23-2433ORDINANCE NO. 23-2433
AN ORDINANCE OF THE CITY OF DENTON TO DECLARE THE INTENT TO
REIMBURSE CAPITAL PROGRAM EXPENDITURES OF GENERAL GOVERNMENT
WITH TAX-PREFERRED OBLIGATIONS (GENERAL OBLIGATION BONDS) WITH AN
AGGREGATE MAXIMUM PR[NCiPAL AMOUNT NOT TO EXCEED $53,117,000; AND
PROVID[NG AN EFFECTIVE DATE.
WHEREAS, the City of Denton (the “Issuer”) is a municipal corporation/political
subdivision of the State of Texas; and
WHEREAS, by virtue of an election held within the Issuer on November 7, 2023 (the
“2023 Bond Election”), this City Council became authorized to issue, sell and deliver the General
Obligation Bonds of the Issuer for street improvements, drainage and flood control improvements,
park system improvements, fire and animal control public safety facilities, and a new South Branch
Library, including for those General Government projects described on Exhibit A hereto
(collectively, the “Projects”); and
WHEREAS, the Issuer expects to pay, or have paid on its behalf, expenditures in
connection with the Projects prior to the issuance of General Obligation Bonds which are tax-
exempt obligations, tax-credit obligations or obligations for which a prior expression of intent to
finance or refinance is required by Federal or state law to finance the 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 findings set forth in the above preamble to this Ordinance are true and
correct and are hereby adopted.
SECTION 2. The Issuer reasonably expects to incur debt, as one or more series of tax-
exempt obligations, tax-credit obligations 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 $53,117,000 for
the purpose of paying the costs of the Projects as described in Exhibit A attached hereto and
incorporated by reference herein for all purposes.
SECTION 3. 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 property, with respect to which such expenditures were made, is placed in service.
SECTION 4. 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 5. The foregoing Sections 3 and 4 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 in furtherance of this ordinance after 18 months of the date the original
expenditure is made.
SECTION 6. This Ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made by Rb 1 ht 1 +ze/ and
seconded by Br 1 k_ Beck . The ordinance was passed and approved
by the following vote U - U :
Aye
./
I
./
,/
Z
b/
/
Nay Abstain Absent
Gerard Hudspeth, Mayor:
Vicki Byrd, District 1 :
Brian Beck, District 2:
Paul Meltzer, District 3 :
Joe Holland, District 4:
Brandon Chase, At Large Place 5 :
Chris Watts, At Large Place 6:
PASSED AND APPROVED this 23'd day of January, 2024.
FO
ATTEST:
JESUS SALAZAR, CITY SECRETARY
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APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
Digitally signed by Susan Ketler
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Exhibit A
Capital Improvement Project Listing
SERIES 2024 - Second Reimbursement Ordinance
January 23, 2024
DEBT FUNDED PROJECTS
GENERAL OBLIGATION PROJECTS (2023 Bond Election):
Ruddell, Mingo Roadway & Quiet Zones (Prop A)
Oakland Drainage & Upstream Detention Improvements (Prop B)
PEC 3&4 Drainage Improvements (Prop B)
Inclusive Playground (Prop C)
Trail Development (Prop C)
Aquatic Improvements (Prop C)
Fire Station # 5 (Prop D)
Fire Station # 6 (Prop D)
Linda McNatt Animal Care & Adoption Center (Prop D)
Public Art - Public Safety (Prop D)
South Branch Library (Prop G)
mmElection GO Total
$5,000,000
5,000,000
5,000,000
3,450,000
4,000,000
2,000,000
5,000,000
5,000,000
15,850,000
317,000
2,500,000
53,117,000i