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04-1982
1 f G` I „ S i 1 , , ' ! ~ ~ ~ ~ i~~l CITY SBCR ARY'S HILB PACKHT N THS FOLLOWING INSTRUMW IS RLBD IN THE FILnS OIL THS CITY SBCRBTARY; F ~ t 1 , f 11 r TO WhOM IT MAY 0=kfft We tho Oitizona or.Oroaa Rcaae• TeXa6 and the Oderoignned,ad. drops too followipg gri;ovanoe to tha ~entan My aaunai1 ~he Texas Sate De rt~ont or Hsaltl,) The xeXUS Water'quality Board, and the U. 8, Army Ooipp of ingineorw oonoorning the Type X LAndfil l luoated within` the extraterritorial f uriadiotion• of )ftho city of oroesRoado, Texas, 1,) Trash on, tho access road to the Landfill is not being plukod up, 24) pwaljing on private and public property within the Oity Limits of OrmRoada is becoming more flagrant, 3.) Loaohate from landfill Clows directly into lAtke rowi svi lle, 4.) Garbage is apt bo#g oovcred daily,per Type 2 !Andfill apocirloations, 5,) Landfill has boot clevated above tree level, and-in an un. sightly obstruction to the beauty; alid ecology, of the aurroundint area, 6.) Aoooes roads to tho landfill are in bad repuiu, ~ N; ~ UUftF.SS i ' f LAJ X-Z lay; 4 1, ' D r tF /Ul C-~/ 7 ~ .__.__L_.._.. r ..L._.~~..~" C i _~--r•~~,.,r.1 .rte U' CW 44, c9k (lid , AWL, r I y i" ~ ~ Nos ORDENANDA LUMANDO Y ORDENANDO UNA ELECCION QUE DEBERA LLEVARSE A CABO EN LA CIUDAD DE DENTON, TEXAS, EL DIA 3 DE ABRIL DE 1982, CON EL PROPOSXTO DE NLEQXR UN ALOALDE MAYOR Y DOS MIEMBROS PARA EL CONOILIO DE T,A OIUDAD DE DENTON, TEXAS, PARA OOVPAR LOS LUGAUS 7o 6 Y 51 ORDENANDO QUE BE UTILIOE EN DICHA ELEOCION EL SISTEMA ELEOTRONIOO TARJETAS PERF'ORADAS PARA VOT401ONi ESPECIF'ICANDO LOS LUGARES PARA LAS CASILLAS PARA VOTARf NOMINANDO LOS FUNOXONARIOS A'CARGO DE LA ELECCION, Y PA CILTTANDO LOS MATERIALES NECESARIOS PARA DICHA ELECOION, EL CONOILIO DE LA CIUDAD DE DENTON, r!;XAS, MEDIANTE LA PRESENTE, ORDENA i SECCION I. De aouerdo a lag oondioiones y estipulaoiones de la Serion 9.01 de la Carta Constituoional de la Ciudad de Denton, Texas, y por medio de 1a presente, se ordena quo se lleve a oabo una eleooion munioipal on is Ciudad de Denton, Texa~e, el dfa 3 de Abril de 1982, oon el propesito de elegir un Aloalde Mayor y dos (2) miembros para el Conoilio de la Ciudad de Denton, Texas, que,doberikn satisfaoar los siguientes requisitoei Pue'sto 7'- El Aloalde Mayor debera' nor eleoto por un perfodo de dos (2) AP4osr ruesto 6'-`MioMbro d l aonoilio quo deberd oar eleoto por un'perfodo de dos (2~ s4Soe. Los oandioatos pera el Puesto 6 deben residir on uno de los Distritos Partioulares 3 o 4. Puesto tS Miembro del,Conoilio quo ebera ear eleoto por un periodo ' de dos (2) `afto's'. Los nand datos para. el Puesto 5 deben 9 residir an uno de Ion Distritos Partioulares 1 o 24 oada'uno debiora oar eleoto por la mayorfa de los eleotores autorizad,oe para „votar,en estj~ oiudad do Denton► Texas, Las oadillae de:votaoion Para dioha eleooion el dfa 3 dq Abril de1982,. P dbbert(n vornaneoex abiertas de lam 7400 A,M, a lam 7100 P.Ms, y lag oasillas de,'votaoien io tae urnas eleotorales debere(n seguir lag"sigaientes espeoifi- 60.bi`onee i to Todos Ion eleot'ores autorizados para votar en esta oiudad quo residan an of Distrito Partioulair No, i deberi(n votar one AMERICAN LEGION HALL 629 LAKEY STREET DENTON; TEXAS ~2, Todos lon elecltores autorizadoo Para votar on esta oiudad, quo residan on el Distrito Partioular Na, 2 deberA votiv ens TRINITY PRESBYTERIAN CHURCH 2200 BELL AVENUE DENTON, TEXAS 3, Todos los oleotorea autorizadoe Para votar on esta oiudad quo residan on el Distrito Partioular No, 3 deberA votar em NORTH LAKES RECREATION OENTER 2001 WEST WINDSOR DRIVE DENTON, TEXAS 4, Todos los eleotores autorl,zadoe Para votar an esta oiudad quo residan on el. Distrito Partioular No, 4 deberan votar ens DENIA PARK RECREATION CENTER 1001 Parvin DEkON, TEXAS SICCTON Iix Los funoioharioo a oargo de dioha eleoidn el dfa 3 de Abzlil do 1982 debera'n' ser los siguiei test Don Piokens sera el Juez on Cargo del Puesto Central Para Oomputo'do Votos, (b) Joann Oarbaoik sera AdMinistrodOra del Puesto Central Para d6mputo de Votos, (o) Marilyn Robinson soya Supervisora do Tabulaoion do Votos del' ',Puerto Central Para Computo de'Votov, 2, Jo Lukersera el Juez an Cargo de la' Casilla'de''Vo,taoiA looalizada en'ol edifioio de Amer3,oan Legion Hall an el Distrito Partioular 'Nos 14 ` 3, Doris Woodruff 'sera el J11ez on Cargo do la Casilla'de Votaai4 looalizada on Trinity Presbyterian Churoh on el'nistrito Partioular 4o `Lee Knox sera el J'uex an Cargo de la dasilla de Votaoidn lobtilizads. en 'el Centro de Reoreaoi6n de North Lakes on el Distrito Partioular No; 3 5, Mrs, Terry Jordan sora el Juez en Cargo do la Oasilla de Votaoidn looalizada on el Centro do Reoreaoier.'Del Parque Denia on el Distrito Partioular No, 4o6, Charlotte Allen, Sooretaria de la Ciudad oonduoirai lag Votaoiones por Aueyroia estipuladas.bajo el Oddigo itootoral de TeXas. X Los respeativos J'uooes an Oargo do oada Oasill~4 de Vot.ac-ion y del Puesto Central Para Computo de Votos estaran autorizados Para deeignar un nVmero sufioiente de Dependiantes quo ellos oonsideren neossario Para ayudarles an dic:ha eleooion, inoluyendo ayudantes bilingUss oomo to requiero la ley, SECOION IV$ Votaoi A por Ausenoia se llevara a oaho on la ofioina de la Seoretaria de la Ciudad on el Edifioio biunioipal looalizado en 1a oalle de East MoKinney on la Ciudad de Doyston, Texas; y las urnas Para votaoion por ausenoia deberan permaneoer aUertas pare Voter en persona desde las 8100 A,M, a las 5100 Mot de Lunes a Viernes,durante las horas asignadas Para votar por ausenoia, MOXON V. La,Sehrotaria do la Ciudad, mediante la presente, esto autorimda pera pros, ,fir la 0401ula de Votaoi6n Para dioha eleogion, y pare ejeoutar todas y oada una de las tareas requeridas por la Oarta Constituoionall'ds la Ciudad de Denton, Texas, y por las leyes del Eetado de Texas referantes a la''manora de llevar a oRbo las eleooioneg. 0900 :ON VI4 Se ordena tambion quo el Sistema Eleotr~nioo do MarJotas Porforadas para Votaoidn quo ha lido adoptado por el.Condado de Denton, sea utilizado en diohm eleooion', de aeuerdo oon los terminos y esti;~laoienes del Aitioulo 7,1,5 del Oodigd ElootoraI do Texas,,El Sistema El.eotronioo de Tarjetae Perfbradam-para Votaaidn deber4 ser'utili.zado twhbian para VotaoioA por Ausohoia, tanto on persona oomo por eorreo, PASADO Y APROBADO el dia ib de F'ebrero de,49820 CIUDAD DE DENTON, TEXAS CHARLOTTE N, SEORETARIA DE LA CIUDAD CIUDAD DE DENTON' TEXAS ;)4 V TEXAS ENERGY AND NATURAL RESOURCES ADVISORY COUNCIL. 200 EAST 18TH ST11 7, AUSTIN, TEXAS 78741 April 3, 1982 Mrs John'G Energy Co ,lator City o nton M clpal Building enton, Texas 76201 Dear Johni The amendment to contract #0897 has been fully approved and Is enclosed, Please forward the contract to the appropriate city department for their records, I took forward to working with you and your staff for this extension period, If we can help In any way please don't hesitate to contact usr Sincerely, I Morg C,Vordinator, Local Government Program i LM omd grlelosura 1;o•Chahineit: VICe•Chalrmen: executive 01rectort Vh1liam P ClnWontf, Jr. %Vhllam P. Hobby 8111 Clayton Milton L. Holloway UJvenwr Lleutonant Onvernor Speaker of the House 0 STATE OF TEXAS 0 AMENDMENT If 2 to 0 GRANT AGREEMENT COUNTY OV TRAVIS CONTRACT Il 0897 1. Parties This amendment !s made and entered Into by the following parties, being the same original parties to the original contracts The Agencyt Texas Energy and Natural Resources Advisory Council 200 East 18th Street Austin, Texas 78701 The Contraetorr City of Denton Municipal Bullding Denton, Texas 76201 10 017560005146 11, Scope of Amendment The parties hereto have severally and collectively agreed and by the executlon hereof are bound to the mutual obligations and to the performances expressed In the original contract but subject to the following amendments A, Part III,, Statement of Services, is augmented to Includo the followings I, Complete revision of the Denton CGRMP Action "Jan which shall include, at a minimum, a rlorlty.ranking of each energy management option based on appropriate., economic analysis and social/polltical considerations, Strategies for rmplementatlon of each priority option will also be developed within tiw r ian. These additional services are more specifically described In the Con- tractor's CCEMP, Phase Two Supplemental proposid, attached hereto as Attachment C, B. Part IV4, Term of Contract, is amended to reads This'contraet and agreement shall commence September 1, 1980, and shall contlw.f unless terminated earlier ` by other provisions of this contract until September 30, 1982, Co Part V6, Compensation and Payment, is amended to Include the following additional statementsr The Corjtractor under; this agreement shall not purchase any equipment without prior written approval from the Agency. 'Equlpmont is defined as tangible personal property having a useful life of more than one year and an acquisition cost of $%00 or more per unit, Title to any equipment so purchased shall revert to TENRAC at the end of the contract. At the discretion of the Agency and upon written memorandum` to'the contract Pilo, budget flexibility within categories shall be allowed to the extent resulting total by category does not exceed one-hundred ten (110) percent of the original category budget. Larger deviations shall require formal contract amendment. D, Attachment A is amended as followsi TE ORY. TE RAC LOCAL C TOTAL Personnel Saipry $12,160,00 $20,965 $330125,00 Benefit 1,360 00 30535 4,895.00 Subcontracts 281078,88 -0- 28,078,88 Travel 2,:51.74 -0- 2,351,74 Equlpment(lease only) 1,100,00 -0- 1,100.00 Suppllies and Other Direct Operating Expense 61299.38 -0- 61299,38 Indirect -0- -0- .0- TOTAL $5130. $24 500 $75.850.00 111. The above stated amendment is the complete and only authorized departute from the terms of the original contract except as may be provided hereafter by subsequent Ariendments thereto, Executed t.,:+ day of , 1982. Texas Energy and Natural Resources Contractori City of Dentost Advisory Council by by on o o a G. r i Hartung Execu,tlve Dlre0or City Manager A oval Recorri d d: , CaftrTorhbar I `Tl I B darter Division Director Deputy Director r A T 0 W N O F 0 R 0 S S R O A D S MAYORS )FFICR U U CiyM7nag~, yh j~f l(JfhU »3!. L`~ ~..~tri U~• m JAI March 20, 1982 1982 Damon C+.ty Counti APR 1 Municipal Building Denton, Texas Centlemeni We are in reoeipt of a petition from some concerned citizens within our city limits, in reference to the ))snton Landfill. A t copy of this petition is enclosed. We, the 'sty Council and Mayor of Cross Roads, upon indodti-- gating said grievances, find them sill to be factual, and also find some additional violations of the Municipal Solid Waste, HAndReiuent Regulations of the Texas Dapartmetit of Health Resources, We feel that these grievances must be addressed to properly safeguard the general welfare, health, peace and safety of the citizens of Denton County, Cross Roads and Dallas, Sincerely* Gam" Bob Turner Mayor, Cross Roads Aldermen= 5- The attached letter dated March 20, 1982 from the M~~vor cnd Aldermen of the Town of Cross Roads is being distributed as followal The Honorable R, 0, Stewart, Mayer and The Denton City Council Municipal Builain,g 215 Last McKinney Denton, Texas 76101 TexnP State Department of Health Regional 5 Office 701 Directors Drive Arlington, Texas 76010 Attentions Irving Turner Texas Department of T~'Ater Resources Duncanville Office 203 Jamoo I OvIlins Duncanville, Texas 75116 Attantioili Charl'as D, Gill r U; S, Army.'Corps of Engineers Louisville Project Office 1801 North Mill Stra@r, Louisville, Texas 75067 Attontions Gary McFean r~ CITY OF DENTON, TEXAS ' (Aoti4os Ooua4y, 1'oxoo) /$1,500,OV0 'W'ATER AND SEWER SYSTEM REVENUH RONbS, SERIES 1982 Selling Tuesday, April 6, 1982, at 7i00 PM, CST t, This Official $tatemont does not constitute an offer to sell Bonds In any ,(urlsdiction to any person to whom it is unlawful to make such offer in such ,urisdiction, No dealer salesman, or any other person ha; been authorized to give any Informatio0n or make any representation, other than those contained heroin, in connection with the offer{n9 of these Bonds, and if given or made, such information or representation must not be relied upon, The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sold made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the data hereof, OFFICIAL. STATEMENT Dated March 160 1982 INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEWAL INCOME TAXES UNDER EXISTINO STATUTES, REGULATIONS AND COURT DECISIONS 51,600,000 CITY OF DENTON, TEXAS (Denton County) WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1982 Dateds May 16, 1982 Denominationt $6,000 Principal and seml.anoual interest (Oanuary 16 and July 16) payable at Citibank, N,A, New York, New York, or, at the opt~on of the hPlder, at First National Bank in Dallas, oallas, Texas. First interest coupon due July 16 , 1982, Coupon bearer bonds, not registrable, These bonds (the "Bonds") authorized at an election held May 16, 19720 Will constitute speoial obligations of the City, payable both as to principal and interest solely from and secured by a first lien on and pledge of the revenues of the Water and Sewer System, after, deduction, of reasonable expenses of operation and maintenance, as provided by the General Laws of the State of Texas, Particularly Articles 1111 at seq„ RvIled Civil Statutes of Texas, 1926, as amended, MATURITY SCHEDULE Amounntt~ Nat 111111111 Rate Yield Amount Mat _ k Rate Yield i 7: 100;000 716+1y84 1 0 7-16.1 y2 -0- 7.16-1486 100,000 7-1610 3* 0- 7.16.1986 160, 0 7-1gg•1 76,000 7-16.1987 160,000 7- 6.1996* 76,000 7-16.1088 160,000 7.16.1906* 76,000 7-16.1%9 160,000 7-16-1997* 76,000 7-16-1990 160,000 7-16-1998* 1 * The City reserves the ti. at its option, to redeem Bonds maturing July 160 19930 through I; July 16, 1998, both inclusive in whole or, any part thereof, on July 16, 1992, or any interest payment date thereafter, at tie par value thereof plus accrued interest to the data fixed for redemption, Payment Record; The City has never defaulted, F?' 1 Legalityt gttorney 6enerai of the State of Texas, and Messrs or urs or on erne s a a-xas. p non Printed on the on s; ee eta n oes, Detiveryt Anticipated on or about May 18 1982. t, f TABLE OF CONTENTS R Pogo Offiolal.Statem Ati. DesariptM of the'9onds - Elected OfPi0Clals 3 Appointed Officials 3 Consultants and Advisors 3 ntroductory Statement 4 ecurtty for Payment 6 Water and Sewer System Condensed Statement of Operations 6 Autnorl ed%Revenue Bondds 6 Anticiphted'lsSl+4nce oP Voted Revenue Bonds - 6 Debt Service Requirements - Water and Sewer system Revenue Oonds 6 Value of the Water and Sewer System 7 City's E uity in System 7 Water and Sewer System 7/e Monthly Water Rates 8 Monthly Sewer Rates - 9 Proceeds , , g Sumoaey pf.Certain Provisions of-the-Bond-Ordinance 10/14 Electric system 14/20 Valuation end Debt Information 21 Non-Funded Debt - 21 Valuation and Funded Debt History ~•t~ - 22 Taxable Assessed Valuations b Category 22 Estimated Overlapping Funded Debt Po,able from Ad Valorem Taxes 22 Tax Rate Limitation 22 Tax Data - 23 MMunicippal Sales Tax 23 ta>',Rate's of..OverlappingSubdivisions 23 ` 10p Yen TaxpdYe~s , 24 Authorized But :nissued Qenerat. Obligation Bonds 24 Ratings ItlonNa4lon.Regardin.YCity.and-Its-Economy---M--y•-•-•--•---.M--`-----+- 24%28 g ~ 29 } « 29 A, Reglstrion ape qualification of Bonds,f9r Sale 29 Legal Investments in Texas 29 Le al Opinions ani No•Liyi?at10n Certificate - 29 Authenticity 'of F nagolal nfPo mation 30 Financial Advisor 30 I Certifidation of`the. Of ,01 Statement.---........................... 30 City of Denton Texas Selected) Fin'46tI' ' Statements, 6ptember 30} 1981 Aviltabie Upon Request The' Cover page hereof, ,this page, the Financial Statements and any addenda, supplement or r amendment hereto, are part of the Official Statement. 2 ELECTED OFFICIALS 4 Tpeemes 186 c it ewar ~1,-2' Mayor Ray Stephens April, 1983 Mayor Pro-Tom Joe 0. Alford Apirl, 1983 COUnoilm@mber Mark R. Chew April, 1983 Councilmember Dwight Dailey April, 1982 Councilmember fr' Jim Alddlesperger April, 1983 Councilmember Richard Taliaferro April, 1982 Councilmember APPOINTED OFFICIALS Chris N'Rdr ung~ City MARIIIIrIon - 'Rick Svehla Assistant City Manager Betty McKean Assistant City Manager t: W. H. McNary Director of Finance R. E. Nelson Director of Utilities ' Charlotte Allen city Secretary C. J. Taylor, Jr. City Attorney lit IjJ CONSULTANTS AND ADVISORS 1, Bend Counsel McCall, Parkhurst Horton ' Dallas, Texas t.• Alexander Braht & CooVany Dallas, Texas , ~inancial Advisor First Southwest Company 1 Dallas, Texas z gyp'°. 3- z us 1 r' 1NTROOUCTORY STATEMOT This Official Statement of the City of OOnton, Texas, a political subdivision located in Denton County (the "Cit , is provided to furnlsh information in connection with the sale 0 the City's $1,600,000 Water and Sewer System Revenue Bonds, Series 1982 the "Bonds"), The Official Statement was prepared to present for the purchaser of the Bonds Information concerning the Bonds, the revenues pledged to the goods, tho description of the revenue base, factors that may affect pledged revenues, and other pertinent data, all as more fully described hure % See "Table of Contents", Source of P ent The Bonds are and shall be payable as to principal and interest solely f'rom' the not r ve ues derived from the operation of the City's Water and Sewer to inclod• ingg all additions, extensions and improvements thereto which may hereafter be made, after daductioo of the reasonable expenses of maintenance and operation of,the System, See "Security for Payment". Purpose Proceeds of the $1 $00,000 Water and Sewer System Revenue Bonds will be used along with viro mu'ntol Protection Agency Grant Funds, to construct approximately twen',y one miles of intercep~ur sower lines and associated pump stations, to construct advanced secondary treatment effluent filters for the Wastewater Treatment Plant, and miscellaneous improvements to the distilibution, interceptor and collection systems within the City, uture Bo d 1ss os Thn City anticipates the issuance of additional Water and Sewer System "'I onB fin the Spring of 1983. AdmWstration of t e city The City operates under a Nome Rule Charter which was approved e electorate February 24, 1969 The Charter provides for the Council-Manager form of government for the City. Policy-making and supervisory functions art the responsibility of and vested in the Mayor and City Council, r. r at.. , is t~ Fri. , + 4 r ta.. SECURITY FOR PAJ'tNT These Bonds will constitute special obligations of the City, each payable as to both principal and interest and equally secured by a first lien on and pledge of the revenues of the Water and Sewer System (the "Syystem'9 after deduction of reasonable expenses of operation and main -k tenance, as provided by the general taws of the State of Texas, particularly Articles 1111 et seq,, V,A,T,C,S, WATER AND SEWER SYSTEM CONDENSED STATEMENT OF OPERATIONS Fiscal Year Ended 9-368.8 4s 9.33~I~ 9, 77 ncomT e 2 788,,. Expense 3;058,928 2,849,862 2;163,339 _1;978;870 1;703;904 Het Available for :vbt Service 1 623 858 11,657,887 12,020,707 31,672,608 868,881 Water Customers 13'1606 13,2'42 13,094 12,787 12,327 Sewer Customers 130020 12,883 12,634 12,268 11,837 Average Annual Principal and Interest Requirements, 1983-2000 $ 866,916 Coverage of Average Requirements by 9-30-81 Net Income 1,87 Times Maximum Principal, Interest and Roserve Requirements, 1986 $ 11242,165, Coverage of Maximum Requirements by 9.30-81 Net Income 1,31 Times Water and Sewer System Revenue Bonds to be Outstanding after Issuance of These $1,600,000 Bonds $100476,000 Interest and Sinking Fund, 2-1-82 $ 626,367 E'. Reserve Fund, 2.1-82 S C58$268 AUTHORIZED REVENUE BONDS Date Amount Amount Amount Heretofore Being Unissued Purpose Authorized Auth rized 3 Issued Is~ed~ Balance d er 54ued Sewer 6-16.72 G~726~000 3'626'000 1 60o 000 1~000 'MA-00-01-00-0 1 ;1,500.000 ANTICIPATED ISSUANCE Of VOTED REVENUE BONDS The City:Oxoects to 1;~sue the balance of the authorized Water and Sewer System Revenue Bonds in the Spring of 1983, r 0 FBI; dl t. i ~i Li f i. s' 4.n 4P., p~ oQ~ QQ~ oQ~ ~Q~1 oQ~ oQ~ Q4~ oQ~ QQ~ ~i QQ~ oQ~ oQO ~ QY~ ~ QQ~ oQ~ QQ~ 41 V CJ V V V V V V~ VV V V V~ M~ V V M V ~ppA H y W {pO~H (QP1~ yyW1 Y(QW~({ryV~1 M(tyl~~ V ~~p/ v{yV(~1 ~Q~1 `[y(V~~Q~W~1 ~{jp~ `~$oryyf y(yAryH~} ~pqV~ Y GD ~ i~ N N W W~ W A 01 V l iV V V~ lV 1, ti I~Vq~I ~ ~ V101~YWV ~V ~~~~~W~VI ~VVV W aN~ CV 1rpM'O Op~jpp V~+;AQ .,p1 k gMAAofi g ~yf cps qa ~H c7 0000 3 ~i N W N O~VI~~~VO4AVU1 ~ g ~c 73~ra~S25~'Jc~52S8~~~ H w Ch 4,r HUM E (q - Ji V V V V Y V V V V V V Y V Y V ~V S 0 ~sMCO"a' d 1 Y Yrr Vyy V J Vy a ' Y Y VY V V VV YpN Vo~ V V Vryp~V Y V V~p V ~ (N~ in vCl N CO 00 W O~ t8 i~ O+ 1 I'n 1 a p. ~ 44 ypg K : C3 VN2 to ` ri it it 1~~4 n p M i VALUE OF THE WATER AND SEWER SYSTEM Is aado 9.30.9@1 3 -80 930.79 9-30.78 9-30-77 an< -441041-14A yyg is $ ' -391;210 $ 9.3V11210 $ `31 ;041 33731527 3-~ 63g OrosstSystemtValueost 221760' 60 2 113 169 20:9, 642 19!6125,96286 19 2 1738 Less Accumulated NotoSystemtVion aluu 10'7071 64 ♦ 10 01e L285 00 8,891,802 8,314, 668 I 74 $11,024,653 111,1BO,056 CITY'S 1'iOjyY IN $Y$7EM P al Yoar Ended 9-30-81 9.30-80 9-30-79 9-30-78 9.30-77 ur e YU V E~ Plant (Net) $121434,216 ;12,4461614 $11,874,286 $11,024,663 $11,1801066 Construction in P$ 9 41 l 646 497 381 119 689.450 .1 6 v 96 4 .293 Total al Utl Uti ity Plant Construct on Fund 1 : 9 Lessi Contracts Payable 49M98 411 848 3681437- 1 679 20 371 $ B3910? 3 648 M 4,058,898 'IQ E43 016 11353 516 T.019 863 Other Assets Total Resources 12 Ibbl_1_g_attiio_ns eVR enue~onds S 81976,000 $ 9,4761000 $ 9,866,000 s 61230,000 s 6,685,000 Accrued Interest 98.851 104 411 108.423 67 Dross Debt ( X073;651 '411 3 1973;423 1 21191 V61652,'878 Deficit Position - Pooled Cash 1,1771374 772,147 129,276 6271108 727,021 Other Obligations 704 681 660 341 U61569 367 981 32,_624 Total Obligations 1101955,906 tIif;9II1,`6~ 3`T,'178',n}13 zL5jd city's Equity in system $13,1© $_61846j618 $ 6,228,681 6 292 614 $ 6,640,061 Percentage Equity in $ystem 64,46% 38,67% 37.62% 46.37% 41,68% WATER AND SEWER SYSTE Water Su a ,,,present muniOlpal supply is obtained primarlly from Surface sources, but un ergroun sources re available, The City has previouslyY acquired conservation storage right; in nearby Law sviIIe Reservoirr which was constructed by the U, S', Corps of EnO;noers. This reservoir coma ns a total of 4361000 acre feet of conservation storage. The City of Denton holds rights to 211000 %006 feet of the storaga; with the balance being held by the Olty i of Dallas. In recent water rib is adjudication procoodings by the State of Texas, the City of 3 Denton has been Awarded 4,6 million gallons per day water rights from Lewisville Reservoir with the right to "perfect" an additional 6.3 million gallons per dayy. Tha ity ppresently uses approximately 9 million gallons per day, and purchases from the City of Dallas all amounts over 4.6 million g llons, The City is presently re-negotiating the water contract with the City of Dallas, The City's Water Treatment Plant is designed to treat an average of 16 million gallons per day with a peak capacity of 24 million gallons per day. Although surface water provides the major part of total reqpuirements,°the City has underground sources consisting of seven deep wells drilled into the Trinity Sand Oroup, comprising, the Paluxy and Travis Peak sands. The average daily production capabrility from the wells 1s 2.6 million gallons per day, t Future Water Supply' In 1980, the City of Denton and the City of Dallas Contraoted with the Corps o ng naers for the construction and development of gay Roberts. Reservoir in Denton Countyy, located intinediate) above the present Lewisville Reservoir on the Elm Fork of the Trinity River ten miles northeast of Denton, in the contracts with the Corps of Engineers, the City of Denton will pay for 26% of tae construction cost, and the Clcy'of Dallas will pay for 74%. Water obtained from the reservoir will be pro-rated on the basis'of each city's proper- tlonal share of total construction cost, Estimated safe yield of the Ray Roberts Reservoir has j been calculated at 73 million gallons per day, of which Dentolr would be entitled to receive up to 19 million gallons per day. This amount, plus a safe yield of 4.6 million gallons per day 4 7 tt 4i i v~u. obtained from the present water rights in tewisvillo Reservoir, will be sufficient to meet the City's estimated water needs through the year 2005, The City of D3nton is presently conducting a long range water supply study to determine water requirements and alternatives after 2000, Mater sa a Average Maximum Average Maximum Year Da 1 Day Year~~ay 1973 6,6 6;907 12,;0 0 19771 8;394,000 16,466,0000 1974 6,822,000 12,620,070 1979 7,920,820 14,660,000 1976 7,218,282 13,380,000 1980 9,477,386 18,867,200 1976 7,264,000 14,080,000 1981 711171852 16,403,000 wastewater Treatment The City owns and operates an activated sludge type wastewbtur treat- ment ac y, a first element of the plant (with a capacity of 2 MOD) Was placed in operation in 1964, A 4 MOD addition was completed and put into operation during 1971, _A 6 WD Spriagoof 1982 a ppThenCity willsbettaking bidsoforeadBgvanced secondaryntreatment Affluent fIntthe for the plant in oarly 1982. The effluent filters are required to meet future water quality effluent criteria. The estimated cost. of the filters is $1.2 million. In late 1981 the effluent filters were de4lared eligible for Environmental Protection Agency grant funds which presently are expected to fund approximately 60% of the project. MONTHLY WATER RATES Old Rates (Effective - any I$, 1981) Residential Users Billing Months June September Billing Months.October - May Facility Chargge $3.00 plug racitity Charge $3.00 pplus 0 - 20 000 gallons 1,00/M gallons Volume Charge 1.00/M gallons Above 710,000 gallons I.16/M gallons g Commercial/Industrial Users Customer Facility Charge $6.60 plus Volume Charge 0,94/M gallons New Rates as (Effective May , 1982) Residential Users Billing months June Sentgmber B111 Ino Months October - May L , Facility"charge $3. 6 ~pplus Facility Charge $3.25 plus D- 20 MAWS 1,10/M gallons Volume Charge 1.10/M gallons gallons 1.30/M gallons Minimum Charge - $5.00 xt Commercial/Industrial Users Customer Facility Charge $7.25 pplus Volume Charge 1.05/M gallons Minimum Charge - $8.00 4. l T r I MONTHLY SEWER RATES (Effectl0ed Prtes6, 1981) Re, id tt 1 ComnercIaIJlndustrIaI f (December 98% of second nhighest usagedof (Based on 80% of water consumption) but not to exce 26,000 gallons) Facility Charge $2,60 pptas Faciiity Charge $6 60 pplus Volume Charge 0,74/M gallons Volume Charge 0,81/M gallons I New Rates I' (6ffeot ve-iay I, 1982) Residential _ Co~tneroial/Industrial (Based on 98% of second highest usage of (Based on 80% of water consumption) December - February but not to exceed i 26,000 gallons) Facility Charge $3,00 pplus Facility Charge S6.60A1us Volume Charge 0,85/M gallons Volume Charge 0,95 gallons Notei All service outside City Limits at 116% of above rates, PROCEEDS ' Proceeds 'of the.$1,S0Q,000,Water and Sawer System Revenue Bondn will bo used, 'along with Environmental Protection Agency Orant Funds, to construct approximately twenty one miles of interceptor sewer lines and "sooiatod pump stations, to construct advanced secondary treatment effluent filters for the Wastewater Treatment Plant, and miscellaneous improvements to the distribution, inte.,septor, and collection systems within the City, r t>' i, ILI. 4~ SUMMARY QF CERTAIN PROVISIONS OF THE BOND ORDINANCE The City Council will adopt a Band Ordinance (the "Ordinance+') authorizing the Bonds, which will be it substantially the same form as the'Oedinances authorizing the outstanding bonds, pertinent provisions of which are shown belowi DEF_. INITIONS The term "System", as used in this Ordinance, shall mean the City's complete Water ani Sewer System, including all present and future extensions, enlargements, additions, replaceme0s anj Improvements thereto, The term "Net Revenues", as used in this Ordinance, shall mean the gross revenues of the System, less the expense of operation and maintenance, including all salaries, labor, materials, repairs and extensions necessary to render efficient service, provided, however, that only sooh repairs and extensions, as in the Judgment of the City Council, reasonably and fairly ex- @rcised as are necessary to keep the system in operation and render adequate service to the City and the inhabitants thereof or such as might be necessary to meet some physical accident or condition which would otherwise impair the Bonds and' any Additional Bonds permitted to be issued, shall be deducted in determing "Net Revenues". The term "Bonds" shall mean cotloot Ivay the $1,600,000 Series 1982 Bonds authorized by this Ordinance and all presently outstanding 4later and Sewer System Revenue Bonds (the "Outstanding Bonds"), The term "Additional Bonds" means the additional bonds which the City reserves the right to issue, PLEDGE All of the Net Revenues of the System, with the exception of those in excess of the amounts required to establish and maintain the funds as hereinafter provided, are hereby irrevocEtbly pledged the r the payment of the Bonds, and of the Additional Bonds if issued under the conditions and n manner specified In this Ordinance, and the interest thereon' and it is hereby ordai th the ned at thBonds and any Additional Bonds, if so issued, and the interest thereon, shall constitute a first Ilan upon said net revenues. RATE The City covenants and agrees with the holders of the Bonds and the Additional Bonds If and when issued, ' (a) That' it wiII at all times charge and collect for services rendered by the System rates sufficient to pay all operating and maintenance expense, and other costs deductible in determining NNet Revenues" as herein defined and to produce each fiscal r ar net revenues In an amount not less than one,and thirty-hundredths (1,30) times e amounts required to pay the principal' of and interest or, the Bonds, and the Reserve Fund payments, as they become duel :A (tr) if~ Additiohal.Bonds :.are Issued, the City shalt to the extent required fix and malntaio additional rates -and collect charges for the services of the System which will produce each fiscal year "Net Revenues!' in an amount not less than one and thirty-hundredths (1.30) times the amounts rewired to pay the principal of and interest on the Bonds and the Additional Bonds, and the Reserve Fund payments, as they become duel (c) If 'the System should become legally liable for any other indebtedness, the City shall f fix and maintain additional rates and collect charges for the services of the System sufficient to provide for the payment thereof. ,r Ail 'revenues derived tebm the operation of the System shall be kept separate from other funds of v, 'the tlty; To that end, the following special funds are hereby created, (a) City of Denton Water and Sewer System Revenue Fund, hereinafter called "Revenue • Fund", which shall be kept in the City's depository bank; 10 ,3 J aYI~YI, o,.-d M City of Denton Water and Sewer System Revenue Bond interest acid Sinking Fund, here- inafter called "Interest and Sinking Fund", which shall be kept in the City's deposi- tory bankl (o) City of Denton Water and Sewer System Revenue Bond Reserve Fund, herelnafter called "Reserve Fund", which shall be kept in the City's depository bank REVENUE FUND All revenues of every nature received from the sale of water or through the operation of the System shall be deposited from day to day as collected into the Revenue Fund, and the reasonable and proper expenses of operating and maintaining the System, including salaries, labor and materio s shall be paid therefrom upon approval of the City Council, Revenues of the System not actually required to pa expenses and costs incurred as permited by this Section sha11 be deposited in the other Funds created by this Ordinance each of which shall have priority thereto in the order in which they are treated in the following sections. JNTEREST AND SINKINO FUND That in Addition to all other amounts required by the ordinances, respectively, authorizing the dutstonding Bonds, there shall be deposited into the Interest and Sinkking Fund (created for the benefit of said Outstanding Bonds and all Additional Bonds) the followings (a) Such amounts, in equal monthly installments, made on or before the last day of each month hereafer as wi11 be sufficient to pay the interest scheduled to come due on said Series 19812 Bonds on the next interest payment datel and (b) Such amounts, in equal monthly installments, made on or before the last day of each month hereafter, commencing in July, 1982, as will b& sufficient to pay the next matuiing principal of said Series 1982 8oAds, RESERVE FUND That the Reserve Fund heretofore created for the benefit of the Bonds and all Additional Bonds now Contains money, and investments not less than the sum of $860,288, On or before the last day of each month hereafter there shall be deposited into the Reserve Fund such amounts, in equal monthly installments as will cause the Reserve Fund to contain, within fins years after the date of the Series 1982 Bonds, an amount of money and investments equal 'to the average annual ' principal and interest requirements on the Bonds (the "Reserve Required Amount"), Thereafter, k• no additional deposits shall be made into the Reserve Fund as 1 ng as the money and investments therein ~aro equal to the Reserve Required Amouptti but if and whenever the Peserve.Fund is reduced ;below the Reserve Required Amount, a monthly deposit shall be made, on or before the last day of, each month thereafter, into the Reserve Fund from Net Raveppues 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, Reserve Fund has been restored',to the Reserve Required Amounts and the City covenants to keep and m.intain said Reserve Required Amount in the Reserve Fund. The Reserve Fund shall be maintained, used and may be invested, for the benefit of the Bonds and all Additional Bonds in accordance with the procedures, as ' herein modified and suppplemented, set forth in the ordinances, respectively, authorlring the Outstanding Bonds, it is provided, however, that if and whenever, due to investment income 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. r° DEFICI,E4QIES IN FUNDS i' If in any month the City shall fall to pay into the Interest and Sinking Fund and the Reserve Fund the full amounts a oVe stipu ated, amounts equivalent to such deficiencies shall be set apart and paid into said Funds from the first available and unallocated revenues of the l: following month or months, and such payments shall be in addition to the amounts hereinabove provided to be otherwise paid into said Funds during such month or months. To the extent necessary, the City shall increase the rates and charges for services of the System to make up such deficiency. i. EXCESS REVENUES Any revenues in excess of those required to establish and maintain the funds as above required maybe used for the redemption of Bonds or Additional Bonds, the purchase of Bonds or Additional Bonds at not exceeding the market value.. thereof, or for any other purpose now or hereafter permitted by law, SECURITY FOR FUNDS All funds created by this.0rdlnance shall be secured in the manner and to the fullest extent permitted by law for the security pf"public funds, and such funds shall be used only for the purposes permitted in this Ordinance, ADDITIONAL BONDS (a) The City roseml the rigght to issue 'additional bonds payable from revenues of'the System, and the e;iditional bonds shall be called "Additional Bonds°,' The Additional Bonds, when issued shall be secured by add payable from a first lien on and plodgo.of the Net Revenues of the System, in the same manner and to the same extent as are the Bond g and the Bonds and the, Additional. Bonds shall in all respgots be of equal dig~llty; the Additional. Bonds may be issued in one or more installMots. The pro0slon3 of this Ordinance relating to Additional Bonds ppertain.only,to Additional Bonds permitted by this section, and do not relate to ,iunior lien bonds, (b) It is.provided, however, that none of the Additional Bonds shall be Issued Wessi (1) The lnterest"and Sinking Fund and the Reserve Fund each contains the amount of money then required to be on deposit therein; (2) The Net Earnings for any cpnsecutive twelvemonths out of the fifteen months ` next preceding, or for the fiscal year next preceding the date of the Additional Bonds, were equal to at least one and thirty-hundredths (1,30) times the com- bined principal and interest requirements, and Reserve requirements if any, of all bonds to be outstanding after the issuance of the Additional Bonds, for the year when such requirements' are the greatest, as such Net Earnings are shown by a report of a certified public accountant . The term "Net Earnings'I as used herein, ~~a11 mean the gross.revenues after deducting disbursements for opera- tion and maintenance, but not deducting expenditures which, under standard accounting practice, should be charged to capital expenditures; (3) The Additional Bonds are made to mature July 15 of each of the years in which they are scheduled to mature; (4) The City is not in default in any of the covenants contained in this Ordinance. MAINTERANCE AND,OPCRATIONI INSURANCE The City shall maintain the System in good condition and operate the same In an efficient mariner and at a reasonable cost, So long as any of the Bonds or Additional Bonds are outstanding, the City agrees tc maintain insurance for the benefit of the holder or holders of the bonds, on the Sys gip O o'kind and in an amount which usuallyy would be carried by private companies engaged in a similar type of business,` Nothing in this Ordinance shall be con,st,lued as requiring the City to:expend any funds which are derived from sources other than the operation of the System, but nothing herein shall be construed as preventing the City from doing so, ACCOUNTS, . The Clty sha11 koep;proper books of' record and accounts (separate f em .aI other records and accounts of the City) in which complete and correct entries shall be made of all transactions relating to the System, and shall have said books audited once each fiscal year by an inde- pendent certified, public accountant, The fiscal year for the System shalt coincide with fiscal year fixed by the City Charter. , - 12 - ACCOUt{TINO REPORTS Within nindty days after the clcse of each fiscal year hereafter, the City will furnish (without cost) a signed or certified copy of a report by an independent certified public accountant covering the next preceding fiscal year showing tho following informations (a) Income and Expense Statement; (b) Balance Sheet as of the end of the fiscal year; (c) rey4lrs?ants ofrtthis Ordgginance and his recomme nations, iftany, formany changes the improywents in the operation of the System{ (d) List of insurance policies in force at the end of the year, showing, as to each policy, the risk covered, the name of the insurer, and the expiration date; (a) iThe ncome from of peach rsaertie steconnected with the water and sewer system and the total (f) The number of unmetered customers of the water system at the end of the year; (g) The approximate number of gallons of water flowing into the water system of the City and the number of gallons sold during the year. SPECIAL COVENANTS The City further covenants as followsi . (a) That it has lawful power to pledge the revenues supporting the Bonds and has lawfully exercised said power under the Constitution and laws of the State of Texas including said power existing under Articles 1111-1118, both inclusive, Revised Civil Statutes of the State of Texas, with amendments thereto; that the Bonds, and the Additional Bonds when issued shall be ratably secured by said pledge of income, in such manner that one bond sha I have no preference over any other bond; of ethe other inrany mannernbeen pledged of the Bonds, the (b) rThe ents, trevenuesn and represerts that payment of any debt or obligation of the City or of the System; (c) That so long as any of the Bonds remain outstanding, the City will not sell or encumber the system or any substantial-part thereof, and that, with the exception of the.Additionat Bonds egpressly permitted by this Ordinance to he issued it will not encumber the revenues thereof unless such, encumbrance is made junior aoJ subordinate to all of the provisions of this Ordinance; (d) That no free service of the System shall be allowed and should the City or any of its agencies or instrumentalities make use of the services and facilities of the System payment of the reasonable value thereof shall be made by the City out of funds from sources other than the revenues and income of the System; (e) To the exteni• that it legally may, the City further covenants and agrees that, so long as any of the Bonds or Additional Bonds or any interest thereon are outstanding, no franchise shall be granted for the installation or operation of any competing water system or sewer system, that the City will prohibit the operation of any such system other than those owned by the City end the operation of any such system by any one other than this City is hereby pedhi6lted. MPECTION Any holder or holders of Bonds or Additional Bonds have the right at all reasonable times to ~r inspect the System and all records, accounts and data of the City relating thereto. - 13 - A' . REMEDIES In addition to all the rights And remedies provided b,y law, the City further covenants and agroes that In the event of default in the payment of prinoipal or interest on any o th0.8onds when due, or it fails to make th0'payments as required to be made into the Funds created by this Ordinance,gqr defaults in the observance or pperformance of any other of the covenants, condi- tions, or obligation$ set forth in this Ordinance, the holder or holders Of any of the Bonds shall be entitled to awrit of mandamus or,other appropriate order issued by a court of proper Jurisdiction compelling and requiring the City and tho officials thereof to observe and perform any covenant, obligation or conditio.f proscribed in this Ordinance. No delay or mission to exercise any right or power acoruin upon any default shall impair any such right or power or, shall be construed to bo a waiver of any such default or acquiescence therein and every such right and power may be exercised from time to time and as often as may be deemed expedient, The specific remedies herein provided chatl be cumulative of all other existing remedies and the specifications of such remedies shall not be deemed to be exclusive, BONDS ARE SPECIAL OBLIGATIONS The Bonds are special obligations of the City, payable fi•om the pledged revenues and the holder thereof shall never have the right to demand payment thereof out of funds raised or to be raised by taxation. APPROVAL BY ATTORNEY GENERAL The Series 1982 Bonds and the record relating thereto shall be submitted to the Attorney General of Texas, for his approval, and after he shall have approved the same, thq $hall be forwarded to the Comptroller of Public Accounts of the State of Texas, who shall promptly register them and he shall deliver the Series 1982 Bonds in accordance with instructions to be lvo by the Mayor. The Comptroller, or a deputy designated in writing to act for the Comptroller, shall manually sign the Comptroller's certificate of registration prescribed herein to b0 printed on the back of each bond, and the seal of said Comptroller shall be affixed to each of said bonds, i The Electric System is operated as a separate utility by the City. The following is for nformational purposes only.) ELECTRIC SYSTEM The City of'Denton'hat owned and operated its Electric Light and Power System (the "System") for approximately seventy six years without' interruption. During this time, the System oat experi- enced a steady growth in customers and output, requiring periodic additions to plant aid distribution facilities. Service Are Th'e, System provides electric service to 18;666 Customers located in the City, e isey as covenanted in,'the Ordinance that it will not operate, and will not grant any franch or-permit the acg0sition, construction, or operation of,`any electric energy distri- bution facilities which woiM be in comppetition with the electric system, and,,to the extent ,that it legally may, the Oity wiII prohibit any such competing facilities. us rs . In 1981, the System sold 4990096,000 KWH of electric energy, 'The following a a on shows the average number of customers from 1978 through 1981 and the average charge per kilowatt hour ("KWH") - 14 - _ 78Ye r Ended S_~ euT~ 30 Av4ragg0 Number of CustomersI Residontial 12,931 13,870 16,705 16,226 Commercial/Industrial 2,603 21608 21420 21186 Other 310 312 137 146 Total Customers ; 75;M '<J8 '"2'6f Trim Average Charge Per KHH 4 per KWH)i Residential 4,6i~ 466¢ 4,64¢ 4, sot All Other 3,815 3,974 4,15} 6,39¢ The Syystem's sales of energy, in KWH, to principal customer classes for 1978 through 1981 were as follows KWH Sold (000's Omitted) Year Ended September 30 1~75 1979 1980 Residential 150$615 13Z,bJq X371285 , Commercial/Industrial .284,290 2760199 301! 2 308,348 Other 23 10¢ .231679 24 1 17 288 Total Sales 4bA Off! w 3T- 4 Production Facilities nd Interconnection Arrangements Present production facilities of fFe y5' stem cons s o ve genera ng un s escr a as follows: Number of Name Plate Ty I Curb Units Capacity Kw St - eam ne -5 - Unit 1 12,650 Unit 2 12,650 Unit 4 66,600 66 481 Unit 6 5 Interchanges, TIP;,THPA and TP&L Interco ne ions ((L): orEInterc ange cWY) 60,000 KW Brazos 69KY Interchange 70,000 KW TMPA/TP&L Spencer Plant 138 KV Interchange 100 000 KKW7 (1) Texas Municipal Power Pool ("TMPP" Texas Municipal Power Agency"TMP Texas Power &'Light Company ('TP&L"), Notes The City has recently declared its five diesel generators (12,636 KW) surplus and is negotiating the sale of these units. The following tabulation provides. information for calendar year 1981 fcr tho Systems ten largest customers in terms of both peak demand and annual revenues, These customers taken together represent 29,78% of the 1961 electric revenues from sales. i ; . 15 Denton Electric System Ton Wegast-Retall Power customers 1981 1981 Annual Peak KWH stonier KWN Revenues Demdnd_ or Texas a e avers ty , Ion 533, d68,667733 , Texas Woman's University 22,4 1,400 989,103 2,772 Paccar, Inc. 1112781800 6951242 4,480 Ao~e oriok Company 101941,300 4$9;383 It V ctOr Cquipment 10,966;600 608471 2,436 0014en triangle Mall 9,731,200 474,761 2,600 Denton State:School 9,326,600 440,111 2,446 Moors Business Forms, Inc. 4,782,760 221,736 1,060 Morrison Milling Company 4,183,900 191,361 777 Emconits, Division of Amerace 3,472,000 _166,936 941 Total 144,624,638. 17 7, 37,654 27,852 Elect r c Rate (Effective r , 1981) Residential Facility Charge $4,60 Single Phase 8,00 Three Phase Months of June through September All KWH 50.0466 per KWN plus an energy cost adjustment Months of October through Max All KWN $0,0436 per KWN plus an energy cost adjustment Motel when usages are less than 700 KWN during June through Sepptember, deduct $2,00 fro,, the monthly facility charge each month until monthly usage exceeds )00 KWH, E rgy Cost Adjustment ,,,.When fuel or purchased power costs are more than three cents (3¢) per KWH, an. nergy cost Adjustment (ECA) is charged, The ECA is calculated by using the total cost per KWH of fuel and purchased power at the City's Power Plant divided by total sales subtracting three cents (3«) which is already included in the base rate. Pro Loads aid Resources The projected loads and resources of the System for the per o ted roug are presented in the following chart as determined by the City; Forecasted Peak Loads and Resources (In Megawatts) Peak Not Reserve Year Loads Resou"cas Mar i % 34 1993 142 267 2 81 1984 161 271 3 79 1986 161 286 4 77 85 199887 178 286 60 1988 285 62 1989 18686 286 46 1 2 2 286 41 1991 210 285 36 Tested pneet oapdbility, 2 TMPA'Qibbons Creek, p moo's 20% allocation (78M) (see "Texas Municipal Power Agency"), 3 Comanche Peak Unit 1 (14MW). (`4 Codaeche Peak Unit 2 14MW 16 S~, Statistical Data Year Ended September 30 Sales of K H~ _-19_7 8 Ig79 IM es en a 133,951,296 1601614,998 132,633,865 187,286,862 173,460,116 Commercial/Industrial 295 ,16.853 284 289,637 276199 288 30 82 1 6 308,347,623 "'49 WIW4~035 4u 1 Ppblic. Street and Highway 6;4 48 122 4 4;66 ;680 4;7 21076 4,7 0;623 ther ,76j 10, $4.4013 1,12,65 191M,798 1,67,387 Sale Sub-total 3 9 7~73 9109 .161489x123 208,168,387 1, 27' 659 11 " 49 25$748 Total Sales 3$1;724;€92 474;6001043 460,480,878 52Q10 $008 sg Loss and Unaccounted 42 719 000 1 616 000 1 416 000 7 4 0&p 84 Total KWH to System 494:608692• 476:1151043 451'.9'8 5?80lOt00B R71M 8 % Loss and Unaccounted .001% 3,46% 6.1096.22% 6.26% very e C sttoMer^s~ es en 4rt 12,445 12,931 130870 160106 16,226 Tot Commercial/Industrial 2 122 2 913 2 733 6 15,844 16"603 -2,66,2, a,:W Peak Day Power Requirement 112,000 114,000 109,000 131,000 133,000 present Plant capacity 186,680 186,680 1860680 186,850 186,850 Ana xis 'f Electric 81111n9i All usomr, verage on Y (WH/Customer 2 478 2 409 2 170 2 261 2 241 Bill per Customer 1911.43 $94.12 $9,06 93,41 $111.08 Revenue per KWH $0.0373 $0.0399 $0,0415 .0432 $0.0618. ge£idenQlal Customers Average month ustomer . 891 971 796 888 891 Bill per Customer 537.94 $42.14 $36.30 $40,32 $42;71 Revenue per KWH $0,0423 $0,0434 $0.0456 $0.0464 $0.0480 Coroner ia1 1 du tril~l_s Average on UStomer 9 644 8 657 8 998 10 472 11 472 Bill per Customer 133 .95 $336,70 5364.92 544.20 S604,61 Revenue por KWH 50.0352 $0,0382 50.0400 10.0428 50.0627 Oross Income*i Residential. - $ 6,660;433 1 61637,276 5 61046,432 1 7,699,678 1 8,+ ?7,068 Commercial/Industrial 10,36 ,040 10,878,635 11,0609823 12,629,060 16,265,007 Other 627 :'~>•8841 8 ,816 ,902,937 ,-.1,276~166 * Does not include off-system sales, income derived from contribution- in-aid or sales of surplus material, etc, (000's Omitted) Fiscal Year Ended Nqt Available ••9381 avenue x en a For Debt. Service )LZ 613 1978 18 0 13;693 5,361 1979 18,692 136704 40988 1980 226641 17,653 4,988 1981 26,1)3 22,025 4,148 is . 17 The City of Denton Is ;i member of the Texas Municipal Power Pool ("TMPP"), which includes the cities of Bryan, Garland, Greenville and Denton, each of which has its own production trans- mission and distribution facilities, The City I$& also a member of the Electric Reliability Counsel of Texas ("ERGOT"), the regional Reliability Coordinating Organization for Electric Power Systems in Texas, The City has access to the ERCOT intrastate network of six major investor-owned and several public systems through the TMPP transmission system, The *PP contract provides that each member city shall provide, through its own facilities or through firm power contracts, a capability At least 16% greater than its projected system peak load for each future year. The cost of Pool facilities necessary to provide adequate ties between the members are shared by all participants, By "pooling" the reserve capacity of their respective systems, the cities can operate safely with considerably less installed reserve power supply thereby effecting substantial investment and operating economies. Other ad- vantages 1noWe an adequate and dependable source of power during periods of individual entergenoy, maintenance of power during pperiods of scheduled unit maintenance and interchange of economy energy between members, The TMPP membors are engaged in an economic dispatch pr1ram wherein all generating units of the five members are operated such that the most efficient units are loaded first. Savings are distributed on a formula of splitting the savings between the actual cost of the suppliers and costs that would have been experienced by the less efficient generators, T s s Municleol' w r A enc in July 1976, the Cities of Bryan, Garland, Denton and Or en- v e e "Cities"), by Concurrent ordinances, created the Texas Municipal Power Agency (the "Agency"), a joint Power agency without taxing power, as a separate municipal corporation and political) subdivision of the State in accorddance with Article 1435x, Vernon's Texas Civil_ Statutes, as amended, The Agency is governed by a Board of Directors made up of two representa- tives from each city and is empowered to plan, finance, ac44uire, construct, own operate and maintain faulllties to be used in the business of generation, transmission and sale to and exchange of electric energy with the Cities and any private utilities which are joint owners with the Agency of an electric generating facility located within the State of Texas, POW Sales co tra t Each of the Cities hae entered into an identical Power Sales Contract e "Contract") with the Agency which obligates the Agency to use reasonable dillonce to proM dde a' onstant acid uninterrupted supply of power and energy to the Cities and, subject to Certain'.extepLions, obligates the Cities to pure ase from the Agency, if available, III of their 'eleotrlc energy requirements in excess of the amounts generated by the Cities' existing municipal systems, The Contract requires the Agency to prepare annual budgets, projecting its Annual System Costs for the succeeding year, including debt service requirements on its bonds, and to submit the same to the Cities, Based upon these budgetary facts and estimates the Agency will adopt and fix the rates and charges for electric energy and services to be paid by the Cities for the ensuing year, The Cities are obligated to make such payments on a monthly basis, The Contraot further provides that if at any time the amount of money on deposit in the' Agency's Bond Fund is less than the amount then required to be on deposit therein without giving consideration to transfers made from other than the Agency's Revenue Fund or from bond pro- ceeds, each of the Cities is unconditionally obligated to make a payment, the aggregate of whl,ch shall be the amount necessary to maintain' the Agency!s Bond Fund, Reserve Fund and Contingency F,pnd, in the required amounts, provided that, transfers may be made from the Reserve Fund to the Bond Fund for not more than two consecutive calendar months without replenishment. Each of the Cities' portion of any such payment (the "Percentage Share") shalt be adjusted annually based on the percentage that each of the Cities' system load bears to the aggregate system load of the four Cities subject to certain qualifications. The present Percentage Shares of the Cities are as followsi city of Bryan 18,979 Qity,4f Denton 21,49% City of Garland 49,93% City of Greenville 9181% Total 100,00% Each of the Cities unconditionally covenants 16 the Contract that its pel,cantago Share" iof the payments 'to the Agenoy'C'Bood Fund, Reserve Fund and Contingency Fund will be made, if re- qu red, and none of the,,01ties shall have the right of oat-off, recoupment or counterelaim against any such payment; 18 - na': All amounts payable by the City under the Contract, including an), amounts ppayyable pursuant to the contractual guarantee described above, are expenses of the City's Utllit System and constitute d first and superior lien on the gross revenues of such System prior to the pledge made on the Bonds, under the Contract, the Cities must approve any ''Project" before the. Agency Is authorized-to proceed with the finandng, construction, equipment procurement and development thereof, 'After approval by the Cities, the Agency may proceed as it deems appropriate, Additionally, the Agency may make "System Development and Reliability Expenditures as"Approved.Projeots" for facilities.and purposes when authorized by the Cities. Certain expenditures for "Development Pro acts", as defined in the Contract, may be made by the Agency without the approval of the Cities. A r ved pro acts The first generating project of the Agency approved by the Cities is the ons reec eam Electric Station, now, under construction In Grimes County, Texas, and includes a net 390 megawatt ("MW") I gnito-fueled steam electric plant, related reservoir, railroad spur and transmission facilities, an adjacent surface mine and associated properties and equipment, Gibbons Creek is expeced to go into commercial operatiori in March, 1983, The second goneratlng project of the Agency approved by the Cities is an interest in the nuclear-fueled Coimanohe Peak.$team Electric Station and certain associated transmission facil- ities,. On January 2, 1979, the Agency entered into a joint ownership agreement with Dallas Power Light Company, Texas Electric Service Company, Texas Power & Light Company and Texas Utilities Generating Company under which the Agency acquired a 6.29 ownership interest,in the Comanche peak station presently under construction, the station will consist of two 1,160 MW nuclear-fueled pressurized water reactor steam generating units and related reservoir, makeup water facilities railroad spur, nuclear fuel and other properties and equipment, Unit Ono is presently scheduled to be in commercial operation in 1984 and Unit Two in 1986. The Cities have also approved, as "System Development and Reliability Expenditures," certain transmission facilities, lStimated Cost Of Projects The estimated cost of the Approved Projects according to the a es n orma on ran the Agency, is $1,361,600,000, The Agency currently has outstanding $1,160,000,000 of its revenue bonds, leaving $211,600,000 to be issued to complete financing of such Projects, City's Statement as to Financial Impact of Agency Protects The City along with the other es from time to time reviews an ova ua es th0 finanoTal impact of tie Agency projects and financing requirements on the City's municipal electric light and power system and hence on the System on a projected basis, based on projected growth demand for City electric services, projected growth demand for electric services within the other Cities as forecast by them, escalating costs of natural gas and oil as a boiler fuel, assuming such fuels are legally and factually available, and other factors. Such projections have heretofore demonstrated that the purchase of the City's future, addi- tional power suppply from the Agency in accordance with the Contract due principally to the Agency's pse of fixed-cost boiler fuel, the efficiencies of scale and the economies of oppera- ti on achieved by 'the operation of all present generating facilities of the Cities and the project$ of the Agency on an economic dispatch basis, will provide an economIcally fear alternative to the continuing escalation of costs presently experienced by the City. The 'City has no present reason to believe that its future re-evaluations will produce any projections materially adverse to its prior conclusions. (See "Factors Affecting Agency Projects, the City and Utility industry Generally"). Factors Affecting Agency Projects, the City and Utilit.Y Industry General) the City has een advised by the geno at no litigation is now Pending or to s khowlo threatened which challen es its projects or the legality of its bonds or actions taken in,connection therewith or c~allenging the legality of the Contract, However, the electric utility industry in general has been experiencing varying problems, including increasing costs of fuel, wages, materials, equipment and licensing requirements, substantially Increased cappital outlays and longer construction periods for the larger and more complex new generating units, uncertainties in predicting future load requirements, increased financing requirements coupled with limited availability of capital exposure to cancellation and penalty charges on new generating units under construction, fuel availability, compliance with rapidly changing environmental, safety .19 - and licensing requirements, litigation and proposed legislation designed to delay or prevent construction of generating and other facilities and to limit the use of existing facilities and uncertainties associated with the development of a national energy policy, Any of those factors may require modification of the City's present facilities oe the Agency's projects, or both, and in some cases may cause delays in construction and increases in construction and operating costs, or they may cause the revenue foracasts demand forecasts and estimates of evaluation she City and the remaining Cities to vary significantly from those contained in prior Proposed Hydroelectric Proioots The City has commissioned and received a feasibility study by Black e6 P atch t onsu MAO TAgineers relative to proposed hydroelectriC developments to be located at nearby Lake Lewisville and the pplanned Ray Roberts Reservoir which is scheduled for completion in 18$6/87, The study envisions three 1,000 kilowatt turbine generator units located at the downstream terminous of the outlet works of the dams and would operate on flows normally relea§ed throu h the low-flow discharge pipes, The two units planned for the Lewis- ville Project `the "Pro~ectl') would generate an average annual generation of 10,100,000 kilo- watt hours, Anticipated cost of the Project would be approximately $56,000 and could be in operation by 1984. The Consulting Engineers estimate the savings to tie City's customers during the first 20 years of operation would be in excess of $43 million when compared with the go cost of natural-gas generated power, Construction and operation of the Project would be subject to the jurisdiction of the federal Energy Regulatory Commission ("FERC") and would be licensed as a major water power project of 6 megawatts or less. A comprehensive environmental report is required and Black & Veatch estimates approximately 18 months will be needed to complete the licensing process, The City Council has authorized Black & Veatch to proceed with the licensing application and it is anticipated the application will be submitted in mid-1982. Electric S stem Revenue Bonds The City has no authorized but unissued Electric System avenue ON s. 20 VALUATION AND DEBT INFORMATION 1981 Taxable Assessed Valuation (1009 of Actual) $663,437,088 City Funded Debt Payable From Ad Valorem Taxesi General Obligation Bonds (as of 3-1-82) S 131870,000 Interest and Sinking Fund .(as of 1-142) $ 30,831 Ratio Total Funded Debt to Taxable A4sesSod Valuation p 0y~ 1980 U, S. COO$ P4putatIon ••4'8 063 1981 Imatad'Popuiotion 61,160* Per Capita Ta~~((a~le Assessed Valuation- $120970.42 Per Capita Total Debt',. $271.16 Area 33.2 Square Niles Source: North Central Texas Council of Oovernments. Note It Pursuant to authority permitted' b+ Section 'Article' V111 of the'$tate'Con$tl- ution which became effective 4anuary 1, 1973 the City'has granted an exemption of up to 116,666 of Assessed Valuation to the residence homestead of property own$ s over 66 years of age. The Taxable Assessed Valuation, ai shown above, does not include 519,466,102 Assessed Valuation of properties exempted under this authority. Note 2: The Legislature, pursuant to a Constitut~onnpl amendment and Article 7160h, UtCS, mandated'an additional pproperty tax exemption beginning in 19760 for disabled veterans or the surviving spouse or W %ren of a deceased veteran who died. while on active duty in the armed forces,,, The exemption, from taxation applies to either real or personal property with the - amount of Assessed Value exempted ranging from $1 600 to =3,000, dependent upon the amount of disability or whether the exemption is applicable to a surviving spouse or children, The Taxable Assessed Valuation, aS shown above, does not include $444,601 Assessed Valuation of properties exempted under this authority, Note 3: The above statement of indebtedness does.not include the following outstanding revenue bonds as,these bonds are payable solely from the net revenues of the System, as defined in the Bond Ordinance authorizing the bonds: $8,976,000 Tatar and Sewer Revenue Bonds= $2202660000 Electric System Revenue Bondsl and $1,600,000 Water and Sewer System Revenue Bonds now heing issued, NON~FUNO6D Dr BT The, City has leased and lease/purchased a variety of equipment ranging from reproduction machines to heavy'equipment`such as street sweepers, dump trucks, compactors and an ambulance. The leases expire in 1984 through `1986, Annual costs of the leases are as followsi 1983 =121, 621 121 1984 1210476 1986 ,167 1986 136,789 The City has no other non-funded debt as of March 1, 1482. i Iit 21 I VALUATION AND FUNDED DEBT HISTORY Ratio Funded Funded Debt Debt to Taxable Outstanding Taxable Fiscal Assessed at End Assessed Pori"o% valuation of Year Valuation 1973.74 10 ; ;840 81 6;000 7 1974,76 11211681726 7,695,000 0 6486% 1976-16 124,327,113 9,686,000 7171% 1976.77 136,640,626 12,0249000 8181% 1977-78 271,339,229(1) 11,633,934 4,26% 1918.79 2 8,902,702 16,2161101 6,27% 1979.80 3 19431f~0 16,364;4$8 6.04% 1980-81 337,948,941 16,063,00 4,46% 1981-82 663,437,088(2) 12,936,00(3) 1496% (1) Increased basis of assessment from 409 to 60%. 2)) Increased basis of assessment from 60% to 100%. 3 Projected. TAXABLE ASSESSED VALUATIONS BY CATEGORY Property Assessment As % of. Real Pro er#- Personal Pro erty Taxable Fiscal Appraised o of Assessed P 1972-73 $ MOMP? _6 eriod Value Amount: Total Amou t T taI V lu ion JL4 1973-74 40% 82;407;280 80.62% 19,8 3;660 19,38% 10 ;22 ,840 1974-76 40% 89,883,677 80.14% 22,276,049 19.86% 112,166,726 1916-76 40% 96,73 ,078 77,00% 28,6921086 23,00% 124,327,163 1976.77 40% 98186,846 72,41% 37,676,779 2r, 9% 136,640,626 1977.78 60% 21,136,760 78,66% 68,203,469 21.16% 271,339,229 1978-79 60% 22,1300,472 76.60% 67,602,230 MIN 288,902,702 1910.80 60% 229,022,620 76,10% 76,921,060 24,90% 304,943,680 1980-81 60% 246,206,248 72,86% 9117430693 27,16% 337,948,941 1981.82 100% 460,732,269 67.94% 2121704,829 32,06% 663,437,088 ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES s o 3-1.82)-- Estimated Total % Overly ping Taxi Jurisdiction Funded Debt Applicable Funded p0ebt City o Denton 113 870 00 Denton Independent School District 12;606,000 93,76% 11,818,448 Denton County 20660,000 29.44% 760,720 Total Overlapping Funded; Debt 3261439,168 Ratio Overlapping Funded Debt to Taxable Assessed Valuation 3,99% Per Capita Overlapping Funded Debt - $616.89 TAX RATE LIMITATION All taxable property within the City Is.subject to the, assessment, levy and collection by the City of a lrootinuing,' direct annual ad valorem tax sufficient to provide for the Payment of prinoipal of and interest on all types of tax obligations of tho City within the limits ofeDontom, andl limit r itsl maxlimum Adi valorem tax ratesto $ ons 60 per o$100 Assessed1ValuationC... for all City purposes. The City operates under a Home Rule Charter which adopts the Constitu- tional provisions. 22 TAX DATA (Year dn ing 9.30) Di trio lion Tdx Tax enera n eras an % Current % Total Ye r Rate and Sinking Fund Tax a Collections Collections 197.74 1,700 Q, 60 0,8Q4o 1,7371788 . 96,20% 97: 0"3'% .197 -76 1,700 00,8978 0,8022 119060698 95,12% 97,64% 1916.76 1,700 0;8174 048826 21113,662 94,74% 97,64% 1976.77 1,180 ` 110938 8,6862 2,4301423 94,74% 97,74% 1977.78 L 240 0 7728 ,4672 3,364,606 93,04% 94,35% 1978.79 1;240 0.7?80 0,6120 316821394 94,06% 96.37% 1979.80 1.240 0,72286 0.6114 3,770,142 93,67% 96,69!( }960.81 1.290 .0,6700 0.6200 4,364,641 93.96% 96,64 1981-82 0,774 0,4650. 0,3090 6,136,003 73.16%* 74.16%* * Collections for part year only, through 2-1-82. Property within the City is assessed as of January 1 of each yearn taxes become due October 1 of the sameearl and become delinquent after January 31 of the following year. Split fa) ments are permitte l first half by December 311 second half by March 31. Discounts are noaIloved, Charges for penalty and interest are made as followsi 1961 and Prior Year 1982 and After February z 1/Z7, eF'~ruOy March 6% March 99 April 7 1/2% April 11% June 10 t%2% June 155% July 18% After June add 112% of 1% per After July add 1% per month month in addition to above,' In addition to above, NTC1P ! ALES TAX e0 ve ~buf ' The City has adopted the provisions of Article 106609 W 600s Texas Civil Statutes, as amended, which grants the City the power to impose and'levy a 1% 40041 Sales and Use Tax within the City, the proceeds being credited-to the 0eneral Fund. Cotleotions and enforcements`ure effected through the offices of the Comptroller of Public Accounts, State of Texas,.who remits the proceeds of the tai;, after deduction of a 2% service fee, to the City montifly. Revenue from this source has beeni % of EVV Vent of Total Ad Valorem A~d'dValorem Pet, Y TM $ ear o 18134 TaxLevy 12~ 84ta CC~~TIT,1 1373 876.$64 60.38% 0,8564 19,68 1 74 926, 0 63.29% 019069 20.81 1976 1,006 32 62,68% 0.8424 21,39 1976 ' 1,194,336 66.66% 09632 26,28 1977 1,254,462 61,88% 0,9234 26,19 1978 1,629,832 48,44% 0,07 31.62 979 2,061,124 67,63% 0,7 34 39,83 1980 2,666,124 67,62% 0.8382 47,96 1981 3,017,806 68.76% 0.8930 69,00 TAX RATES OF OVERLAPPING SU801VISIONS Taitin Jurisdiction 1981 100 1879 1978 1977 1g~6 197 1974. City of Denton S7 "Z3 3f 2 31"24 ;1-7g ST'7i1 Denton independent School District 1220 X1,26 1.68 1.67 157 2.00 2,00 9,05' Denton County 0.237 0,77 0.67 0,67 0.67 0,96 0.95 0.95 .23. TOP TEN TAXPAYERS 1981 % of Total Taxable Taxable Assessed Assessed Namo of Taxpayer Nature of Property Valuation Valuation eneral Telephone Company e @@p one ItTl ity 2216708,T Victor Equipment Company Welding Equipment 1611,032 2 Paccar, Inc. Patorbilt Truck Manufacturer 11,192,800 1469% Denton Mall Shopping Center 11,099,031 1.67% First State Bank Bank 10,874,836 1.64% First Denton County National Bank Bank 81996,054 1.36% J. Newton at al Commercial and Ranch 6,467,261 04839 Moore BUBlness Forms, Inc. BusinossForm Manufacturer 6,439,499 00,829 Montgomery Ward Department Store 64661699 0,76% J. C. Penney Department Store 4163611P4 068% , AUi0RIZED BUT UNISSUED GENERAL OBLIGA'ION BONDS - NONE ' k*****k****kk*** UNERAL INFORMATION REOARDINO CITY AND ITS ECONOMY LOCATION Denton 1s the County Seat of Denton County, located at the apex of the Dallas-Fort Worth-Denton industrial triangle. The City covers an area of 33.2 square miles and is located only 38 miles from downtown Dallas, and 36 miles from Fort Worth. C06 NOMY Denton is In the-midst of a rich agricultural and livestock area, The hub city of Texas' new "Land of Lakes" region, which provides Denton and neighboring cities with abundant water for municipal, industrial and recreational purposes. One of the three major university centers in Texas. The home of diversified industrial interests, The site of the Nation's first underground Control Center of the Office of Emergency Planning and Office of Civil and Defense Mobilization. One of the key cities in the economically significant Dallas Standard Metropolitan Area. ECONOMIC RANKING Denton's sound diversified economy is reflected 'in the spendable annual income per household. tE, Denton County's Effective Buying income for 1980 totaled approximately $1,221,000,000. ' Denton County's retail sales for 1980 totaled $493,479,000, r, In' 1,980 over 33 of Denton County households had cash income in excess of $26,000 annually, Median Income was $200318, rr (Sources, Sates and Marketing Management, July 27, 1981,) 24 1' ECONOMIC AND POPULATION GAINS Denton has no,.ed a consistent population increase and a steady economic growth in the last four decades. Historical population totals from U. S. Census records area 1940 Census ------11,192 21,372 1950 Census 21:$72 1960 Census 26,844 1970 Census 39,874 1980 Census 48,063 The North Central Texas Council of Governments estimates the 1981 population of the City at 61,160. The City's ascension toward a top rung on Texas' economic ladder is attributed partly to the steady influences of governmental activity which includes the year-by-year expansion of the two State-suppported universities, and partly because of such environmental factors at its location in a rich agricultural region, some oil and gas production in the northwest section of Denton County, its inclus1gn in the Dallas-Port Worth Metroplex, its proximity to three of Texas' largest reservoirs (cake Texoma is only 40 miles from Denton), its excellent highway and teanspportation'facilities, Its mild climate, and the less tangible but influential aspects of social, cultural and educational advantagos that have prompted professional or "white collar" workers to choose Denton as a place of residence, ,INDUSTRY AND BUSINES$ In excess of 60 diversified manufacturing plants are located in the City. Some of the largeet are as followst Adproxlmate lumber of Colony Produ t Employees* an c or qu pmen company Welding an cu ng equipment Moore Business Forms, inc, pressure valves 406 Business forms sales books, etc. Jostens, Inc, School class rings 286 Russell •Oman Manufacturing Company Womens and girls lingerie 264 Paccar, Inc, Diesel trucks 236 Andrew Corporation Microwave antennae 220 Acme Brick Company Brick and tale 210 Tt~r~inity Industries LPG fuel tanks 176 Benton Record Chronicle Newspaper and printing 166 Morrison Milting Company Flour and cornmeal' products 146 Ekonite Division of Amerace Multi-color plastic parts 110 Turbo Wrigerating Company Ice-maklog machitas 110 Ohio Rubber Molded plastic parts 90 Transport Systems, Inc. Beaman Company Prefabrbuildings 76 ii'O? hton Chamber of Commerce, riNUU~7hAL FUTURE ' Denton is most favorably located within 38 miles of two major cities And is, officially,'A'part of the. Dallas-Fort Worth Metroplex, This area comprises a market which is growing at a rate three' times the national average. Denton is fast becoming an integral part of this dynamic industrial complex. A plentiful supply 0( skilled labor'is available to industry in the Denton area. Total labor force in Denton County is approximately 62,165, with approximately 69,371 presently employed - for an unemployment percentage of, only 44%. There are two principal industrial dis- triots Denton Industrial Park and Rayxor Industrial Park both of which have access to more than adequate rail and highway facilities, and all necessary utilities, W r-: r- 26 ~f AGRICULTURE Denton County is one of the more diversified agriculture counties in Texas. With soil types ranging from rich black to deep sandy loam, and good soft, artesian water, it is an ideal center for diversified farming and livestock raising. Principal crops are cotton, cgrn, wheat, oats, hay, grain sorghums and peanuts, Dairy cattle, beef cage e, Sheep, hogs, chickens and turkeys contribute a substantial and steady income every year to the farmers and ranchers of the county. Income from all agriculture and livestock products averages in excess of $30,000,000 annually, The Texas Agricultural Experimant;Station, Sub-$tatlon No, 6s located about five miles north west of Denton, is contributing tc the prosperity of not only the farmers in Denton County, but to farmers all over Texas, through experiments in small grain research work, crop rotations pastures, soil building, contouring and plant disease, UNDOUNO C,ONTRO. L CEN19R Denton is the site of the first Underground Control Center to be built by the Federal Government in the United States, This center was completed at a cost of $2,4000000, it consists of en abovo ground "frangiblo" building, for entrance and exit during normal operations and a two-story underground fortress, 142 feet wide and 172 feet long. The structure has its own water well, an infirmary, first aid station, and communications head- quarters, Site for the structurs is about three miles east of Denton. The huge underground center serves Region 5 Headquarters for the Office of Civil and Defense Mobilization and is designed to resist nuclear blast and radiation, Region 6 consists of Texas, Oklahoma, Arkansas, Louisiana and New Mexico,. In time of emerggency the center Will house the administrative personnel of 16,000 federal emptdyees An Dallas and Port Worth, In the event of a nAlonat emergency the center would serve as the coordinating and directin0 point for the activities of some 236,000 civilian employees of the federal government. It w111 house 200 por9ons on a day-to-day basis, or 506 on a JO-day, emergency, "buttoned-up" basis. The control center employs 83 full-time people with an annual payroll in excess of $7601000, TRANSPORTATION Denton is located only 18 miles'6rtheast of the Dallas-Fort Worth Reglonil Airport. This facillty began operations in Januarys 1974, It is.the largest airport in tha 1lited States, second largest it the world, and represents an investment In excess of $700,000,000, Denton 1s the focal point in the new Interstate Highway System (U, S. 35-E and U, S. 36-W). U, S. 35-E connects Denton with Dallas, and U. S. 38-W ties to fort Worth, The east and west sections of the U. S, Interstate 36 form part of a vast network that begins at the Canadian border on the north and traverses the entire United States, to end at the Mexican border on the south. North from Denton the highway connects with Oklahoma City and thence through the Midwest, Rail transportation Is furnished by thred railroads - Santa Fes Texas and Pacific, and Missourl-Kansas-Texas bus transportation by Teiilways Bus System motor freight by twelve truck lines, i' EDUCATIOK Denton Is the hone of North Texas State Uilversity, founded In 18900 and Texas Woman's Uni- versitys founded in 1901, r:. The, two culleges have a combined enrollment of approximately 24,985 students, and more than 10000 fatvlty members. a:g 26 h 1 fit r~rtl.1~.~. As of December 1, 1981, 17,487 students were e111`011ed in 40-educational North Texas State University. This university has a larger enrollment than Southern Methodist University at Ddllas, Texas Christian University in rort Worth, or Rice Institute at Houston, Texas Woman's University has an enrollment of 7,498, North Texas State University campus comprises a land area of more than 360 acres and sixty-nine buildings valued in excess of S62 000,000, Tho University embraces seven academic units of colleges and schools, and offers Bachelor's degrees in 66 fields and Masters degrees in 113 areas. Doctoral programs are in 45 areas, Texas Woman's University, a State supported institution of higher learning, has co6pleted an extensive building program, emphasized by three high-rise structures These are a 14-0ary office and classroom portion of the College of Cd cation (opened In 1968), a 21•stor dormitory deigned to house 640 students ((completed in 1967 , and a 244story dormitory designld to houl~se 701 students (completed in the fal1, 1969}, 'Academic components are embodied in eight schools. Science research programs are conducted in chemist biology, physics, nutritfon, textiles, bone microradiotogy and other related fields, Over 400 Denton citizens hold earned Doctoral degrees, Denton has an outstanding Public School Syystem, accredited by he Southern Assooiation of Colleges and So 6ndary Schools and Accreditation Division of the Togas Education Agenoy, Approximately 69% of the graduatos of Denton High School go on to cottage, The Denton school system offers accelerated programs in such courses as S,M,S,D, Math and P,S,S.C4 Physics, A few Of the vocational training courses available in public schools are agrlcutture, hofronemaking, distelbutive education industrial education, mechanical drawing, woodwork, etc, 67% of the faculty hold Master's jegraes, Number of elementary scho.0ls 7 Enrollment in school for exceptional Number of Junior high schools 2 ohildren 961 Number of senior high sChoots 1 Popi to teacher ratio) Average students per classroom 26 ellementavy 2411 Average number of high school high Sdhool 201,1 grr, uates 278 1981 ra111 Enrollment 61497 $11,000,600 Denton State School Construction began in 1968 on the $11,600 000 Denton State School, with the first.phase of the construction being completed in July, 1940 at which tim4 the first group of students was admitted. The second phase was completed.16 1963, It is one of America's most modern and progressive educational institutions, This State supported educational institution for mentally retarded Texas residents is located 00 a 200-acre site paid for by Denton citizens, Present facilities include 47 (including outreach dorms) dormitories which accomitodate more than 1,188 students, 6 buildings for p!iysically:handicapped children with a capacity of 800, and a 62-bed acute not ital with suppr.rting facilities such as X-ray, laboratory, dehta), and pharmaceutical. In addition to those buildings, there is a modorn administration building, an academic building, a large laundry, a maintenance shop and a warehouse, The School has a staff of 1,489, with an annual payroll in excess of $1903640613, BANK Ij" There are five banks in the City,, First Denton County National Bank, established 1$02 Pi tt . State Bank, established 1912 University State 8ank,;,..ostdblished 1963 Western National Bank, established 1963 Citizens National Bank, established 1976, Combined Bank Deposits 1972 x$114;161,439 1977 $175,0061073 1913 126,209,608 1978 198,908,pp0 1974 131,018,000 1979 201,086,011 1976 140,747,710 1980 228,8130123 1976 167,805,982 1981 264,661,691 27 Pour savings and loan associations had combined year-end deposits as follows., 1972 $ 63,692,063 1917 E 94,168,267 1973 63,664,046 1978 106,901,284 1974 66,202,426 1979 1271299,490 1976 69010,698 1980 169,636,122 1976 84,238,471 1981 160,674,680 RECREATION Nearby tako Lewisville, one of North Taxes' largest lakes, is. one of Texas' most popular recreation areas. Lake Lewisville has a shore line of 183 miles located entirely in Denton County, Lake Lewisville attracts over 3,000,000 visitors to its shores annually. The upper reaches of the Lake are only about 3 miles east of the Denton City Limits, while the dam is 16 miles from downtown Denton, Grapevine Reservoir, another large body of water created by the U. Army Corps of Engineers, is llocated in Denton and Tarrant Counties. The dam is 23 miles from Denton. Parks and recreational areas abound on the shores of both Lake Lewisville and Grapevine reservoirs. Boating, fishing, hunting swimming and all water sports are the favorite recrea- tional pastimes at both reservoirs, Oich, because of this area's favorable climate, are in use the year round. Growth Indices Calendar Building Gas Water Light Year Permits ~et~rs Meters r$ ` f972- 33b 5bDt863 10969 Trim $te 1973 24, 37;860 11;114 11,261 120227 1974 12,498,6,21 11,416 11,692 121673 1976 1806,334 11,766 11,766 13,061 1976 12114$334 11,746 12,077 14;117 1977 22,244,076 12,294 12;490 16,660. 1978 32,324,274 12,661 12,!)03 16,404 ' 1979 71656,446* 13,224 13,094 17,160 1980 36:464 ,604 13,666 13,292 18,126 1981 40,637,746 13,680 136606 18,646 Includes construction of Golden triangle Mali and Peterbilt truck factory. z' r„. I {y 141 V, pig! i y' 28 - ~J y S f S RAT INOS Applications for'GGontract ratings on this issue have boon made to-Moody's investors Service, Inc, and Standard & Poor 's Corporation, An explanation of the significance of such ratings may be obtained from the company furnishing the rating, the ratings.reftect only the respective views of such organizations and the City makes no reprosentation as to the appropriateness of the ratings,' There is no assurance that such ratings will continue for any given period of time or that they will not be revisrad downward or withdrawn entirely by either or both of such rating companies, if in the judgment of either or both companies, circumstances so warrant, Any such downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the ~on6s, TAX EXEMPT( ON r The delivery of the BondS:is subdoct to an opinion of Messrs, McCall, Parkhur t &Horton, Bond Counsel to the City (11860d Cougsell.), to the effect that interest on the Bonds Is exempt from all present Federal Income taxes under existing statutes,-rulings, regulations and court decisions, The laws, regulations court decisions and administrative regulations and rulings upon which the conolusion stated In Bond Counsel's opinion will be based are subject to change by the Congreos, the Treasury Oepar.tment and lata~ Judicial and administrative decisions, REOiSTRATION AND QUALIFICATION OF BONDS FOR SALE The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as amended in reliance upon the exemption provided thereunder b, trltiu 3(a) (2) and the Bonds have nob been qualified under the Securities Act of Texas in ~~Iian v upon various exemptions contained thereinl nor have the Bonds been qualified under the securities acts of any ,iuri$dic- tion, The City assumes no responsibility for qualification of the Bonds under the securities taws of any jurisdiction in which the Bonds may be sold, assignod, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration provisions, LEGAL INVESTMENTS IN TEXAS The Bonds are legal investments for sinking funds of Texas counties, cities and towns. They are eligible to secure Texas state and school district funds and constitute lagal investments for insurance companies in the State of Texas. No review has been made of the laws of states other than Texas to determine whether the Bonds are legal investments for various institutions in those states. LEGAL OPINIONS AND NO-LITIGATION CERTIFICATC The City will furnish a complete transcript of pproceedings had incident to the authorization and issuance of the Bonds, including the unqualified approving legal opinion of the Attorney General of the State of 'Texas, to the effect that the Bonds are valid and legally binding obligations of the City, and based upon examination of such transcript of proceedinggs, the unqualified appproving legal opinion of Bond Counsel, to like effect and to the effect that the interest on the Bonds is oxempt from Federal income taxation under existing statutes regula- tions rulings and court decisions. The customary closing papers including a 'certilica e 1o the effect that no litigation of any nature has been filed or is then ponding to restrain the issuance and delivery of the Bonds, or which would affect the provision made for their 0ym ant or Security, or in any manner questioning the validity of said Bonds or the coupons appertain- ing thereto will also be furnished. Bond Counsel was not requested to participate, and did not take part In the preparation of the Notice of Sate and Bidding Instructions, the Official Bid Form and the Official Statement, and such firm has not assumed any responsibility with respect thereto or undertaken lodeppendentty,to verify any of the information contained therein except that, In its capacity as Bond Counsel, such firm has eaviewod the information describing the t Bonds in the Official Statement to verify that such description conforms to the provisions of the bond resolution, The legal fees to be paid Bond Counsel for services rendered in connection with the Issuance of the Bonds are contingent on the sale and delivery of the Bonds. The legal - opinion will be printed on the Bonds. 29 AUTHENTICITY OF FINANCIAL INFORMATION The financial data and other information contained herein have been obtained from the City's r@cords, audited financial statements and other sources which are believed to be reliable There is no guarantee that any of the assumptions or estimates contained herein will be rgalized. All of the summaries of the statutes documonts and resolutions contained in this Official Statement are made subject to all of the provisions of such statutes, documents and resolutions, These summaries do not purport to be complete statements of such provisions and reference is made to such documents for further information, Reference is made to original documents in all respects, FINANCIAL ADVISOR First Southwest Comppany is employed as Finaucial Advisor to the City in conneption with the issuanoo of the Bonds, The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is contingent upon the issuance and delivery of the Bonds, First Southwest Company may submit a bid for the Bonds, either indepandently or as a member of a syndicate organized to submit a bid for the Bonds, CERTIFICATION OF THE OFFICIAL STATEMENT At the time of payment for and delivery of the Bonds, the Purchaser will be furnished a certificate, executed by proper officers, actin in their official capaoity, to the effect that to the best of their knowledge and beliefi (a) the descriptions and statements of or pertain- ing to the City con`ained in its Official Statement, and any addenda, supplenient or amendment thereto, on the date of such Official Statement, on the date of sale of said Bonds and the acceptance of the hest bid therefor, and on the date of the delivery, were and are true and pppprroct in all material respects; (b) insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and d6es not contain an untrue statement 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 circumstances under which they were made, not misleading; (c) insofar as the descriptions and statements, includ- ing 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 to be reliable and that the City has no reason to believe that they are untrue in any material respect; and d) there has been no material adverse change in the financial condition of the City since he date of the last audited financial statements of the City, lry, no City will furnish the Purchaser, as a part of the transcript of proceedings, a certified copy of a resolution of the City as of the date of the sale of the Bonds which will approve the ;°orm and content of this Official Statement, and any addenda, sup lement or amendment thereto, and authorize its further use in the reoffering of the Bonds by the Purchaser. DICK STEWART Mayor ATTESTi CHARLOTTE ALLEN City Secretary rl e„S t -30- yi T , 'AUD1 0 R V AE'P04T OkNtoN*6u,$iNQ A'UtHOO'I 'Y OOMMUNITY DEVELO,RMENi ELOOK QRAN1 r, *0R THE 0EF100'OOTOPE14 1018 '1'Hoo'udk"DE'oEmbiA E4/'4s1 r 1 a I ~S s. , '7Sr Fri I, S,' i r 1~1 ft ~ 1 ~ , ti ~~{iYrl '~~~J;.t}'~ ~~i .yl r itr 1d t , fit 11 /J . l~ 7~1 RI5t5 ~Ir Sy 7, l~~ a fa f1.^, v . 4 t I~'A,6r} t 4 ,q~yA r ~ ~ f ~3yr at} ~ y dil i 4}kr { ~{j ~JS Yr ~r ~ ~ I ~ is ~f t 6'~ f ~ ~ r AUDITORS' REPORT DENTON HOUSING AUTHORITY COMMUNITY DEVELOPMENT SLOCK GRANT For the period October 1, 1978 through December 31, 1981 R r4 I~tr[ e, ,c , C O N T E N T S Page AUDITORS' REPORT 3 ♦ COMBINED STATEMENT OF SOURCE AND STATUS OF FUNDS COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG No, B-78-DS-48-0014) and (CDBG No, 8-79-DS-48-0014 for the period • October 1, 1978 through December 31, 1981 4 COMBINED STATEMENT OF PROGRAM COSTS COMMUNITY DEVELOPMENT BLOCK GRANTS (CDHG No, BL78-DS-480014) and (CDBG No. B-79-DS-48-0014) for the period October It 1978 through December 31, 1981 5 NOTES TO COMBINED STATEMENT OF SOURCE AND STATUS OF FUNDS AND COMBINED STATEMENT OF PROGRAM COSTS 6 SCHEDULES SCHEDULE A y DETAILS OF PROCEDURES 7 SCHEDULE B DETAILS OF FINDINGS 10 sk . 0 rat, `VC • Alexander Grant a OOMPANY MEMBBR PInM OERTIPIED PUBLIO AOOOUNTANTS GRANT THORNTON INTERNATIONAL Honorable Mayor and Members of the City council City of Denton, Texas We have applied certain procedures, as discussed in Schedule At to certain accounting records of the Denton Housing Authority (Authority), for the period October 11 1978 through December 31, 1981 applicable to the combined program years 1978 (CD80 No. B-78-DS-48-0014) and 1979 (CDBa No, 79-DS-48-0014), Our examination was made in accordance with the provisions of the Department of Housing and turban Development's Audit Guide and Standards for Community Development Block Grant 00 p en s, It is un, ers oori`tTi'at'-this reportis soTiy for the filing with the U.S. Department of Housing and Urban Development (HUD) and id not to be used for any other purpose, our procedures and findings are described in Schedule A and Schedule g, respectively, of this report, Because the procedures described in Schedule A were not sufficient to constitute an examination made in accordance with generally accepted auditing standards, we do not express an opinion on any of the specific accounts or items referred to in Schedule A, the Combined Statement of Source and Status of Funds, or the Combined Statement of Program Costs. In connection with the performance of the procedures referred to in Schedule At no matters came to our attention that caused us to believe that the specific accounts or items referred to above should be adjusted except as noted in Schedule B, Had we performed additional procedures or had we made an examination of the Combined Statement of Source and Status of Funds and the Combined Statement of Program Costs in accordance with generally accepted auditing'4tandardsp other matters might have come to our attention that would have been reported to you. This report should not be associated with the financial statements of the Denton Housing Authority for the years 1978, 1979, 1980, or 1981. ` We are duly licensed as certified public accountants Under the laws of the State of Texas. -000 a last Texas April 200 1982 A1800 ONE DALLAS CENTRE DALLAS, TX 76201 (214) 748-0100 l e °f 7 i `80.4 b. Denton Housing Authority Community Development Block Grants CDBO No B-78-DS-48-0014 and CSBG No. B-79-DS-48.0014 COMBINED STATEMENT OF SOURCE AND STATUS OF FUNDS For the period October 1, 1978 through December 31, 1991 Total funds received City of Denton $414x979 Loan repayments 13,676 92 , 55 « Less funds applied OotobuV 1, 1978 to December 31, 1981 425,245 Less funds transferred City of Denton 3,410 .e p? Total funds available for disposition $ 2 t, r I~ 2 1 t. The accompanying notes are an integral part of this statement. 4 f, I • Denton Housing Authority Communit.y Development Block Grants • CDBG No,B-78-DS-48-0014 and CDBG No,B-79-DS-48-0014 COMBINED STATEMENT OF nROGRAM COSTS For the period October 1, 1978 through December 31, 1981 Total Questioned Project activity e;~nditures - costs Rehabilitation Grants $245,413 $ 2,8,9 • Loan and grant combinations 110,343 - Admir.lstrative 69,489 228573 Total funds applied $425,245 $25,422 Questioned Costs Rehabilitation Balance of unused 1977 Grant funds - (Schedule B - Finding 6) $ 2,849 Administrative Purchase of certificate of deposit - (Schedule B Finding 5) $10,000 Transfer of Rehabilitation funds to the administrative account - I9Ohedule B Finding 7) 120573 Total questioned items - • administrative $22,573 • The accompany notes are an integral part of this statement. r S ! Denton Housing Authority Community Development Block Grants • CDBp No, B-78-DS-48-0414 and CDBG No. B-79-DS-48-0014 NOTES TO COMBINED STATEMENT OF SOURCE AND STATUS OF FUNDS AND COMBINED STATEMENT OF PROGRAM COSTS For the period October 11 1978 through December 31, 1981 • NOTE A - BACXOROUND These oombined statements present the grant a6tivity of the housing • kehabilitatioo project of the Community Development Blook Grant Funds allocated to the City of Denton, Texas ((City), by the U. S, Deppartment of Housing and Urban Development (HUD) under grants No. B-78-DS-48-6014 and No.8-79-bS-48-0014'for the period October 11 1978 through December 31, 1981, which were administered by the Denton Housing Authority for the City of Denton, Texas, • NOTE S - SUMMARY OF ACCOUNTING POLICIES The cash basis of accounting was used by the Denton Housing Authority, Expenditures for 'program operations "woke recognized • when paid. Administrative costs were a fixed oontract amount between the Denton Housing Authority and the City of Denton, Denton, Texas, These fixed administrative costs were charged to the housing rehabilitation project of the Community Development Block Grant programs. • ! 6 I SMDULE A DETAILS OF PROCEDURES Receipts procedures - rehabilitation 1. We agreed the validated deposit slips representing cash received from the City and the recipients' loans to the 0 bank statements and to the Authority's cash reoeipts/oash disbursements journal. 2. We agreed amounts received from the City to the request forms sent to the City by the Authority, + 3, We agreed amounts on the confirmations signed by both representatives of the City and the Authority to amounts deposited. 4. We agreed amounts received from the recipients for loan repayments to the loan repayments schedules on a test 0 basis. We further sent oonfirmat+;ions to all recipients (both grants and loans) and attached the loan repayment schedules to the applicable confirmations for verification by the recipient. 0 Disbursements procedures - rehhabilitation 1, We agreed cancelled checks to the bank statements and to the cash receipts/cash disbursements journal. 2. Wo agreed the amounts paid to the contractors to the 0 mechanic's liens. Procedures recipients - rehabilitation 1. Confirmations 4ere sent to all loan and grant recipients 0 requesting verification of the original..loan amount, principal payments unpaid principal balance at December, 31, 1981, collateral, amount of grant, date the lien on the grant or loan would release, a description of the rehabilitation work performed and the approximate date the rehabilitation wo+.k was performed. 2. All recipients were tested for eligibility by agreeing the individual's income as stated on"the application form ~ 7 ♦ SCHEDULE A DETAILS OF PROCEDURES - CONTINUED Procedures - recipients rehabilitation - Continued ko the apppropriate verification foams and then comparing the individuals income to the loan/grant schedule used 0 by, the Authority to process appli~ations. 3, The loan and/or grant amount was agreed to the promissory note and to the mechanic's lien. 4. The amount paid to each contractor was agreed to the i contractors' bid and/or the rehabilitation contract. Any additional costs were agreed to the appropriate change order. 5. The amount paid to the contractor was agreed to the request form sent to the City by the Authority. r 6. All contractors that received funds were agreed to the listings of eligible contractors. 7. The amount paid to the contractor was agreed to the form titled "Contractor's final bill, warranty on labor and ,i materials and oertifieation of ayments of bills". Receipts procedures - administrative 1. We agreed the validated deposit slips representing cash received from the City to the bank statements and to the ♦ Authority's cash receipts/cash disbursements 3our6al. 2. We agreed amounts received from the City to the'requ6st forms sent to the City by the Authority. 3. We agreed amounts on the confirmations signed by a reprasentative of the city and the Authority to amounts deposited. Disbursements procedures - administrative 0 1. We determined the fixed contract amount for admf.nistrative services from the eontraotg signed by the City and the Authority. This amount was compared to the amount actually deposited in the administrative account. ♦ 8 now ♦ SCHEDULE A DETAILS OR PROCEDURES - CONTINUED • Procedures - other 1. Disbursement, other than amounts paid to oontraotors, in the rehabilitation cheaking aaoount, were tested for ♦ validity, 2. Transfers between oheoking accounts were tested to determine the final disposition of the funds. ♦ • ♦ • • !I' 9 t t SCHEDULE 9 DETAILS or FINDINGS Finding 1 Promissory Notes are not in the city's name. Condition The promissory notes and the mechanic's liens are in the name of the Authority, Criteria There are no HUD guidelines requiring promissory notes or meohanic's liens, Effect When the notes are forgiven, the Authority will need to release the mechanic's liens, Since the liens are in the name of the Authority, the City cannot release a lien. • • ~ - r s* 10 e SCHEDULE B • DETAILS OF FINDINGS - CONTINUED • Finding 2 No rocedures were implemented to disclose viOlationr of the Promissory notes--by the unit owners, Condition The Authority required each unit owner that received a 0 grant or a loan sign a promissory no, q, The promissory note stated the method and period of repaying the loan and the period over which the grant would be forgiven. The Authority had no documentation which indicated the Authority had established or implemented any procedure to determine a violation of the clauses in the e promissory note. A representative of the Authority ;,tated'that no formal procedure was established, However, the Authority had received telephone calls from certain unit owners indicating a violation of their note, Also, an inspector would inspect units to determine if there were violations of the promissory note, However, no formal schedule of inspecting the un,tts was established. Criteria No HUD guidelines were noted which required recipients to obtain promissory notes. ♦ Effect No effect is determinable from the records of the Authority. • l1 • SCHEDULE B • DETAILS OF FINDINGS CONTINUED Finding 3 Some rants were unsecured and differences exist in the amounts o.. ee prom ssor no es an a ac ua s ursemen s paid o e oon motors, Condition The Authority required the unit owner to sign a promissory note and d mechanio's lien for the amount stated on the contract. However, once the rehabilitation construction began, additional worst and costs were sometimes required to update the unit to thb City's minimum code guidelines. A change order form was used for the arl of additional costs, The Authority's recordsVshowedtthat change orders were not processed for all additional costs, Further, the promissory notes and mechanic's liens were not updated for the additional costs. • 'the Authority's representatives stated that they did not believe the additional costs were material for a change in the notes and liens. The Authority felt the additional, costs of filing the liens would exceed the added security, ♦ Criteria No HUD guidelines were noted which required recipients to obtain promissory notes or mechanic's liens, Effect The Authority had not filed meohanie's liens'or had not received promissory notes for approximately $30;500 or ♦ an average of $454 per unit of the rehabilitation construction. • ~12 f t~f' a ti. • SCHEDULE B • DETAILS OF FINDINGS - CONTINUED • Finding 4 The Authority was not disbursing funds on a timely as s. Condition The Authority's records indicated that funds were not disbursed immediately upon receipt from the City to the • contractors, The Authority's representatives stated that the above mentioned condition occurred because of the following factors$ • (a) The Authority was requesting rehabilitation funds on tho basis of the contract amount plus ten percent for additional contract costs. (b) The contractors did not complete the jobs as scheduled. sinoQ the Authority was requesting i funds when the contract was sighed and they did not pay the contractors until the job was completed, the funds remained in the bank account for approximately a one month period at certain times. • criteria The.U. S. Treasury,re4uires that funds drawn down be disbursed within three days, except where draw downs are limited to the minimum of $100000 and funds on hand at the time of request were $10,000 or less, Effect No effect is determinable. • • 13 SCHEDULE B DETAILS OF FINDINGS - CONTINUED Finding 5 Purchase of a Certificate of, Deposit by the Authority. Condition On February 19, 1979, the City transferred $10,000 to the Authority for administrative services for the eriod October It 1978 to September 30, 1979. on February 23, 1979, the Authority purchased a certificate of deposit in the amount of $10,000 for 120 days at an interest rate of 9.378 at the First State Bank, Denton, Texas. The Authority's representative who processed this transaction is deceased. Criteria The U, S, Treasury requires that funds drawn down be disbursed within three days, except where draw downs are limited to the minimum of $10,000 and funds on hand • at the time of the request were $10,000 or less, Effect From the Authority's records, no determination can be made to verify if these funds were used for administrative services. Ii - 11 14 • SCHEDULE s r DETAXLS OF FINDINGS - CONTINUED 0 Finding 6 Unused funds of the 1977 Grant were not remitted back 'to the City* Condition At the start of the 1978 Grant program year, $2,848.57 for the 1977 Grant remained in the rehabilitation cheoking aocount. These funds were subsequently disbursed to contraotors relating to work done on units under the 1978 Grant Program. Criteria HUD guidelines require that unused funds at the and of a program be remitted book to the Treasury. Effeot $2,848,57 of the 1977 Grant Program were disbursed under the 1978 Grant Program, • r 11 j 15 1J SCHEDULE H • DETAILS OF FINDINGS - CONTINUED 1 Finding 7 Funds for rehabilitation work were deposited in the Administrative Account Condition The Authority made drawn from the city for administrative funds and rehabilitation funds. The Authority had established a sepparate requisition form for each type of fund. Beginning in January, 1481, the Authority did not submit any requests for administrative funds. Howevor, the Authority did make transfers from the rehabilitation oheoking account to • the administrative checking account. The Authority's representatives stated that the City was notified orally of these transfers. 1 The';iky's representatives a rated that there was a discussion with the Authority's representatives. The City had agreed orally that some funds could be used to pay for the administrative expenses. 1 Criteria No HUD guidelines were noted for subreoipionts to notify the recipient of the use of the funds requested. Effect in 1981, the Authority transferred $12,573 from the rehabilitation aooount to the admi»istrative account without notifying the City in writing. • • r (i