Agenda Information Sheet
DEPARTMENT: Finance
ACM: Bryan Langley
Date: October 10, 2016
SUBJECT
Title
Consider a recommendation for the adoption of an ordinance of the City of Denton, Texas, to declare the intent to reimburse capital program expenditures of the Electric Utility ($65,000,000) and Solid Waste ($23,580,000) with Tax Preferred Obligations (Certificates of Obligation) with an aggregate maximum principal amount equal to $88,580,000.
Body
BACKGROUND
The purpose of this item is to allow staff to begin these projects prior to the debt sale. Initially, funding for the expenditures will be provided with existing bond proceeds or unreserved fund balance. Once the debt is sold, these expenditures will be reimbursed from the debt proceeds.
For FY 2016-17, Denton Municipal Electric is proposing to utilize $65,000,000 in Certificates of Obligation (CO's) to fund ongoing capital expansion of the distribution and transmission facilities as part of the FY 2016-17 Capital Improvement Program (CIP) Budget. This amount represents the full amount of the proposed CO sale. The total CIP Budget for FY 2016-17, including revenue funded, previously funded, and revenue bond funded projects, is $204,118,000.
For FY 2016-17, Solid Waste is proposing to utilize $23,580,000 in Certificates of Obligation (CO's) to fund ongoing disposal, processing and construction services as part of the FY 2016-17 Capital Improvement Program (CIP) Budget. This amount represents the full amount of the proposed CO sale. The total CIP Budget for FY 2016-17, including revenue funded projects, is $25,890,000.
Attachment 1 reflects the list of the projects for both DME and Solid Waste to be funded by this reimbursement ordinance. This reimbursement ordinance is scheduled to be considered by the City Council on October 18, 2016, pending direction from the PUB. The COs are anticipated to be sold in the summer of 2017.
RECOMMENDATION
Staff recommends approval.
FISCAL INFORMATIO...
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