Loading...
HomeMy WebLinkAbout1976-013ORDINANCE NO 76-1-3 ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, the bonds hereinafter authorized were lawfully and favorably voted at elections duly held in said City on DECEMBER 18, 1973, and OCTOBER 7, 1975, and WHEREAS, out of the bonds voted at the election held on DECEMBFR 18, 1973, for such purpose, the following previously have been issued and delivered $1,800,000 out of a voted total of $6,000,000 for the purpose of constructing and improving streets in said City, and providing drainage and flood control facilities in connection there- with, represented by the bonds of Series 1974, and WHEREAS, none of the bonds voted at the election held on OCTOBER 7, 1975, has been authorized, issued, or delivered, and WHEREAS, it is necessary and advisable to authorize, issue, and deliver an installment or series of said bonds, and WHEREAS, the bonds hereinafter authorized and designated were voted and are to be issued and delivered pursuant to Vernon's Articles 823, 1175, and 6081f THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS Section 1 That the said City's bonds are hereby authoriz- ed to be issued in the aggregate principal amount of $2,500,000, FOR THE PURPOSE OF PROVIDING $1,500,000 FOR CONSTRUCTING AND IM- PROVING STREETS IN SAID CITY, AND PROVIDING DRAINAGE AND FLOOD CONTROL FACILITIES IN CONNECTION THEREWITH, AND 51,000,000 FOR PURCHASING AND IMPROVING LANDS FOR PARK PURPOSES Section 2 That said bonds shall be designated as the "CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 1976" Section 3 That said bonds shall be dated APRIL 15, 1976, 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, respec- tively, as set forth in the following schedule MATURITY DATE JULY 15 YEARS AMOUNTS YEARS AMOUNTS 1978 9125,000 1988 $125,000 1979 125,000 1989 125,000 1980 125,000 1990 125,000 1981 125,000 1991 125,000 1982 125,000 1992 150,000 1983 125,000 1993 150,000 1984 125,000 1994 150,000 1985 125,000 1995 150,000 1986 125,000 1996 150,000 1987 125,000 -1- Section 4 That the bonds years, respectively, set forth following rates per annum scheduled to mature during the below shall bear interest at the maturities 1978 through 1981, 6 50 8 maturities 1982 5 10 8 maturities 1983 through 1984, 4 50 % maturities 1985 4,60 8 maturities 1986 4 70 % maturities 1987 4 80 % maturities 1988 4 90 % maturities 1989 through 1990, 5 00 % maturities 1991 5 20 % maturities 1992 5 30 % maturities 1993 through 1995, 5 40 % maturities 1996 4,50 8 Said interest shall be evidenced by interest coupons which shall appertain to said bonds, and which shall be payable in the manner provided and on the date$ 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 schedul- ed maturities, shall have the characteristics, and shall be sign- ed 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 me FORM OF BOND UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON GENERAL OBLIGATION BOND SERIES 1976 $5,000 ON JULY 15, 19 , THE CITY OF DENTON, 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 % per annum, evidenced by interest coupons payable JANUARY 15, 1977, and semiannually thereafter while this bond is outstanding THE PRINCIPAL of this bond and the interest coupons apper- taining 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 FIRST NATIONAL CITY BANK, 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 APRIL 15, 1976, authorized, issued, and delivered in the principal amount of $2,500,000 POR TUP PURPOSE OF PROVIDING $1,500,000 POR CONSTRUCT- ING AND IMPROVING STRrETS IN SAID CITY, AND PROVIDING DRAINAGE AND FLOOD CONTROL FACILITIES IN CONNPCTION THrRPWIT11, AND $1,000,000 FOR PURCHASING AND IMPROVING LANDS FOR PARK PURPOSES -2- ON JULY 15, 1991, or on any interest payment date thereafter, any outstanding bonds of this Series may be redeemed prior to their scheduled maturi- ties, 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 fi- nancial 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 redeemed and accrued in- terest thereon to the date fixed for redemption If such writ- ten 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 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 re- garded 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 bond has been duly and validly voted, authorized, issued, and de- livered, that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the voting, authorization, issuance, and delivery of this bond have been per- formed, existed, and been done in accordance with law, that this bond is a general obligation of said City, issued on the full faith and credit thereof, and that annual ad valorem taxes suffi- cient to provide for the payment of the interest on and principal of this bond, as such interest comes due and such principal ma- tures, have been levied and ordered to be levied against all tax- able property in said City, and have been pledged irrevocably for such payment, within the limit prescribed by law IN WITNESS WHEREOF, this bond and the interest coupons apper- taining hereto have been signed with the facsimile signature of the Mayor of said City and countersigned with the facsimile signa- ture 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 xxxxxxxx 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 the Comptroller of Public Accounts of the State of Texas Witness my signature and seal this xxxxxxxx Comptroller or Public Accounts OF the State of Texas -3- NO FORM OF INTEREST COUPON ON 15, 19 , THE CITY OF DENTON, in Denton County, 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 FIRST NATIONAL CITY BANK, 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 GENERAL OBLIGATION BONDS, SERIES 1976, DATED APRIL 15, 1976 Bond No xxxxxxxx xxxxxxxx City Secretary Mayor Section 7 That a special "Interest and Sinking Fund" is hereby created solely for the benefit of said bonds, and said Interest and Sinking Fund shall be established and maintained 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 bonds All ad valorem taxes levied and collected for and on account of said bonds shall be deposited, as collected, to the credit of said Interest and Sinking Fund During each year while any of said bonds 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 suffi- cient to raise and produce the money required to pay th interest on said bonds as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of such bonds as such principal matures (but never less than 2% of the original principal amount of said bonds 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 de- linquencies 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 bonds or interest coupons appertaining thereto are outstanding and unpaid, and said tax shall be assessed and collected each such year and deposited to the credit of the afore- said Interest and Sinking Fund Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of said bonds, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment, within the limit prescribed by law Section 8 That the Mayor of said City is hereby authorized to have control of said bonds and all necessary records and pro- ceedings 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 -4- 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 facsimile, on each of said bonds Section 9 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(d) 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(d) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds The City further covenants that the proceeds of the bonds will not otherwise be used directly or in- directly so as to cause all or any part of the bonds to be or be- come arbitrage bonds within the meaning of the aforesaid Section 103(d), or any regulations or rulings pertaining thereto Section 10 That the City Council officially finds, de- termines, and declares that said bonds have been duly advertis- ed 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 April 6, 1976, that all of said bonds are hereby sold and shall be delivered to a syndicate managed or headed by Republic National Bank of Dallas, Dallas, Texas, being the best bidder at said public sale, for the principal amount of said bonds, and accrued interest thereon to the date of delivery Section 11 It is further found and determined that a no- tice of sale for said bonds as required by the Home Rule Charter of said City was duly published on February 26, 1976, 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 February 26, 1976, in the Denton Record -Chronicle, which has been designated as the official news- paper of the City of Denton The form and substance of said Official Notice of Sale, and the aforesaid publications thereof, are hereby approved and ratified in all respects by the City Council Section 12 That it is hereby officially found, determin- ed, and declared that said bonds have been sold at public sale to the bidder offering the lowest interest cost, after receiving sealed bids pursuant to an Official Notice of Sale and Official Statement dated March 23, 1976, 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 officially 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 respects, to the best knowledge and belief of the City Council - 5-