HomeMy WebLinkAboutORD 1146 - ORD Finding City Treasurer Certified avaliability of Funds Water/Sewer Fund
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ORDINAN~E NUMBER 1146
AN ORDINANCE FINDING THAT THE CITY TREASURER HAS CERTIFIED
THE AVAILABILITY OF,fUNDS IN THE,WATE~/SEWER FUND"RETAINED
EARNINGS ACCOUNT, TO PR:OCEED WITH'THE CONSTRUCTION OF WATER
WELL #7 AND RELATED WATER TRANSMISSION LINE; APPROPRIATING
THE SUM OF' $,393,300.00,rOR, THE SOLE PURPOSE OF PAYING FOR
WATER WELL #7'AND RELATED WATER TRANSMISSION LINE; AUTHORIZ-
ING THE MAYOR,TOEXECUTE IN BEHALF OF THE CITY A PROMISORY
,NOTE WITH ONE OF THE CITY'S DEPOSITORY BANKS FOR A PORTION
OF SAID $393,300.00; PROVIDING FOR THE REPAYMENT OF SUCH
AMOUNT SO BORROWED; AND PROVIDING THAT NO TAX BE LEVIED
SINCE FUNDS HAVE BEEN PROPERLY APPROPRIATED AND DESIGNATED
FOR THE REPAYMENT OF SUCH DEBT AUTHORIZED HEREIN TO BE CREATED.
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WHEREAS, the City Commission has heretofore determined that certain
improvements, including a new water well and a 12" water transmission line,
are required to assure an adequate water supply system for the City of West
University Place; and
WHEREAS, bids have been received from qualified bidders for said
projects and have been reviewed by the City Commission; and
WHEREAS, the city must provide for funding of said projects prior
to the award of the contracts for such projects; and
f W U .WHER~AS'pAlrticle 2~f,.secltlion 1 ~f thedHomehRu~e Chahrte: of the Cfity :~,
o est n1vers1ty ace spec1 1ca y perm1ts an aut or1zes t e 1ssuance 0 ~
promisory notes for the purpose of borrowing money on the credit of the
city for permanent improvements; and
WHEREAS, the City Commission has considered funding the project partly
in cash and partly from borrowed funds from one of the city's banking depositories.
/ NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
WEST UNIVERSITY PLACE, TEXAS:
Section 1. That the City Treasurer has certified the availability
of funds in the Water/Sewer Fund, Retained Earnings Account, sufficient to fund
both the water well #7 and the related water transmission line projects.
Section 2. That the sum of $393,300 is hereby appropriated for the sole
and exclusive purpose of paying for said projects, or in the alternative for
repayment of any indebtedness created by the city for funds used in the direct
payment of the two contract amounts.
Section 3. That the city has determined that it will be advantageous
to borrow from one of its depositories a portion of the $393,300 to pay for the
direct construction costs of the two projects, and should said loan be deter-
mined to be in the city's best interest said load shall be negotiated on terms
most advantageous to the city.
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Section 4. That James M. Cole, Mayor of the City of West University
Place, Texas, be, and he is hereby, authorized to execute a promisory note on
behalf of the city, on ~r after the date this ordinance is approved, payable
to Chemical Bank of Houston or any other city depository, in the principal
amount not to e~ceed $350,000 at the interest rate most favorable to the city
in accordance with depository bank bids and with a maturity date of December 31,
1980. '
,Section 5. The amount so borrowed that is secured by the cityis promisory
note, together with the additional funds totaling the amount of the two contracts,
shall be deposited in an account designated as Water Well #7 Construction Fund of
the City of West University Place, Texas, and said amounts deposited at the 1end~
ing depository bank and said funds'used for the direct payment of the 'construction
contracts.
Section 6. That repayment of any sum so borrowed and any accrued
interest thereon shall be made from the Water/Sewer Fund, Retained Earnings
Account, which, has heretofore been appropriated and designated for the sole
mission line projects.
Section 7. That in view of adequate monies having been appropriated
for repayment of any debt authorized to be created herein, no additional tax
need to be levied for repayment of the proposed indebtedness.
Section 8. That this ordinance shall take effect and be in force
rnl: from and after its passage and approval by the City Commission.
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Ii PASSED AND APPROVED this;l9u day of ~ , 1979.
Commissioners Voting Aye:
Commissioners Voting No:
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, Mayor '
ATTEST:
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City Secretary
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