2008-151S.AOur DocumentsVOrdinancesV08\Reimbursement-distribution & electric fact Iitics.doc
ORDINANCE NO. zOO~- ~J~~
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, TO DECLARE THE INTENT TO
REIMBURSE EXPENDITURES FROM THE UNRESERVED FUND BALANCE OF THE
ELECTRIC FUND WITH UTILITY SYSTEM REVENUE BONDS WITH AN AGGREGATE
MAXIMUM PRINCIPAL AMOUNT EQUAL TO $5,000,000 SO THAT DENTON
MUNICIPAL ELECTRIC CAN CONTINUE FUNDING ONGOING CAPITAL
EXPENDITURES FOR EXPANSION OF THE DISTRIBUTION AND TRANSMISSION
ELECTRIC FACILITIES; 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 expenditures related to the ongoing capital
expenditures for expansion of the distribution and transmission facilities of Denton Municipal
Electric, which was approved in the 2007-2008 Adopted Budget and the 2007-08 Capital
Improvement Budget and are described in Attachment "A"; 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, in accordance with the
provisions of Section 1.150-2 Treasury Regulations, 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
obligations, with an aggregate maximum principal amount equal to $5,000,000 for the purpose of
paying the costs of the Project, as set forth in the attached Attachment "A", which is made a part
of this Ordinance for all purposes as if incorporated word for word herein.
SECTION 2. All costs to be reimbursed pursuant hereto will be for the ongoing capital
expansion of the distribution and transmission facilities of Denton Municipal Electric as
authorized by Section 271.045(a)(1) of the Texas Local Government Code. No tax-exempt
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 are made, is placed in service. That all
amounts expended from the Unreserved Fund Balance of the Electric Fund for the Project set
forth in Attachment "A" to pay any costs of the Project shall be reimbursed from Utility System
Revenue bond proceeds within the 2007-2008 fiscal year.
SECTION 3. The foregoing notwithstanding, no tax-exempt obligation will be issued
pursuant to this Ordinance more than three years after the date any expenditure which is to be
reimbursed is paid.
S:AOur DocumentsVOrdinancesV08\ReimbursemcnHlistribution & dechie faci Iitics.doc
SECTION 4. This Ordinance shall become effective immediately upon its passage and
.
approval.
PASSED AND APPROVED this the day of '2008.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
JOHN M. KNIGHT, INTERIM CITY ATTORNEY
BY: YAK
Page 2 of 2
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ATTACHMENT A
Denton Municipal Electric
2008 Capital Expenditures
Projects Categories
Projected
Reimbursement
Allocation
Communications
$ 275,288
Distribution Transformers
1,034,332
Distribution Feeder & Extension
946,100
Meters
53,783
OH to UG Conversions
364,872
Power Factor Improvements
33,351
New Residential & Commercial
168,273
Hickory Substation Addition
390,000
Woodrow Kings Row 69 KV TM Line
100,000
Fort Worth Substation
900,000
Kendolph System Improvement 2007 No. 5
231,000
NEC Phone System
245,000
Colorado & Loo 288 Improvement
140,000
Teasley Substation 214 Exit Feeder
118,000
TOTAL
$ 5,000,000