1999-159 ORD ANCENO
AN ORDINANCE TO DECLARE THE INTENT TO REIMBURSE EXPENDITURES FROM
THE RETAINED EARNINGS OF THE WATER FUND WITH REVENUE BONDS SO THAT
TWO PHASES OF A NEW WATER LINE PROJECT, MORE FULLY DESCRIBED IN THE
BODY OF THIS ORDINANCE, MAY BE COMMENCED, DECLARING AN EMERGENCY
AND AMENDING THE 1998-99 CAPITAL IMPROVEMENT BUDGET TO ALLOW THE
FUNDING OF PHASE I AND PHASE II OF THE HIGHWAY 377 WATER DISTRIBUTION
SYSTEM UPGRADE, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton (the "Issuer") is a municipal corporation/political subdi-
vision of the State of Texas, and
WHEREAS, the Issuer expects to pay expenditures in connection with the design, plan-
ning, and construction of Phase I and Phase II of a new water line project, the Highway 377 wa-
ter distribution system upgrade, (the "ProJect") described in Exhibit "A", which is attached
hereto and made a part of this orchnanee for all purposes, prior to the issuance of revenue bonds
to finance the demgn and construction ora water hne from Denton to Crawford Road, 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 obJec-
tives 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 revenue bonds to finance the ProJect, and
WHEREAS, the expenditures for the ProJect will be dmbursed in the interim from the
retmned earnings of the water fund, which ~s not appropriated at present in the 1998-99 capital
improvement budget for such use, and
WHEREAS, after the budget was adopted, the City learned that Denton County Fresh
Water Supply Dmtnct No lA and Denton County Fresh Water Supply D~stnct No 5 (the "Dis-
trlcts") had annexed nearly 500 acres of land within the City of Denton's extraterritorial junsdm-
tlon, corporate limits, and certificated water and wastewater service area, threatening to encroach
on the City's service area, interfere with Its water supply, and to interfere w~th Its abthty to exer-
cise land use controls over the area, resulting in the City fihng a lawsuit in 1999 to set aside the
Dmtncts' annexation of the area, all of which could not have reasonably been foreseen at the
time of the adoption of the 1998-99 capital improvement budget, which actions could mgnlfi-
cantly adversely impact the City's plans and strategies to manage future growth, and which cre-
ates an emergency and a grave pubhc necessity that the budget be amended to fund this project
to construct Phase I and Phase II of a water transmission line south along Highway 377 from
Denton near Bent Creek Estates to Hamilton Road and from Hamilton Road to Crawford Road
near the proposed development known as Willow Lakes, and
WHEREAS, Sec 8 08 of the Denton City Charter provides that in case of grave public
necessity, emergency expen~htures to meet unusual and unforeseen condlttons, 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 C~ty Council as an amendment to the
original capatal improvement budget, and
WHEREAS, the City Council finds that a grave public necessity exists which reqmres
emergency expenditures for this new water project and the amendment of the 1998-99 City of
Denton capital improvement budget, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the findings set forth in the above preambles to this ordinance are tree
and correct and are hereby adopted
~ That the Issuer reasonably expects to incur debt, as one or more series of
obhgat~ons, with an aggregate maximum pnnclpal amount equal to $2,606,000 for the purpose of
paying the costs of the ProJect, as set forth in Exhibit "A"
~ That all expenditures to be reimbursed pursuant hereto w~ll be for design
and construction of capital improvements No tax-exempt obligations will be issued by the Is-
suer in furtherance of tlus ordinance after a date which ~s later than 18 months after the later of
(1) the date the expenditures are prod, or (2) the date on which the property, with respect to
whmh such expanthtures were made, is placed in service
SECTION ~ That the foregoing notwithstanding, no tax-exempt obligation will be ~s-
sued pursuant to this ordinance more than three years after the date any expenditure which is to
be reimbursed is pard
~ That the 1998-99 capital improvement budget of Issuer ~s amended up to
the mounts listed ~n Exhibit "A", to provide for adjustments to the water capital ~mprovement
budget Accordingly, the 1998-99 capital improvement budget ~s hereby amended by transfemng
the sum of $2,606,000 from the retained earnings of the water fund, Account No 620-5601 to
the water capital improvement fund Immedmtely upon the sale and receipt of the proceeds from
the revenue bonds the sum of $2,606,000 or the actual amount transferred to the water capital
~mprovement fund shall be transferred to the retmned earnings of the water fund, Account No
620-5601 If for any reason these adjustments to the water capital improvement fund do not fully
cover the expendatures anticipated ~n Exhibit "A", the City Manager is authorized to provide
such funds from the retmned earnings of the water fund
~ That the C~ty Secretary ~s darected to attach a copy ofth~s ordinance to the
original capital ~mprovement budget and cause this amendment to be pubhshed once in the
Denton Record-Chromcle
SECTION VII That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the //~ day o~, 1999
J~/MILLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Attachment A
I ### ' CAPITAL IMPROVEMENT PROJECT # 99-0461-13
PROJ TITLE (I) DISTRIBUTION SYSTEM UPGRADE (HWY 377)
ESTIMATED CO8T $2,606 (x 1000) GROUP ASSIGNMENT 4
DESCRIPTION HWY-377 BENT CREEK ESTATE8 20 INCH 23,000 LF
PURPOSE This project will enable CHy of Denton to oupply water to the new
development, to the southern pa;t of Denton along HWY 377
Phase I Bant C;aek Est"tea to Hamilton Rd -8,600 LF
Total Cost $1,o72,000
Phase II Hamilton to C~awford Rd 14, E00 LF
Total Cost $1,534,000
ENCUMBRANCE8 CA3H EXPENDITURES
BOND REV AIC OTHER TOTAL BOND REV AIC OTHER TOTAL
TOTAL 1ST YR $2606 $0 $0 t0 $2606 $2S06 $0 $0 tO $2606
TOTAL 2ND YR $0 $0 $0 t0 $0 $0 tO $0 $0 $0
TOTAL 3RD YR $0 $0 tO $0 ~0 $0 $0 $0 t~O $0
GRAND TOTAL $2606 t0 $0 ~0 $2606 ~2606 t~0 t0 tO $2606
ENCUMBRANCE DATES Enaumbared es spent
PHASE DATE AMOUNT OBJECT #
Land Purchase 07/88 ~ 211 9002
Design 06199 $ 172 8560
Inspection 01100 $ 63 S662
Construction 01100 $2170 9138
ENCUMBRANCE TOTAL $2606
COMMENTS This Is s multlyasr prolast beginning In 1999
Enonmbronons prior to 1998 $0
Current CIP $2,606,000
Total ProJeot Budget ~2,606,000
6/61gg 12 12