Loading...
HomeMy WebLinkAbout1978-009ORDINANCE NO 78-9 ORDINANCE AUTHORIZING THE ISSLANCE 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 COLNCIL OF THE CITY OF DENTON HEREBY ORDAINS Section 1 That the said City's Certificates of Obliga- tion (hereinafter sometimes called "Certificates") are hereby authorized to be issued in the aggregate principal amount of $125,000, FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGATIONS INCURRED PURSUANT TO CONTRACTS FOR OFF-STREET PARKING FACILITIES, TO BE AVAILABLE TO THE GENERAL PUBLIC, ON LAND OWNED BY THE CITY AND NOW KNOWN AS "WILLIAMS SQUARE" (FORMERLY "TRADE SQUARE"), AND PAYING ALL OR A PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SERVICES OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND FINANCIAL ADVISORS IN CONNECTION WITH SUCH OFF-STREET PARKING FACILITIES AND CERTIFICATES OF OBLIGATION Section 2 That said Certificates shall be designated as the CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 1978 Section 3 That said Certificates shall be dated MARCH 1, 1978, shall be in the denomination of $5,000 each, shall be numbered consecutively from one upward, and shall mature seri- ally on the maturity date, in each of the years, and in the amounts, respectively, as set forth in the following schedule MATURITY DATE MARCH 1 YEARS AMOUNTS 1980 $ 5,000 1981 5,000 1982 10,000 1983 10,000 1984 10,000 1985 10,000 1986 10,000 1987 10,000 1988 15,000 1989 15,000 1990 25,000 Section 4 That said Certificates shall bear interest at the rate of 5 50t per annum, evidenced by interest coupons which shall appertair to said bonds, and which shall be pay- able in the manner provided and on the dates stated in the FORM OF CERTIFICATE set forth in this Ordinance -1- 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 Section 6 That the form of said Certificates, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be printed and endors- ed on each of said Certificates, and the form of the aforesaid interest coupons which shall appertain and be attached initially to each of said Certificates, shall be, respectively, substan- tially as follows EEO FORM OF CERTIFICATE UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON CERTIFICATE OF OBLIGATION SERIES 1978 $5,000 ON MARCH 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 5 50% per annum, evidenced by interest coupons payable MARCH 1, 1979, and semiannually thereafter while this Certificate 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 MARCH 1, 1978, authorized, issued, and delivered in the principal amount of $125,000 FOR THE PURPOSE OF PAYING ALL OR A PORTION OF THE CITY'S CONTRACTUAL OBLIGATIONS INCURRED PURSUANT TO CONTRACTS FOR OFF-STREET PARKING FACILITIES, TO BE AVAILABLE TO THE GENERAL PUBLIC, ON LAND OWNED BY THE CITY AND NOW KNOWN AS "WILLIAMS SQUARE" (FORMERLY "TRADE SQUARE"), AND PAYING ALL OR A PORTION OF THE CONTRACTUAL OBLIGATIONS FOR PROFESSIONAL SERVICES OF ENGINEERING, ARCHITECTS, ATTORNEYS, AND FINANCIAL ADVISORS IN CONNECTION WITH SUCH OFF-STREET PARKING FACILITIES AND CERTIFICATES OF OBLIGATION THE OUTSTANDING CERTIFICATES of this Series may be redeem- ed 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 On, or prior to, the date fixed for any such -2- redemption said City shall cause a written notice of such re- demption 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 accrued interest thereon to the date fixed for redemption If such written no- tice of redemption is given and if due provision for such pay- ment is made, all as provided above, the Certificates which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities, and they shall not bear 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 funds 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 in- terest 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 addition- ally secured by and payable from the revenues of the City's com- bined Waterworks and Sewer System remaining after payment of all operation and maintenance expenses thereof, and all debt ser- vice, reserve, and other requirements in connection with all of the City's revenue bonds (now or hereafter outstanding) which are payable from all or any part of the Net Revenues of the City's combined Waterworks and Sewer System IN WITNESS WHEREOF, this Certificate and the interest cou- pons 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 xxxxxxxx City Secretary Mayor FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE REGISTER NO 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 Certifi- cate of Obligation has been registered by the Comptroller of Public Accounts of the State of Texas Witness my signature and seal this xxxxxxxx Comptroller of Public Accounts of the State of Texas -3- NO FORM OF INTEREST COUPON 1, 19 , 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 ex- change or collection charges to the bearer, unless due provi- sion has been made for the redemption prior to scheduled ma- turity of the Certificate to which this interest coupon apper- tains, upon presentation and surrender of this interest coupon, at FIRST STATE BANK, DENTON, TEXAS, said amount being interest coming due that day on the Certifi- cate, bearing the number hereinafter designated, of that issue of CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 1978, DATED MARCH 1, 1978 Certificate No xxxxxxxx City Secretary xxxxxxxx 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 whale 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 whale 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 payable from and secured by the revenues of the City's combined Water- works and Sewer System remaining after payment of all operation and maintenance expenses thereof, and all debt service, reserve, and other requirements in connection with all of the City's -4- revenue bonds (now or hereafter outstanding) which are pay- able from all or any part of the Net Revenues of the City's combined Waterworks and Sewer System, with the aforesaid re- maining revenues being hereinafter called "Surplus Revenues" The City shall deposit 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 ex- tent 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 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(0) 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 accrued interest to date of delivery, and such accrued interest shall be deposited into the Interest and Sinking Fund -5- CERTIF.CATE 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 21ST DAY OF FEBRUARY, 1978, 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 Elinor Hughes, Mayor Bill Nash Dick Stewart Joe Mitchell Mary Claude Gay and all of said persons were present, except the following absentees t0vPiK , 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", except for Bill Nash NOES Bill Nash 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 SI NED AND SEALED the 21st day of February, 1978 City Secretary Mayor (SEAL) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - We, the undersigned, being respectively the City Attorney and the Bond Attorneys of the City of Denton, Texas, hereby cer- tify that we prepared and approved as to legality the attached and following Ordinance prior to --its passage as aforesaid ' � � -- r — — # —� ,j a �I i i I� i F i� � �� '� I i C (� ' ' � � � 1 � s i� x i i � I �( 1 7 I f F II S ' I I i I � I I 3 � ' l �� � i � (I ;� i 'i '� t i I ii � �I � ! i I � � I � I i �I i, i �t 4 1 ' f I ' I �� E L� � ' I � � � i t � E �� � �� i i i i �i li � 'I � r I i i I � I � � � j I i { I � � � — � —-- `"