2001-449 NO
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 MORE
FULLY DESCRIBED IN THE ATTACHMENT TO THIS ORDINANCE MAY BE
COMMENCED, DECLARING AN EMERGENCY AND AMENDING THE 2001-2002
CAPITAL IMPROVEMENT BUDGET TO ALLOW THE FUNDING FOR THE SPENCER
ROAD AND 1-35/BRINKER ROAD RAMP, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton (the "Issuer") as a municipal corporation/pohtlcal
subdivision of the State of Texas, and
WHEREAS, the Issuer expects to pay expenditures for projects in conjunction with
Spencer Road and 1-35 Bnnker Road Ramp Project which is 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 t~me as at issues the obligations to finance the ProJects, and
WHEREAS, the expenditures for the ProJect will be dmbursed in the interim from the
general uareserved fund balance, wluch ~s not appropnated at present ~n the 2001-2002 capital
improvement budget for such use, and
WHEREAS, after the budget was adopted, the City determined that ~n conjunction with
the impending Denton Crossing project, a major retml center, the need for improvements to
Spencer Road and the relocation of an Interstate 35-E northbound ramp south of Bnnker Road
will be critical to public health and safety regarding the area's transportation system, all of which
could not, have reasonably been foreseen at the t~me of the adopUon of the 2000-2001 capital
improvement budget Time is of the essence since znactmn could adversely Impact pubhc health
and safety, the City's thoroughfare system, and econormc 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 expenchtures to meet unusual and unforeseen conditions, which
could noi 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 C~ty Council as an
amendment to the original capital improvement budget, and
WHEREAS, the City Council finds that a grave public necessity exists which requires
emergency expenditures for these master plan projects and the amendment of the 2001-2002 City
of Denton Capital Improvement budget, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the findings set forth in the above preambles to this ordinance are true
and correct and are hereby adopted
SECTION 2 The Issuer reasonably expects to mcur debt, as one or more series of
obhgataons, w~th an aggregate maximum pnnc~pal amount equal to $3,000,000 for the purpose of
paying the costs of the Project, as set forth m the attached Attachment "A", which is made a part
of this for all purposes as ~f ~ncorporated word for word herein
SECTION 3 All costs to be reimbursed pursuant hereto will be for the purchase of fleet
vehicles and eqmpment, payment of contractual obhgatmns for professional services, and/or
construction of pubhc works as authorized by Section 271 045(a)(1) of the Texas Local
Government Code No tax-exempt obhgatmns will be issued by the Issuer in furtherance of this
resolution after a date which ~s later than 18 months after the later of (1) the date the
expenditures are pa~d, or (2) the date on which the property, w~th respect to whtch such
expenditures are made, ~s placed in service That all amounts expended from the Unreserved
Fund Balance of the General Fund for the Project set forth ~n Attachment "A" to pay any costs of
the Project shall be reimbursed from Certificate of Obligation bond proceeds within the 2001-
2002 fiscal year
SECTION 4 The foregoing notwithstanding, no tax-exempt obligation will be issued
pursuant to this resolution more than three years after the date any expenditure which is to be
reimbursed ~s pa~d
SECTION 5 That the 2001-2002 capital improvement budget of Issuer is amended up to
the amounts bsted in Attachment "A", to prowde for adjustments to the capital improvement
budget Accordingly, the 2001-2002 capital improvement budget is hereby amended by
transfemng the sum of $3,000,000 from the unreserved fund balance, account number 100-3350,
to the capital ~mprovement fund, fund number 402 Immediately upon the sale and receipt of the
proceeds from the certificate of obhgations the sum of $3,000,000 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
expend~ttares anticipated m Attachment "A", the City Manager is authorized to provide such
funds from the unreserved fund balance
SECTION 6 That the City Secretary is d~rected to attach a copy of this ordinance to the
ongmal capital ~mprovement budget and cause th~s amendment to be pubhshed once in the
Denton Record-Chronicle
Page 2 of 4
SECTION 7 Th~s ordinance shall become effective ~mmed~ately upon ~ts passage and
approval
PASSED AND APPROVED th~s the 6ff~day of ~ ,2001
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Page 3 of 4
ATTACHMENT A
CIP PROJECT 2001-2002
Spencer Road and 1-35/Bnnker Road Ramp $3,000,000
Page 4 of 4
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