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HomeMy WebLinkAboutORD 1146 - ORD Finding City Treasurer Certified avaliability of Funds Water/Sewer Fund 1~~~Ir..:,I:I.lll",I',~_ T!TIT'"'T ~~------------.:L1"-1' ~._. ..........1 11'~ -- 4~OlOO': 000108 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. 1-1 u 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. u 000199 : ~n f!J'nU ." ~.... "~" !.~.. 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. Ii rt.. A J Ii PASSED AND APPROVED this;l9u day of ~ , 1979. Commissioners Voting Aye: Commissioners Voting No: ~/n~ , Mayor ' ATTEST: ~~~ City Secretary WI ,j! 'I .1 il ' :1 1.......-_[ I L ~._,_..J~ .:.....-L......L...J..ll.J..i.1J..JJJIlI I", ': II ,L1iilIJilJ1iI I'