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HomeMy WebLinkAbout1979 M y M ~ rl r a'rr y ~ w Ott .~4 :r• 1 i l • 'r F+, s CITY OF DENTON Y WATER AND SEWER SYSTWI REVENUE BONDS SERIES 1979 $4,000,00u N . _i • i TRANSCRIPT OF PROCEEDINGS WITH DELIVERY PAPERS 1 ~ x V_Z. . ..Yana ~cr`-~aR~ Vr < •cyi- - n ~ySTATE OF TEXAS 'Ti'• - -T _l H. 1. O DDn'ON CW P AMEISCA, ~ ~lJ . MOM ± s % ♦ - L KI.+M1- Rte. - ~y 'is v am JULY M. Im !~u2 S ,i a N - .tS (p l~eD~et~eJ e~est .sue " -t~~d(r s 4t LptatlC~RP7. p~ ^ ~ ~ J ..a BOTS owl x s t- Deg ee% 9,* 0 r 7 "m La ~Aa < ar•Z^'' 'ss N - b.79 l9C' AlMUM. _ Dowd i+ oaf ♦ r , ~e xwri~gii Drs, E yq.ete is, !l7J~ aw[ aN there~rr moor fun . - bt peeablr ._sww. rrr/ef wrarl - • rift P NCPAC_et . APM X,ps}atilut ad-ss"afttr-et: ~r a -;UM or aw:vAumLw4fm.'wf_ = lafamd as the 'TAY ARMILt • Iirft&_ SS1s~Na ~s_ems ~ 5sr/eer-J ys. of MAR= -1S. t9TS• earlwr&'S& au.d aarwiea a the P•~b.dr.[ F AM M ROA. 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I r1 8 - » + A w0 wO C _ - rF + } FPP,k~ 0* "LL 2M Z-1, - M -1 N -r w + ~ 1 } COADMADIMEWS REGZMR NO. 4W 7t&j71V t~nrjCA E Y 13wil e+difk ~d tifs beat bas um MOM619 , wwtet ' wt.4l+e~bs as.jtbmwSOMMMEsf tsi SE.h of r•.a~ hm bom ~hrot ]w S; comp&e9'ar of Pabne dowonb of me s dw of r'a m& • ~ :'th'Eti Jl r Cv (1Y,~:~ 2.~'fiE2 W~~saO+~aBi►*aadaMT~fi - 1, y ~ -rt._. » 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 %F `as r -"=r4 =3 • . 3K y x~ .TRH T ~ v } TY • to e ~1 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 bwa aft flee AkAWC1081, euaerio. 213 6. NKKiMW - WMv. Wk "M C" at OVOW: 177 - OW "M i am "W~ ~ a" OGPO RfWih xM tom. 17Si s> ` - - Y...dLMD aid O %I r : Mrs O a dMb NWriMU 11 _ OiYrOr .ls rC6- YRK 1Ml f hg- "WW'Q* 2M s+wa DwB ow-rr "M61e► fan4-• be , spok" fib tb ~rypMrbWfa ~sr. ffwrerRwO CRY COLOWK. CRY OEM" bfafOrflYl~p pn }11►~OMCW wti0~ efrOW by CMh CSI An ~b b bi iM M ~ be MW - - - 1rb Dppr+til~ pprerdr• d tn! "1K C saw-.am 0111CM& RCM-,am bfaine DrrPSr"M . awn ,rut . Do = srlua tb ;S o1w Dinars an or 13 WW Sato."" .pwo MM. MKC'^" iuian+ . C IAM a=1. rwlemiai r..CIMti,aiwr ro am 0% am WM M" 'D 1W order Of "W CWv COU"Ca I-at "MC" CC Owea4> ff%ooKswmT e a°~ C1ey of OfayM.jwu T TAv__ r 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 S' ra~ac , Ey »s» Law ~r >a ~F Y cat - oRZCn X. T'h''rrxoiC - rage tour 1:13 jM5 -9 fdS ,1: 31 -i_ rem { No. ,k 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 • •;ie Yy w.y y X 3 ~-4 "t Yt c-_y Y M