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HomeMy WebLinkAbout1979-084ORDINANCE NO 79-� ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, Vernon's Article 2368a 1 permits the City to issue and sell for cash the Certificates of Obligation here- inafter authorized, and WHEREAS, the City has duly caused notice of its intention to issue the Certificates of Obligation hereinafter authorized to be published at the times and in the manner required by Vernon's Article 2368a 1, and no petition has been filed pro- testing the issuance thereof THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS Section 1 That the said City's Certificates of obligation (hereinafter sometimes called "Certificates") are hereby author- ized to be issued in the aggregate principal amount of $275,000, FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE CITY'S CON- TRACTUAL OBLIGATIONS INCURRED PURSUANT TO CONTRACTS FOR THE CONSTRUCTION OF A CENTRAL FIRE STATION IN THE CITY, AND PAYING ALL OR A PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SERVICES OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND FINANCIAL ADVISORS IN CONNECTION WITH SUCH CENTRAL FIRE STATION AND CERTIFICATES OF OBLIGATION Section 2 That said Certificates shall be designated as the CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 1979-A Section 3 That said Certificates shall be dated DECEMBER 1, 1979, 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 DATES JUNE 1 YEARS AMOUNTS 1990 $25,000 1991 25,000 1992 25,000 1993 25,000 1994 25,000 1995 25,000 1996 50,000 1997 75,000 Section 4 That said Certificates shall bear interest at the rate of 7 875% per annum, evidenced by interest coupons which shall appertain to said Certificates, and which shall be payable in the manner provided and on the dates stated in the FORM OF CERTIFICATE set forth in this Ordinance Section 5 That said Certificates and interest coupons shall be issued, shall be payable, may be redeemed prior to their scheduled maturities, shall have the characteristics, and shall be signed and executed (and said Certificates shall be sealed), all as provided, and in the manner indicated, in the FORM OF CERTIFICATE set forth in this Ordinance -1- Section 6 That the form of said Certificates, includ- ing 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 Certificates, and the form of the aforesaid interest coupons which shall appertain and be at- tached initially to each of said Certificates, shall be, respectively, substantially as follows NO FORM OF CERTIFICATE UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON CERTIFICATE OF OBLIGATION SERIES 1979 - A $5,000 ON JUNE 1, 19 , THE CITY OF DENTON, IN DENTON COUNTY, TEXAS, hereby promises to pay to bearer the principal amount of FIVE THOUSAND DOLLARS ' and to pay interest thereon, from date hereof, at the rate of 7 875% per annum, evidenced by interest coupons payable DECEMBER 1, 1980, and semiannually therlafter while this Certi- ficate is outstanding THE PRINCIPAL of this Certificate and 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 Certificate or proper interest coupon, at the following, which shall constitute and be defined as the "Paying Agent" for this Series of Certificates FIRST STATE BANK, DENTON, TEXAS THIS CERTIFICATE is one of a Series dated as of DECEMMBER 1, 1979, authorized, issued, and delivered in the principal amount of $275,000 FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGATIONS INCURRED PURSUANT TO CONTRACTS FOR THE CONSTRUCTION OF A CENTRAL FIRE STATION IN THE CITY, AND PAYING ALL OR A PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PRO- FESSIONAL SERVICES OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND FINA{NNCIAL ADVISORS IN CONNECTION WITH SUCH CENTRAL FIRE STATION AND CERTIFICATES OF OBLIGATION THE OUTSTANDING CERTIFICATES of this Series may be re- deemed prior to their scheduled maturities, at the option of said City, in whole, or in part, on any date, for the principal amount thereof and accrued interest thereon to the date fixed for redemption At least fifteen (15) days prior to the date fixed for any such redemption said City shall cause a written notice of such redemption to be given to the "Paying Agent" 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 Certificates which are to be so redeemed and ac- crued interest thereon to the date fixed for redemption If such written notice of redemption is given and if due provision for such payment is made, all as provided above, the Certificates which are to be so redeemed thereby automatically shall be re- deemed prior to their scheduled maturities, and they shall not bear -2- rig jL interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the bearer to receive the redemption price from the "Paying Agent" out of the fiends provided for such payment IT IS HEREBY certified, recited, and covenanted that this Certificate 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 authorization, issuance, and delivery of this Certificate have been performed, existed, and been done in accordance with law, that this Certificate is a general obligation of said City, issued on the full faith and credit thereof, and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Certificate, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in said City, and have been pledged irrevocably for such payment, within the limit prescribed by law, and that this Certificate is additionally secured by and payable from the surplus revenues derived by the City from the ownership and operation of the City's Electric Light and Power System remaining after payment of all operation and maintenance expenses thereof, and all debt service (Retirement Fund), Reserve Fund, Contingencies Fund, Improvement Fund, and other requirements, payments, and deposits required in connection with the City's Revenue Bonds (now or hereafter outstanding) which are payable from Net Revenues of the City's Electric Light and Power System IN WITNESS WHEREOF, this Certificate and the interest coupons appertaining hereto have been signed with the facsimile signature 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 Certificate xxxxxxxx xxxxxxx City Secretary Mayor FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO 4 I hereby certify that this Certificate of Obligation has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this Certi- fic4te of Obligation has been registered by 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 1, 19 , E, THE CITY OF DENTON, IN DENTON COUNTY, TEXAS, promises to pay to bearer the amount shown on this interest coupon, in lawful money of the United States of America, without exchange or collection charges to the bearer, unless due provision has been made for the redemption prior to schedul- ed maturity of the Certificate to which this interest coupon appertains, upon presentation and surrender of this interest coupon, at -3- �q J4 FIRST STATE BANK, DENTON, TEXAS, said amount being interest coming due that day on the Certi- ficate, bearing the number hereinafter designated, of that issue Of CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 1979-A, DATED DECEMBER 1, 1979 Certificate No xxxxxxxxx xxxxxxx City Secretary Mayor Section 7 That a special "Interest and Sinking Fund" is hereby created solely for the benefit of said Certificates, and said Interest and Sinking Fund shall be established and main- tained by said City at an official depository bank of said City Said Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of said City, and shall be used only for paying the interest on and principal of said Cer- tificates All ad valorem taxes levied and collected for and on account of said Certificates shall be deposited, as collect- ed, to the credit of said Interest and Sinking Fund During each year while any of said Certificates or interest coupons appertaining thereto are outstanding and unpaid, the governing body of said City shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the interest on said Certificates as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of such Certificates as such principal matures (but never less than 2% of the original prin- cipal amount of said Certificates as a sinking fund each year), and said tax shall be based on the latest approved tax rolls of said City, with full allowance being made for tax delinquencies and the cost of tax collection Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in said City for each year while any of said Certificates or interest coupons appertaining there- to are outstanding and unpaid, and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of said Certificates, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment, within the limit prescribed by law Section 8 Said Certificates additionally shall be pay- able from and secured by the surplus revenues derived by the City from the ownership and operation of the City's Electric Light and Power System remaining after payment of all operation and mainten- ance expenses thereof, and all debt service (Refirement Fund), Re- serve Fund, Contingencies Fund, Improvement Fund, and other require- ments, payments, and deposits required in connection with the City's Revenue Bonds (now or hereafter outstanding) which are pay- able from Net Revenues of the City's Electric Light and Power System The City shall deposit such surplus revenues and the ad valorem taxes levied pursuant to Section 7 hereof to the credit of the Interest and Sinking Fund created pursuant to Section 7 in an amount sufficient to pay the principal of and interest on said Certificates, and if surplus revenues are actually on deposit in the Interest and Sinking Fund in advance of the time when ad valorem taxes are scheduled to be levied for any year, then the amount of taxes which otherwise would have been required to be levied pursuant to Section 7 may be reduced to the extent and by the amount of the surplus revenues then on deposit in the Interest and Sinking Fund Section 9 That the Mayor of said City is hereby author- ized to have control of said Certificates and all necessary -4- )I SV records and proceedings pertaining to said Certificates pend- ing 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 Certificates, 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 endors- ed on each of said Certificatess, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each of said Certificates Section 10 That the City covenants to and with the pur- chaser of `the Certificates that it will make no use of the pro- ceeds of the Certificates at any time throughout the term of this issue of Certificates which, if such use had been reason- ably expected on the date of delivery of the Certificates to and payment for the Certificates by the purchaser, would have caused the Certificates to be arbitrage bonds within the mean- ing 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 re- quirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds The City further covenants that the pro- ceeds of the Certificates will not otherwise be used directly or indirectly so as to cause all or any part of the Certificates to be or become arbitrage bonds within the meaning of the afore- said Section 103(c), or any regulations or rulings pertaining thereto Section 11 That it is hereby officially found and deter- mined and declared 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 Certi- ficates are required 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 re- quired by Vernon's Ann Civ St Article 6252-17 Section 12 That said Certificates are hereby sold and shall be delivered to First Southwest Company for cash for the par value thereof and any accrued interest to date of de- livery, and any such accrued interest shall be deposited into the Interest and Sinking Fund -5- CERTIFICATE FOR ORDINANCE AUTHORIZING THE ISSUANCE OF CERTIFICATES OF OBLIGATION 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 NOVEMBER, 1979, at the Municipal Building (City Hall), and the roll was called of the duly constituted officers and members of said City Council, to -wit Brooks Holt, City Secretary Bill Nash, Mayor Roland Vela Dick Stewart Ray Stephens Bud Hensley 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 CERTIFICATES OF OBLIGATION was duly introduced for the consideration of said City Council and read in full It was then duly moved and seconded that said Ordinance be passed, and, after due discussion, said mo- tion, carrying with it the passage of said Ordinance, prevail- ed 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 fore- going paragraph is attached to and follows this Certificate, 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 Ordi- nance, that the persons named in the above and foregoing para- graph are the duly chosen, qualified, and acting officers and members of said City Council as indicated therein, that each of the officers and members of said City Council was duly and suffi- ciently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid Meeting, and that said Ordinance would be introduced and considered for passage at said Meeting, and each of said officers and members consented, in ad- vance, to the holding of said Meeting for such purpose, 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 re- quired by Vernon's Ann 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 Ordinance for all purposes GNED AND SEALED the 6th d pvyq979 City Secretary A ' (SEAL)