2003-221ORDINANCE NO. ~0O3-d,o~
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
ACQUISITION OF APPROXIMATELY 13.65 ACRES OF LAND FROM THE STATE OF
TEXAS FOR PARK AND STREET PURPOSES CAN BE CONSUMMATED, SUCH LAND
BEING LOCATED AT THE SOUTHWEST CORNER OF STATE SCHOOL ROAD AND
BRIGHTON STREET IN THE CITY OF DENTON; DECLARING AN EMERGENCY AND
AMENDING THE 2002-2003 CAPITAL IMPROVEMENT BUDGET TO ALLOW THE
FUNDING FOR SAID PROJECT; AND PROVIDING AN EFFECTIVE DATE. (LAND
PURCHASE AND RELATED COSTS-$189,000.00)
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 the
acquisition of approximately 13.65 acres of land from the State of Texas for park and street purposes,
such land being located at the southwest corner of State School Road and Brighton Street in the City
of Denton (the "Project") which Project 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 Project; 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 was informed of the pending
development in the area of the Denton State School. The development is planned to include a large
retail area as well as residential area, which will generate a significantly larger amount of traffic. hi
order to insure roadways are adequate to handle the large volume of traffic resulting from this
development, the acquisition of this property is critical. Property values will continue to increase as
a result of on-going development and current street conditions are in no way adequate to handle the
expected increase in traffic volume; and .
WHEREAS, because of the rapid pace and nature of recent development, this Project was not
substantially developed prior to the adoption of the FY 2002-2003 budget and the scope and
necessary involvement of the City of Denton could not have been anticipated prior to the adoption of
the FY 2002-2003 budget. Therefore, even by diligent thought and attention, this could not have
been reasonably expected to be included in the budget; and
WHEREAS, Timing 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. Therefore, this
creates an emergency and grave public necessity that the Capital Improvement Fund budget be
amended to fund this transportation roadway acquisition Project.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings set forth in the preamble of 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
obligations, with an aggregate maximum principal amount equal to $189,000.00 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 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 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 2003-2004 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 $189,000.00 from the Unreserved Fund Balance to the Capital Improvement Fund, to the State of
Texas Property Acquisition project. Immediately upon the sale and receipt of the proceeds from the
certificate of obligations the sum of $189,000.00 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 from 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.
SECTION 7. This ordinance shall become effective immediately upon its passage and
approval.
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PASSED AND APPROVED this the & oAay of 2003.
4 ck-
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
State School Property Acquisition $189,000 Certificates of Obligation
220,000 Existing Aide-In
Construction Funds
TOTAL $409,000
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