20-819ORDINANCE NO. Z�-$19
AN ORDINANCE OF THE CITY OF DENTON TO DECLARE THE INTENT TO
REIMBURSE CAPITAL PROGRAM EXPENDITURES OF THE GENERAL GOVERNMENT
($3,423,000) WITH TAX-PREFERRED OBLIGATIONS (CERTIFICATES OF OBLIGATION
AND GENERAL OBLIGATION BONDS) WITH AN AGGREGATE MAXIMUM PRINCIPAL
AMOUNT NOT TO EXCEED $3,423,000; AND PROVIDE 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 capital expansion of the General Government project approved by Ordinance
20-837 for a property purchase and associated professional services described on Exhibit "A"
hereto (the "Project") 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 refmance is required by Federal or state law (collectively and individually, the "Tax-
Preferred Obligations") to finance the Project; 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 Project; 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 $3,423,000 for
purpose of paying the costs of the Project.
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 (i) the date the expenditures are paid or (ii) the date
on which the properly, 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 taY credit
obligations shall be issued after 18 months of the date the original expenditure is made.
SECTION 5. That this Ordinance shall become effective immediately upon its passage
and approval.
The motion to approve this ordinance was made by �E� fg,Q�p ��.�P� and
seconded by }�ig�G /?�%EGT7�/L . The ordinance was passed and approved
by the following vote �7 - �:
Mayor Chris Watts:
Gerard Hudspeth, District 1:
Keely G. Briggs, District 2:
Jesse Davis, District 3:
John Ryan, District 4:
Deb Armintor, At Large Place 5
Paul Meltzer, At Large Place 6:
Aye Nay
✓
✓
✓
�
�
V
Abstain Absent
PASSED AND APPROVED this the 21th day of Apri121, 2020.
ATTEST:
ROSA RIOS, CITY SECRETARY
'
BY:
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
BY: �7�r��?�
CHRIS WATTS, YOR
Exhibit A
CAPITAL IMPROVEMENT PROJECT LISTING - DETAILED
SERIES 2020 - Reimbursement Ordinance
As of April 21, 2020
DEBT FUNDED PROJECTS
Request
CERTIFICATES OF OBLIGATION OR GENERAL OBLIGATION PROJECTS:
Property Purchase - and associated appraisal and other professional services $3,423,000
Approved by Ordinance 20-837
TOTALCOs-GENERALGOVERNMENT
$3,423,000
GRAND TOTAL � $3,423,000