22-1804ORDINANCE NO. 22-1804
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
FORMALIZING THE RETURN ON INVESTMENT (ROI) PAYMENT FROM THE CITY’SUTILITY FUNDS TO THE GENERAL FUND; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton desires to formalize the Return onInvestment (ROI) payment for the Electric Fund. The ROI of six percent (6%) for the Electric
Fund will be calculated by multiplying the total gross revenue, which includes lease revenues,
and Texas Municipal Power Agency (TMPA) distribution revenues by the stated percentage. The
calculation will exclude inter-fund transfers, Denton Energy Center (DEC) revenue, investment
revenue, recovery of prior year expenses, gain/loss on sale of fixed assets (sale proceeds), aid inconstruction, charges to capital projects and other non-operating revenues (i.e., claim
settlements);
WHEREAS, the City Council of the City of Denton desires to formalize it’s Return on
Investment (ROI) payment for the Water Fund. The ROI of three and one-half percent (3.5%) for
the Water Fund will be calculated by multiplying the total gross revenue by the stated
percentage. The calculation will exclude inter-fund transfers, investment revenue, recovery of
prior year expenses, gain/loss on sale of fixed assets (sale proceeds), aid in construction, charges
to capital projects, impact fees, and other non-operating revenues (i.e., claim settlements);
WHEREAS, the City Council of the City of Denton desires to formalize it’s Return on
Investment (ROI) payment for the Wastewater Fund. The ROI of three and one-half percent
(3.5%) for the Wastewater Fund will be calculated by multiplying the total gross revenue by the
stated percentage. The calculation will exclude inter-fund transfers, drainage fees, investment
revenue, recovery of prior year expenses, gain/loss on sale of fixed assets (sale proceeds), aid in
construction, charges to capital projects, impact fees and other non-operating revenues (i.e.,
claim settlements); NOW, THEREFORE,
THE COUNCIL OF THE CiTY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this ordinance
are incorporated herein by reference and found to be true.
SECTION 2. The City Council hereby establishes a City of Denton Return on
Investment (ROI) Policy for the Electric Fund, Water Fund, and Wastewater Fund as stated in
the preamble.
SECTION 3. This Ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this Ordinance was made by h rf S CA/dl 5 and
seconded by abBe Lb/IS . The Ordinance was passed and approvedby the following vote U - a:
@ LSu Abstain Absent
Gerard Hudspeth, Mayor:
Vicki Byrd, District 1 :
Brian Beck, District 2:
Jesse Davis, District 3 :
Allison Maguire, District 4:
Brandon Chase McGee, At Large Place 5:
Chris Watts, At Large Place 6:
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PASSED AND APPROVED this the M& day of Sepbnber , 2022.
ATTEST:
ROSA RIOS, CITY SECRETARY 1\\\11111111E
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APPROVED AS TO LEGAL FORM:MACK REINWAND, CITY ATTORNEY NIllS
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