2013-048ORDINANCE NO. 2013-048
AN ORDINANCE OF THE CITY OF DENTON, TEXAS TO DECLARE THE 1NTENT TO
REIMBURSE EXPENDITURES FROM THE UNRESERVED FUND BALANCE OF THE
ELECTRIC FUND WITH CERTIFICATES OF OBLIGATION WITH AN AGGREGATE
MAXIMUM PRINCIPAL AMOUNT NOT TO EXCEED $32,000,000 TO ALLOW DENTON
MUNICIPAL ELECTRIC TO CONTINUE FUNDING ONGOING CAPITAL
EXPENDITURES FOR EXPANSION OF THE DISTRIBUTION AND TRANSMISSION
ELECTRIC FACILITIES; 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, or have paid on its behalf, expenditures in
connection with the design, planning, acquisition and construction of the projects described on
Exhibit "A" hereto (collectively, the "Projects") prior to the issuance of Certificates of
Obligation which are tax-exempt obligations, tax-credit obligations and/or obligations for which
a prior expression of intent to finance or refinance is required by Federal or state law
(collectively and individually, the "Tax-Preferred Obligations") to iinance the Projects; 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 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 Tax-
Preferred Obligations, with an aggregate maximum principal amount equal to $32,000,000 for
purpose of paying the costs of the Projects.
SECTION 2. All costs to be reimbursed pursuant hereto will be capital expenditures. No
Tax-Preferred 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 were made, is placed in
service.
SECTION 3. The foregoing notwithstanding, no Tax-Preferred 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. The foregoing Sections 2 and 3 notwithstanding, all costs to be reimbursed
with qualified tax credit obligations shall not be paid prior to the date hereof and no tax credit
obligations shall be issued after 18 months of the date the original expenditure is made.
SECTION 5. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the �� day of
ATTEST:
JEIV�IFER WALTERS, CITY SECRETARY
BY:
APPR ED A O LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
, �
BY: ;;
+ � , 2013.