2010-083s:lour documentslardinancesll0lreimbursement ard-electric fund,dac
ORDINANCE NO. ZD 1 ~-OS~
AN ORDINANCE OF THE CITY GF DENTON, TEAS TC DECLARE THE INTENT TG
REIMBURSE EXPENDITURES FROM THE UNRESERVED FUND BALANCE CF THE
ELECTRIC FUND WITH UTILITY SYSTEM REVENUE BANDS OR CERTIFICATES GF
OBLIGATION WITH AN AGGREGATE MAXIMUM PRINCIPAL AMOUNT EQUAL TG
$6,792,522 TG ALLOW DENTON MUNICIPAL ELECTRIC TG 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 corporationlpolitical
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 2009-10 Adopted Budget and the 2009-10 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 1,154-2 Treasury Regulations, to reimburse itself for such payments at
such time as it issues the obligations to Iinance 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 $6,792,522 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 Crovernment 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 2009-10 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:lour documentslordina~ces1101reimbursement ord-electric ~und.doc
SECTION 4. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ~ day of , 2010,
MARK A. U ~ U AYOR .
ATTEST:
JENNIFER VL~ALTERS, CITY SECRETARY
BY: r
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY;
Page 2 of 2
ATTACHMENT A
DME REIMBURSEMENT RES4lUTI~N BACKUP - 2049/10
CAPITAL ExPANS14N FUNDING
. Expenditures Amt needed for
thru February Expenditures
Yearly Projects 2014 thru July 2010
Distribution Transformers 46,226 600,182
New Residential and Commercial 720,033 619,455
Communications Equipment 33,297 691,654
Street Lighting 29,717 217,153
Other meters, automated meters 203,152 259,748
Total Distribution ~ $ . 1,032,475 $ :2,388,193
Major Projects
Automated Meter Reading 44,596 776,258
Building Construction 24,960 1,424,429
Distribution Substations 2,264,334 83,624
Transmission Lines 1,351,267 -
TransmissionSubstations 1,177,744 2,120,018
Total Major Projects $ 4,862,901 $ 4,404,329
$ fi,792,522 ,