or circumstances is held invalid by any
court of competent jurisdiction, such holding shall not affect the validity of the remaining
portions of this ordinance, and the City Council of the City of Denton, Texas hereby declares it
would have enacted such remaining portions despite any such validity.
SECTION 3. This Ordinance sha11 become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ��L ,
� day of �%%21��J(� 2011.
ATTEST:
JENNIF'ER WALTERS, CITY SECRETARY
� -.
;�OVED �S TO LEGAL FORM:
A BURGESS, CITY ATTORNEY
I: �� ,/�
Page 2
J
�� /
MARK A. BU OUGHS, OR