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CITY OF DENTON Y
WATER AND SEWER SYSTWI REVENUE BONDS
SERIES 1979
$4,000,00u
N
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TRANSCRIPT OF PROCEEDINGS
WITH DELIVERY PAPERS
1
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COADMADIMEWS
REGZMR NO. 4W
7t&j71V t~nrjCA E Y
13wil e+difk ~d tifs beat bas um MOM619 , wwtet
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wt.4l+e~bs as.jtbmwSOMMMEsf tsi SE.h of r•.a~
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th+IIst• N~~ d~semet, of for Stda of r'eom r
- CERTIFZCAT-'F' FOR
• ORDINANCE DIRECTING T-HE ISSC;DICE OF NOTICE OF S- :.E 0 = BONDS
',LEE STATE OF TEXAS -
CONUNITY OF DE23TOX -
CILY OF DENTON -
• "Tole, the undersigned officers o= said City, here=.: c _-ti-y
n.;
as follows: -a
I- The City Council of said City convened in
REGULAR N£c^TI\G ON THE. IGTH DAY OF JAJNUARY, 1979,
at the municipal Building (City Hall), a-,-,d the roll was called
• of the duly constituted officers and members of said City °s
Council, to-wit:
Brooks Holt, City Secretary Jce Mitchell, mayor
Bill Nash Dick Stewart a
Elinor Hughes Marv Claude Gay
and all of said persons were present, except the following,
absentees: None
thus constituting a quorum. Whereupon, among ot.er business, _
the following was transacted at said Meeting: a written 4
ORDINANCE DIRECTING THE TSS"UAXCT~ OF NOTICE OF SALE OF BONDS
was duly introduced for the cons i-~e~ration of said City Council
and read in full. It was tines duly moved and seconded that
said Ordinance be passed; and, efter due discussion, said mo-
-ion, carrying with it the passace of said Ordina-^ce, prevail-
ed and carried by the following vote: F
AYES: All members of saie City Council ;
shcwn 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 a.*nd 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 st'd City Council's
minutes of said Meeting pertaining to the passage of said Ordi-
nancev that the persons named in the above and foregoing para-
graph are the duly chosen, qualified, -nd 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 ;fleeting for such purpose; and that -
• said :fleeting was open to the public, and public notice of the
time, place, and purpose of said meeting was given, all as re-
quired by Vernczi's Ann_ Civ. St_ Article ti,~l•-17.
3. That the Mayor of said Citv has approved, and hereby,
approves, the aforesaid Ordinance; that the Mayor and the City tr
Secretary of said City have daly signed said Ordinance; and
that the Mayor and the City Secretary of said City nereby.de-
clare that their signing of this Certificate shall constitute ;
the signing of the attached and following copy of said ordinance ;t
for all purposer-.
~S3)E;NED AV-.j S the 16th day of Ja^ , 1979 . -
City Secretary . a or
Y _ _ _ r - r . - . c
(SE LL) - - - _
Ke, the tnndersigr sd, being ra..;pectively the City, attorney
• and the Bond Attorneys o£ the City of Denton, Texas, hereby cer-
tifv that we prepared and approved as to legality the attached
and following ordinance prior to ~y passage as aforesaid.
vim---
City Attorney
z i.
Bond Attornevs
•
`O.
~DITN~N~. •C' D -R^E I'G ^`c - ISSUANCE OF NCTI= ' OF 5~. . vs 30:'C.S - -
-
OLIlr 31.` ~ L~ V
STATE OF TEMAS
COUNTY OF DEIVTON.
CITY OF DEVTON
ThME COUNCIL 0 TCIT OF DENTON HERESY ORDAINS _
? . Taat the City Sec_etarv is directed to issue a :.at,ue
of Sale of Bonds in sustantial'_r t'. -e fol_a«_nc `c--t.
z;
C='i'Y OF DENTON, :S.YnS
$4,000,000
WATE.RWORICS AND SEWER SYS".YE. REE"i-E UE BONDS, ~t
SS'R2 S J.979
$4,500,000
GEE.NZRPLL OBLIGATIO` BONDS ,
SEPMES 1970
. The C'_ty Cat;:ci1 of waz C;tv of Denton, Ce_^_tcn Cot:»^t_r,
Texas, will receive sealed bids at a Build-
ing, 215 E_ '!cKinnev Street, in the City of Denton u ti'
7.00 p.m_, esdav, Ma=c: 6, 1979
• for the purc-Rase oz:
$4,000,000 Wate_works and Sewer Svst_rt Revenue Bonds, to
be date Marc!. 15, 1979, a.^c to »att a ser_ai?v j"' IS
each year ?8T t-hrough 2000.
54,500,000 General Oblication Bards, to be dated vBrc':
15, and to mature Ser~aT ~y eaC:. /ear 1~sL
r
t: rocgh 2U00.
Sealed bids, olainly +--.irked "3~d nor Sonds", scould be
addressed to "Lonora.ale uavor and City Counci_" City C_
• Denton, Texas", and ~:st be :ti=ted o : ~^.e "Official
Bid Form" to be =ace available by City Co=cil prior
to the date'o, sal
?,il sealed bids wil?. be publicly op en ec ana -_abula tea
before the Co=c_1.
Copies of the "Official State-zen "Notice of Sale",
and "0=ficial Bic Forte" are bei_^_r, prepared and will 'Zo
=ailed to prospective bidders cn or about Februa_- 20,
1979, and will be f aec to a^v prospective bldde-
• ,upon reCuest, by First 'CLt.^.west Comaa.,•, 900 Mer
Bank Building, ca't-ale
" Texas, 75201, _ inanciaT Advisncz~ `
_.g, ~a~_a =o,~
to the Citv.
:se ~ *zv reserves .-e right t
and to Waz., a a-.y arc alt
ardsr o_° the C;.tv Coj'^c; C~ "..p --r of lemon, '_exas.
BY - -
BROOKS 20=
Citv Secretary
`
City of Denton, Texas.
f
x
2. T.:a= sai c_ tic. mice shall be %ublis^ea Once The Bond
Buyer, ,;ev York, New York, which is a national Publicat~Or.
regulari.y and - ate=_v carrying .,=1.. nanc? al news and ,..tniG--?d_
bond sale notices: and said Nom_Ce also s all be Published Once "
r .e "Dartor. Record-Ch-=4 =1e" , NG;c:: has been Ges i --a ea as
q;
-he o t-- of the C4-=*;, 04-~ Denton. Sa-d
+ ons shall be bade~a - _east n-,or _o `--e day set
for rec2iv.n bids
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l THE v. T1`ER OF
C.'~ o` 3Prtar. M-ook5, 1?o1t
4
n
THE STATE OF TIMAS Roy Appleton. Jr.
County of Denton
being duly sworn. says he is thefvencral Manager of the Denton Record-Chronicle. a ne v TAPer'
of general circulation which-has been t°ntinuously and regularly published for a period of not
tens than one year in the County' of Denton. Texas, preceding the date of the attached notice. anet
that the said notice was published in said paper on the following, dates: t - - 'Pty ''PY~_'r1• - •1A oat -t*-
;_o.ice of sale of Watervorks ane z° _-e _rS~,s
'e•.4ral GL ~ iP ti n ~ c ~ n
January 31, 1970.
Subscribe .l and sworn to before me this 3 /rlay of = P n u r r
Witness my hand and official seal:.
otary Public. Denton County. Texas
~CRAL O^"
OK:~. ~
WATERWORKS AN _
ssW~tS,rsr.M
atvsMUa sowos. ~ _
sER1ES tt7~ -
90"o%saR1951179
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T N7~ -
i OFD NOTICE CF SALE
W500•000 -
K"a
CITY_ OF DENTON t
TM
a
saias;1979
Sgin 1979 +Y
The Cilty Cowl" the Cos of Denton. Denton County. T#'Aa. vxiki recei~.
+ sealed bids at ttr ~,BadjrC =51:~ XcK=ey Street. in the City of
Denton untB .uvp Tuesday.
MA1~CS 6,1979
for the pwchn a aC ° f
54.000M Waterworks am Sewer System lirevea 5 each Year
be dated March I& 29ri9. and to mature aerially, all'
P*rgg&t 2M
to be dated March 15.
ftr50Q.G0 "."jai ObUgatwa Bonds'
19R9~ a,,d to matm,,.j.UY Mae 15 ea~ yew 1982 through 2000.
So" bide6.-D1s marl "Bid for Boads'. should be addressed to °r
must be
"iiooorabw Maycor and City CoumiL- Cb:Y Of Denton' Texan', and su
miffed an the-Oititial Bid Form' to be mace available by the City Council prioor
at sale. 3
to Ithe dam r
All sealed bids wi be pabiidY opened ' °m before th* Couneit r_
Copies o[ the ,0CrvcW Statemme " A~otice of Sale', and "Official Bid ~ -
and wW be mailed to prospective bidders on or about
Form' are °bei~p w
- adbefoxaisbedto~Y p:'ospecti ve bidder neon reQ~tv
b20. znd SM 3[ercaati7e Bank BuildiW. DaUn. Tessa-
by by fr5rs 7irs Yt Southwest .ComP~Y• city.
pluaneisd Adwora to the and all bids sad to naive aqY and ,
~ra.wrwa the right to tgeet ~0'
~'PbsMC)iat..y,,~a
MU $Y ordier of the City Connell of the City of Denton. Texas. P?'
BROOKS HOLT ;
Clb SicretUT
(:W at Denton. Tess-
_ City and cw* of New York u.:-
r At axswr WA DoNCSt> XKCP, being duly sworn, SAYS
that sbe is the Advertising Clerk of T= BOND Bogen.
' a daily, and weekly neWsPaW prMtt3 and published at
_ One State Street Plana. is the City of Yaw York.
County of New Yoga. State of \ew York: and tbs
notice, of which the annexed is a printed copy. Wan
c tegalarV published in said THE Dwu.T BOND BUYra Oa
. i~
FEB 1 ?0:9
Ainuffsalat
Adverti"Ag Clads _
SnbaersUd and sworn to before =0 tkie
'7 1001P
day of ZJ7f {
1
AKIN T. PEI=NE
Notary UMIC, state of e•• York
No. 24--8=6Z
-OMANA in Sings Comt7 =
C,aa~i~a;.n expires March 30. 1980
CERTIFICATE FOR
ORDINANCE' AUTHORIZING TEE ISSUANCE OF
WATER AND`SEWER SYSTEM REVENUE BONDS
THE'STATE OF TEXAS' -
COUNTY OF DENTON'
CITY OF DENTON
We, the undersigned office=s of said City, hereby cortify
as follows:
1_ The City Council of said City convened in
FEGULAR:IMEElING ON THE 6TH DAY OF MARCH, 1919,
at the Municipal-Building (City Hall), and the roll was called
of the duly constituted officers an!? members of said Cizy X6
council, to-wits TT,
Brooks Holt, City Secretary Joe Mitchell, Mayor
Bill Nash Mary Claude (-ny, Mayor Pro Tam
Elinor Hughes Dick Sr_ewar-
and all 01~ Gai4 sons were present, e_vicept the following
aosenteesz •
thus consta.tutsng a quorum Whereupon, among other business,_
the following'was`transacted at said Meeting: a written _
ORD-AUTHORIZING THE ISSUANCE OF
WATER "::AP1I T: SEWER SYSTEM REVENUE BONDS
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, saiu mo-
tion,`ca"rying with it the passage of said ordinance, prevail
ed and. carried by 'the following vote:
AYFa All-members of said City Council s
shown present above voted "Aye".
NOES: None_
O 2. That a true„ £u11, and correct copy of the aforesaid the
passed.at, Meeting described in the above and fore- a
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 'Grant said city Council's
mipates of sand Meeting pertaining to the passage of said Ordl-
nalce;`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 in~cated therein; that each of`
the officers Ahd'members of said City Council was duly and suffi-
ciently notified.-officially and personally, in advance, of the
time., p3.a►ce` -and purpose of the aforesaid Meeting, and that said
Ordinance would be introduced and considered for passage at saidt
Meeting, and eaaIx.pf said officers and members consented, in ad sr_
vane, to the-holding of said Meeting for such purpose; and that
said Meeting wax open to the public, and public notice of the
imp place, -arid. purpose •^f said meeting was given, all as re- SA
~r by Veraon`s A,:uc Ci:v. St_ Article 6252-17_
3.' 'z'ha' the mayor of said City has approved, and hereby
approves, _the.aforesaid ordinance; that the mayor and the City'
Secretary af.said city have duly signed said ordinance; and
that the Mayor the City Secretary of said City hereby de-
clare that their signing of this Certificate shall constitute
a~ the signing. 4of`-the attached and following copy of said Ordinance ,
for a1I'_ purposes'- .
SIGNED AND SEALED the 6th day of March, 197,x.
gar
Mayor -
Secretary
- - - - - -E
_(SEAIJ - -
we, the-undersigned, being respect' _vely the City Attorney
and.the.Bond,Attorneys of the City of Den-,on, Texas, hereby cer-
tify that we.°prepared and approved as to legality the attached
and following ordinance prior to its passsge as aforesaid.
49
City Atto ey :S
.js Wad ; x-
f
ORDINANCE NO- 79-_LLr
ORDINANCE„ AUTHORIZING THE ISSUANCE OF
WA"-%R AND SEWER SYSTEM REVENUE BONDS
THE STATE OF TEXAS
• COUNTY OF DENTON -
CITY OF DENTON• _
wHERF,AS, the bonds hereinaft:e; authorized were lawfully
and favorably voted at an election duly held in said City on
MAY 16, 1372; and
WHEREAS, out of :"be bonds voted at said election, the t
following previously have aeen issued and delivered:
$31475,000 out of a voted total of $5,275,000, for
the purpose of improving and extending the
• City's Waterworks System, represented by
part of the Series 1972 Bonds, part of the
series 1974 Bonds, and part of tie Series
1977 Bonds, and
S 525,000 out of a voted total of $5,725,000, for
• the purpose of improving and extending the x_
City's Sewer System, represented by part a
of the Series 1972 Bonds, part of the Series
1974-Bonds, and part of the Series 1977 r
Bonds ; and
• WHEREAS, the boy-Ads hereinafter authorized and designated
were voted and are.ta be issued and delivered pursuant to
vernon's-Articles 1111 through 1118.
THE COUNCIL OF. THE CITY OF DENTON HEREBY ORDAINS:
• Section l- That the said City's bonds are hereby author--' s.
ized to be issued in the aggregate principal amount of $4,000,000 H
for the purpose-of providing $1,000,000 FOR I"ROVING AND EX-
TENDING -THE-CITY'S'WATZWORKS SYSTEM, and providing $3,000,000 t
FOR IMPROVING AND_EXTENDING THE CITY'S SEWER SYSTEM.
• Section 2-' Zaat said bcnw:j shall be designated as the:
"CITY OF DENTON-WATER AND SZJER SYSTEM REVE%= BONDS, SERIES 4.,
1979".
Section 3_ That said bonds shall be dated MARCH 15, 1979,
7 shall be-is.the denomination of $5,000 each, shall be n=ber-
ed consecutively-.front r,-ae 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: JGLY 13
YEARS -AMOUNTS YEARS AMOUNTS
1951 $100,000 1991 $225,000
1982 100,000 1992 225,000
1983 100,000 1993 225,000
1984 100`0000 1994 225,000
1965 225,000 1995 225,000
1986 225,000 1996 225,000
1987 225,0-00 1997 225,000 _r
1988 225,000 1998 225,000
1989 225;000 1999 225r000,---
1-990 225,000 2000 225,000
-E
• Section +4.; That the 5onds scheduled to mature during the
years, respectively, set forth below shall bear interest at
the following rates per annum:
maturities 1981, 6.758 maturities 1991, 5.308
maturities 19,82, 6.758 maturities 1992, 5.40%
maturitia5 '1983, 6.75% maturities 1993, 5.40%
• maturities 1984, 6.758 maturities 1994, 3.408
maturities_' 1985p 6_758 maturities 1995, 5.50%
maim- ties2.986,6.75% maturities 1996, 5.608
maturities-1987, 6.758 maturities 1997, 5.758
maturities 1988, 6.60% maturities 1998, 5.758
maturities' 1989, 5.30% maturities 1999, 4.758
maturities 1990, 5.308 maturities 2000, 4.758 shall
Said interest shall be evidenced by interest coupons which
manner
appertain to said bonds.: and which shall be pay
provided ;=d on'-tbe dates stated in the FORK OF BOND set forth
• in this :Cordinance.
S.-etion 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 provid-
ed., and in the manner indicated, ia 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 cou-
pons which shall apperta..n and be attached ini;dally to each of
said bonds, shall be, respectively, substantially as follows: ,y
FORM OF BOND:
No. $5,000
• ~y,
UNITED STATES OF AMERICA
STATE Oa TEXAS
COUNTY OF DENTON
CITY OF DENTON
WATER AND SEWER SYSTEM R IENUE BOND
SERIES 1979
ON JULY 15, , THE CITY OF D'c'NTON, in Denton County,
Texas, hereby pro smx es to pay to be;.-.rer hereof the principal,
amount of
•
FIVE THOUSAND DOLLARS
and to pay interest thereon, from late hereof, at the rattUl-Yf15.
8 per. -annum; evidenced by interest coupon- pity
and semiannually thereafter while this bond is outstand- }
ing-
THE PRINCZPAL of this bond and the interest coupons apper-
taining b~oreto-shall be payable to bearer, in lawful money of
the waited` .states of America, without e.'cchange or collection
charges to the bearer, upon ioresentation and surrender of this.
bond or proper interest coupon at the following, which shall
corstitute and be defined as the '.Paying Agent" for this Series
31
of Bonds: r
-2- E Fy
•
• CSTISAI;K.-. N.A. , NEW YO&K NEW YORK,
F OR, AT'TE1E OPTXON or THE ZZ--dXR, AT
TEXAS_
FIRST NATIONAL BANK IN DALLAS, DALLAS,
THIS BOND r --ie of a Series dated as of MARCH 15. 19:9,
authorized, iss`ue%r,w and delivered in the principal amount of
$4,000,000.for the purpose of providing $1,000,000 FOR IMPROV-
ING AND MMEMDING THE CITY'S WATERWORKS SYSTEM, and providing
$3,000,000 FOR IbWMVING AND EXTENDING THE CITY'S SEWER SYSTEM.
QN JULY 15, 1992, outstanding bonds r
or on any interest. payment date thereaffte eian any outstanding bonds' f
prior
o this Series may be redeemed
ties, at the option of said City, in whole, or in part, for the Ay
p 'pal ~=t thereof and accrued interest thereon to the date x
fixed for redemption- At least thirty days prior to the date
fixed for any such redemption said City shall cause a written A
• notice of-such-redemption to be published at least once in a fi-
~ril publication,published in the City of New York, New York. -
By the date fixed for any such redemption dteoprothvesprin ipal
made with the_'Payinq Agent" for t..e paymen
amount of the bands: which are to be sC redeemed and accrued in-
terczst thereon -to the date fixed for redemption. If such writ-
~,ti~of redemption is published and if due provision for
e
• ~ such pWment is;made all as provided above, the bonds which are
to be so redeemed, 'thereby automatically shall be redeemed prior
to their schedule& maturities , and they shall not bear interest a :
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- -Y
ZT IS HEREBY certified and covenanted that this bond has been.
duly and validly authorized, issued; and delivered; that all ist , -
conditions, and things required or proper to - , and and be done precedent to or in theauthorization, is been done
delivery of this bond have been per
in accordance with law; that this bond is a special c`blieat~ with '
and that the'princi-Pal of and interest on this bond, tog l
other revenue-bonds of said City, are payable from, and secured
by a first iiea on and pledge of, the Net Revenues of said City's
• Waterworks and Sewer System.
SAID CITY has.-reserved the right, subject to the restrictions"
stated, and-:adgpted.bY reference, in the ordinance authorizing
this Series of bonds, to issue additional parity revenue bonds
which aLs►o may be-made payable from, and se.~ured by a first lien
• on and pledge of, the aforesaid Net Revenues. r
77
THE 90C%DER MMMF shall never have the•right tek demand pay-
sent of th:s obligation out of any funds raised or to be raised,`
by taxation.
IN WrrNESS pEMMF, this bond and the interest coupons apper-
taining hereto have been signed with the facsimile signature of-
t Mayor of • said 'C:ity and countersigned and theeoffxciallseal -
tore of the City Secretary of said City,
said: City has been duly impressed, or placed in facsle, on
bond.
e rye Mayor ,
C ty secretary
is
it
FOR14 OF REGISTRATION CERTIFICATE: `r
COMPTROZZER`S_ MGISTRATION CERTIFICATE: REGISTER NC.
I hereby certify that this bond has been examined, certi-
fied rs 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.
w
witness. my signature and seal this 4
xxxxxxxx
comp trZreY Q 3.G Accou z O . ,
the E rate of Texas.
FORM OF INTEREST COUPON :
NO. 5
ON 15,
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 ,y
provision has been made for the redemption prior to scheduled
maturity of the bond to which this interest coupon appertains,
upon presentation and'sion'render 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 nxmber°hereinafter designated. of that issue of 4.;
CITY OF -DENTON WAVER AND SEWER SYSTEM REVENUE BONDS, SERIES
1979, DATED MARca;15, 3-979. 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.
x)CCxxXXX
Cz secretary Mayor
Section 7_.- (a}' That the term "Outstanding Bonds," as herein
after used in-this Ordinance, shall mean all of said City's pres. y•§
ently outstandng`-bonds which are payable from, and secured by
first lien on and pledge of, 'che Net Revenues of said City's
Waterworks and Sewer System.
(b) That the bonds authorized hereby are parity "Additional
Bonds' as def ned.in the •=dinance passed on July 12, 1960, ro
authoriang-the "fssuance, 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``raference and shall be applicable to the bonds au- :
thorized-to be-. slued by this Ordinance for all purposes, except.
to the extent-hereinafter specifically modified and supplemented
Tha bonds authorized to be issued by this Ordinance and the Out- rtF
standing 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 c y
,t
City's Water<.;orts and Sewer System.
-4-
ct
•
! Section 8. That, in addition to all other amounts reeei7
ed by the ordinances.. respectively, authorizing the outstanding
Bolds, there"shall~be deposited into the Interest and Sinking
Fund (create& for`•the benefit of said outstanding Bonds and Ill
A~jdi ti,onal Bonds) from the Net Revenues of the System, the
following:
(a) such, amounts, in eq-.iai monthly installments,
made on`or before the last day of each month
hereafteras will be sufficient to pay the xr
interest scheduled to come due on said Series
~ V
1979 Bonds on the next interest payment d8.te;
! and
(b) such amounts, in equal monthly installments;
made oa'or before the last day of each month v
hereafter, commencing, in July. 1980, as will
be-sufficient to pay the next maturing prin-
cipal of'said Series 1979 Bonds.
Section 9_ That the Reserve Fund he_etofore created for
the benefit of the' outstanding Bonds and ail Additional Bonds .
now containns_moner and'investments not less than the amount of
$522,000 in market value. On or before the last day of each
• month heeafter there shall be deposited into the Reserve Fund n;f
such aa~unts,-in equal monthly installments, as will cause the
Reserve-Fund tn contain, within five years after the date of
the Series 1975` Sonds', an amount o_' money and i,nvestmen` s PZuaI
im'market_value;to-the average annual principal and interest re-
quirements on the.'Outstanding Bonds and the Series 1979 Bands (the 'Reserve Required Amount"). Thereafter, no additional de-
posits shall_be`,_made into the Reserve Fund as long as the money
and investments t here n are equal to the Reserve Required Amount,
but if and whenever the Reserve Fund is reduced below the Reserve
Required--Amount, a.monthiy 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 required 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
Sv..c.
Reserve Fund has-been restored to the Reserve Required Amount;
and the City. covenants to_•-keep and maintain the Reserve Required
Amount inthe Reserve Fund in the manner described above- The
Re serve Fund.-shal-r be maintained, used, and may be invested, for n
the benefit cd the Bonds and all Additional Bonds, in accordance
with the,procedures as herein codified and supplemented, set
forth in:the`ordinances, respectively, authorizing the Outstand-
ing Bonds= rt-'is proviided, however, that if and whenever, due
to invest»eat;ir.=me 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 „u
Section 10•. That the bonds authorized by this Ordinance
are and shalI: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:
A..
Settioa..11~, Thac the Mayor of said City is hereby.author-
ized to have control of said bonds and all necessary re`c'ords.
and proaeedh2gs pert&1=Mg to said i-onds pending their dei "eery
and their. xnvestllaitlon, exa~+mination, and approval by the
Attorney Gene6m .of'the State of Texas and their registration =q;
by the; Coaapti:oll'ez!~ of-. Public Accounts of the State of Texas. <<
upon megistrationF-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*
-5- rte:
e
V.
• Certificate printed and endorsed on each of said bonds, a:.d
the seal ~f- said comptroller shall be impressed, or placed in
ia;=similP, on each of said bonds.
Section 12. That the City covenants to and with the pur-
chaser of-the bonds that it will mace no use of the proceeds
of the bonds at any time throughout',the term of this issue of
bonds which, it such use had been reasonably expected on the
date of delkiery of the bonds to and payment for the bonds by L
the purchaser's,'.-would have caused the bonds to be arbitrage bonds
within the mPan?ng of Section 103(c) of t. I.`ternal Revenue Code
of 1954, as amended, orany regulations or rulings pertaining:
theretor and by:this•covenant the City is obligated to comply
with fire requirements of the aforesaid Section 103(c) and all
applicable and pertinent Department of the Treasury regulations
M1.
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 bond- to be or be-
comp! arbitrage bonds within the meaning of the aforesaid Section
103(c) , v= 'any regulations or r-l"linos pertaining thereto.
Section 13- That it is hereby o,.`ficially found and deter-
mined: -Lnat 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 Y=
bung that the:prGceeds from the sale: of said bonds are required
as-soon as possible and without delay for necessary and urgently
needed public i=provements; and that sa.i.d meeting was open to
the public, and public notice of the t.4',ne, place, and purpose
of said meeting was given, all as requ red by Vzz-non 's Ann:
Civ. 5t. Article 6252-17. x
Section 14. That the City council officially finds, deter-
mines, and declares that said bonds have been duly advertised
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 heldon March 6,1979; that all of said bonds ire hereby
sold and shall be delivered to a syndicate managed or neaded
by Merrill_Lynch w4nite Weld Capital Markets Group and Asso-
ciates, 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 $596.25-
Section 15. it is further found and determined that the
O:_ficsal Notice-of Sale for said bonds was duly published on
F,abruarv I,,- 1979 in The Bond Buyer, New York, 17ew York, which
i.s a national publication regularly and primarily carrying fi-
`nsncial news, and municipal bond sale notices, and on January 31,
1979, in the Denton Record-Chronicle, which has been designated
as the official newspaper of the City of Denton. The form and
substance of said official Notice of Sale, and the aforesaid
publications'"tiereof, are hereby approved and ratified in all ,
respects by thia City Council.
Section: 1,6- That it is hereby officially found, determin-
ed, and rte; zed that said bonds have been sold at public sale
to the bidder offering the lowest interest cost, after receiving
sealed bids pvrsuint to an Official Notice of Sale and official
Statement dated` Febkruary 15, 7 979,, prepared and distrib fed in
connection with the sale of said bonds. Said Official Not:.:.^a
of Sale and Official Statement have been and are hereby, apprdvzd by the City Council. It is further official!- found, determined,
and declared that the statements and representations contained
in said Official Notice of Salp-amd Official Statement are t--ue
and correct-in. ail material rt-~tects, to the best knowledge and ,t
belief of the Zity -Councii_
Alexander Grant INTERNATIONAL FIRM
4 CWiPANY ALEXANDER GRANT TANSLEY WITT
• CERTIFIED FUILIC A000UNTANT8
The Honorable Mayor and
Members of the City Council
0 Denton, Texas
We have examined the financial statements of the
various funds and account groups of the City of Denton,
Texas, includirg the water and Sewer System Fund, as of
• September 30, 1978, and have reported thereon under date of
December 80 1978, our examination was made in accordanckt
with generally accepted auditing standards and, accordingly,
included such teas of the accounting records and such other
auditing procedures as we considered necessary in the circum-
stances.
•
It is our understanding that the Water and Sewer
Pystem ;avenue Bond ordinances of the City~of Denton, Texas
require that "Net Eornings of the Systeh defined by the
ordinances aA being $rose revenue of t,6 Water and Soarer system
less oparlation •'add maintenance'expenses, t ut' nst deduotiag
• e,1peAdR ' ractiCb, shoul
ltut'e~► which o under standard aco4usltir6 p d
be cbarA4d to capital sxperiditures)'for thk,. fiscal year next preceding,
the dato'cOf the additional bonds be at least one gad'thirty«
hundredths (1430) timer-the combined principal and,igterao~
requirements of all bonds to be outstanding after the iasukace
of the additional bonds;, for the year when such requ rement'.
• are the greatests Also, it'is our understanding that the ordinance
inquires A Reserve Fund in an amount equal to the average annual
principal and interest ;~lequirsments on the bonds, When additional
bonds are issued, th;s Reserve Fund is to be increased to the
required amount by 4qual monthly deposits to be made over a period
not to exceed five years and one month after the date of the
additional bonds.
In our. opinion, the net earnings of the City of Denton
Water and Sewer System, as defined above, for the year ended
September 30, 1978, acre equal to or are in excess of one and
thirty-hundredths (1,30) times the combined principal and interest
requirements fox, the year when such requirements are the greatest
plus the Reserve ~R nxNDa~1YERmSYtsTEldfRE(1) the YENUE BONDS: CITY OF
DENTON, 'TEXAS WA
t
ONE MAIN PLACE DALLAS, 1h 16260 1214) 74"i00
W"j
Series 1960, dated July 151 1960;
Series 19629 dated January 15, 1862'
Series 19640 dated July 15, 1964,
series 1966, dated January 15, 1966;
Series 19690 dated April 15, 1969;
Series 1972, dated September 150 1972;
Series :9741 dated July 15, 1974;
dated June 15, 1977; and (2)
Series 1977,
WATER R CITY OF DENTON, TEXAS ch 15 A1919 Win he Principal amount#01
Series 1979, dated March 15,
$4, 0P0, 00U.
•
Dallas, Texas
March 15, 1979
•
•
; b4
THE STATE OF TEXAS
COUNTY OF DALLAS :
BEFORE ME, the undersigned authority, on this day
personally appeared Buford J. Rhodes, Partner, Alexander Grant A
Company, a Certified Public Accountant, known to me to be the
person who executed the foregoing certificate, and acknowledged
to me that he executed such certification on this date on behalf
of Alexander Grant & Company,
02'v7VN UNDER MY HAND and seal of office, this the 20th
day of March 1979,
ary PUP c, y o man
My commission expires July 8, 1979
I
GF•LSE.ZAL CERTIFICATE
THE STATE OF`TEXAS -
COL'I= OF DEPNTON -
CITf OF DENTON -
We., the undersigned, hereby officially certify that we
are the Mayor wend-City Secretary, respectively, of said City,
• and we further,-certify as follows:
1- That said-City is a duly incarperated Home Rule City,
having more-;-than $000 inhabitants, operating and existing under
the Cons'_:tuti:on and laws of the State of Texas and the duly
adopted Home Rule Charter of said city, which Charter has not
. been changed or amended since the passage of the ordinance-au
thorizLng,the issuance of the City of Denton Electric System
Revenue Reding Bonds, Series 1978.
2. That no litigation of any nature has ever been filed'
pertaining to, affecting, or contesting: (a) the election
♦ which authorfzed_'the proposed Zity of Denton Water and Sewer
System: Revenue Bonds. Series "_979,. dated March 15, 1979, in
the principal amount of $40000,000, (b) the issuance, delivery,
payment, secor ty;~'or validity of said proposed bonds. (c) the
title of the-present members and officers of the City Council
of said City' to: respective offices, or (d) the validity sue.
of the corporate existence or the Charter of said City, except
for cause N: ?8-1462A in the District Court of Denton County,
Texas, entitled-Den Edwards vs. City of Denton, Texas, and
Cause No. 9258'in•`the County Court at Law of Denton County,
Texas, entitled Cr_O_ Blasdell, et al, vs. The City of Denton,
Texas, e- alp True and correct copies of the original Petition
in each of the =foregoing Causes are attached to this Certificate, -
and neither of said-Original Petitions has been changed or amend-
ed since the original filing thereof. Also attached to this
certificate is-.a true and correct copy of the Judgment entered
in favor of~the-City by the Court in the Edwards case, supra,
which Judgment has. been appealed from by the Plaintiff, and
such appeal is -nor pending No judgment on the merits has been
rendered by the-Court in the Blasdell case, supra, and such
case has not`been tried or hear on its merits.
3. That none"of the revenues or income of said City's
Water and Sewer System have been pledges or encumbered to the
payment of any.debt or obligation of said City or said System, Y
except in connection with the aforesaid proposed Series 1979
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;
Wati=.and Sewer System Revenue Bonds, Series 1964; ,
Water and='Sewer system Revenue Bonds, Series 1966; p
Water-and Sewer System Revenue Bonds, Series 1969; s,
Waterand Sewer System Revenue Fonds, Series 1972;
Water and Sewer System Revenue Bonds, Series 1974;
water and Sewer System Revenue Bonds, Series 1977,
a•.I with the surplus revenues thereof having been pledged in
c.on-teckion with. .that issue of City of Denton Certificates of 4
Obligation, Seres'1978, dated March 1, 1978. -
4- That the.Interest and Sinking Fund and the Reserve u.
Fund, created--and'maintained for the benefit of the outstand- y
ing .bonds,-11sted -above, in accordance with the ordinances,
respectx~s'41y.,:nuthorizing their issuance, each contains the
aaY>unt_ zow required to be on deposit therei and the City i.s -
ttotin ;default -in" any of the covenants contained in the afore-
sand' I' d nances=
.a
• 5. That 'the`&tatenents and information set forth in the
Official Statement dated F,3bruary 15, 1979, pertaining to the '
aforesaid`proposed'Bonds and the City, and particularly the.
Water and Sewer System operatj..-%g statement and debt service
requirements ;aad.coverage factors set forth on page 3 thereof
' are true and carrecL, and the Water Rites and SewerRates set
forte- on page lb?thereof are currently in effect and were au-
thorized by an cxdinance duly passt~d by 'the City Council.
si AND SEALED this 6th day of March, 1979.
7e-
city Secretary / Mayor
(SEAL)-
!yT
y?e~
nj
NO_ w h- A
DON EDAWARMS X 3 , 2DISTRICT COURT
eta .Rll t ,u..
.DENTON COUNTY a, T-V=
VS. X ;Vi,°II-,~„ rec. V
CITY Of D=VMK TEXAS ICIAL DISTRICT
ORIGINAL PETITION _
To THE HONORABLE'.TUDGE of SAID COURT:
-_C0KM NO ~-oOjr EDwARDS, Plaintiff, complaining of the CITY
OF DENTON, TEXAS, Defendant, and for cause of action would cos-_
pectfully show to-the Court: i'
plaintiff is a resident taxpayer, qualified voter of the
'
City of Denton, Texas, and a consumer of electrical power from i
the municipally owned power plant of the City of Denton, Texas.
That the City of Denton, Texan is a municipal corporation,
wholly situated in Denton County, Texas, organized under a Some
Rule Charter,_with Chris Hartung its City manager,, who resides
Denton, Denton County, Texas, upon whom service of citation
may be had;
III_
That Elinor Hughes was duly elected as a member of the
City Council of the City of Denton, Texas on the Sth day of April,',;.
1977, and thereafter qualiied by subscribing to the constitution
al oath.-t-4: if~~.and was duly seated as a member of the City.
C..ourcil of the_'aity'of Denton, Texas, and was elected as Mayor
of the City of Denton, Texas by the City Council of the City of---"
Denton, 'Texas,
That thereafter, on the 9th day of June, 1978, Elinor Hughes.`
during her tea-of office as a councilper-son of the City of
Denton, Texas was appointed as a Director of Texas Municipal Powe -
Agency, and assumed the office of Director of Texas .unicip" r
Power Agency, and continues to so uct-:
IV_ l
That Joe' CLcchell was duly elected as a member of the City .71
Council of the City_r-i Denton, Texas on the Sth day of Apr-l, 197
ORIGINRL PETITION' Page One
7 1 _
and thereafter qualified by subscribing to the constitutional -
oath of office, and ...as duly seated as a merJ_--Y. r,F _rhe City Counci
of -:he City of Denton, Texas; that thereafter, on the 19th day =g
of July, 197'7; Joe Mitchell, during his term as Councilperson ox
the City of Denton. Texas, was appointed as a Director of Texas-
.
S Municipal-P<Amr agency, and assumed the office of Director or -
Texas Municipal-Power Agency, and assumed the office of Director
of Texas Municipal PowE:r Agency, and continued to act as such
uat Z.-the City Council of the L__ty of Denton,. Texas was organized
subsequent to the Regular Annual Election in 1978.
V.
That Bill Nash-was duly elected as a member of the City
Couhncil of the;City of Denton, Texas on the 1st day of April, 1978-
tend thereafter qualified by subscribing to the constitutional e4.
oath of office, and was doily seated as a member of 'the City ,
Council of the.-Irity -of Denton,. Texas; that thereafter. on the Y-„
9th day of June-, 1978, Bill Nash,, during his term as a Council-
person of the City of-Canton., Texas, was appointed as a Director
of Texas Munilzipa2f-,Power Rgency, and assumed the office _of Dir-
ector of Texas-Mtiziicipal Power Agency, and continues to so actV
to the present time.
VI.
That'on r. day June-30th, 1978, at 1-30 P.M., Joe Mitchell,
Mary Claude Gay,17)3111 Nash, Dick Stewart and Elinor Hughes pur-
ported to hold a meeting of the City Council of the City of
Denton. Texas and purported to enact an ordinance entitled:
ORDIlUINCE NO. 78-24
AN ORDINANC=;, .KrNG CHAPTER 25 Or THE CODE OF ORDINANCES
OE` THE' CS2'r- OF DEN7TON, `TEXAS , PROVIDI*.SG N=47 WATER AND SEyc~R
T7uwPI4G FEW40D NEW SERVICE RATE CHARGES FOR WATER AND
SEWER-, SER _XAM REPF.ALn4G CONFLICTING ORDINANCES : PROVID1=7
A - CLAUSE; AND DECLARING AN EFFECTIVE DATE.
Tbat..on the 54h day of July, 1978, at 5:00 P.M., Joe Mitche
Mary Claude G:y, Bill Naah;_Dick Stewart and Elinor Hughes pur-
ported to hold_ a meeting of the City Council of the City of
Denton, Texas.;`andpurported to take certain legislative action
.ORIGINAL 'PL'Pmow - Page T O-,
~r
on behalf of the City of Den-.on, Texas. Among other purported
action taken at such purported meeting was the purported passage
of an ordina6m,, ertitledc
ORDINANCE NO. 78-25
AN ORDINAN= AMENDING THE ZOid 2=, RAP OF THE CITY OF
DENTON,. _ TEXAS: AS SAME WAS ADOPTED AS AN APPEN-DIX
TO -THE `CC EE` W v ORDINAACES OF THE CITY OF DENTONN
TM=A BY ;:ORDINANCE NO. 69-1. A*tD AS SAID MAP APPLIED
TO A PORTION OF LOT 13.3; Black 178-J, AS SHOW THIS
DATE ON THE-OFFICIAL TAX M5.9 OF THE CITY OF DENTON, TEXAS,
AND MORE PIARTICULA_RLY DESCRIBED THEREIN; AND DECLARING
AN EFFECTIVE DAB.
and furtaer purported to pass an ordinance, entitled:
ORDINANCE NO. 78-e26
AN ORDINAI9CE-AMENDING THE ZONING MAP OF THE CITY OF
'DENZON, TE)U104j . AS SAME. WAS ADOPTED AS AN APPENDIX
TO THE CODE-OF ORD~IANCES OF THE CITY OF DENTON, TEXAS,
BY ORDIlWANCE NO 69-1, A%M AS SAID MAP APPLIED TO A PORTION
OF Z.OT 2, BLO0.,. 3330, AS SHOWN THIS DATE ON THE OFFICIAL
TAX NAP OF- THE CITY OF DENTON, TEXAS, AND MORE PARTICULAR- t
LY DESCRIBED''THEREIN: AND DECLARING AN EFFECTIVE DATE.
and purporte3-to authorize the purchase of certain land for the
extension of sewer treatment facilities.
That pe7^fozce the foregoing allegations, no qt ;*cm was presen,
at either the purported meeting held on June 30, 1978, or the
purported meeting held on the 5th day of July, 1978, and that
all actions purpoz-ted to have been taken by the nameu persons
purporting to hold such meetings are null and void and of no for
and effect-
WHEREFORE,-premises considered, your Plaintiff prays that
citation be issrued and served as provided by the Rules of Civil
_r
Procedure and upon hearing hereof, this Eonorable Court enter its
judgment declar~_,%g all of the purported action purported to have
been "taken a2-'the purported meetings of the named persons on the
30th day of June, 1978 and the 5th day of July, 13:8, null and
void and of no force and effect, decla-Xing the offices of Councll
men purporting =to be held by Elinor Hughes, Joe Mitchell, and `
Bill Nash'vacant, and to issue its moss gracious writ of injunc-
tion, enjoining' the City of Denton,' Texas, its officers, agents
and em;loyees from performing or attempting to perform any act
required to be-performed by any purported legislation purported
ORIr~ZNAL P£T2TYON Page Three
to have been enacted at such purported meetings, for costs of
suix, and for such--other relief, both in equity and in law, to Y:
which Plaintiff,may show himself justly entitled_
Respectfully Submitted,
WrLLI11NC E. T ,Y
ATTORNEY FOR PLAIN- T37 r
1005-C West University Dr.
P. 0. Eox 395 3
Denton, Texrs 76201
i c w a TRUE TRUZ COPY
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C . 0. BT.ASD7.x.. ET AL° ) r p_ THE COU.`~Y COURT
Vii t
)
VS. ) AT LAW
"'i)=aWI3` TEXAS, ET AL ) DENTON COUNTY, =..AS
THE CITY O7,,
ORIGZr1AI. PETTTIGN
TO SHF HONOBAHLE JUDGE OF SAID COURT: r
cmm NOa C. 0. BLA ELL and F_-!vvAsL BIDDY, Plaintiffs. complaining of
the City of Dent=. Texas. JOE MTTCIU;LL, ELINOR RUCHES, :•MRY C. CAY, RICHAFZ 0
STBWART, W. S. IUM, ROBERT NELSON and CMUS li,%RTtMG, Defendants, and for causes*
of action would respectfully show the Court: y
I.
That:the City of Denton, Texas is a municipal corporation, wholly situa.`
ted within Denton County, Te=m,.and organized under a Rome Rule Garter. with
BROOKS HOLT its City `Secrets, upon whom service may be had at his office in , j h
the City Hal]., Denton, .Deacon County, Texas, that JOF. MITCHELL. is a resident o>~
Denton, Denton County. Texas, where service of process may be bad upon him;
that' ELIlTOREDGHES -is a resident of Denton, Denton County, Texas, where seYVictt .
of process may be had uprm her; that MARY C. GAY is a resident of .'enton,
Denton County, Texas, where service of process may be had upon her; that
,t2ICHARD 0: = 3s a resident of Denton, Denton County, Texas, where ser-
vice of rlroeess tray be had upon him; that W. S. NASH is a resident of Deatoa,
Denton Corinty, Texas, where service of process may be had upon him; that ~T
I ROB= NW=N is a resident of Dentcn, Denton County, Texas, where eervice of
process may be had upon him; that CHRIS HARTL°NG is a resident of Denton,
Denton Couaty,•Texas,,%:here.service of process may be had upon him.
II.
That the Plaintiffs, and each of them, are resident, tz:cpayers and
qualifiad voters of the City of Denton, Texas, and consumers of water f-,va th&_
Mter system owner' by the City of Denton, Texas, and service from the sancta--r
sewer system owned-by-.the City of Denton, Texas.
- ,t
It eA
w.
ti.
r , 0
That' the City o£ Denton. Texas. in its proprietary capacity, owns,
operates and maintzKns,a water system and sanitary sever system, and sells
1 water and furnishes sewer seivices on :a co=erdsAl basis from such water and
sever systcas.
s
IV.
* That the Defendants, JOE MITCHELL, ELINOR HUGHES and W. S. NAM (well y'
knowing that they had vacated their positions on the City Co!mcil of the City
of Denton, Texas) .join~-d`by Defendants MARY C. GAY and RICHARD 0. STEWART (who
well knew that t2.e Defendants JOE MITCHELL, ELINOR HUGHES and W. S. NASH, had
vacated their positions on the City Council of the City of Denton, Texas) gave
notice to the consumers of vat% and sewer services from the water and sewer
systems of~the City's intention to enact an ordinance raising the rates for
water and,, sewer services furn:Lshed by the City, such rate increase to be effec
tive Jo ly 11978.
V.
That on Friday, June 30, 1978, at 1:30 P.M., JOE MITCHELL, MARY C. GAY,
W. S. HASH, RICHARD 0.'.STEWART and EI.INOR HUGHES (each well knowing that tho -
Defendants JOE KTT=,L, MINOR-HUGHES, W. S. NASH had vacated their positions
on the-City''Council of"the City of Denton, Texas) purported to hold a meeting
of the City Council of the City of Denton, Texas, and purported to take such°
legislative acdoa on behalf of the City, i.e., purported to enact an ordinance
r
entitled:
ORDINANCE N0. 7G 24
AN. ORDINANCE,AMEi®ING-CHAPTER 25 OF THE CODE OF ORDINANCES OF
TEE` CITYOF;.DENTON, TEXAS, PROVIDING NEW WATER AND SEWER
r
TwPPING;J'*~,r.S AI1D'.NEW SERVICE RATE CHARGES FOR WATER AND SEW A
r,-
SERVIC,S RFPPP.AI.ING COh'FI.ICTING O=nL4`j=S: PROVIDING A
SEV=A,,TL=T CLA=, AND DECLARING AN EFFECTIVE DATE. `
that such -purport d ordinance provides that the rates established by such pur. _11
ported ordinan". shalt take effect July 1, 1978.
That perforce the foregoing allegations, no quorum v&s present at the
1
purporr_wa maetiag;of the City Council of the City of Denton, Texas, held on
June 30, 1978, and that all actions purported to have been taken by the nomad-,
x x
x
persons pnrporting:to hold said meeting-are uull and void, and of no force
and effect' .
t
_ Yom. _
! VI.
That notwithstanding the invalidity of the purported ordinance, never-
. theless the Defendants CHRIS'EA=13G and ROBERT NELSON have enforced the pro
visions of the purported ordinance retroactively against your Plaintiffs under `=Ky
the threat of'discoatinuing service to-them and each of them, and the class of Y'
rte:
rich 'they are a part, resulting in damages to the Plaintiffs in the sum of""'
,e
$750.00.
VII.
That the facts herein alleged constitute a deceptive trade practice F'=
within the meaninx of the Deceptive Trade Practice-Consumer Protection Act, and?X
the plaintiffs are entitled to triple damages, together with reasonable actor-,~
ney's fees.
VIII.
That the amo-`nt of excess charges for water and sever services is p+xT3
cularly within. the knowledge of the Defendants and is not available to the
Pl,ainttfis•, Lhe Defendants should be required to furnish an accounting.
pgFREFOR3=;'premises considered, Plaintiffs pray that Defendants, ands,
each of them, be cit`-d''to appear and answer herein, as provided by,the ° J.es
hearing hereof, this Honorable Court enter its `:j
of Civil procedure, and upon
,judgment declaring the positions of JOE MITCHELL, ELINOR HUGHES and W. S. MASS"
t on the City Council of the City of Denton, Texas, vacant; that this Honorable' ~
Court appoint trustees to serve in such positions until such time as such y
positions are filled in the manner provided by law; that this Honorable Court
.enter an order requiring the Defeudants to file a sworn accounting of the
amounts of excess rates for water and 'sewer services collected by the Defend-'°:
ants under the provisions of the purported ordinance herein alleged; that
Judgment-be %mtered-herein against Defendants, jointly and severally, for the
individual customers and consumers of services from the municipally owned wat
-and sewer systems in an amount three times the amount of excess charges colle
ed under the purported ordinance hereinabove alleged, ci~et=_r .icn reasonable
attorney's fees, for costs of Court, and for such other relief, both general
and special, in equity and in law, to which Plaintiffs may show themselves to
be Justly entitled..'
Respectfully submitted,
Vv
AO;
-3--
77
f ..s
-78-1462-A YQ_ 121 FJaU53
DON IDvQARDS X IN THE DISTRICT COURT OF
DENTON COUNTY, TEXAS Kr
V. _
CITY OF DENTON. TEXAS 16TH JUDICIAL DISTRICT
a
on the 4th day of January, 1979t came on to be heard the above
styled cause wherein Don Edwards is plaintiff and the City of Denton,
x
~s
Texas is defendant.
t
The City of ileiiton, ~ having filed a motion for summary
judgment and said oration far sumnwrY judgment having-been duly set
by the Court for hearing`and copies of said notion and other docu-
ments having properly been served on plaintiff and due and proper
notice of said hearing having been given to plaintiff, all parties
mentioned date, by and through their attorneys
appeared on the above
,
of record, and said motion for 'summary judgment of the City of Denton,,
Texas, was duly and properly presented to the Court.
The .Court., having considered the pleadings, affidavits, and other - '
instruments on file her-eia, and baving heard the arguments of counsel;
vY~'
finds that the law-is with the defendant, that there is no genuine
issue as to any i+ntmria1 fact,- and that defendant, City of Denton,
ent herein as a matter of law.
i-exas is entitled to judgra
It 1$, therefore,.--- ORDERED j, ADJUDGED AND DECREED that the motia-R
for summary judgment of`the City of Denton, Texas should be and said '
motion is hereby in a11; things GRANTED. '
It is further, ORDERED . ADJUDGED AND DECR.IsM that a--I relief
requested by plaintiff against defendant is hereby in all things
denied and that plaintiff recover :1othing herein_
It is, further ORDERED, ADJUDGED AND DECREED that all costs of
court herein are . taxed, . agmast plaintiff, for which let execution
issue. -
SIGhED this o f January,, A - D. 1979'.
-env.
Y - ' DISTRI JUDGE
+ r ' ors, , y r ,w' n .W to r FIM'}~ akX'~~~Q4 ;Y. r77977 t`
7 6
I K"
OFFICE OF THE ATTORNEY 46NERAL OF.THE STATE OF TEXAS
March 26, 1979
THIS IS TO CERTIFY that the following described bonds,
together with authenticated copies of the proceedings relating
to and authorizing this issuance of same, have been submitted to
me for examination in accordance with the requirements of the
statutes of the State of Texas, to-wit:
CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1979,
issued by virtue of an ordinance adopted by the City Council of
said city on the 6th day of March, 1979, for the purpose of pro-
viding $1,000,000 for improving and extending the city's waterworks
system, and providing $3,000,000 for improving and extending the
city's sewer system; dated March 15, 1979; numbered consecutively
from 1 to 800, i.nclusivet in the denomination of Five Thousand.
Dollars, ($5,000) each; aggregating the principal sum of Four
'd.llion Dollars ($4,000,000)1 maturirq serially on July 15 in each
of the years as follows:
1981/1964 $100,000
. 1985/2000 225,080
bearing interest at the following rates per annum, to-wit:
Bonds maturing, 1981/1987, 6.751
Bondi maturing `1988 606,0%
Bonds inatoiing 1989/1991 5.301
Bonds maturing .1992/19946401 +i
Bonds maturing 1995 .50Y
Bonds maturing 1396 5.604
Bonds maturing 1997/1998 "$.754
Bonds maturing 1999/2000 4.754
payable on July 15, 1979, and semiannually thereafter on January 15
and July 15 while said bonds are outstanding; both -principal and ,
interest payable at Citibank; N.A., Now York, New York#,or# at the
option of the bearer, at First National Bank in Dallasr Dallas,
Texas; said bonds being subject to prior redemption to the extent
and in the manner provided in said authorizing ordinance.
From a careful examination of said bonds and proceedings and
thesfoon the llowing subject
the Constitution
execution adaissuance thereof,I find Texas
to-wit:
A That City of Denton was, at the time of the adoption of
the ordinance above referrrd to, and is, as of this date, legally
incorporated;
(2) That the principal of and interest on these bonds#
together with other revenue bonds of said city, are payable from,
and secured by a first lien on anti pledge of, the Net Revenues of
T F_ 's Y V .n. SWrti r '.t ;1ry ''fir SN_'•.,'"jTRh '~'v.
7 q r1 r e 7 r 1 ' " a -.v `tc,' b', 9~'a4 ~~f~i. r~fi~~M 5~~ jy p.r!. Nk i rP~~;~ f Y +"-Y•
%
~ti „ ,1. Sti .°r .f P
Paige -2-
said city's waterworks and sewer systems
(3) That said city has reserved the right, subject to the
• restrictions stated, and adopted by reference, in the ordinancA
authorizing 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 Not Revenues;
• (4) That the holders of said bonds shall never have the right
to demand p^yment of these obligations out of any funds raised or
to be raised by taxation;
(5) That the ordinance authorizing the issuance of said bonds
is in proper form and was legal]y ad~ptedl
•
(6) That said bonds and interest coupons attached thereto
are proper In form and in accordance with the ordinance authorizing
their issuance.
IT I3 MY JUDGMENT, and t so 'find* that all of the requirements
of the laws under which said bonds were issued have been met= that
said bonds were issued-in conformity with the Constitution and laws
of the State of Texas; and that said bonds are valid and binding
special obligations of the City of Denton, Texas.
MTHEfFPQt'tE► eid bonds are hereby approved
t~.mFBfiiMbNX WHEREOFO I have hereunt;?,signed my, name officially
and caused the'seal of-my office to be impressed hereon, in the
City of Austin, Texas.
•
I AT ey Genera o e ate o Texas
No, 16414
Book No. b5
•
•
I
•
f tiJi i5 y, a W u l p.yr t rk A ~t : e~"
%
,
or-n 3 OF COMPTROLLER I
Oh THE STATE OF TEXAS 1
1, Bob Bullock, Comptroller of Public Accounts of the State of Texas, do hereby
. ce,tify that the foregoing hereof is a true and correct copy of the opinion of A,e Attorney
City of Denton Water and Sewer System Revenue Bonds,
General approving the
Series 1979
- -
1 to 800 of the denomination of
numbered consecutively from
S 5,000.00 each, dated !torch 15 19 79 due See far a"IL_
. ~
Various percent, under and by authisity of which said bonds wire r ,,stered
Interest ,
In this office, on.the 27th day of Aiarch 19 79 as the same appears of record
Bond Reglster of the Comptroller's'Office, Vol. Register 140mbe.r
on Page - -123
44843
27th
Given under my hand and seal of office, at Austin, Texas, thr,
• ray of March 1 19.7_ 9--
r
Bob Bullock
• ; , Comptroller of Public Accounts of the
state of Texas
i
*4.L iMT 2Mq-1.03 LReY. 11-77)
y r..w 7!
♦ OFFICE OF COMPTROLLER 1
OF THE STATE OF TEXAS l
Lloyd Chap . ❑ Bond Clerk Eti Assistant Bond Clerk in the office
of the Comptroller of the State of 'Texas. do hereby certify that, acting under the direction and
27th March , 19 79
authority of said Comptroller on the day of
to the certificate of registration indorsed upon each of the
• I signed the name of said Coro~
city of-Denton Water and Sewer System Revenue Bonds Series 1979 M
♦ 1 to 400 ~ inclusive, dated Mazch1979
numbered from ,
and that in signing said certificate of regstjiftion 1 used the following signature:
27th day of
IN WITNESS WHEREOF I have exeCL-ted this rtificate this
March
;a
♦ 1, Bob Bullock, Comptroller of Public Accounts of the State of Texas, do beret certify
that the ;orsoi1 who has egwd the above certificates was duly des*iated and appointed by me
"
as Bon Clerk in the office of the Comptroller of Public Accounts of the State of Texas under
♦ authority vested in me by Tex. Rev. Civ. Stat. Ann. art_ 4362 (1969), with authority to sign my ;
name to all oertficatos of registration, and/or cancellation of bonds required by law to be registered '
gnoJt;r cancelled by me, and eras acting as such on the date first mentioned in said certificate. and
that the bonds described in said aertifecata have been duly registered in the office of said
Comptroller, as appears of record on pace 123 of volume $~----under Registration
Number °in the Bond Register kept in the office of the said Comptroller.
44843
• '`Y
♦ GIVEN under my hard '""and seal of office at Austin, Texas, this 27th day of
March -'79.
BOB BULLOCK n`
Comptroller of Public Accounts of the
♦ State of Texas
rpnn 2PaPL03 (Rev. I1-7~1 : -f
v
OFFME OF COMPTROLLER E
AOF THE STATE:OF TEXAS .
t, Betty Melber p Elond Clerk 9 Assistant Bond Clerk in the office _
t of the Comptrottw of t-oe State of Texas, do hereby certify that, acting under the direction and k,
avtho.-ity of said Comptrollei on the 27th day of March , 70 79 F
Y.
I signed the name of said Comptrotrer to the certificate of registration indorsed upon each of the
City of Denton dater and-Sever System Revenue Bonds, Series 1979
numbered from 401 to b inclusive, dated March 15 _ 1' 79 Y
and that in signing said certificaEeof tra*con 1 r;e r the following signature:
tN'WITNE'.-: 'WHEREOF 1"t►ave executed this certificate this 27th day of
March -119-71)
' y-
s
• t, Sos. BuDock,. Comptrolkw1of Public .mounts of the State of Texas, do hereby certify w`=
that the persor+ who has signet{ ttla above certificates was duly desiq%ated and appo::aed by me _
as pond Clerk in the office of the Comptroller of Public Accounts of the State of Texas under
authc4 ty vested in me by Tex. `Rev: Civ. Slat. Ann_ art. 4352 (1969), with autharity to :ign my
name to an card icstss of registration, and/or cnaellation of bonds required by law to be registered
and/or by me, and wasracd" as sucL on the date first mentioned in said certificate, and F carxzUed • that the bonds described in said certificate have beer
duly registered in the office of said P
Comptroller, as appears of rf.--rW on papa 123 of volume 81 under Registration w
Number 44843 r the Bond Registe- kept in the office of the said ComMolter. Y
GIVEN under my Mnd_12nd♦ seat of office at Austin, Texas, this 27th day of .z
March 79
W13 BULLOCK
Comptroller of Public A=ounts of the
State of Texas
-,~A*Mq
T~xorr AND TEM ST
OF D~ LITIGATIOi7 CDRTIFIC~TE
CITY OF DMeroN
We, the
Undersi
gaed
her
eb
(af
refere, to tthi Y certify as follows: TM
ertificate is
CI Y of execr_ed and deliver
DENTON WATER AaTD g ed with
Series i- cYSTBn~
$4,000,_0 0. cater March 1,5 z BONDS,
1979, In the principal
the (b)' That
we officia amo~,~t of
°e inter .001.1
of sa Bounds gntttoes b el thereto and
a igned said Bonds
facsimile.
drtd fi'Pea ~Priated or using facs • azia si- aid 1=ass le-~~
s as off... Q;X%~ and we her r edontea
O we. had manua2l cO espeCtivejy, eby C411
and adopt said -
i n (c) That Y signed ea,,h of said Boaas ~ ures dthe tha at
prezc foz ,,.ah~ Ve ' s and Interest o d in`erest coupons.
finds and int
In the erestOrdxnance 'author i=z toed an signed substantially
• and interest That' at a POPS g the issuance of saeid er,
certificate 'C`Xq3o1iz time w
executed
cers we e
ted or dY,osedt the tse of wed said Boncia
and .alifl ecuti
ag authorized ag this
na^w (e) tht no li d to execute td he see. offi-
pending to' J$tio'I of as
said Bonds res~tra~ or'"° enjoin ,Y sat
nisi. or. interest a the issu has been filed
questio made for the . , Id
moons, or which wance or deliv or is
ning i h Valdittyy; the securztY.- or in fact th ery ro
ty
pt as descries ~ . it Of said Bonds -and ings or a thorriManner
below. interest Y cor_
coupons,_
sated BoadsThat co'author' . ex
ty- zesc .nded, ~d interest Por Pro f- n !a for iss the '
be' q .wh f stand corpora to existence bee,-'
ce Of
repealede, revoked ~dn
said issuer hwould aff, gation, men £ Issuer is nt or
t is the autt~orit ed or is :now
hurt o Den on _ except my execute
Causanadel:iverf the officers of
Can ton, Texas, and tYI Te a ezi . 2A 7S- saki Bonds
e ton Cause _ 9258 in Dod wn the District
Cit il' of CocatYDeato, a.~ Tex Texas tNito_ led. C:. the BdC°uaty Cot a City, f
Ar
ginal ~'etiti et a1- Slasdell, et at Law of
`S • , Trtte and
t°ethis Certifi $te, aneach d of the _foregoiag Causes pzAS Of . The correct Changed, or" neither the
so atta mended of said are attach
chest since pri
Al sa
the Judea th~ Cergzcoe siginal Egli petitions
thereof.
Bdwards cwse eyed ;n favor of a true and g corr
teone the P.ZaintifF,` arc. whir'~tzd the: Clty by the a copy Court in zoo - case, supra has been rendered z aaow pia appealed r
merits. a such, use . h , by the Court zn - - No ? udgm Mt
not been tried he 4 ason I de. s
or
I
Now
NO-ARBITRAGE CERTIFICATE
THE STATE OF TEXAS
COUNTY OF;DENTON` -
CITY OF DENTON
The undersigned, being the duly chosen and qualified
Mayor and"City Manager, respectively, of the City of Denton,
Texas (the "City')-O, hereby certify with respect to that issue
of City of Denton Water and Sewer System Revenue Bonds, Series'
1579, dated march 15, 1979, in the principal amount of
$4,0000000 (the'"bonds"), as follows:
1 that we, along with other officers, are charged
with the responsibility-of issuing the bonds and ex-
pending the proce?ds of the bonds.
2_ }:ac this certificate and covenant are made pur-
suant to Sections 1.103-13, 1.103-14, and 1.103-15 of
the proposed Income Tax Regulations (the "Regulations")
of the Internal Revenue Service with respect to arbitrage
bends as described in Section 103(c) of the Internal Rev-
enue Code of 19.54, as amended (the "Code"), and the words
and phrases`used herein nave the same meanings as defined
and used in the Regulations.
3_ that this certificate is based on facts, estimates,
and ci===zances in existence on the date of this certi-
f cats-., which -is the date of issue of the bonds, and on
such,"basis it-is reasonably expected that the followina
w:"il occur with-respect to the bonds, and, to the best
40 knowledge'and belief of the unders.cned, such expectations
axe reasonable:
(a) that-the bonds are issued for the purpose of
providing money fc:; improvements and extensions of
the City's combined waterworks and Sewer System (the
"System"); ;
(b) .that the City will incur, within six, month's
after the`date of issue of the bonds, binding obliga-
tions to:comonence each of the projects, respectively,
to be'finan,44d by the bonds, either by entering into
e construction of such projects to be i,
contracts for.e
financed: by the bonds, or by entering into contracts
for:arch tectura}_ or `engineering services for such
-projects,._or, cc~atracts for land acquisition, site de-
velopment.1 purchase of construction materials, or'pur--
chase of"equipment,-'for such projects, or in case of
services,,.: will- commit itself to make an equivalent ex-
penditure for_si=Llar service.: by employees of the City,
with the,:'amoant to be paid under each such contract
azz& omz dtmLaat with respect to each such project, re-
specti?ely, to be In-'excess of two and one-half per- ,°ry
i cent of the portion of the amounts received from the
sale of tho'bands allocated to each such project,
respectively (with the aggregate amounts to be paid =
under all-of'such contracts to be in excess of two and a
oue-half'-percent of all of the amounts received from
th' N ale of the bonds) ;
• 13
(C) that'after entering into said contracts or mak-
ing,such cacmAitmbntn., work on all of such projects will
proceed-prcmptly and with due diligence to completion;
- - .
1
2
:y
4
-(d) that all of the amounts received from the s%le
of the bonds`'w 11 be expended for the purposes of tae
bonds by the-'end of the three-year period beginning on ~A
the date of-'-issue of the bonds;
'(e) that -'none none of thz amounts received frost the
! sale`"of the-`bonds will be placed in a reserve or re-
placement fund.,, and., except as provided in (g), below, ;
none of the amounts received from the sale of the bonds
and none of the proceeds of the bonds of any kind will
either (i) be placed in a reserve or replacement fund,
or (ii) be,used directly or indirectly to replace funds
which were used direct y or indirectly to acquire any
securities. or obligations of any kind;
'(f) that a separate and special "Interest and
Sinking Fund" previously has been created and estab-
Ushed to Pay: the principal of and interest on the
.bonds-and"`other' outstanding parity revenue bonds, with
such fund'beinga bona fide debt service fund for the
bonds and''other outstanding parity revenue bonds; and
money depoelted.into-the "Interest and Sinking Fund r
will not be Invested except during the thirteen month
period begiznr_ng on'the date of each such deposit of
money, and-trae amounts received from the investment of
money in the l"Intere-t. and Sinking Fund" • will not be .Y
invested except during that one year period beginning'
°on -the date' of receipt of such amounts; and it is ex-
pected that-.the ~Mnterest and Sinking Fund" will be
used primarily to achieve a proper matching of revenues
deposited therein and debt service on the bonds and
other outstanding parity revenue bonds within each bond
yerr, and it is-expec.=ted that the "Interest and Sinking ~y
Fund" will 'be?depleted once a year on a first in V rst
out basis except for a possible carryover amount which R
'wi.ll not 4xceed the greater of one year's earnings on
such fund "or-1/12th of annual debt service payable from
such fund:.
(g) -that'-immediately prior, to the date of issue of
the bonds there were outstanding eight series or issues
aggregat:Lng';$'6,230;000 In principal amount of the City's
waterworks and Sewer System Revenue Bonds, which were
initially sold at par and issued in the aggregate initial I
principal amount of-$9,010,000, and immediately after the
date of issue `of the bonds there will be outstanding, ia-
cl.uding,the bonds, an aggregate of $10,230,000 in princi-
pal amoun't`of-the City's Waterworks and Sewer System z
Revenue Bonds, all-of;:wuich are secured equally and
ratably oa=a :parity by a first lien on and pledge of the
Net Revewaes"=of 'th~a--System, and payable on a parity from
the above. =interest was Sinking Fund"; and all. of said
parity bonft are_equally and ratably secured by a separate
and;- special- reasonably req i rea debt service "Reserve
Fund" which-='previously has been created and established ;
."for the guxpose of.paying the principal of and interest
on'the`bonds`and other outstanding parity revenue bonds
in case' the' amounts available from the "Interest and
Sinking lhznd" -should'be insufficier`- for such purpose,
and to be used finally to-retire the last of the out-
stad 'bonds and other outstanding parity revenue
aonds a; dF the amount of $522,,000 is now hel'3 in the
"Reserve Fund' and was deposited from money received
-Zrom :Set,hevenues of the System, and such amount will
}
•3
• be increased from money received as Net Revenues of
the System, to an aggregate of S 34 b
not thereafter be increased to a great amount, either
from deposits or investment income, and S-~d
"Reserve'rund" is allocable to the bonds on the basis
of. the relative principal amount of all parity bonds
• to be outstanding imni._diately after the date of issue
of the bonds;:-'with such allocable amount being less
than 15$ of the principal amount of the bonds, and with
the entire`awount to be held in said "Reserve Fund" be-
<s4,
ing :less than 158 of the principal amount of all of the
aforesaid-parlty bonds secured by the "Reserve Fund" to
be -outstai:dinq "after the date of issue of the bonds; and
said amount to-be held in the "Reserve mod" will not
be 'subject.to yield restrictions;
(h) that ercegt as provided in (f) and (g), above,
no money or amounts will be he)d or accumulated in or z
• invested- fram'any sinking fund, debt service fund, re-:
demption fund,.reserve fund, replacement fund, or simi-
lar fund wbicbLis reasonably expected to be used to pay
principal, or interest on the bonds, either directly or w
indirect'-
'.-~c
(iJ '..Ghat the projects to be financed by the bonds
will not' .'be`-sold or otherwise d.:sposed of, in why;le or
in part, prior to the final maturity of the bonds;
(j)- that the amounts received from the sale of the
bonds gill -not exceed the amounts necessary for tie
govem=ental' purposes of the bonds; j
t'k) that the City has not been notified of any
listing'of'it by the°Internal Revenue Service as an
issuer teat may not certify its bonds.
4_ 'that-.-Lt-is not expected that the proceeds of the bonds
will `be used"13iaany manner that would cause such obligations Y
to be arbitrage bonds under Section 103(c) of the Code and
the Regulations prescriby_-d =der that Section, and i.t' is
further specifically covenanted that the proceeds of the
bonds'-will not b'e used directly or indirectly so as to cause
all or-any part of the"i.=ds to br or become arbitrage bonds `
within the meaahtng of. that Section or the Regulations pre-
scribed by-that Section.
S. that to•our best knowledge and belief there are no _
other-facts, estimates, or circumstances that would ma-
terially-change the foregoing conclusions or statements.
=C=D this APR
Ma , City o Denton, Texas
~ y
a ?Z7,
City Manager, Ci y nto eras
(SEALi ~ _
Y.Y.
sia ATURE ToENTIFICATION AND LITIGATION CERTIFICATE
THE STATE OF TEXAS
COUNTY OF' DEINTON -
DEA1TOUt -
CITY OF
We, the undersigned, hereby certify as follows:
t.
(a) That this cer'-ificate is executed and delivered with
reference-to that `-issue of
CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS,
Series 1979, dated march 15, 1979, in the principal amount of.
$4,000,00`0_
(b) That: we _officially executed and signed said Bonds rind }
the interest coupons attached thereto by causing facsimiles of
our manual signatures to. be imprinted or lithographed on ert:h
of sate Sonds'and interest coupons, and we hereby adopt said
facsimile signatures as our own, respectively, and declare that
said facsimile signatures constitute our signatures the same as
if we had manually: signed each of said Bonds and interest coupons.
y• (c). That said Fonds and interest coupons are substantially
is the-form;.and`have_-been duly executed and signed in the manner,,
s.,
prescribed in the`'ordinance authorizing the issuance of said
Bondi-and interest coupons.
(d) That-zit, . the tieae we so executed and signed sai4 Bonds '
and tnt-crest coupozis we were, and at the time of executing this
,
certificate U_!', off-
arethe duly chosen, qualified, and acting cers indicated therein, and authorized to execute the same_
(e) That`nw litigation of any nature has been filed or is
now pending to restrain or. enjoin the issuance or delivery of ,
said Bonds or interest coupons, or which would affect the pro
visioa"made for their payment or security, or in any manner
questioning the validity, or the proceedings or authority, con-
cerning the issuance, of said Bonds and interest coupons, ex x
dept.as described in (f), below.
(f) That no.authority or proceedings for the issuance of
said'Bonds and interest coupons have been repealed, revoked, or
rescinded;. and the''corporate existence of said issuer is not
being' contested,;'.,And no. litigation has been filed or is-now
pending which'woald affect the authority of the officers of
said-issuer to issue, execute, and deliver said Bonds and in-
xa_
terest coupons, except for Cause No. 78-1462A in the District'
Court of Denton 'County , Texas, entitled Dori Edwards vs. City of
Denton, Texas, and- Cause No. 9258 in the County -Court at Law ':of-
Denton couaty..f, "texas, entitled C. 0. Blasdeil, et al, vs. The
City -of` Denton,-Texas, et al. True and correct copies of the
Origiaal Petition in each of the foregoing Causes are attached
to tbls Certificate, and neither of said original Petitions has r
been.changed or'-amended since the original filing thereof.
Also attached to this Certificate is a true and correct copy
of the Judgment' entered in, favor of the City by the Court in
the `Edwards case, supra'. which 3udiment has been appealed from
such appeal is now pending. No judgment e
by he Plaintiff-
on the merits'hai -been rendered by the Court in the Blasdeli
case, supra, and such case has not been tried or heard on its r
merits_
' 4.
f
K
(c})' That we have caused the official seal of said issuer
to be impressed' or"printed or lithographed on each of said
gonds:'an4 said;sea-l On said Bonds has been duly adopted as, and
r_
u hereby _10clared;to be, the official seal of said issuer.
,
f p~CtSTED and delivered this APR rj ' 1979
TRES_ OFFICIAL TITLES
iayor
i City Secretary
The 6ignaturez of the officers subscribed above
• are ''hereby-certified to be true and genuine .a
of Dantom Texd
Frst Std Bank
x
Rank-
r
By
duthori O Ar
rte"
LAW OFFICES
Mccall, Parkhurst S Morton
1440 Mercaatle Bank Building
Dallas, Texas 75201
-F~
NO. --I h2
DON FAWARDS X I,L~ 2DISTRICT COURT
z O.V _ DENTON COUNTY TEXAN
ICIA-L DISTRICT
C= OF DENTON, : TEXAS Q
ORIGINAL PZTITION
• TO THE HONORABLE JUDGE OF SAT_D COURT:
COMES NOW DON =WMS, plaintiff, complaining of the CITY 1j
OF DENTON, TEXAZZ.Y_Defendant, and for cause of action would res-
pectfully show. the Court:
plaintiff is a resident taxpayer, qualified voter of the
City, of
Denton, Texas, and a consumer of electrical power frown
the.municigally owned power plant of the City of Denton, Texas_ v
Y
II.
That the City of Denton, Texas is a municipal corporation,
wholly situated in:Denton County, Texas, organized under a Home
Rule.-'"Charter, with Ohris 3artung its City Manager, who resides
•
r
is Denton, Denton County. Texas, upon Whom service of citation
may be bad:
That Elinor Hughes was duly elected as a member of the
C:-ty Council of-the City of Denton, Texas on the 5th date of April.
• 19"., and :hereafter qualified by subscribing to the constitution
al oath of office, and was duly seated as a member of the City p;
Council of the•.city "of Denton, Texas, and was elected as Mayor,
of the-City ofI-.Denton, Te°.as by the City Council of the City of
Denton, Texas.,
That thereafter,-on the 9th day of June. 197$, Elmer Hugh
• during' her -terra of office as a councilperson of ;.ne City of
Den on, Texas was appointed as a Dirt- -'_jr of Texas Municipal Po'ae 4
Agency, and assumed the office of Girectoz of Texas Municipal
Power Agency,:and.continues to so ac!:-
Iv
That Jce`Mitchell was duly elected as a member of the City ,
Council of tha City of Denton, Texas on the 5th day of-April 197,_
ORIGINAL PETITION` - Page One
d.
and thereafter qualified by subscribing to the constitutional
-oath of office, andwas duly seated as a member of the City Count
of the City of Denton. Texas that thereafter, on the 19th day
of July, 1977, Joe Mitchell, during his term as Councilperson o~
_ ty--
the City of Denton, Texas, was appointed as a Director of Texas
Municipal power agency, and assumed the office of Director or
Texas Municipal Power Age-:cy,- and assumed the office of Director of Texas Municipal Power Agency, and continued to act as such
until the City Council of the City of Denton, Texas was organized ry
subsequent to the Regular Annual Election in 1978. r"
V. =N
! That Bill Nash was duly elected as a member of the City
Covhncil of the City of Denton, Texas on tr. 1st day of zprilr l
and thereafter qualified by subscribing to the constitutional
• oath of office, and was duly seated as a member of the City .
Council of the City of Denton, Texas; that thereafter, on the
9th day'of June, 1978, Bill Nash, during his term as a Council.-- x
! person of the City of-Denton, Texas, was appointed as a Director',
of Texas Municipal Power Agency, and assumed the office of Dir-
ector of Texas Municipal Power Agency, and continues to so act
! to the present time.
VI.
That on FrA_.da:y, June 30th, 1978, at 1:30 P.M., Joe Mitcheli..
Mary Claude Gay, Bill Nash, Dick Stewart and Elinor Hughes pur _
ported to hold ameeting of the City Council of the City of
Denton, Texas and purported to enact an ordinance entitled: k
ORDINANCE NO. 78-24
AN ORDINANCE'A%MMING CHAPTER 25 Cr THE CODE OF ORDINANCES
OF THE CITY--OF DENTON, TEXAS, PROVIDPNG NE4 WATER AND SEWER
TAPPING FEES AND NEW SERVICE RATE CHARGES FOR WATER hND
SEWER, VICE: REPEALING COrIFLICTIlvK; ORDINANCES: PROVIDING
A SEVEP:4BILITY CLAUSE; AND DECLARING ILIq EFFECTIVE DATE.
VII.
That on the 5th day of July, 1978, at 5:00 P.M., Joe Mit
Mary Claude Gay, Bill Nash, Dick Stewart and Elinor Hughes pur--
ported to hold_a meeting of the City Council of the City of
Denton, Texas, and purported to take certain legislative action
OP 7GIPRL PETITIAK- - Page Two
y : ;ls
1 • •Y
- e
behalf of the City of Denton. Texas. Among other purported
action taken at such purported meeting was the- purported passage E'
of an ordinance, entitled:
ORDINANCE NO. 78-25
AN ORDINANCE AMENDING THE ZONING MAP OF THE CITY OF
DFNTON. TACAS -AS SAME WAS ADOPTED AS AN APPMIDIX y~
TO TiD~ CODE_°OF ORDINANCES OF THE CITY OF DE:TTON,
TEXAS BY ORDINANCE NO. 69-1, AND AS SAID MAP APPLIED
-
TO A`PORTION OF LOT 13.3; Block 178-J, AS SHOWN THIS
-DATE ON THE OFFICIAL TAX mAP OF THE CITY OF DENTON. TEXAS,
AND_MORE PARTICQT.mRLY DESCRIBED THER.T;IN; A.ND DECLARING
=il
• AN EFFECTIVE DATE.
and fur}er purported to pass an ordinance, entitlad_
ORDINANCE NO. 78•-26 s
4t
AN ORDINANCE AMENDING THE ZONING MAP OF THE CITY OF
iPEyTON, TEXAS,, AS SANE WAS ADOPTED AS AN APPF. MIX ~r
TO THE CODE OF ORDINANCES OF T5E CITY OF D NTON, TEXASr
SY ORDINANCENO_ 69-I, AID AS-SAID MAP APPLIED TO A PORTION
OF LOT 20, BLOCK 3630, AS SHOWN THIS DATE ON THE OFFICIAL _
TAX MAP Or "_'f3E CITY OF DENTON, TEXAS, AND MORE PARTICULAR--
LY D~CRIBED !HEREIN; A.NI? DECLARING AN EFFECTIVE DA_E. ~
•
and purported to authorize the purchase of certain land for :ho- ,
extension. oz viewer treatment facilities.
That perforce the foregoing allegations, no quorUM was Pres
« either the ppo-ted meeting held on June 30. 1978, or the
purported meeting held on the 5th. day of July. 1978, and that
• all actions purported to have been taken by the named persons
purporting to hold such meetings are null and void and of no for
and effect.
WHEREFORE, premises considered, your Plaintiff prays that
citation be issued and served as provided by the Rules of Civil
procedure and upon hearing hereof, this Honorable Court enter its.-
judgment declaring all of the purported action purported to-have -
been taken at the purported meetings of the named persons on the.'_"a
30th day of June, 1978 and the Sth day of July, 1978, null and
void and of no 'force and effect, declaring the offices of Council
men purporting to be held by Elinor Hughes, Joe Mitchell, and
Bill trash vacant; and to issue its most gracious writ of injunc-
tion enjoining the City of Denton, Texas, its officers, agents
and employees from performing or attempting to perforlm any act:
required to be performed by any purported legislation purported
M
ORIGINAL PETITIJN Page Three
~E
r to have been enacted;'at such purported meetings, for costs of
suit, and for such other relief, both in equity and iv law, to
}
which-Plaintiff may show himself justly entitled-
Respectfully Submitted,
WILLIAM E_ Z+RA. T
ATTORNEY FOR PLAINTIFF
1005-C West University Dr.
P. O. Box 395 -
Denton, Texas 76201
i`
~ Cai ~F A TR.'? COPY f
'12$t2 iet _YJ~ PIrL~'~
1Tp.. a E
' F
ORI=?J. PETMON - Page Four
FILED
F; ru 11 IZ
NO.
• -a' CO. ILL. - '
C. O. $IASDELL:. ET ) t V THE COL'41 r CO V AL
Fy
VS. AT LAW
OM CITY OF DENTO'[ . 'TEXAS, ET AL ) DF,%-= COGS iY, T£.° AS «
ORTCDIAL PETITION
THE,.HOIIOR.E. JITDGB OF SAID COURT:
C.:?,'E ; C. 0. BLASDEIS. and 8.1NDAI:. BIDDY, Plaintiffs, complaining of
r
the City of Denton, Texas, JOE NXTC=. Mn:o& UUMES, `BAR'= C. GAY, RICH= A)r
• STEMT, R_ S. SASH, ROBERT NELSON and CMIS ti,1IYiC'NC, Defendants, and for esuise-~
of action would respectfully show the Courr:
~Y
I.
• -nat-the City of Denton. Texas is a municipal corporation, wholly situsa-' ~
ted within Denton Conty, Texas, and organized under . dome Rule Charter, with
ago= HOLT icr City Secretary, upon whom service may be had at his o£ftre in
the city Hall, Denton, Deacon County, Texas; that JOE :~T_CSEZ.L is a resident of° `
Denton,, Denton County. Texas, where service of process may be had upon him;
Texas, where service
that EL-MR ==S is a resident of Denton, Denton County,
• of process may be had upon her; that `MARY C. GAY is a resident of Denton,
of process may be had upon her; tbat
Denton County. Tutors, where service
RICBARD 0. STEW= 3s a resident of Denton, Denton County, Texas, where ser-
vice.of process may be bad upon him; that W. s. NASH is a resident of Dentva,
5
Denton County, T.sxas, where service of process =y be had upon him; that
1:.D=tT NELSON is a resident of Denton, Denton County, Texas, where service oi-
I
process rsay be bad upon him; that CIMS HART NG is a resident of Denton, pL
Denton County, Texas* where service of process may be had upon him. x
IT.
t:
That the Plaintiffs, and each of them, are resident- _.cpayers and
qualified votes of the City of Denton, :eras, and coasumiss of meter frog the
water system owned by the City of Denton. Torras, and service from the sancta
sewer system awed by-the City of Denton, Texas. 't
_ - is
d p s
V _
That the City of Denton. Texas, in its proprietary capacmss'
operates and maintains a water system and sanitary sewer system' and sells
water and farniss sever services on a co=nercial basis from such water atnd
sewer systems.
IV.
That the Defendants, JOE MTTCHE+s-, Mr` HUGHES and W. S. NAM (well.
knowing that they had vacated their positions on the City Council of the City
of Denton, Texas) joined by Defendant--! VARY C. GAY and RICHARD 0. STEWART (who
•Ck ,
wall knew. that zlne Defendants JOE zL=OR HUGHES and W. S_ MASH, had
vacated. their positions on the City Council of the City of Dettob.. Texas) gave
3y
notice to the consumers of water and sewer services from the rater and sewer
of the City*s intention to enact an ordinance raising the rates for
system
water and sewer s.-rvices furnished by _nr C.ity, such rate increase to be effec- t
k
tive July I, 1978.
V.
X`
That on Friday, .Tune 30, 1978, at 1:30 P.M., JOE MITCHELL, MARY C.
W. S. NASR, RICHARD-0.'STIMWART and MJNOR HUGHES (each well knowing that the
i
Defendants JOE MYTCHML, ELI<IOR• ' W. S. HASH had vacated their p.-sitivas A F
on the City Council of the city of Denton, Texas) Purported to hold a meeti4-<_1
and purported to take such f
1; of the City Council of the City of Denton, texas,
?s~£Slative action on-behalf of the Citr-v, i.e., Purported to enact an ordinance
,Y
entitled: z
ORDINANCE No. 78 - 24
ORDINANCE. AX=WG CggpTgt .5 OF THE CODE OF ORDYr1ANCE.S OF
THE CITY OF;.D&r=.-TWS; PROVi'")TW- M WATER AND =4Eit
G FEES'AM NEST'SERVICE RAT: CHAP.M. FOR WATER AND SEWER
SIItQICE:.RE~E~L~G ~'ICTM ORDI &X=S: PROVIDMIG A
SEVrTA ZlTy CLAUSE. AMID DECLdRIhG ATI EFFECTXVE DATE-
that such purported ordinance provides that the rates established by such p
ported ordinance shat' take effect July It 2978_ w.
That perforce the foregoing allegations, no %,uorum was present at the
setiz~t Of the City Council of the City o" Denton. Texas, held oa
F7ott s
June 30, 1978, and that all actions Purported to havc oeen taken by the named'
persons purporting to bold said meeting are null and void, and of no force
and effect.
• • _ ' y -2-
That notwithstanding the invalidity of the purported ordinance, never
theless the Defendants=CHRIS HART[NG and ROBERT NELSON have enforced the pro-
visions of the purported ordinance retroactively against your Plaintiffs under-`
the threat, of discontinuing service to- them and each of them, and the class of
which they are a part, resulting in damages to the Plaintiffs in the sum of
Y.
VIX. 1f
y
That the facts Sereia alleged constitute a deceptive trade practice
a vithin the meaning of the Deceptive Trade Practice-Consumer Protection Act, ,and
the Plaintiffs are entitled to triple damages, together with reasonable attor-
k.
ney`s fees.
That the amount of excess-cnarges for water and sever services is Part:7
cu7jx1y within the knowledge of the Defendants and is not available to the
{ Plaintiffs, the Defendants should be required to furnish an accounting.
VBEZEFM, preaises considered, Plaintiffs pray t Defendants, and
the Roles
each of them, be cited-to appear and answer herein, as provided by,
of civil Procedure, and u>= hearing hereof, this Honorable Court enter its
judgment declaring tha-positions of JOE , ELINOR HUGHES and K. S:'NAM_L
on the City Council of the City of Denton, Texas, vacant; that this Honorable
Court appoint trustees to serve in such positions until such time as such g
positions are filled in the manner provided by law; rdat this Honorable Court
enter an order requiring the Defendants to file a sworn accounting of the
amounts of excess=rates for water and sewer services.collec!ced by the Defend =
ants undex the provisions of the purported ordinance herein alleged; that
judgment be entered herein against Defendants, jointly and severally, for the-
individual customers: and consumers of services from the municipally owned waterand sewer systems in an amount three times the amount of excess charges collec_
ad under the p,-rported ordinance hereinabove alleged, together with reasoaab'La-'
attorney`s fees, for costs of Court, and for such other relief, both general r~'_
and special, in equity and in lax, to which plaintiffs may show th.°mselves to
~r -
be justly entitled.
Respectfully submitted,
-3- X MVIN
'FJONA
j,
a
No. 78-1462-A
sv~s~ 121 En
•r-
DON EDWb1RDS X IN THE DISTRICT COURT OF
DENTON COUNTY, TEXAS
X
V.
CITY OF~DENTON, TEXAS Y 16T3 JUDICIAL DISTRICT
JUDGMENT
on the 4th day of January, 1979, came on to be heard the above
styled cause wherein Don Fd-.:az%Ss is plaintiff and the City of Denton, s=
Texas is defendant.
The City of Denton.. Terms, having filed a motion. For sumary
jzulgmeat, an3 said motion for summary judgment hav ing- been duly set
by the Court for hearing and copies of said motion and other docu-
ments having properly been served on plaintiff and due and proper
notice of said hearing having been given to plaintiff, all parties
appeared on t,%Ie above mentioned date, by and through their attornets l
of record, and said motion for wj=nary judgment of the City of Denton. u
Texas, was duly and properly presented to the Court. r.-:.
The Court, hawing. considered the pleadings, affidavits, and other
instruments on, file herein, and having heard the arguments of counsel,
finds that the law is with the defendant, that there is no genuine
issue as to any material fact, and that defendant, City of Denton,
Texas is entitled to Judgment herein as a matter of law_
It -i.s, therefore, 'CSDERF.D, ADJUDGED AND DECREED that the motion
for summary judgment of the City of Denton, Texas should be and. paid
motion is hereby in all things GRANTED.
It is;, further, MDERID, ADJUDGED AMID DEC?.. that all relief
requested.by plaintiff against defendant is hereby in all
T denied and that gIintiff recover nothing herein.
It is, further ORDERED, ADJUDGED AND DECREED that all costs of
court herein are taxed against plaintiff, for which let execution - .-t
issue- s
y
SXG= this of January, A. D. 1979.
DISTRI .TUDGS ,
r.J i~
o
TREASURMS RIFT
THE STATE OF TEXAS: ' -
• COUNTY OF DID.TON -
CITY of D8a,1'M7
r,
The under3izned hereby certifies as follows:
0 (a) That this certificate is executed 7 .ad delivered with reference to that issue of 2
City of Denton Water and Sewer System Revenue Bonds,
Series 1979. date March 15 1979, in the principal amount of $ 4, 000.000
(b) That the undmzigne is the duly chosen, qushtied. and acting 1krssurer of the issuer of
Wd Bonds-
- _ ~ea
(c) That an of said Boruhs have been duly delivered to the purchasers thereof, namely-
Merrill Lynch White Weld Capita Markets Group and Associates
(d) That all of said Boaft i~1 been paid for is full by said purchasers c o %enrrentIr with the
ddivety of this eartficSLe, and the issuer of said Bonds has received. and hereby admowleuge-,
receipt ot the agreed purebase pries for said Ponds. being the par or principal amount thereof
to the date of deliveryo plus a premium of $596.25.
s acccobd interest
y
(e) Thatat- hiterest cwrpotwrepresentmg interest scheduled to come due on said Rcnds were
attaebed to said Bonds at the time of delivery thereof ; except that all interest coupons. if say. "
scheduled tooome due prior to the date of delivery, of said Bonds were detached and cancelled prior .
to said deUverr.
EXECUM and delivered this APR 5 1979 -
it
-
r
CLOSING` CERTIFICATE
THE STATE OF TENS
COMMY OF DENTOH
C_-= OF DENTOI3 '
We, the undersigned-omficers of said City, hereby certify'
as follows-
I- That this certificate is executed for end on behalf 4
of said City with reference to the issuance of the proposed
CITY OF DMMV, WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 'f
1979e DATED MARCH I5,-1979, in the principal amount of -
$4,000,000, and its Official Statement with respect thereto:
.2. That, to our best knowledge and belief:
(a) the descriptions and statements of or per X.k
to ning`to'the City contained in its Official State-
ment dsted February 15. 1979, and any addenda, supple- Y
ment;or_amendnent thereto, for its $4,000,000 water r
and Sewer=System Revenue BonA,r, Scries 1979 on the
date of such„'Official Statement, oa the date of sale of said Bonds and the a -ceptance :of the best bid there--
for, and on.:the.date-of the delivery, were and are true
and correct is all material respects:
_ (b} .insofar as the City and its affairs, includ-
-ing its Einanca.al affairs, are concerned, such Official `
StatemmentI'di&'not and does not contain an untrue State-
meat of a.-material fact or omit to state a material;
fact-required-`to be'stated therein or necessary to-make
the statements therein, in the light of the circums-antes
under which they were made, not misleading;
(c) insofar as the descriptions and statements, in
cluding financial data, of or pertaining to entities,
other than the=City, and their activities contained in
such Official Statement are concerned, such statements
and data have been obtained from sources which the City
believes.'ro he'-reliable and that the City has no reason
to believe-that they are untrue in any material respect;
acid
.4
(d)..-there has been no material adverse change in
the"fines-ia condition of the City, since September 30,
1978, the'-date of the last audited financial statement
of the city_ rj
SIGNED AND sEAZED this APR 5 - 1979
e
-7 7 City, secretary Mayor
(SEAL)
LAW oFP1cE5
ms CALL. PARKHURST HORTON
1400 MCwCAtM9X SM4K SU1LD4,10 -
..owwr K. rcuai - DAU.AS.TEXAS 75201 m«r o- wcCP\L ~.~~r-.~u~
.Y aROwMR "lluww ►wRR"uRR f.wwR-.w+)Jl
nRww w- Twwr ANMCm 06] &_0501 G1~11C"Gw w. Cww.,w 1.Rw).1Mil
wOr M. R01wwRT
wlawlm` nD APR 5 ~
0. C..Mlww 11wwUla 41ww
CITY OF DEN-TOTS WATER AND SF. WER SYSTEM REVENUE
BONDS, SERIES 1979, DATED MARCH 15, 1979, IV
THE PRINCIPAL A.'KOLNT OF S4 , 000, 000
AS BOND COtTXSEL for the issuer (the "Issuer") of the
bonds described above (the "Bonds"), we have examined I-- to
tee legality and validity of the Bonds, which bear interest
from their date, 'until maturity or redemption, at the follow-
ing, rates per annum: '
maturities 1981, 6.758 maturities 1991, 5.308
maturities 1982, 6.75% maturities 1992, 5.40%
maturities 1983, 6.75% maturities 1993, 5.403
maturities 1984, 6.758 maturities 1.994, 5.403
maturities 1985, 6.75% :maturities 1995, 5.508
maturities 1986, 6.758 maturities 1996, 3.,608
maturities 1987, 6.758 m:at::_-ities 1997, 5.753
maturities 1988, 6.60% maturities 1998, 5.758
maturities 1989, 5.30% maturities 1999, 4.758
maturities 1990, 5.30% maturities 2000, 4.758
evidenced by interest coupons payable on jULY 15, 1979, and
semiannually thereafter, and maturing serially on JGLY 15 in `
each of the years 1981 t'arough 2000, and with the Bonds being
redeemable prior to their scheduled maturities on .7U:.Y l5,
1992, or on any interest payment date thereafter, in accor-
dance with the terms and conditions stated on the face of each
of the Bonds.
WE HAVE EXAXIXED the applicable and pertiner.%- provisions
of the Constitution and laws of the State of Texas, and a tran-
script of certified proceedings of the issuer, and other per-
tinent instruments authorizing and relating to the issuance of
the Bonds, including one of the executed Bonds (Fond `o. 1).
BASED ON SAID EXUUNATION, IT IS OUR OPINION that said
Bonds have been authorized, issued, and delivered in accordance
with law, and constitute valid and legally bindin(Z special.
obligations of the Issuer; and that the interest on and ^rin-
cipal of said Bonds, together with other revenue bonds of said
City, are payable from, and secured by a first lies; on and
pledge of, the Net Revenues of the City's Waterworks and Sewer
System.
ALSO, IT IS OUR OPINION that the interest on the Bonds IS
exempt from Federal Income Taxes under existing statutes, re.T.:-
lations, n:liags, and court decisions.
WE RAVE ACTSED AS BO!'M COUNSEL, for t':a issuer for the sole
purpose of rendering an opinion with respect to the legality
and validity of the Bonds under the Constitution and laws of
the state of Texas, and with respect to the exemption of ;-he
interest on the Bonds from Federal income Taxes, and for no
other reason or purpose. We have not beer. requested to in-
vestigate or ve:rIfy, and have not independently investigated
or verified, any records, data, or other material relating to
the financial condition ox capabilities of the Issuer, ar_d have
not assumed any responsibility with respect --hereto. We nave
relied solely on information and certificates furnished to us
by the Issuer with respect =o past and future Net Revenues of
the City's Waterworks and Sewer Svstern.
M
cr Tc the
the Bond or-
re- ISSUER has resarya.~ yreference,
TUB
stated, and adopted by
dinance, to issue additional parity =avenue bonds which as d
=Lay first l+e^ on and
ay be made payable from, and secured by a
pledge of , the aforesaid Net Revenues.
THE HOLDERS of THE BONDS• and the interest coupons ap-have th pertaining thereto, shalln~sera sad o etozbe~raise ydtaxation.
ment thereof out of any
Respectfully.
3
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