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HomeMy WebLinkAbout1982-032ORDINANCE NO 82-jam ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SE47ER SYSTEM REVENUE BONDS, SERIES 1982 THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, the bonds hereinafter authorized were lawfully and favorably voted at an election duly held in said City on MAY 16, 1972, and WHEREAS, out of the bonds voted at said election, the following previously have been issued and delivered $4,475,000 out of a voted total of $5,275,000, for the purpose of improving and extending the City's Waterworks Svstem, represented by part of the Series 1972 Bonds, part of the Series 1974 Bonds, part of the Series 1977 Bonds, and part of the Series 1979 Bonds, and $3,525,000 out of a voted total of $5,725,000, for the purpose of improving and extending the City's Sewer System, represented by part of the Series 1972 Bonds, part of the Series 1974 bonds, part of the Series 1977 Bonds, and part of the Series 1979 Bonds, and WHEREAS, the bonds hereinafter authorized and designated were voted and are to be issued and delivered pursuant to Vernon's Articles 1111 through 1118 THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS Section 1 That the said City's bonds are hereby author- ized to be issued in the aggregate principal amount of $1,500,000 FOR THE PURPOSE OF IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM Section 2 That said bonds shall be designated as the "CITY OF DENTON WATFR AND SEWER SYSTEM REVENUE BONDS, SERIES 1982" Section 3 That said bonds shall be dated MAY 15, 1982, shall be in the denomination of $5,000 each, shall be numbered consecutively from one upward, and shall mature serially on the maturity date, in each of the years, and in the amounts, respectively, as set forth in the following schedule MATURITY DATE YEARS AMOUNTS JULY 15 YEARS 1983 $ 60,000 1992 1984 100,000 1993 **** **** 1994 1987 75,000 1995 1988 75,000 1996 1989 75,000 1997 1990 75,000 1998 1991 90,000 Section 4 That the bonds scheduled years, respectively, set forth below shall following rates per annum AMOUNTS $100,000 100,000 150,000 150,000 150,000 150,000 150,000 to mature during the bear interest at the maturities 1983, 13 00% maturities 1991, 13 00% maturities 1984, 13 00% maturities 1992, 13 00% ***** maturities 1993, 12 20% maturities 1987, 13 00% maturities 1994, 12 40% maturities 1988, 13 00% maturities 1995, 12 50% maturities 1989, 13 00% maturities 1996, 12 70% maturities 1990, 13 00% maturities 1997, 12 90% maturities 1998, 11 125% Said interest shall be evidenced by interest coupons which shall appertain to said bonds, and which shall be payable in the manner provided and on the dates stated in the FORM OF BOND set forth in this Ordinance Section 5 That said bonds and interest coupons shall be issued, shall be payable, may be redeemed prior to their sched- uled maturity, shall have the characteristics, and shall be signed and executed (and said bonds shall be sealed), all as provided, and in the manner indicated, in the FORM OF BOND set forth in this Ordinance Section 6 That the form of said bonds, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endorsed on each of said bonds, and the form of the aforesaid interest coupons which shall appertain and be attached initially to each of said bonds, shall be, respectively, substantially as follows NO FORM OF BOND UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BOND SERIES 1982 $5,000 ON JULY 15, 19 , THE CITY OF DENTON, in Denton County, Texas, hereby promises to pay to bearer hereof the principal amount of FIVE THOUSAND DOLLARS and to pay interest thereon, from date hereof, at the rate of 8 per annum, evidenced by interest coupons payable JULY 11-7982, and semiannually thereafter while this bond is out- standing THE PRINCIPAL of this bond and the the interest coupons appertaining hereto shall be payable to bearer, in lawful money of the United States of America, without exchange or collection charges to the bearer, upon presentation and surrender of this bond or proper interest coupon, at the following, which shall constitute and be defined as the "Paying Agent" for this Series of Bonds CITIBANK, N A , NEW YORK, NEW YORK, OR, AT THE OPTION OF THE BEARER, AT FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS THIS BOND is one of a Series dated as of MAY 15, 1982, authorized, issued, and delivered in the principal amount of $1,500,000 FOR THE PURPOSE OF IMPROVING AND EXTENDING THE CITY'S SEWER SYSTEM 2 ON JULY 15, 1992, or on any interest payment date thereafter, any outstanding bonds of this Series may be redeemed prior to their scheduled maturities, at the option of said City, in whole, or in part, for the principal amount thereof and accrued interest thereon to the date fixed for redemption At least thirty days prior to the date fixed for any such redemption said City shall cause a written notice of such redemption to be published at least once in a financial publication published in the City of New York, New York By the date fixed for any such redemption due provision shall be made with the "Paying Agent" for the payment of the principal amount of the bonds which are to be so re- deemed and accrued interest thereon to the date fixed for re- demption If such written notice of redemption is published and if due provision for such payment is made, all as provided above, the bonds which are to be so redeemed thereby automati- cally shall be redeemed prior to their scheduled maturities and they shall not bear interest after the date fixed for redemp- tion, and they shall not be regarded as being outstanding ex- cept for the right of the bearer to receive the redemption price from the "Paying Agent" out of the funds provided for such payment IT IS HEREBY certified and covenanted that this bond has been duly and validly authorized, issued, and delivered, that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authoriza- tion, issuance, and delivery of this bond have been performed, existed, and been done in accordance with law, that this bond is a special obligation, and that the principal of and interest on this bond, together with other revenue bonds of said City, are payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System SAID CITY has reserved the right, subject to the restric- tions stated, and adopted by reference, in the Ordinance au- thorizing this Series of bonds, to issue additional parity revenue bonds which also may be made payable from, and secured by a first lien on and pledge of, the aforesaid Net Revenues THE HOLDER HEREOF shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation IN WITNESS WHEREOF, this bond and the interest coupons appertaining hereto have been signed with the facsimile signa- ture of the Mayor of said City and countersigned with the facsimile signature of the City Secretary of said City, and the official seal of said City has been duly impressed, or placed in facsimile, on this bond xxxxxxxx xxxxxxx City Secretary Mayor FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO I hereby certify that this bond has been examined, certi- fied as to validity, and approved by the Attorney General of the State of Texas, and that this bond has been registered by 3 the Comptroller of Public Accounts of the State of Texas NO Witness my signature and seal this xxxxxxXx Comptroller of Public Accounts of the State of Texas FORM OF INTEREST COUPON ON 15, 19 , THE CITY OF DENTON, in the County of Denton, State of Texas, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, with- out exchange or collection charges to the bearer, unless due provision has been made for the redemption prior to scheduled maturity of the bond to which this interest coupon appertains, upon presentation and surrender of this interest coupon, at CITIBANK, N A , NEW YORK, NEW YORK, OR, AT THE OPTION OF THE BEARER, AT FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS, said amount being interest coming due that day on the bond, bearing the number hereinafter designated, of that issue of CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1982, DATED MAY 15, 1982 The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation Bond No xxxxxxxx xxxxxxx City Secretary Mayor Section 7 (a) That the term "Outstanding Bonds", as hereinafter used in this Ordinance, shall mean all of said City's presently outstanding bonds which are payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System (b) That the bonds authorized hereby are parity "Addi- tional Bonds" as defined in the ordinance passed on July 12, 1960, authorizing the issuance, sale, and delivery of said City's Water and Sewer System Revenue Bonds, Series 1960 (c) That Sections 9 through 25 of said ordinance are hereby adopted by reference and shall be applicable to the bonds authorized to be issued by this Ordinance for all pur- poses, except to the extent hereinafter specifically modified and supplemented The bonds authorized to be issued by this Ordinance and the Outstanding Bonds are and shall be on a parity and of equal dignity in all respects, and are and shall be payable from, and secured by a first lien on and pledge of, the Net Revenues of said City's Waterworks and Sewer System Section 8 That, in addition to all other amounts re- quired by the ordinances, respectively, authorizing the Out- standing Bonds, there shall be deposited into the Interest and Sinking Fund (created for the benefit of said Outstanding Bonds and all Additional Bonds), from the Net Revenues of the System, the following (a) such amounts, in equal monthly installments, made on or before the last day of each month hereafter, as will be sufficient to pay the interest scheduled to come due on said Series 1982 Bonds on the next interest payment date, and 4 (b) such amounts, in equal monthly installments, made on or before the last day of each month hereafter, commencing in July, 1982, as will be sufficient to pay the next maturing prin- cipal of said Series 1982 Bonds Section 9 That the Reserve Fund heretofore created for the benefit of the Outstanding Bonds and all Additional Bonds now contains money and investments not less than the amount of $858,258 in market value On or before the last day of each month hereafter there shall be deposited into the Reserve Fund such amounts, in equal monthly installments, as will cause the Reserve Fund to contain, within five years after the date of the Series 1982 Bonds, an amount of money and investments equal in market value to the average annual principal and interest requirements on the Outstanding Bonds and the Series 1982 Bonds (the "Reserve Required Amount") Thereafter, no additional deposits shall be made into the Reserve Fund as long as the money and investments therein are equal to the Reserve Required Amount, but if and whenever the Reserve Fund is reduced below the Reserve Required Amount, a monthly deposit shall be made, on or before the last day of each month thereafter, into the Reserve Fund from Net Revenues of the System (after the re- quired deposits have been made into the Interest and Sinking Fund), in an amount equal to 1/60th of the Reserve Required Amount, until such time as the Reserve Fund has been restored to the Reserve Required Amount, and the City covenants to keep and maintain the Reserve Required Amount in the Reserve Fund in the manner described above The Reserve Fund shall be main- tained, used, and may be invested, for the benefit of the Bonds and all Additional Bonds, in accordance with the procedures, as herein modified and supplemented, set forth in the ordinances, respectively, authorizing the Outstanding Bonds It is pro- vided, however, that if and whenever, due to investment income or otherwise, the Reserve Fund contains an amount in excess of the Reserve Required Amount, such excess shall be deposited immediately to the credit of the Revenue Fund Section 10 That the bonds authorized by this Ordinance are and shall be special obligations of said City, and the holder or holders thereof shall never have the right to demand payment of said obligations out of any funds raised or to be raised by taxation Section 11 That the Mayor of said City is hereby author- ized to have control of said bonds and all necessary records and proceedings pertaining to said bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas Upon registration of said bonds, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate printed and endorsed on each of said bonds, and the seal of said Comptroller shall be impressed, or placed in fac- simile, on each of said bonds Section 12 That the City covenants to and with the pur- chaser of the bonds that it will make no use of the proceeds of the bonds at any time throughout the term of this issue of bonds which, if such use had been reasonably expected on the date of delivery of the bonds to and payment for the bonds by the purchasers, would have caused the bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto, and by this covenant the City is obligated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury 5 regulations relating to arbitrage bonds The City further covenants that the proceeds of the bonds will not otherwise be used directly or indirectly so as to cause all or any part of the bonds to be or become arbitrage bonds within the meaning of the aforesaid Section 103(c), or any regulations or rulings pertaining thereto Section 13 That it is hereby officially found and de- termined that a case of emergency or urgent public necessity exists which requires the holding of the meeting at which this Ordinance is passed, such emergency or urgent public necessity being that the proceeds from the sale of said bonds are re- quired as soon as possible and without delay for necessary and urgently needed public improvements, and that said meeting was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as required by Vernon's Ann Civ St Article 6252-17 Section 14 That the City Council officially finds, de- termines, and declares that said bonds have been duly adver- tised for sale as required by the Home Rule Charter of said City, that sealed bids have been received at a public sale of said bonds held on March 2, 1982, that all of said bonds are hereby sold and shall be delivered to a syndicate managed or headed by Kidder, Peabody & Cc , Inc , being the best bidder at said public sale, for the principal amount of said bonds, and accrued interest thereon to the date of delivery, plus a premium of $ -0- Section 15 It is further found and determined that the Official Notice of Sale for said bonds was duly published on March 5, 1982 in The Bond Buyer, New York, New York, which is a national publication regularly and primarily carrying financial news and municipal bond sale notices, and on March 5, 1982 in the Denton Record -Chronicle, which has been designated as the official newspaper of the City of Denton The form and sub- stance of said Official Notice of Sale, and the aforesaid publications thereof, are hereby approved and ratified in all respects by the City Council Section 16 That it is hereby officially found, deter- mined, and declared that said bonds have been sold at public sale to the bidder offering the lowest interest cost, after receiving sealer bids pursuant to an Official Notice of Sale and Official Statement dated March 15, 1982, prepared and distributed in connection with the sale of said bonds Said Official Notice of Sale and Official Statement have been and are hereby approved by the City Council It is further offi- cially found, determined, and declared that the statements and representations contained in said Official Notice of Sale and Official Statement are true and correct in all material re- spects, to the best knowledge and belief of the City Council 2 GENERAL CERTIFICATE THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON We, the undersigned, hereby officially certify that we are the Mayor and City Secretary, respectively, of said City, and we further certify as follows 1 That said City is a duly incorporated Home Rule City, having more than 5000 inhabitants, operating and existing under the Constitution and laws of the State of Texas and the duly adopted Home Rule Charter of said City, which Charter has not been changed or amerded since the passage of the ordinance authorizing the issuance of the City of Denton Electric System Revenue Bonds, Series 1982 2 That no litigation of any nature has ever been filed pertaining to, affecting, or contesting (a) the election which authorized the proposed City of Denton Water and Sewer System Revenue Bonds, Series 1982, dated May 15, 1982, in the principal amount of $1,500,000, (b) the issuance, delivery, payment, security, or validity of said proposed bonds, (c) the title of the present members and officers of the City Council of said City to their respective offices, or (d) the validity of the corporate existence or the Charter of said City 3 That none of the revenues or income of said City's Water and Sewer System have been pledged or encumbered to the payment of any debt or obligation of said City or said System, except in connection with the aforesaid proposed Series 1982 Bonds, and the outstanding Bonds of the following issues of revenue bonds of said City Water and Sewer System Revenue Bonds, Series 1960, Water and Sewer System Revenue Bonds, Series 1962, Water and Sewer Svstem Revenue Bonds, Series 1964, Water and Sewer System Revenue Bonds, Series 1966, Water and Sewer System Revenue Bonds, Series 1969, Water and Sewer System Revenue Bonds, Series 1972, Water and Sewer System Revenue Bonds, Series 1974, Water and Sewer System Revenue Bonds, Series 1977, Water and Sewer System Revenue Bonds, Series 1979, and with the surplus revenues thereof having been pledged in connection with that issue of City of Denton Certificates of Obligation, Series 1978, dated March 1, 1978 4 That the Interest and Sinking Fund and the Reserve Fund, created and maintained for the benefit of the outstanding bonds listed above, in accordance with the ordinances, respect- ively, authorizing their issuance, each contains the amount now required to be on deposit therein, and the City is not in de- fault in any of the covenants contained in the aforesaid ordi- nances 5 That the statements and information set forth in the Official Statement dated March 15, 1982, pertaining to the aforesaid proposed Bonds and the City, and particularly the Water and Sewer System operating statement and debt service requirements and coverage factors set forth on page 5 thereof are true and correct, and the Water Rates and Sewer Rates set forth on page 8 thereof are currently in effect and were au- thorized by an ordinance duly passed by the City Council SIGNED AND SEALED this 6th day of April, 1982 City ecretary Ma or (SEAL) THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON I, the undersigned City Secretary of the City of Denton, Texas, hereby certify as follows 1 That this certificate is executed with reference to the proposed City of Denton Water and Sewer System Revenue Bonds, Series 1982, dated May 15, 1982, in the principal amount of $1,500,000 (the "Bonds"), which Bonds were authorized by Ordinance No 82-passed by the City Council of the City of Denton on April 6, 1982 2 That no petition whatsoever has been filed with the City, the City Council, or any of its officers protesting the issuance of the Bonds or requesting that the City Council submit to a referendum vote the question as to the issuance of the Bonds, and no petition whatsoever has been filed with respect to the Bonds SIGNED AND SEALED this the 6th day of April, 1982 /F /WE (CITY SEAL) HOBBY H MGCALL PAUL 8 HORTON PETER M TART ROY M POINSETT RICHARD C PORTER A NOELO P PARKER O CHARLES KOBOISH KENNETH E ILTS J NICHOLSON MEINOL JOHN W RU®OTTOM JEFFREY A LEUSCHEL THOMAS K SPU ROEON LAW OFFICES Mr -CALL, PARKHURST & HORTON 1400 MERCANTILE BANK BUILDING DALLAS TEXAS 75201 AREA CODE 214 749 9301 Honorable Mayor and Council of the City of Denton Denton, Texas Gentlemen JOHN D ...ALL 0992 1962) MILLARD PARKHURST (1906 1973) CLARENCE E CROWE (1003 1962) April 6, 1982 City of Denton Water and Sewer System Revenue Bonds, Series 1982, $1,500,000 In compliance with Section 9 02 and Section 9 04 of the City Charter of the City of Denton, you are advised that the bids for the captioned issue of bonds have been tabulated and that we find that the bid of a syndicate managed or headed by the following with the bonds to bear interest at the rates therein speciriea, with such bidder to pay par and accrued interest to date of delivery for said bonds, plus a premium of $ — O — , is the lowest and best bid received, and we recommend that it be accepted We further certify that we have examined the ordinance presently placed before the Mayor and Council for the purpose of authorizing the issuance of said bonds, and, in our opinion, the said proposed bond ordinance is legal, and the bonds to be issued thereunder will be special obligations of the City pay- able from, and secured by a first lien on and pledge of, the Net Revenues of the City's Waterworks and Sewer System Respectfully, McCALI, PARKHURST & HORTON Paul B Horton PREPARED DY FIRST SOUTHWEST COMPANY, 900 MERCANTILE BANK BUILDING, DALLAS, TEXAS 752O1 TABULATION OF BIDS RECEIVED AT SALE OF $1,500,000 CITY OF DENTON, TEXAS WATER AND SEWER SYSTEM REVENUE BONDS SERIES 1982 ACCOUNT MANAGER GROSS INTEREST COST LESS PRE AIU4 NET INTEREST COST EFFECTIVE INTEREST RATE 2' it Y�f .r••�1;�'')l.-�' l�. v lie 0 -7,,;, �, a9 qJ Dv `�,� a r ���y�' ✓ c JL � ar a t. !t- C � �%��9 LL�� �, � ! %i c-' O�✓� �n .".,,� �- � L� % � i, �....- �Gr � � ����� CERTIFICATE FOR ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1982 THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON We, the undersigned officers of said City, hereby certify as follows 1 The City Council of said City convened in REGULAR MEETING ON THE 6TH DAY OF APRIL, 1982, at the Municipal Building (City Hall), and the roll was called of the duly constituted officers and members of said City Council, to -wit Charlotte Allen, City Secretary Richard O Stewart, Mayor Mark Chew Richard H Taliaferro Dwight L Gailey Dr A Ray Stephens Jim Riddlesperger Joe Alford and all of said persons were present, except the following absentees , thus constituting a quorum Whereupon, among other business, the following was transacted at said Meeting a written ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1982 was duly introduced for the consideration of said City Council and duly read It was then duly moved and seconded that said Ordinance be passed, and, after due discussion, said motion, carrying with it the passage of said Ordinance, prevailed and carried by the following vote AYES All members of said City Council shown present above voted "Aye" NOES None 2 That a true, full, and correct copy of the aforesaid Ordinance passed at the Meeting described in the above and foregoing paragraph is attached to and follows this Certifi- cate, that said Ordinance has been duly recorded in said City Council's minutes of said Meeting, that the above and foregoing paragraph is a true, full, and correct excerpt from said City Council's minutes of said Meeting pertaining to the passage of said Ordinance, that the persons named in the above and fore- going paragraph are the duly chosen, qualified, and acting officers and members of said City Council as indicated therein, and that each of the officers and members of said City Council was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the aforesaia Meeting, and that said Ordinance would be introduced and considered for passage at said Meeting, and that said Meeting was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as required by Vernon's Ann Tex Civ St Article 6252-17 3 That the Mayor of said City has approved, and hereby approves, the aforesaid Ordinance, that the Mayor and the City Secretary of said City have duly signed said Ordinance, and that the Mayor and the City Secretary of said City hereby de- clare that their signing of this Certificate shall constitute the signing of the attached and following copy of said Ordi- nange for all purposes SIGNED AND SEALED the 6th day of April, 198 ���...-- ----- A4 -city secretary M yor (SEAL) -------------------------------- ---------------------- We, the undersigned, being respectively the City Attorney and Ithe Bond Attorneys of the City of Denton, Texas, hereby certify that we prepared and approved as to legality the at- tached and following Ordinance prior to its passage as afore- said A /1 A n Ui11Cj/5 THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON I, the undersigned City Secretary of the City of Denton, Texas, hereby certify as follows 1 That this certificate is executed with reference to the proposed City of Denton Electric System Revenue Bonds, Series 1982, dated April 1, 1982, in the principal amount of $3,000,000 (the "Bonds"), which Bonds were authorized by Ordinance No 82-28 passed by the City Council of the City of Denton on March 21 1982 2 That no petition whatsoever has been filed with the City, the City Council, or any of its officers protesting the issuance of the Bonds or requesting that the City Council submit to a referendum vote the question as to the issuance of the Bonds, and no petition whatsoever has been filed with respect to the Bonds 7L SIGNED AND SEALED this the .20V day of �_, 1982 (CITY SEAL)