2003-013ORDINANCE NO. ~0ff~'-- O/~
AN ORDINANCE TO DECLARE THE INTENT TO REIMBURSE EXPENDITURES
FROM THE UNRESERVED RETAINED EARNINGS OF THE MATERIALS
MANAGEMENT FUND WITH CERTIFICATES OF OBLIGATION FOR THE
PURCHASE OF LAND AND RELATED COSTS; DECLARING AN EMERGENCY
AND AMENDING THE 2002-2003 CAPITAL IMPROVEMENT BUDGET; AND
PROVIDING AN EFFECTIVE DATE. (PROJECT- $585,000 FOR LAND
PURCHASE; RELATED COSTS $25,000)
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 in connection with the
purchase of land for Attachment "A" (the "Project"); 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;
and
WHEREAS, Sec. 8.08 of the Denton City Charter provides that in case of grave
public necessity, emergency expenditures to meet unusual and unforeseen conditions,
which could not by diligent thought and attention have been included in the original
budget, may be authorized by the affirmative vote of at least five (5) of the members of
the council as an amendment to the original budget; and
WHEREAS, the City Council finds that a grave public necessity and unforeseen
emergency exists which requires amendment of the 2002-2003 City of Denton Capital
Improvement Budget, to wit: The City is in grave need to expand its warehouse facilities
and it was not reasonably foreseeable that the subject land would be available at the time
the 2002-2003 Capital Improvement Budget was adopted. NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1: The findings and recitations in the preamble of this ordinance are
incorporated herein by reference.
SECTION 2: The Issuer reasonably expects to incur debt, as one or more series
of obligations, with an aggregate maximum principal amount equal to $585,000 for the
purpose of paying the costs of the land purchase and an amount not-to-exceed $25,000
for other related costs as set forth in the attached Attachment "A" which is made a part of
this ordinance for all purposes.
SECTION 3: All costs to be reimbursed will be for land purchase and other
related expenditures. 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. All amounts expended f~om
the Unreserved Retained Earnings for the Projects to pay any costs of the Projects shall
be reimbursed from Certificate of Obligation proceeds within the 2002-2003 fiscal year.
SECTION 4: 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
SECTION 5: The 2002-2003 Capital Improvement Budget of issuer is amended
up to $610,000 to provide for adjustments to budgeted appropriations in the Materials
Management Fund.
SECTION 6: The City Secretary is directed to attach a copy of this ordinance to
the original budget and cause this amendment to be published once in the Denton Record-
Chronicle.
SECTION7: This ordinance shall become effective immediately upon its
passage and approval.
PASSED AND APPROVED this the ~7~/¢~day of (~/~ , 2003.
/
EUL1NE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: "~' IJ
ATTACHMENT "A"
City of Denton, Texas
Annual Program of Services
Proposed 2002-07 Capital Improvement Program
Materials Management Fund
Year Div/Dept Project Name Other*
Total
Required
C~ty
Funding
Aid
In
Const.
Total
Project
Costs
2002-03 Mat. Mgmt.
Warehouse-Land Acq. $585,000 $585,000
Misc. Costs 25,000 25,000
$610,000 $610,000
$585,000
25,000
$610,000
*Includes certificates of obligation, fund balance, and General Fund Resources