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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.