2003-176ORO=ANCE NO. i q)
AN ORDINANCE OF THE CITY OF DENTON, TEXAS TO DECLARE THE INTENT TO
REIMBURSE EXPENDITURES FROM THE UNRESERVED FUND BALANCE OF THE
GENERAL FUND WITH CERTIFICATES OF OBLIGATION SO THAT A PROJECT FOR
THE CONSTRUCTION OF SPENCER ROAD AND THE LOOP 288 BYPASS MAY BE
COMMENCED; DECLARING AN EMERGENCY AND AMENDING THE 2002-2003
CAPITAL IMPROVEMENT BUDGET TO ALLOW THE FUNDING FOR SAID PROJECT;
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 for projects in conjunction with
Spencer Road and Loop 288 Bypass Project (the "Project") which is described in Attachment
"A" attached hereto and made a part hereof by reference; 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, the expenditures for the Project will be disbursed in the interim from the
general unreserved fund balance, which is not appropriated at present in the 2002-2003 capital
improvement budget for such use; and
WHEREAS, after the budget was adopted, the City Manager determined that the
estimates and mounts budgeted for the cost of the Project were insufficient due to the fact that
land acquisition costs for the Project came in significantly higher due to unexpected increases in
property values in the area as a result of on-going development. Therefore, even by diligent
thought and attention, this could not have been reasonably expected to be included in the budget.
Completion of this Project is integral to adequate coordination of expected high volumes of
traffic resulting from the opening of the Denton Crossing Shopping Center. Current street
conditions are not adequate to handle the expected increase in traffic volume. Time is of the
essence since inaction could adversely impact public health and safety, the City's thoroughfare
system, and economic viability of the City's tax base, and which creates an emergency and a
grave public necessity that the budget be amended to fund these transportation roadway
construction projects; and
WHEREAS, Section 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 of the members of the City Council as an
amendment to the original capital improvement budget; and
WHEREAS, the City Council finds that a grave pubhc necessity exists which requires
emergency expenditures for these master plan projects and the amendment of the 2002-2003 City
of Denton Capital Improvement budget; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings set forth in the above preambles to this ordinance are tree and
correct and are hereby adopted.
SECTION 2. The Issuer reasonably expects to incur debt, as one or more series of
obligations, with an aggregate maximum principal amount equal to $1,100,000.00 for the
purpose of paying the costs of the Project, as set forth in the attached Attachment "A.
SECTION 3. All costs to be reimbursed pursuant hereto will be for the purchase of fleet
vehicles and equipment, payment of contractual obligations for professional services, and/or
construction of public works 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
resolution 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 from the Unreserved Fund
Balance of the General Fund for the Project set forth in Attachment "A" to pay any costs of the
Project shall be reimbursed from Certificate of Obligation bond 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 the
amounts listed in Attachment "A", to provide for adjustments to the capital improvement budget.
Accordingly, the 2002-2003 capital improvement budget is hereby amended by transferring the
sum of $1,100,000 from the unreserved fund balance to the capital improvement fund, fund
number 35005800. Immediately upon the sale and receipt of the proceeds from the certificate of
obligations the sum of $1,100,000.00 or the actual amount transferred to the capital improvement
fund shall be transferred to the unreserved fund balance. If for any reason these adjustments to
the capital improvement fund do not fully cover the expenditures anticipated in Attachment "A",
the City Manager is authorized to provide such funds f~om the unreserved fund balance.
SECTION 6. The City Secretary is directed to attach a copy of this ordinance to the
original capital improvement budget and cause this amendment to be published once in the
Denton Record-Chronicle.
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SECTION 7. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ~/_~ day of ~.~ , 2003.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY: '~
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ATTACHMENT A
CIP PROJECT: 2002-2003
Spencer Road and Loop 288 Bypass
$1,100,000
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