2013-315salegahour documents\ordinances\ I 3\exhi bit 2- reimbursement ordinance.docx
ORDINANCE NO. 2013-315
AN ORDINANCE OF THE CITY OF DENTON, TEXAS TO DECLARE THE INTENT TO
REIMBURSE CAPITAL PROGRAM EXPENDITURES OF THE ELECTRIC UTILITY
($34,595,000), SOLID WASTE ($2,404,000), STREETS ($4,000,000) AND GENERAL
GOVERNMENT ($8,500,000) WITH TAX - PREFERRED OBLIGATIONS (CERTIFICATES
OF OBLIGATION AND GENERAL OBLIGATION BONDS) WITH AN AGGREGATE
MAXIMUM PRINCIPAL AMOUNT EQUAL TO $49,499,000; 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 ongoing capital expansion of the Electric Utility distribution and
transmission facilities approved as part of the FY 2013 -14 Capital Improvement Program Budget
and described in Attachment 1 hereto (the "Electric Utility Projects ") prior to the issuance of
Certificates of Obligation for which a prior expression of intent to finance or refinance is
required by Federal or state law to finance the Electric Utility Projects; and
WHEREAS, the Issuer expects to pay, or have paid on its behalf, expenditures in
connection with the ongoing capital expansion of the Solid Waste refuse and recycling activities
approved as part of the FY 2013 -14 Capital Improvement Program Budget and described in
Attachment 2 hereto (the "Solid Waste Projects ") prior to the issuance of Certificates of
Obligation for which a prior expression of intent to finance or refinance is required by Federal or
state law to finance the Solid Waste Projects; and
WHEREAS, the Issuer expects to pay, or have paid on its behalf, expenditures in
connection with the ongoing capital expansion of General Government projects approved as part
of the FY 2013 -14 Capital Improvement Program Budget and described in Attachment 3 hereto
(the "General Government Projects ") prior to the issuance of Certificates of Obligation for which
a prior expression of intent to finance or refinance is required by Federal or state law to finance
the General Government Projects; and
WHEREAS, the Issuer expects to pay, or have paid on its behalf, expenditures in
connection with the ongoing capital expansion of the Street projects approved as part of the FY
2013 -14 Capital Improvement Program Budget and described in Attachment 3 hereto (the "Street
Projects and, together with the Electric Utility Projects, the Solid Waste Projects, the General
Government Projects, the "Projects ") prior to the issuance of General Obligation Bonds for
which a prior expression of intent to finance or refinance is required by Federal or state law to
finance the Street 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,
sAlegal \our documents \ordinances \13 \exhibit 2- reimbursement ordinance.docx
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 -
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 "), with an aggregate maximum principal amount equal to
$49,499,000 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 2013.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
Page 2
g . -- L11 T1���(XJ(A[1S MAYOR
AYOR
Attachment 1
Denton Municipal Electric
FY 2013 -14 Reimbursement Ordinance
Projected Capital Expenditures through June 2014
Note: Distribution Plan excludes vehicles and other revenue funded projects.
"Other:
Estimated Exp
400,000
2014 Approved
300,000
thru
Projects Categories
Plan
06/30/2014
Automated Meter Reading Project
3,056,883
Tools & Equipment
2,300,000
Major Substation Expenses
Cooper Creek Substation
800,000
Kings Row Substation
2,000,000
Pockrus Substation
3,500,000
McKinney Substation
3,000,000
TIVIPA Arco Switch /DME Arco Substation
2,000,000
Fort Worth Substation
900,000
Brinker Substation
1,000,000
Various Other Substation Related Capital Expenditures
3,075,000
Major Substation Planned Expenses
$ 47,534,000
$
16,275,000
Major Transmission Line Expenses
_
Woodrow - Kings Row 69kV Transmission Line
6,000,000
Kings Row - Denton North 69kV Transmission Line
4,000,000
North Lakes - Bonnie Brae 69kV Transmission Line
1,200,000
Spencer - Pockrus 138kV Transmission Line
1,500,000
Transmission Line Additions to Support the 138kV Addition to the Pockrus
800,000
Other Various Transmission Line Capital Expenditures
1,820,000
Major Transmission Line Planned Expenses
$ 38,880,000
$
15,320,000
(Distribution Transformers
$ 1,989,178
$
1,500,000
Distribution Feeders & Extensions
$ 14,414,000
$
10,700,000
New Residential & Commercial
$ 3,127,999
$
2,350,000
Other*
J $ 1,529,871
$
1,150,000
TOTAL
$ 110,531,931
$
49,595,000
Less: Estimated available bond balance at October 31, 2013
$
15,000,000
Estimated Additional Funds Needed Through June 2014
$
34,595,000
Note: Distribution Plan excludes vehicles and other revenue funded projects.
"Other:
Communications Equipment
400,000
Contingency
300,000
Over /Under Conversions
350,000
Power Factor Improvements
372,000
Street Lighting
17,871
Tools & Equipment
90,000
$ 1,529,871
Attachment 2
+� Vt
FY 2014 Bond Sale Reimbursement Data
FY 2014 Project Title Project Costs Term Project Manager
i Roll off Truck
2 Side Load Truck
3 Compressed Natural Gas Fueling Facility
4 Landfill Engineering
5 Home Chemical Building Improvements
6 651 Mayhill KDB Finish Out
7 651 Mayhill Building Finish Out
8 Landfill Improvements
9 Landfill Gas Production Line Construction
$
220,000
5YR
Billy Sprabeary
$
275,000
5YR
Billy Sprabeary
$
800,000
20YR
Scott Lebsack
$
135,000
20YR
David Dugger
$
150,000
5YR
Shirlene Sitton
$
374,000
20YR
Vance Kemler
$
150,000
20YR
Vance Kemler
$
250,000
IOYR
David Dugger
$
50,000
20YR
David Dugger
Totals
$
645,000
5YR
Bonds Requested
$
250,000
10YR
Bonds Requested
$
1,509,000
20YR
Bonds Requested
$
2,404,000
FY 2014
Reimbursement Ordinance Request
Attachment 3
D1V. DEPT.
CATEGORY
2013 -14
Trans
Streets
$
4,000,000
Trans
Public Art
-
Tmns
Traffic Signals
1,000,000
Fire
Fire Station Improvements
3,000,000
Parks
Civic Center Pool Improvements
1,000,000
Fleet
Vehicle Replacements
2,000,000
Build/Equip
Facility Maintenance Program **
1,500,000
Trans
Matching Funds for Road Improvements
-
Various
Future GO Bond Program
GRAND TOTAL
$
12,500,000
General Obligation Bonds
$
4,000,000
Certificates of Obligation
8,500,000
GRAND TOTAL
$
12,500,000
*Does not reflect Available Programmed Funds or ongoing capital projects.