20-875ORDINANCE NO. ZO-g%S
A ORDINANCE ESTABLISHING THE CITY OF DENTON'S STRATEGY 1N RESPONSE TO
ECONOMIC IMPACTS OF THE COVID-19 PANDEMIC; AND, PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas ("City") is a home-rule municipal corporation duly
organized and validly existing under the laws and Constitution of the State of Texas; and
WHEREAS, the economic impacts of the COVID-19 pandemic will substantially impact
the City, and the City must reduce expenditures to address projected revenue shortfalls; and
WHEREAS, the City immediately acted to reduce the fmancial impact, including
implementing a hiring freeze for City personnel except for new vacancies in Civil Service or other
essential positions, delaying or reprioritizing capital projects, reducing contract expenditures
through renegotiations, reductions and non-appropriate clauses, ceasing all discretionary travel and
training, and reducing other operating expenses; and .
WHEREAS, to address the projected revenue shortfalls, the City will offer eligible
employees a voluntary separation incentive and increase the return on investment rate transferred
annually by City's electric utility to the City's general fund from its current rate of 3.50 percent to
6.0 percent from the effective date of this ordinance until September 30, 2022; and
WHEREAS, given the economic uncertainty created by the COVID-19 pandemic, staff
will continue to monitor financial conditions and adjust assumptions and strategies appropriately;
and
NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY
ORDAINS:
SECTION 1. The recitations and fmdings set forth in the preamble of this Ordinance are
incorporated by reference into the body of this Ordinance as if fully set forth herein.
SECTION 2. The City Manager is authorized to implement the following additional steps
as he deems appropriate:
Offer eligible employees a voluntary separation incentive beginning April 22nd;
and
Increase the return on investment ("ROI") rate transferred annually by City's
electric utility to the City's general fund from its current rate of 3.50 percent to 6.0
percent from the effective date of this ordinance until September 30, 2022 at which
time the ROI rate shall be reduced to 3.5 percent.
SECTION 3. The City Leadership Team will continue to monitor financial conditions,
report back to City Council with periodic updates, and take additional actions as necessary to
safeguard the City's fmances and to mitigate property tax rate and utility tax rate increases for City
of Denton residents.
SECTION 4. This Ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this Ordinance was made by �ECG �/ 1�J�Z/GG S and
seconded by ��E�3 �,2rn,,r7-o,G . The Or inance was passed and approved
by the following vote [ � - ,0 ]:
Chris Watts, Mayor:
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
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Abstain Absent
PASSED AN APPROVED this the oZ %�-� day of L� 2020.
ATTEST:
ROSA RIOS, CITY SECRETARY
BY: r
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORI��Y
:
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C S ATTS, MAYOR