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2014-325s:\legal\our documents\ordinances\14\exhibit 2- ordinance (2).docx oxDnvANCE No. 2014-325 AN ORDINANCE OF THE CITY OF DENTON, TEXAS TO DECLARE THE 1NTENT TO REIMBURSE CAPITAL PROGRAM EXPENDITURES OF THE ELECTRIC UTILITY ($67,925,000), SOLID WASTE ($6,289,500), STREET IMPROVEMENT ($600,000), AND GENERAL GOVERNMENT ($6,800,000) WITH TAX-PREFERRED OBLIGATIONS (CERTIFICATES OF OBLIGATION) WITH AN AGGREGATE MAXIMUM PRINCIPAL AMOUNT EQUAL TO $81,614,500; 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 2014-15 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 2014-15 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 Street Improvement projects approved as part of the FY 2014-15 Capital Improvement Program Budget and described in Attachment 3 hereto (the "Street Improvement Projects") prior to the issuance of Certiiicates of Obligation for which a prior expression of intent to finance or refinance is required by Federal or state law to finance the Street Improvement Projects; and WHEREAS, the Issuer expects to pay, or have paid on its behalf, expenditures in connection with the ongoing capital expansion of the General Government projects approved as part of the FY 2014-15 Capital Improvement Program Budget and described in Attachment 3 hereto (the "General Government Projects" and, together with the Electric Utility Projects, the Solid Waste Projects, the Street Improvement Projects, the "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 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, s:\legal\our documents\ordinances\14\exhibit 2- ordinance (2).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 $81,614,500 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 � da �'�a[ �� ,. �� "��" , 2014. _��.�._... n.�,.,..e,�. Y .�� ..._ ....... ....... ATTEST: JENNIFER WALTERS, CITY SECRETARY ��• �� .. �� BY: �� APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY � BY: �m" .._ .__ � ��y��"�� "��— � �� Page 2 �� ,� � ��,�� ....._ ��.:........ �w� ,.... .�-- CHRIS WATTS, MAYOR Attachment 1 DENTON MUNICIPAL ELECTRIC FY 2014-15 REIMBURSEMENT ORDINANCE PROJECTED CAPITAL EXPENDITRES Project Categories 2014-15 A��wroved CIP Automated Meter Reading $ 917,250 Major Substation Expenses Pockrus Substation 4,710,000 Mckinney Substation 2,320,000 .._ __.�.� ,.� Long Road Substation 4,770,000 King's Row Substation 2,670,000 Locust Substation 6,960,000 Arco Substation 7,160,000 Hickory Substation 6,110,000 North Spencer Substation 4,800,000 Woodrow Substation 2,280,000 Replace 150 MVA Autotransformer 3,000,000 North Lakes Substation 900,000 Teasley Substation 1,220,000 RD Wells Interchange Land 500,000 ... Brinker Substation 470,000 ' Other Misc, Substation Expenses 2,668,000 Total Major Substation Planned Expenses $ 50,538,000 �, Major Transmission Line Expense Woodrow - King's Row 69kV TL � 3,120,000 ..�._...M _ .._ o.....__ King's Row - Denton North 69kV TL 2,690,000 - ��....... ..,. North Lakes - Bonnie Brae 69kV TL 2,220,000 Spencer - Pockrus 138kV TL 2,140,000 Hickory - Locust 69kV TL 4,460,000 Teasley - Pockrus TL Reconstruction 4,900,000 Hickory - Bonnie Brae TL Upgrade 1,320,000 Denton - North Lakes TL , � 700,000 Spencer Switch - Locust 69kV TL 600,000 ,,.,_�.... Various Other Transmission Line Expenses I 1,530,000 Total Transmission Line Planned Expenses I$ 23,680,000 Distribution Feeders & Extensions $ 16,239,832 iNew Residential & Commercial $ � 4,413,200 �Distribution Transformers $ � � � 2,424,201 Bldg Upgrades & Improvements $ 3,058,166 Other* I $ 4,100,460 TOTAL $ 105,371,109 � * Includes Vehicles and other revenue funded projects Attachment 2 CITY OF DENTON SOLID WASTE & RECYCLING FY 2014 - 2015 REIMBURSEMENT ORDINANCE PROJECTS Projected Capital Expenditures Prior to FY 2015 Bond Sale Project Project Title Costs Auto Side Load $ 302,000 Auto Side Load $ 302,000 Auto Side Load $ 302,000 Rear Load $ 258,000 Front-Load $ 297,000 Front-Load $ 297,000 Roll-Off $ 225,000 Side Load $ 276,000 Collection Trucks Subtotal $ 2,259,000 SW Technology Research and Development $ 70,000 Program Development $ 200,000 Legal Services $ 250,000 Administrative / Permitting / Legal $ 520,000 Processing Equipment $ 850,000 Heavy Equipment $ 720,000 Heavy Equipment $ 200,000 Landfill Compactor $ 800,000 Heavy Eq��a�ar��nt � 940, 50 Operating Equipment $ 3,510,500 FY 2015 SW CIP $ funding prior to FY 2015 Bond Sale $ 6,289,500 Attachment 3 DIV./DEPT. Trans Streets Trans Public Art Various Future GO Bond Program General Obligation Bonds CATEGORY Fire Fir°� Static�n I pr�svernents Facilities Building/Land Acquisition and Improvements Airport West Side Runway Parks Civfc C�r►t�r Poal I pr°ov�rnent� Fleet Vehicle/Equfprr�ent R�plac�rn�nts Streets V�hicte�Equip �nt Additi�r�s Build/Equip F�ciliiy I�aint�r��n�� Prr��rarra** Trans Matching Funds for Road Improvements Certificates of Obligation Airport Land Acquisition Streets Vehicle/Equipment Additions Fleet Vehicle/Equipment Additions Revenue Funded GRAND TOTAL RevenueFunded General Obligation Bonds Certificates of Obligation GRAND TOTAL Planned Bond Sale *Does not include funds available from prior year sales. ** Facility Maintenance Program is for HVAC, Flooring, Roof Replacements and Facility Improvements. 2014-15 $ 4,000,000 400,000 19,000,000 23,400,000 800,000 700,000 1,600,000 2,900,000 600,000 1,500,000 8,100,000 2,000,000 575,715 183,830 2,759,545 $ 34,259,545 $ 2,759,545 23,400,000 8,100,000 $ 34,259,545 $ 31,500,000