2015-304ORDINANCE NO. 2015 -304
AN ORDINANCE OF THE CITY OF DENTON, TEXAS TO DECLARE THE INTENT TO
REIMBURSE CAPITAL PROGRAM EXPENDITURES OF THE ELECTRIC UTILITY
($57,850,000), SOLID WASTE ($9,280,000), AND GENERAL GOVERNMENT ($27,980,000)
WITH TAX - PREFERRED OBLIGATIONS (CERTIFICATES OF OBLIGATION AND
GENERAL OBLIGATION BONDS) WITH AN AGGREGATE MAXIMUM PRINCIPAL
AMOUNT EQUAL TO $95,110,000; 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 2015 -16 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 2015 -16 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 the General Government projects approved as
part of the FY 2015 -16 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 "Projects ") prior to the issuance of Certificates of Obligation and
General Obligation Bonds 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,
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
$95,110,000 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 , 2015.
...............
(11-11'[S WATTS, MAYOR �.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: ��.
��° �.. .................
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
oe -e'
Attachment 1
DENTON MUNICIPAL ELECTRIC
FY 2015 -16 REIMBURSEMENT ORDINANCE
PROJECTED CAPITAL EXPENDITRES
Project Categories
2015 -16 Approved CIP
Automated Meter Reading
$
1,730,698
Major Substation Expenses
Pockrus Substation
2,865,000
Mckinney Substation
Long Road Substation
1,840,000
King's Row Substation
2,070,000
Locust Substation
7,520,000
Arco Substation
4,890,000
Hickory Substation
4,110,000
North Spencer Substation
12,800,000
Woodrow Substation
2,790,000
North Lakes Substation
900,000
Teasley Substation
1,550,000
RD Wells Interchange
1,710,000
Underwood Substation
350,000
Denton North Interchange
3. „280,000
Eagle Substation
1,730,000
TMPA Spencer Interchange
450,000
Masch Branch Switching Station
280,000
Mayhill Substation
1,200,000
Other Misc, Substation Expenses
1,169,000
Total Major Substation Planned Expenses
$
51,504,000
Major Transmission Line Expense
Woodrow - King's Row 69kV TL
880,000
King's Row - Denton North 69kV TL
860,000
Hickory - Locust 69kV TL
5,460,000
Teasley - Pockrus TL Reconstruction
450,000
Hickory - Bonnie Brae TL Upgrade
220,000
Denton - North Lakes TL
1,700,000
Spencer Switch - Locust 69kV TL
600,000
Bonnie Brae - North Lakes 69kV TL
1,220,000
Pokrus - Mayhill - Spencer 138kC TL
3,140,000
North Spencer - Loop 288 138kV
1,024,000
North Spencer Connection 138kV TL
690,000
TL Additions to Support Arco Sub Recon
725,000
Various Other Transmission Line Expenses
1,460,000
Total Transmission Line Planned Expenses
$
18,4 9,000
Distribution Feeders & Extensions
$
18,753,308
New Residential & Commercial
$
5,814,304
Distribution Transformers
$
2,827,285
Bldg Upgrades & Improvements
$
1,326,166
Other*
$
4,939,695
TOTAL
$
105,324,456
* Includes Vehicles and other revenue funded projects
Attachment 2
CITY OF DENTON SOLID WASTE & RECYCLING
FY 2015 - 2016 Reimbursement Ordinance Projects
R
Refuse / Recycling Carts
$
75,000
R
Auto Side Load
$
285,580
R
Auto Side Load
$
285,580
R
Auto Side Load
$
316,940
R
Rear Load
$
271,360
C
Front -Load
$
281,220
C
Front -Load
$
281,220
C
Front -Load
$
341,320
C
Roll -Off
$
222,600
Containers & Collections Trucks
$
2,745,820
P
Skid Steer Loader with Implements
$
100,000
P
Wheel Loader with Bucket
$
250,000
P
Articulated Water Wagon
$
640,000
P
Articulated Dump Truck
$
565,000
P
Mechanical Sweeper
$
150,000
P
SW Equipment, Wheels, Tires, Tarping
$
300,000
CT
Facility Slope Mower
$
100,000
P
SW & Environmental Engineering Services
$
150,000
P
Permit Amendment Support Services
$
250,000
P
Legal Services
$
150,000
P
Process Upgrades & Technology Improvements
$
400,000
P
Litter Control & Facility Improvements
$
600,000
P
ELR Liquid Delivery System
$
250,000
P
Waste Diversion Facility Operations
$
450,000
P
Security & Associated Improvements
$
675,000
P
Water Line Relocation & Other Utility Infrastructure $
250,000
CT
Capital Improvement Labor
$
254,180
CT
MSW Processing Equipment - Mining
$
1,000,000
Disposal, Processing & Construction Services
$
6,534,180
FY 2016 - Reimbursement Ordinance $ 9,280,000
Attachment 3
CATEGORY 2015 -16 2016 -17 2017 -18 2018 -19 2019 -20 TOTAL
2012 Bond Election - Streets & Public Art
4,400
..................
4,006
-
-
-
8,400
2014 Bond Election (Proposition 1) - Streets
41150
10,000
13,290
9,840
15,290
52,570
2014 Bond Election (Proposition 2) - Public Safety
3,200
3,495
6,665
-
325
13,685
2014 Bond Election (Proposition 3) - Drainage
600
2,585
705
-
3,890
2014 Bond Election (Proposition 4) - Parks
21005
1,265
4,085
1,825
9,180
General Obligation Bonds
14,355
17,495
23,805
14,630
17,440
87,725
Airport- West Side Runway
-
1,200
-
-
-
1,200
Fleet - Vehicle /Equipment Replacements
2,970
3,600
2,700
3,400
3,000
15,670
Transportation - North Texas Blvd Improvements
330
-
-
-
-
330
Facility Maintenance Program"
1,420
1,175
1,500
1,500
1,500
7,095
Parking Improvements - Exposition Parking Lot
405
-
-
-
-
405
Matching Funds for Road Improvements
8,500
-
-
-
-
8,500
Certificates of Obligation
13,625
5,975
4,200
4,900
4,500
33,200
Airport Fund - Infrastructure Improvements
600
-
600
Technology Service Fund - Software and Equipment
647
647
Fleet Fund - Improvements and Land Acquisition
275
275
Streets Fund - Vehicle /Equipment Additions
258
258
Park Funds - Land Acquisiiion, Amenities and Improvement:
2,550
2,550
General Fund - Vehicle /Equipment Replacements
500
750
750
750
2,750
General Fund - Bike Lanes
200
200
200
200
200
1,000
Revenue Funded
4,530
700
950
950
950
8,080
GRAND TOTAL $32,510 $ 24,170 $ 28,955 $ 20,480 $ 22,890 $ 129,005
Revenue Funded $ 4,530
General Obligation Bonds 14,355
Certificates of Obligation 13,625
GRAND TOTAL $ 32,510
Planned Bond Sale 27,980
*Does not include funds available from prior year sales.
** Facility Maintenance Program is for HVAC, Flooring, Roof Replacements and Facility Improvements.