HomeMy WebLinkAbout1982
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PERTAIN'NG
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CITY OF DENTON
WATER AND SEWER SYSTEM REVENUE BONDS,
SERIES 1982
$1,500,000
LAW OFFICES
MCCALL, PARKHURST & HORTON
1100 MLKCA :TILL LANK LUILDINO
DALLAS. TEXAS 75201
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UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
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CITY OF DENTON
WATER AND SEWER SYSTEM REVENUE BOND
SERIES 1982
!
ON JULY 15, 1983,
THE CITY OF DENTON, In Denton County, Texas, hereby promises to pay to bearer hereof the principal
amount of
FIVE THOUSAND DOLLARS l
and to pay Interest thereon, from date hereof, at the rate of
1 ^ I
,I
THIRTEEN PERCENT (IJ D0%)
Per annum, evidenced by Interest coupons payable JULY, 15, 1982, and semiannually thereafter while this bond is
outstanding.
THE PRINCIPAL of this bond and the Interest coupons appertaining hereto shall be payable to bearer, In
lawful money of the United States of Amerlca,'wlthout exohanQo_or.collection charges to the bearer, upon
presentation and surrender o1 this bond ur proper Interact coupon, at the followlni which shall constitute and be
j defined as the "Paylog Agent" for this Series of Bonds:
014ANK, N1:A„ NEW YOLK: N'IW.Y" K, { : III ii,l
OR. AT,THF? pPTi6~ OF"~'fa , a9~F.AHE,MT
~FtFgT k TIGN ti f Ilr iJ~,~ i~tA9i TfX ,LL ' f
THIS Bp ND"ti OM 'He as e' a$of. A 1g, f98 th !s a 4Filverj the principal
p F T E C Y SfEYYF~i TEM.
amount of St,$~Or~ Fog pPes$~ I M VI W N N I s
r . Qf4 JUL 5, 1 ! r
or on any rj e at paymap here ft r, a Stan i g b fide of 1 Set m y b NlleY(h or to their
acheduted titles; s( the Pilo of a CH In hot or i pd for + pr 1 I am Uhl thief f d accrued
rest th 0"tho d e for ) de y{id Aggq"rf ast tiff da grio b, the at lip ¢ " i any
Inte foR such
redemption gel it hyihal eau a a writ no Cer i ay f1 ad 01 n t p d )MA In a financial
publication Ou wit (n 111 E!f"o Ne k, a Y9~ ihp,, d e t ktd or fly. uc NBem➢tlpll',due provision
shall be made )Atlh 1h! "."p p ge C, a syr.Ant of the p'r c ' eAto . oft ky hicft are to be so
redeemed and scclt8~! in fy}, ra0ff to Ihe~tl ~iXed for; rdampt(on If h Erfurt {Kof redemptlon is
published and If du7L ,t[ovfaiorl f9r }uCh 4eymen r s made,' if provided i}6ove, the d} which are to be so
redeemed thereby 6`'r Olnpticaily, 4t>31l bS "Ycd"omo~•~fip t0 !ha f go 160 maturitfAS acid They shall not beer
, f. , r.
interest after the dote ilxed loi,rs¢en,pyor~, area shgl" shad r,u: bs E.}la~ue..wd. or I7C ti,7 ~tiJ~,Andi-,g cxccp, t~
right of She bearer lo~rtsL i the r6~empU_on prtoe iron e ryi~ Ag9~}l out _.I 40ds provided for such
payment. s
IT IS HEREBY certified and oovlnanted tFteI this pOrd.has been'wrty'and validly authorized, issued, and
delivered; that all sets, conditions, and things required or proper to be performed, exist, and be dune precedent to
or In the authorl!ation, Issuance, and delivery of this bond have been performed, existed, and been done In
accordance with law; that this bond is a special ubliyatkn; and that tha principal of and Interest on this bond,
n end pledge of, the
together with other revenue bonds of said City, are payable from, and secured by a first lien on,
Net Revenues of said City's Waterworks and Sewer System,
SAID CITY has reserved the right, subject to the restrictions stated, and adopted by reference, In the
Ordinance authorizing this Series of bonds, io issue additional parity revenue bonds which also may I Datable
from, and secured by a lint ilen on and pledge ol, the aforesaid Net Revenues.
THE HOLDER HEREOF shall never have the right to demand payment of this obiigativo out of any foods
reload or to be raised by taxation.
IN WITNESS WHEREOF, this bond and the Interest coupons appertaining hereto have been signed with the
facsimile signature of the Mayor of said City and countersigned with Via fx;: mtla tagnaturo of L*,: City S!cralsry
of said City, and the official $eal of said City has been duly impressed, or plc-:ed In facsimile, on thla bond,
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City 6 8 r ♦ - - 4 - Mayor
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CITY OF DENTON
WATER AND SEWER SYSTEM REVENUE BONDS,
SERIES 19@2
$1,500,000
I
TRANSCRIPT OF PROCEEDINGS
WITH DELIVERY PAPERS
i
NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
ON
$1,500,000
CITY OF DENTON, TEXAS
(Denton County)
WATER AND SEWER SYSTEM REVENUE BONGS, SERIES 1982
Selling Tuesday, April 6, 1982, at 7:00 PM, CST
THE SALE
Bonds Offered for Sale at Com etitlve 6lddln The City of Denton, Texas (the "City'), is
o er ngg or sale is ater an Sewer System Revenue Bonds, Series 1982 (the
"Bonds"1.
Address of Bids . Sealed bids, plainly marked "Bid for Bonds", should be addressed to "Mayor
an ty ounc 1, City of Denton, Texas", and delivered to the Director of Finance, City
Council Chamber, City Hall, 215 E. McKinney Strept,Port-, Texas, nrior to 7:00 PM, CST, on the
date of the bid opening. All bids must be submitted on the Official Bid Form, without
alteration or interllneaticn.
Plece and T1me of Bid 0 enin the City Council will open and publicly read the bids for the
purchase o t e on s at the City Council Chamber, City Hall, 215 E. McKinney Street, Denton,
Texas, at 7:00 PM, CST, Tuesday, April 6, 1982.
Award of the Bonds The City Council will take action to award the Bonds (or reject all bids)
promptly after the opening of bids, and adopt an Ordinance authorizing the Bonds (the "Ordi-
nance") and approving the Official Statement.
THE BONDS
Descr_ lpttan The BoMS will be dated May 15, 1982, and Interest coupons will be due on July
and each January 15 and July 15 thereafter until the earlier of maturity or prior
redemption. The Bonds and interest coupons attached thereto will be payable at Citibank, N.A.,
New York, New York, or, at the option of the holder, at First National Bank in Dallas, Dallas,
Texas. The Bonds will mature serially on •1!1y 19 in each year as follows:
Principal principal Principal
Year Amount Year Amount Year Amount
M $ 60,000 TM 3-75 Ob6 Coo
1984 100,DO0 1989 75,000 1995 1515 50,DDO
1985 -0- 1990 75,000 1996 150,000
1986 -0- 1991 90,000 1997 150,000
1987 75,000 1992 100,000 1998 150,000
1993 100,000
The City reserves the right, at its option, to redeem Bunds maturing July 15, 1993, through July
15, 1995, both inclusive, in whole ~r any part thereof, on July 15, 1992, or any interest
payment date thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption.
Source of Payment . The Bonds are special obligations, payable solely from and secured by a
rs en on an pledge of the revenues of City's Water and Sewer System, after deduction of
reasonable expenses of operation and maintenance.
CONDITIONS OF THE SALE
T pc of Bid, and Interest Rates The Bunds will be sold in one block on an "All or None"
basis, and at, pr ce o no ess than their par value plus accrued interest to the date of
delivery of the Bonds. Bidders are Invited to name the rate(s) of Interest to be borne by the
Bonds, p-ovided that each rate bid must be in a multiple of 1/8 of 1% or 1120 of 1% and no coupon
rate may exceed 13%. The highest coupon rate bid may not exceed the lowest coupon rate Vday
more an , n coupon rate. No limitation is imposed upon bidders as to the number of rates or
coupon changes which may be used. All Bond; of one maturity must bear one and the same rate.
No bids involving supplemental coupons will be considered. Each bidder shall state in his bid
the total interest cost In dollars and the net effective interest rate determined thereby,
which shall be considered informative only and not as a part of the bid.
Basis for Award . For the purpose of awarding the sale of the Bcndi the intcrest cent of cash
P-- w-i 1 be cnnputed by determining, at the rate or rates specified therein, the total dollar
cost of all Interest un the Bonds from the date thereof to their respective maturities, wing
the table of Bond Years herein, and deducting therefrom the premium bid, if any. Subject to the
City's right to reject any or all bids and to waive any irreplarities except time of filing,
the Bonds will be awarded to the bidder (the "Purchaser" whose bid based on the above
computation produces the lowest net effective interest cost to the City.
Good °aith De osit A Gocd Faith Deposit, payable to the "City of Denton, Texas", in the
amount D 0, is required. Such Good Faith Deposit shall be in the form of a Cashier's
Check, or its equivalent, which is to be retained u cashed by the City pending the Purchaser's
compliance with the terms of his bid and the Notice xf Sale and Bidding Instructions. The Good
Faith Deposit may accompany the Official Bid Form or it may be submitted separately. If
submitted separately, it shall be made available to the City prior to the opening of the bids,
and shall be accompanied by instructions from the bank on which drawn which authorize its use as
a Good Faith Deposit by the Purchaser who shall be named in such instructions. The Good Faith
Deposit of the Purchaser will be applied on the purchase price on the date of delivery of the
Bonds. No incerest will be allowed on the Good Faith Deposit. In the event the Purchaser
should fail or refuse to take up and pay for the Bonds in accordance with his bid, then said
check shall be cashed and accepted by the City as full and complete liquidated damages. The
checks accompanying bids other than the winning bid will be returned immediately after the bids
are opened, and an award of the Bonds has been made.
DELIVERY OF THE BONDS AND ACCORPANYING DOCUMENTS
Printed Bonds . The City ill furnish printed Bonds which will be executed by the facsimile
sfgnatu the Mayor and Secretary of the City, and by the manual signature of the Comptroll-
er of Public Accounts of the State of Texas. The Bonds will be In coupon form witho,t privilege
of registration as to principal or interest.
{
CUSIP Numbers . It is anticipated that CUSIP identification numbers will be printed on the
S0_3rt s ,hut n!ither the failure to print such number on any Bond nor any error with respect
thereto shall constitute cause for a failure or refusal by the Purchaser to accept delivery of
and pay for the Bonds in accordance with the terms of this Notice of Sale and the terms of the
Official Bid Form. All expenses in relation to the printing of CUSIP numbers on the Bonds shall
be paid by the City; provided, however, that the CUSIP Service Bureau charge for the assi,nment
of the numbers shall he the responsibility of and shall by paid for by the Purchaser.
Delivery The Bonds will be tendered for delivery to the Purchaser at any bank In Austin,
exT as, at the expense of the City. Payment for the Bonds must be made in immediately available
funds for unconditional credit to the City, or as otherwise directed by the City. The Purchaser
will be given six business days' notice of the time fixed for delivery of the Bonds. It is
anticipated that delivery can be made on or about May 18, 1982, and it is understood and agreed
that the Purchaser will accept delivery and make payment for the Bonds by 10:00 AM, COT, on May
IB, 1982, or thereafter on the date the Bonds are tendered for delivery, up to and Including
June 1, 1982. If for any reason the City is unable to make delivery on or before June 1, 1982,
then the City shall immediately contact the Purchaser and offer to allow the Purchaser to
extend his offer for an additional thirty days, if the Purchaser does not elect to extend his
offer within six days thereafter, then his Good Faith Deposit will be returned, and both the
City and the Purchaser shall be relieved of any further obligation. In no event shall the City
be liable for any damages by reason of its failure tc deliver the Bonds, provided such failure
is due to circumstances beyond the City's reasonable control.
Conditions to Deliver, The obligation of the Purchaser to take up and pay for the Bonds is
su ect to t e urc~Tiaser's receipt of (a) the legal opinion of Messrs. McCall, Parkhurst 6
o ton, Dallas, Texas, Cord Counsel for the City ("Bond Counsel"), (b) the no•11tigation
certificate, and (c) the certification as to the Official Statement, all as further described
in the Official Statement
Legal 0 inioni The Bonds are offered when, as and if issued, subject to the unqualified
ego opinion of the Attorney General of the State of Texas, and Messrs. McCall, Parkhurst 6
Horton (see Legal Opinions in Official Statement); the opinion of said firm will be printed on
the Bonds.
,i ~
I~ Certification of Official Statement At the time of payment for and delivery of the Bonds,
the City will execute and deliver to the Fur0aser a certificate in the form set forth in the
Official Statement.
Chan a in Tax Exe_mF Status At any time before the Bonds are tendered for dell~ery, the
Purc ase may wi drtaw his Sid If the interest received by private holders from bonds of the
sane type and character shall be declared to be taxable Income under present Federal income tax
laws, either by ruling of the Internal Revenue Service or by a decision of any Federal court, or
shall be declared taxable or be required to be taken into account In computing any rederal
income taxes, by the terms of any Federal income tax law enacted subsequent to the date of this
Notice of Sale and Bidding Instructions.
SENERAL
Financial Advisor's Right to Bid First Southwest Company, the City's Financial Advisor,
reserves the right to 16 Q on the Bonds.
Blue Sky Laws By submisslon of his bid, the Purchaser represents that the sale of the Bonds
n staff tes other than Texas will be made only pursuant to exemptions from registration or, where
necessary, the Purchaser will register the Bonds in accordance with the securities law of the
states in which the Bonds are offered or sold. The City agrees to cooperate with the Purchaser,
at the Purchaser's written request and expense, In registering the Bonds or obtaining an
exemption from registration In any state where such action is necessary.
Not an Offer to Sell . This Notice of Sale does not alone constitute an offer to sell the
on s~,~is merely notice of the sale of the Bonds. The offer to sell the Bonds is being made
by means of the Notice of Sale and Bidding Instructions, the Official Bid Form and the Official
Statement. Prospective purchasers are urged to carefully examine the Official Statement to
determine the Investment quality of the Bonds.
Issuance of Additional Bonds After the issuance of the Bonds, the City will have $1,500,000
Water an ewer ystem evenue Bonds. The City anticipates the sale of these Bonds in the
Spring of 1993.
Ratings The outstanding Water and Sewer System Revenue Bonds of the City are rated "A" by
0o y's Investors Service, Inc. and "A" by Standard 6 Poor's Corporation. Applications for
contract ratings on this issue have been male to both Moody's and Standard R Poor's. The
results of their determinations will be provided as soon as possible.
Munictal Bond Insurance In the event these Bones are qualified for municipal bond insur-
ance aN t e 5rrZhaser desires to purchase such Insurance, the cost therefor will be paid by
the Purchaser.
The Official Statement „ The City will furnish to the Purchaser, without cost, 50 co les of
the Official State ment (and 50 copies of any addenda, supplement or amendment thereto?, com-
plete except as to interest rates and other terms relating to the reoffering of the Bonds, The
Purchaser may arrange at his own expense to have the Official Statement reproduced and printed
if he requires more than 5C copies, and may also arrange, at his total expense and responsibll-
ity, for completion and perfection of the first or cover page of the Official Statement so as to
reflect interest rates and other terms And information related to the reoffering of the Bonds.
The City assumes no responsibility or obllgation for the distribution or delivery of any of
these copies to any one other than the Purchaser.
Additional Co ies of Notice Bid Form and Statement A limited number of additional copies
o t s o ce or S
a e an ng Instructions, the Oificial Bid Form and the Official
Statement, as available over and above the normal mailing, may be obtained at the offices of
First Southwest Company, Investment Bankers, 800 Mercantile Pallas Building, Dallas, Texas
75201, Financial Advisor to the City.
The City reserves the right to reject any and all bids and to waive irregularities, except time
of filing.
On the cite of the sale, the City Councll will, in th,e ordinance authorizing the issuance of the
Bonds, approve the form and content of the Official Statement, and any addenda, supplement or
amendment thereto, and authorize Its use in the reoffering of the Bonds by the Purchaser,
DICK STEWART
ATTEST: Mayor
CHARLOTTE ALLEN
City Secretary
March 15, 1982
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-a
BOND YEARS
Accumulated
Year Amount Bond Years Bond Years Year
1983 S 60,000 70.000 70.000 1983
1984 100,000 216.666 286,666 1984
1985 0 0.000 286.666 1985
1986 NO 0.000 286.666 1986
1987 15,000 387.500 674.166 1987
1988 75,000 462.500 1,136.666 1989
1989 75,000 537.500 1,674.165 1989
1990 75,000 612.500 2,286.666 1990
1991 90,000 825.000 3,111.666 1991
1992 100,000 1,016.666 4,128.332 1992
1993 100,000 1,116.666 5,244,998 1993
1994 150,000 1,825,000 7,069.998 1994
1995 250,000 1,9 5.000 9,044.998 1995
1996 150,000 2,125.000 11,169.996 1996
1997 150,000 2,275.000 13,444,998 1997
1998 150,000 2,425.000 15,869.998 1998
Average Maturity 10.580 Years
Iv .
OFFICIAL BID FORM
Honorable Mayor and City Council April 6, 1982
City of Denton
Denton, Texas
Gentlemen:
Reference is made to your Official Statement and t:ocice of Sale and Bidding Instructions, dated
March 15, 1982, of $1,500,000 CITY OF DEN70N, TEXAS WATER AND SEWER SYSTEM REVENUE BONDS,
SERIES 1982, both of which constitute a part hereof.
For your legally issued Bonds, as described in said Notice of Sale and Bidding Instructions and
Official Statement, we will pay you par and accrued interest from date of issue to date of
delivery to us, plus a cash premium of - for Bonds maturing and bearing interest
as follows:
Interest Interest Interest
MaturitL Rate Maturity Rate Maturity Rate
r-sb-irBG i " 7-15.1994 %
JUV
7-15-1984 % 7.15-1989 % 1.15.1995
7-15-1985 % 7-15-1990 7-15-1996
7-15-198F % 7.15-1991 % 7.15.1997 %
7-15-1987 % 7-15-1992 % 7-15-1998 %
4 7-15.199) %
Our calculation (which is not a part of this bid) of the interest cost from the above is:
Total Interest Cost
Less Premium
NET INTEREST COST f
EFFECTIVE INTEREST RATE
Check of the Bank, ,
the amount oiT33 OO.00, which represents our Good iTTtF eposit (is attac- c ed-Feretc or
(has been made available to you prior to the opening of this bid) -,nd Is submitted in
accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding
Instructions.
We agree to accept delivery of and make payment for the Bonds at Bank,
Austin, Texas, not later than 10:00 AM, CDT, on May 18, 1982, or t eT reairti oT&te the
Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and
Bidding Instructions.
Respectfully submitted,
By _
- u~Tit ort e~Aepresen~tlve
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City )f Denton, Texas, this
the 6th day of April, 1982.
"Hay`or Y
ATTEST-
-t ty ecre ary
■ P.-turn of Good Faith Deposit tx hereby acknowledged: By
-
OFFICIAL BID FORM
Honorable Mayor and City Council April 6, 1982
City of Denton
Denton, Texas
Gentlemen;
Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated
March 15, 1982, of SI,SO0.000 CITY OF OENTON, TEXAS WATER AND SEWER SYSTEM REVENUE BORDS,
SERIES 1982, both of which constitute a part hereof.
For your legally issued Bonds, as described in said Notice o' Sale and Bidding Instructions and
Official Statement, we will pay you par and accrued interest from date of issue to date of
delivery to us, plus a cash premium of S for Bonds maturing and bearing interest
as follows: - '
Interest Interest Interest
Maturity_ Rate Maturity Rate Maturity Rate
7-15-1983 % 7.15.1968 % 7-15-1994 X
7.15.1984 % 7-15.1989 X 7-15-1995 %
1•15-1985 X 7-15.1990 % 7-15.1996 %
7-15-19ub x 7-15.1991 % 7-15-1997 %
7-15.1987 % 7.15-1992 % 7-15-1998 %
7.15-1993 %
Our calculation (which is not a part of this bid) of the interest cost from the above Is:
Total Interest Cost S
Less Premium
NET INTEREST COST S
EFFECTIVE INTEREST RATE
Check of the Bank, ,
Tn the'amou`-n~oP-33T,J00.00, which represents our oo -FaTthT-6posit (is etiaclied7ereto or
(has been made available to you prior to the open ng of this bid), and is submitted in
accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding
Instructions.
We agree to accept delivery of and make payment for tho eo^ds at Bank,
Austin, Texas, not later than 10:00 AM, CDT, on May 18, 1982, or Chereafter on the ate the
Bands are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and
Bidding instructions.
Respectfully submitted,
By _
`Au tf-iarT:e~sentae~ve^--
ACCEPTANCE CLAUSE
The above and foregoing bid is hereby in all things accepted by the City of Denton. Texas, this
the 6th day of April, 1982.
Mayor y
ATTEST:
ty cretary '
Return of Good Filth Deposit 1s hereby acknowledged:
By _
I
CITY OF DENTON, TEXAS
(Denton 0onnty, Toaas)
$1,500,000
WATER AND SEWER SYSTEM
REVENUE BONDS, SERIES 1982
Selling Tuesday, April 6, 1982,
at 7:00 PM, CST
This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to whom it is
unlawful to make such offer in such jurisdiction. No dealer, salesman, or any other person has been authorized to
give any information or make any representation, other than those contained herein, in connection with the offering
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 sale made hereunder shall, under any circumstances, create any implication that there has been no
change in the affairs of the City since the date hereof.
OFFICIAL STATEMENT
Dated March 15, 1982
INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME
TAXES UNDER EXISTING STATUTES, REGULATIONS AND COURT DECISIONS
$1,500,000
CITY OF DENTON, TEXAS
(Denton County)
WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1982
Dated: May 15, 1982 Denomination: $5,000
Principal and semi-annual interest (8anuary 15 and July 15) payable at
Citibank, N.A., New York, New York,
or, at the option of the holder, at
first National Bank in Dallas. Dallas, Texas.
First interest coupon due July 15, 1982.
Coupon bearer bonds, not registrable.
These bonds (the "Bonds") authorised at an election held May 16, 197?, will constitute special
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 Plater and Sewer System, after deduction of
reasonable expenses of operation and mrinlerance, as provided by the General Laws of the State
of Texas, particularly Articles 1111 et seq., Revised Civil Statutes of Texas, 1925, as
amended.
MATURITY SCHEDULE
Amount Maturity Rate Yield Amount Maturit Rate Yield
3-GFW 73
100,000 7-15-1984 100,000 7-15-1992
-0- 7-15-1985 100,000 7-15-1993*
-0- 7-15-1986 150,000 7-15-1994*
75,000 7-15-1987 150,000 7-15-1995*
75,000 7-15-1988 150,000 7-15-1996*
75,000 7-15-1989 150,000 7-15-1997*
75,000 7-15-1990 150,000 7-15-1998*
* The City reserves the right, at its option, to redeem Bond, maturing July 15, 1993, through
July 15, 1998, both inclusive, in whole or any part thereof, on July 15, 1992, or any interest
payment date thereafter, at the par value thereof plus accrued interest to the date fixed for
redemption.
Payment Record: The City has never defaulted.-
Le alit Attorne General of the State of Texas and
Messrs. c a ar urst cr on ttorne s a as eras.
p n on Printed an the 15onds; ee ego p n ons.
Delivery: Anticipated on or about May 18 1982.
TABLE OF CONTENTS
Pale _
Official Statement:
Description of the Bonds I
Elected Officials 3
Appointed Officials 3
Consultants and Advisors 3
Introductory Statement 4
Security for Payment 5
Water and Sewer System Condensed Statement of Operations 5
Authorized Revenue Bonds 5
Anticipated Issuance of Voted Revenue Bonds 5
Deut Service Requirements - Water and Sewer System Revenue Bonds 6
Value of the Water and Sewer System 7
City's Equity in System 7
Water and Sewer System 7/B
Monthly Water Rates 8
Monthly Sewer Rates 9
Proceeds
Summary of Certain Provisions of the Bond Ordinance 10/14
Electric System 14/20
Valuation and Debt Information 21
Non-Funded Debt 21
Valuation and Funded Debt History 22
Taxable Assessed Valuations by Category 22
Estimated Overlapping Funded Debt Payable from Ad Valorem Taxes 22
Tax Rate Limitation 22
Tax Data 23
Municipal Sales Tax 23
Tax Rates of Overlapping Subdivisions 23
Top Ten Taxpayers 24
Authorized But Unissued General Obligation Bonds 24
General Information Regarding City and Its Economy 04128
Ratings 29
Tax Exemption 29
Registration and Qualification of Bonds for Sale 29
Legal Investments in Texas 29
Legal Opinions and No-Litigati" Certificate 29
Authenticity of Financial Information 30
Financial Advisor 30
Certification of the Official Statement 30
City of Denton, Texas Selected Firancial
Statements, September 30, 1981 Available Upon Request
The cover page hereof, this page, the Financial Statements and any addenda, supplement or
amendment hereto, are part of the Official Statement.
2.
ELECTED OFFICIALS
City Council Expires~
c tewart April, '70
Mayor
Ray Stephens April, 1983
Mayor Pro-Tern
Joe G. Alford Aprrl, 1983
Councilmember
Mark R. Chew April, 1983
l Councilmember
Dwiy;it Galley April, 1982
Councilmember
Jim Riddlesperger April, 1983
Councilmember
Richard Taliaferro April, 1982
Councilmember
APPOINTED OFFICIALS
Name Position
ris Hartung City Manager
Ric'< S-'ehla Assistant City Manager
Betty McKean Assisttrt City Manager
K. H. Mchary Director of Finance
R. E. Nelson Director of Utilities
Charlotte Allen City Secretary
C. J. Taylor, Jr, City Attorney
CONSULTANTS AND ADVISORS
McCall, Parkhurst 6 Horton
Bond Counsel Dallas, Texas
Alevader Grant b Company
Auditors Dallas, Texas
First Southwest Caapunr
Dallas, Texas
Financial Advisor
3-
INTRODUCTORY STATEMENT ,
This Official Statement of the City of Denton, Texas, a political subdivision located in Denton
County (the "City"), is provided to furnish information in connection with the sale of the
City's $1,500,000 Water and Sewer System Revenue Bonds, Series 1982 (the "Bonds").
The Official State,aent wa> prepared to present for the purchaser of the Donds information
concerning the Bonds, the revenues pledged to the Bonds, the description of the revenue base,
factors that may affect pledged revenues, and other pertinent data, all as more fully described
herein. See "Table of Contents".
Source of Payment The Bonds are and shall be payable as to principal and interest solely
ron the net revenues derived from the operation of the City's Water and Sewer System, includ-
ing all additions, extensions and improvements thereto which may hereafter be made, after
deduction of the reasonable expenses of maintenance and operation of the System. See "Security
for Payment".
Purpose Proceeds of the $1,500,000 Water and Sewer System Revenue Bonds will be used along
with Environmental Protection Agency Grant Funds, to construct approximately twenty one miles
of interceptor sewer lines and associated pump stations, to construct advanced secondary
treatment effluent filters for the Wastewater Treatment Plant, and miscellaneous improvements
to the distribution, interceptor and collection systems within the City.
Future Bond Issues The City anticipates the issuance of additional Water and Sewer System
Revenue Bons in the Spring of 1983.
Administration of the CIt The City operates under a Home Rule Charter which was approved
y~Ehe Jitorate ebruary 24, 1959. The Charter provides for the Council -Manager form of
government for the City. PoI I cy-making and supervisory functions are the responsibility of and
vested in the Mayor and City Council.
.4-
I SECURITY FOR PAYMENT
These Bonds will constitute special obligations of the City, earh payable as to bath principal
and interest and equally secured by a first lien on and pledge oY the revenues of the Water and
Sewer System (the "System"), after deduction of reasonable expenses of operation and main-
tenance, as provided by the General Laws 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 9-30-81 9-30-80 9-30-79 9-30-78 9-30-77
ncome Tb €82 M 34.577;754 V-1 IN dt; U79TIM TF,377,7A3
Expense 3,058,928 2,849,852 2,163,339 1,978,870 1,703,904
Net Available for Debt
Service $1,623,840 51,657,887 32,020.707 $1,572,508 S 8688881
Water Customers 13,506 13,292 13,094 12,787 12,327
Sewer Customers 13,020 12,883 12,634 12,268 11,837
Average Annual Principal and Interest Requirements, 1983-2000 S 866,915
Coverage of Average Requirements by 9-30-81 Net Income 1.87 Times
Maximum Principal, Interest and Reserve Requirements, 1985 S 1,242,165
Coverage of Paxfmum Requirements by 9-30-61 Net Income 1.31 Times
Water and Sewer System Revenue Bonds to he Outstanding after
Issuance of These $1,500,000 Bonds 510,415,000
Interest and Sinking Fund, 2.1-82 S 626,367
Reserve Fund, 2-1-82 S 658,258
AUTHORIZED REVENUE BONDS
Amount Amount
Date Amount Heretofore Being Unissued
Purpose Authorized Authorized Issued Issued Balance
Water - -T6--F- TT,275;Md 3CT7F.M 3--8 T-M.W
Sewer 5-16-72 5 725 000 3 525 000 1 500 000 700 000
31 ~D`, 6aQ 38 ~b`6~b 31:' 540 NT 3r 5a~ aaa
ANTICIPATED ISSUANCE OF VOTEO REVENUE BONDS
The City expects to issue the balance of the authorized Water and Sewer System Revenue 9onds In
the Spring of 1983.
' -5-
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1 VALUE OF THE WATER AND SEWER SYSTEM
r Fiscal Year Ended 9-30-81 9-30-80 9-30-79 9-30-78 9-30-77
Lan an Lan ghts I-39T.2I0 T__ 1._M 3__J74_1M ;--3= T-7=
Utility Plant at Cost 22 750 060 22,138,699 20 973 842 19 542 928 19,290 738
Gross System Value 373 idT 270 PT.MT-09 S2I,347.885 319:916,435 I19,5I4,634
Less Accumulated
Depreciation 10 707 054 10 083,295 9,473 600 8 891 802 8,334 568
Net System Value IT2;bTd,'I_E 3F2 d46 61~ 3TT BTb f3 371 x`€53 j_1TT'ib~
CITY'S EQUITY IN SYSTEM
Fiscal Year Ended 9-30-81 9-30-80 9-30-79 9.30.78 9-30-77
esouesourceess -
ULiTT-ty Plant (Net) $12,434,216 $12,446,614 $11,874,285 $11,024,653 $11,180,066
Construction in
Progress 9 419 881 1,546 497 381 739 689 450 496 293
Total Utility Plant $21.'854'097 S13,993'111 3I7 '116!024 $11.714.103 111359
Construction Fund T 1,-333;523 989 T~d27;335 j'- Sn-, II 3~72z9
Less: Contracts
Payable 4
20.371
8
839,025 94.498 4 8 8 8,141 41058 3368,437
98 1, 503 11579
Other Assets 1 36`5 589 -`10b Ib3 16 -T 353'3Tb .015o663
Total Resources I2KI8,-7TI IT7,7dT;aIT IT S X93$ I15.5ti' m jI3e9z5dU
Obligations
Revenue Bonds $ 8,975,000 S 9,475,000 S 9,865,000 S 6,230.000 S 6,585,000
Accrued Interest 98 851 104 411 108 423 63 626 67 878
Gross Debt 39,073;851 ",3t9;4IT 1,473;433 S 6,293:826 1 652;878
Deficit Position -
Pooled Cash 1,177,374 772,147 129,275 627,108 727,021
Other Obligations 7416 550 226 559 357 981 32u620
Total Obligations TTt7L
City's Equity in System S13,102,805 $ 6,845,518 S 6,228,681 S 6,292,514 S 5,540,061
Percentage Equity in
System 54.46% 38.57% 37.62% 46.37% 41.68%
WATER AND SEWER SYSTEM
Water ~_SuppI Present municipal supply is obtained primarily from surface sources, but
un erg-sources are available. The City has previously acquired conservation storage
rights in nearby Lewisville Reservoir which was constructed by the U. 5, Corps of Engineers.
This reservoir contains a total of 436,000 acre feet of conservation storage. The City of
Denton holds rights to 21,000 acre feet of the storage, with the balance being held by the City
of Dallas. In recent water rights adjudication proceedings by the State of Texas, the City of
Denton has been awarded 4.5 million gallons per day water rights from Lewisville Reservoir with
the ri^ht to "perfec Y an additional 5.3 million gallons per day. The City presently uses
apprdxmately 9 million gallons per day, and purchases from the City of Dallas all amounts over
4.5 million gallons. Tne 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 requirements, the City has underground sources consisting of seven deep
wells drilled into the Trinity Sand G^oup, comprising the Paluxy and Travis Peak sands. The
average daily production capability from the wells is 2.5 million gallons per day.
Future Water Supply In 1980, the City of Denton and the City of Dallas contracted with the
r 0 ng neers for the construction and development of Ray Roberts Reservoir in Denton
County, located immediately 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, Lhe
City of Denton will pay for 26% of the construction cost, and the City of Dallas will pay for
74%. Water obtained from the reservoir will be pro-rated on the basis of each city's propor-
tional share of total construction cost. Estimated safe yield of the Ray Roberts Reservoir has
been calculated at 73 million gallons per day, of which Denton would be en tilted to receive up
r to 19 million gallons per day. This amount, plus a safe yield of 4.5 million gallons per day
7-
obtained from the present water rights in Lewisville Reservoir, will be sufficient to meet the
City's estimated water needs through the year 2005. The City of Denton is presently conducting
a long rargi water supply study to determine water requirements and alternatives after 2000.
Water Usage
Average Maximum Averaage Maximum
Year Da Da Year TM 7 TP7 D7 92T,OOU , OT4 119000
1973 6,636,907 12,175,000 1978 8,394,000 16,466,000
1974 6,822,000 12,620,070 1979 7,920,820 14,560,000
1975 7,216,282 13,350,D00 1980 9,477,386 18,867,200
1976 7,264,000 14,080,000 1981 7,117,852 15,403,000
Wastewater Treatment The City owns and operates an activated sludge type wastewater treat-
ment ac ty. he first element of the plant (with a capacity of 2 MGD) was placed in
operation in 1964. A 4 MGD addition was completed and put into operation during 1971. A 6 MGD
addition to the plant is presently being completed with operation planned to begin in the
Spring of 1982. The City will be taking bids for advanced secondary treatment effluent filters
for the plant in early 1982. The effluent filters are required to meet future water quality
effiuent criteria. The estimated cost of the filters is S1.2 million. In late 1981 the
effluent filters were declared eligible for Environmental Protection Agency grant funds which
presently are expected to fund approximately 60% of the project.
MONTHLY WATER RATES
Old Rates
(Effective May I8, 1981)
Residential Users
Billing Months June - September Billing Months October - May
Facility Charge $3.00 plus Facility Charge $3.00 plus
0 - 20,000 gallons 1.00/M gallons Volume Charge 1.00/M gallons
Above 20,000 gallons 1.15/M gallons
Commercial/Industrial Users
Customer Facility Charge $6.50 plus
Volume Charge U.94/14 gallons
New Rates
(Effect vie May T, 1982)
Residential Users
Billing Months June - September Billing Months Dctober - May
Facility Charge $3.25 plus Facility Charge $3.25 plus
0 - 20,000 gallons 1.101A gallons Volume Charge 1.10/M gallons
Above 20,000 gallons 1.301M gallons
Minimum Charge - $5.00
Commercial/Industrial Users
Customer Facility Charge $7.25 plus
Volume Charge 1.05/M gallons
Minimum Charge - 58.00
-8-
MONTHLY SEWER RATES
Old Rates
(Effective Apri 6, 1981)
Residential Commercial/Industrial
(Based on 98% of second highest usage of (Based on 80% of water consumption)
Decemuer - February but not to exceed
25,000 gallons)
Facility Charge S2.50 plus Facility Charge $5.50 plus
Volume Charge 0.74/M gallons Volume Charge 0.811M gallons
New Rates
(Effect vl Ray T, 1982)
Residential Cormercial/Industrial
(Based on 98% of second highest usage of (Based on 80% of water consumption)
December - February but not to exceed
25,000 gallons)
Facility Charge $3.00 plus Facility Charge $6.50 plus
Volume Charge 0.65/M gallons Volume Charge 0.95/M gallons
Note: All service outside City Limits at 115% of above rates.
PROCEEDS
Proceeds of the $1,500,000 Water and Sewer System Revenue Bonds will be used, along with
Environmental Protection Agency Grant Funds, to construct approximately twenty one miles of
interceptor sewer lines and associated pump stations, to construct advanced secondary treatment
effluent filters for the Wastewater Treatment Plant, and miscellaneous improvements to the
distribution, interceptor and collection systems within the City.
I
v
-9-
AiMMARY OF CERTAIN PROVISIONS OF THE BOND ORDINANCE
The City Council will adopt a Bond Ordinance (the "Ordinance") authorizing the Bonds, which
will be in substantially the same form as the Ordinances authorizing the outstanding bonds,
pertinent provisions of which are shcwn below:
DEFINITIONS
The term "System", as used in this Ordinance, shall mean the City's complete Water and Sewer
System, including all present and future extensions, enlargements, additions, replacements and
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 such
repairs and extensions, as in the judgment of the City Council, reasonably and fairly ex-
ercised, 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 Mcd v iectively the $1,500,DUO Series 1982 Bonds authorized by this
Ordinance and all rresently outstanding Water and Sewer System Revenue Bonds (the "Outstanding v,
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 irrevocably
pledged for the payment of the Bonds, and of the Additional Bonds if issued under the conditions
and in the manner specified in this Ordinance, and the interest thereon, and it is hereby
ordained that the Bonds and any Additive al Bands, if so issued, and the interest thereon, shall
constitute a first lien upon said net revenues.
RATES
The City covenants and agrees with the holders of the Bonds and the Additional Bonds if and when
issued:
(a) That it will 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 "Net Revenues" as ~,erein defined and to produce each fiscal
year net revenues in an amount not less than one and thirty-hundredths (1,30) times
the amounts required to pay the principal of and interest on the Bonds, and the
Reserve Fund payments, as they become due;
(b) If Additional Bonds are issued, the City shall to the extent required fix and
maintain 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 required to pay the principal of and
interest on the Bonds and the Additional Bonds, and the Reserve Fund payments, as
they become due;
(c) If the System should become legally liable for any other indebtedness, the City shall
fix and maintain additional rates and collect charges for the services of the System
sufficient 0 provide for the payment thereof.
FUNDS
All revenues derived from the operation of the System shall be kept separate from other funds of
the City. 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 depositary bank;
10 -
(b) City of Denton Plater and Sewer System Revenue Bond Interest and Sinking Fund, here-
inrCter called "Interest and Sinking Fund", which shall be kept in the City's deposi-
tory bank;
(c) City of Denton Water and Sewer System Revenue Bond Reserve Fund, hereinafter 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 shill 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
materials shall be paid therefrom upon approval of the City Council. Revenues of the System not
actually required to pay expenses and costs incurred as permited by this Section shall 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.
INTEREST AND SINKING FUND
That, to addition to all other amounts required by the ordinances, respectively, authorizing
the Outstanding Bonds, there shall be deposited into the Interest and Sinking Fund (created for
the benefit of said Outstanding Bonds and all Additional Bonds) the following:
(a) Such amounts, in equal monthly installments, made on or before the last day of each
month hereafter, as will be sufficient to pay the interest scheduled to come due on
said Series 1982 Bonds on the next interest payment date; 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 be sufficient to pay the next
maturing principal of said Series 1932 Bonds.
RESERVE FUND
That the Reserve Fund heretofore created for the benefit of the Bonds aid all Additional Bonds
now contains Iio rley alnd iniEstimei ti not leis than the sum of '#S 53,25G. VII o, oo a 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 five 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,
no additional deposits shall be made into the Reserve fund as long as the mmey and investments
therein are equal to the Reserve Required Amount; but if and whenever the Reserve 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 Revenues of the System (after
the required deposits have been made into the Interest and Sinking Fun % 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 Amount; and the City covenants to keep and maintiin said Reserve Required
Amount in the Reserve Fund. The Reserve Fund shall be maintained, used, and may be invested, I
for the benefit of the Bonds and all Additional Bonds, in accordance with the procedures, as 11
herein modified and supplemented, set forth in the ordinances, respectively, authorizing the
Outstanding Bonds. It is provided, however, that if and whenever, due to investment income ov
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.
DEFICIENCIES IN FUNDS
If in any month the City shall fail to pay into ti° interest and Sinking Fund and the Deserve
Fund the full amou,As above stipulated, amounts equ'v)Tent to such deficiencies shall be set
apart and paid into said Funds from the first available and unallocated revenues of the
following month or months, and such payments shall be in addition to the ruounts hereinabove
pr^vided to be otherwise paid into said Funds during such month or morchs. To the extent
nr'essxry, the City shall increase the rates and charges for services of the System to make up
suu, _'eficiency.
- 11 -
EXCESS REVENUES
Any revenues in excess of those required to establish and maintain the Funds as above required
may be usod for the redemption of Bonds or Additional Eonds, the purchacn of Ronde or aRdirienal
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 Ordinance shall be secured in the manner and to the fullest extent
permitted by law for the security of public funds, and such funds shall be used only for the
purposes permitted in this Ordinance.
ADDITIONAL BONDS
I (a) The City reserves Lhe riy6L Lu issue additional bonds payable from revenues of the
System, and the additional bonds shall be called "Additional Bonds". The Additional
Bonds, when issued, shall be sec red by and oavable from a first lien on and pledge of
the Net Revenues of the System, In the same manner and to the same extent as ar.+ the
Bands, and the Bonds and the Additional Bonds shall in all respects be of equal
dignity. The Additional Bonds may be issued in one or more installments. The
provisions of this Ordinance relating to Additional Binds pertain only to Additional
Bonds permitted by this section, and do not relate to junior lien bonds.
(b) it is provided, however, that none of the Additional Bonds shall be issued unless:
(1) The Interest and Sinking Fund and th,. Reserve Fund each contains the amount of
money then required to be on deposit therein;
(2) The Net Earnings for any consecutive twelve months 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 ty
a report of a certified public accountant. The term "Net Earnings", as used
herein, shall mean the gross revenues after deducting disbursements for opera-
tion and maintenance, but not deducting expenditures which, under stGndard
accounting practice, should be charged to capital expenditures;
(3) The Additional Bonds are made to mature July IE of each of the years in which
they are scheduled to mature;
(6) The City is not in default in any of the covenants contained in this Ordinance.
MAINTENANCE AND OPERATION; INSURANCE
The City shall maintain the System in good condition and operate the same in art efficient manner
and at a reasonable cost. So long as any of the Bonds or Additional Bonds are outstanding, the
City agrees to maintain insurance for the benefit of the holder or holders of the bond;, on the
System of a kind and In an amount which usually would be carried by private companies engaged in
a similar type of business. Nothing in this Ordinance shall be construed as requiring the City sl
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. I
ACCOUNTS J
The City shall keep proper books of record and accounts (separate from all other records and
accounts of the city) in which complete and correct entries shall be made or 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 shall coincide with fiscal
year fixed by the City Charter.
- 12 -
i
ACCOUNTING REPORTS
within ninety days after the close of each fiscal year hereafter, the City will furnish
(withou~ cost) a signed or certified copy of a report by an independent certified public
accountant covering the next preceding fiscal year showing the following information
(a) Income and Expense Statement;
(b) Balance Sheet as of the end of the fiscal year;
(c) Accountant's comment regarding the manner in which the City has complied with the
requirements of this Ordinance and his recommendations, if any, for any changes or
improvements 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;
(e) The number of properties connected with the water and sewer system and the total
income from each said system for the year.,
(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 follows:
(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, to such manner
that one bond shall have no preference over any other bond;
(b) The City covenants and represents that other than for the payment of the Bonds, the
rents, revenues and income of the System have not in any manner been pledged to the
payment of any debt or u*liaatinn of thr 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 Additional Bonds expressly permitted by this Ordinance to be issued, it will not
encumber the revenues thereof unless such encumbrance is made junior and 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 uther than the revenues and income of the System;
(e) To the extent 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, and the operation of any such system by any
one other than this City Is hereby prohibited.
INSPECTION
Any holder or holders of Bonds cr Additional Bonds have the right at all reasonable times to
Inspect the System and all records, accounts and data of the City relating thereto.
13 -
REMEDIES
In addition to all the rights and remedies provided by law, the City further covenants and
agrees that in the event of default in the payment of principal or interest on any of the Bonds
when due, or it fails to make the payments as required to be made into the Funds created by this
Ordinance, or defaults in the ebs_rvanre or performance of any other of the covenants, condi-
tions, or obligations set forth in this Ordinance, the holder or holders of any of the Bonds
shall be entitled to a writ of mandamus or other appropriate order issued by a court of proper
jurisdiction compelling and requiring the City and the officials thereof to observe and perform
any covenant, obligation or condition prescribed in this Ordinance. No delay or ommission to
exercise any right or power accruing upon any default shall impair any such right or power or
shall be construed to be 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 shall be cumulative of all other existing remedies and the
specifications of such remedies shall nut uc deemed to be exclusive.
BONDS ARE SPECIAL OBLIGATIONS
The Bonds are special obligations of the City, payable from t' dodged revenues and th holder
thereof shall never have the right to demand payment th. f c 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, they shall be
forwarded to the Comptroller of Public Accounts of the State of Texas, who shall promptly
register them and he shall deliver the Series 1.982 Bonds in accordance with instructions to be
given 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 be printed on the back of each bond, and the seal of said Comptroller shall be affixed
to each of said bonds.
(The Electric System is operated as a separate utility by the City. The following is for
Informational purposes only.)
ELECTRIC SYSTEM
The City of Denton has owned and operated its Electric Light and Power System (the "System") for
approximately seventy six years without interruption. During this time, the System has experi-
enced a steady growth in customers and output, requiring periodic additions to plant and
distribution facilities.
Service Area The System provides electric service to 18,556 customers located in the city.
1Fe C7ty Fas covenanted in the Ordinance that it will not operate, and will not grant any
franchise ur permit the acquisition, censtruction, or operation of, any electric energy distri-
bution facilities which would be in competition with the electric system, and, to the extent
that it legally may, the City will prohibit eny such competing facilities.
Customers In 1981• the Sys' Id 409,096,000 KW9 of electrin energy. The following
Ca-55Ti on shows the average number J customers from 1976 through 1981 and the average charge
per kilowatt hour ("KWH").
14 -
i
Year Ended September 30 -1 979 _ _ 1980 48 If
Average Number of Customers: -1-1179-
Residential 12,931 13,870 15,705 16,225
Conner cial;Industrial 2,603 2,608 2,420 2,186
Other 310 312 137 145
Total Customers T;34d i~,T4a ITT167 7E355
Average Charge Per KWH (4 per KWH):
Residential 4.524 4.564 4.544 4.804
All Other 3.814 3.974 4.154 5.394
The System's sales of energy, in KWH, to principal customer classes for 1978 through 1981 were
as follows:
KWH Sold (000'5 Omitted)
Year Ended September 30
-1978 ~t98D 1981
Residential 15F-615 TV .-M 16T, 2M T73;4'0
Commercial/Industrial 284,290 276,199 301,992 308,348
Other 23 106 23 579 24,041 17,288
Total Sales 45$ bIT b32 3Tt 7f43O9 d9~OgS
I
Production Facilities and Interconnection Arrangements . Present production facilities of
the System consist o five generating units escrf`ed as follows:
Number
r[t of Name Plate
_ Type Units Capacity KW
Steam uur ne
Unit 1 12,650
Unit 2 12,650
Unit 3 32,000
Unit 4 66,500
Unit 5 65,481
3 F8~28T
Interchanges
TMPP rMPA and Ml- Interconnectfors (l):
TI3 K ort n erc ange 311KYj- 50,000 KW
Brazos 69KV Interchange 70,000 KW
TMPA/TP&L Spencer Plant 138 KV Interchange 1001000
(1) Texas Municipal Power Pool ("TMPP").
Texas Municipal Power Agency ("TMPA").
` Texas Power 6 tight Company ("TP&L").
Note: The City has recently declared its five diesel generators (12,635 KW) surplus and Is
regotiating the sale of these units.
The following tabulation provides information for calendar year 1981 for the System's ten
largest customers in terms of both peak demand and annual revenues. These customers taken
together represent 29.78% of the 1981 electric revenues from sales.
i5 -
Denton Electric S stem
Ten Largest Retail Power Customers
1981
1981 Annual Peak KWH
Customer KWH Revenues Demand
North TexasState University 32 -,59-1-, 53 63£,575 --9;447
Texas Woman's University 22,461,400 989,103 2,772
Paccar, Inc. 11,278,800 595,242 4,480
Acme Brick Company 10,947,300 489,383 1,911
Victor Equipment 10,855,600 506,471 2,436
Golden Triangle Mall 9,731,200 474,751 2,600
Denton State School 9,325,500 440,111 2,445
Moore Business Forms, Inc. 4,782,750 221,735 1,050
Morrison Milling Co pony 4,183,900 191,351 777
Emconite, Division of Arnerace 3,472,000 166,936 941
Total 149,629,538 $7,737,656 21,852 I
Electric Rates J
(Effect ve Prf , 1981)
Residential
Facility Charge $4.50 Single Phase
8.00 Three Phase
Months of June through September
All KWH $0.0465 per KWH plus an
energy cost adjustment
Months of October through May
All KWH $0.0435 per KWH plus an
energy coat adjustment
Note: When usages are less than 700 KWH during June through September, ded,ict $2.00 from the
monthly facility charge each month until monthly usage exceeds 700 KWH.
Energy CostAdjustment When fuel or purchased power costs are more than three cents (3t)
per KWH, an Fnerg- y Losost 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 (3t) which is already included in the base rate.
Projected Loads and Resources The projected loads and resources of the System for the
per o ugh 1991 are presented in the following chart as determined by the City:
rorecasted Peak Loads and Resources (In Megawatts)
Peak Net Reserve
Year Loads Resources Margin
X
34
1983 142 29 2 81
1984 151 271 3 79
1965 161 285{4 77
1986 170 285 68
1987 178 285 60
1988 187 285 52
1989 195 285 46
1990 202 285 41
1991 210 285 36
(1 Tested net capability.
2 TMPA Gibbons Creek, Denton's 20% allocation (78MW) (see "Texas Municipal Power Agency"),
13 Comanche Peak Unit 1 (14V
/ Comanche Peak Unit 2 14MW
16
Statistical Data
Year Ended September 30
1971_-___._ 1978 1979 1980 1981
Sales of KWH:
ResldeneiaT 133,951,296 150,614,995 132,533,565 167,285,852 173,460,115
Commercial/Industrial 295 016,653 284,289,637 275 199,288 301,982 186 308 347 623
328;-4E8T49 UT, 454,63? 408:7153 4691268,038 481,'607,738
Public Street and Highway 5,224,322 4,771,882 4,665,680 4,702,075 4,750,623
Other 16 735 502 18,334,403 18 312,658 19 338 798 12 537 381
Sub-total 330 9 7`473 d38,6T6,W 337,11749T 493:308:911 93 i,6 ,M
Sales for Resale 801 719 16 489 123 28 168 387 27,559 097 27 716 421
Total Sales 451,729,2 374,500,043 466:480,878 9M8';008 323 812 169
Loss and Unaccounted 43 24`508:692 1 615 DOD 1 416 ~ 7:451~D 00006 8069
Total KWH to System ,
% Loss and Unaccounted .001% 3.46% 6.10% 5.22% 5.26%
Average Customers:-
Res e- nom- 12,445 12,931 13,870 15,705 16,225
Commercial/Industrial 2 722 2 913 2 733 2 557 2 331
Peak Day Power Requirement 112,000 114,000 109,000 131,000 133,000
Present Plant Capacity 186,580 186,580 166,580 186,850 166,850
Anal sis of Electric Billing:
Customers
verage on WH/Customer 2,478 2,409 2,170 2,251 2,241
Bill per Customer $92.43 $96.12 $90.06 $97.41 $116.08
Revenue per KWH $0.0373 $0.0399 $0.0415 $0.0432 $0.0518
Residential Customer:
Average nt K ustomer 697 971 795 888 891
Bill per Customer $37.94 542.14 $36,30 540.32 $42.77
Revenue per KWH $0.0423 $0.0434 50.0456 50.0454 $0.0480
Comm ercial/industrial:
verage on KW us omer 9,r,44 8,557 R,aag 10,412 11,472
Bill per Customer $335.95 $330.70 $359.92 $448.20 $604.57
Revenue per KWH $0.0352 $0.0382 50.0400 $0.0428 40.0527
Gross Income*:
efd nf-al- $ 5,660,433 $ 6,537,275 S 6,046,432 $ 1,599,676 5 8,327,068
Commercial/Industrial 10,363,040 10,878,635 11,060,823 12,629,060 16,255,007
Other ~790,.5~27 ,841.813 830 951IZT90779673 1275 65
" Does not include off-system sales, Income derived from contribution- in-aid or sales of
surplus material, etc.
(000's Omitted)
Fiscal
Year
Ir Ended Net Available
9.30 Revenue Expense For Debt Service
-r§M TM M 10,673 --35,210--
1978 18,960 13,593 5,367
1979 18,692 13,704 4,988
1980 22,541 17,553 4,988
1981 26,773 22,025 4,748
_11_
The City of Denton is a member of the T.xas Municipal Power Pool ("TMPP"), which includes the
cities of Bryan, Garland, Greenville and Denton, each of which has its own production, trans-
mission and di tribution facilities. The City is also a member of the Electric Reliability
Counsel of Texas ("ERCOT"), the regional Peliability Coordinating Organization for Electric
Power Systems in Texas. The City has access to the ERCOT intrastate network of six major
investor-owned rid several public systems through the TMPP transmission system.
.ioe TMPP contract provides that each member city shall prnvide, through its own facilities or
through firm power contracts, a capability at least 15% 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 include an adequate and dependable source of power during periods of individual
emergency, maintenance of power during periods of scheduled unit maintenance and interchange of
economy energy between members. The TMPP members are engaged in an economic dispatch program
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 anppliers and rnOf that wniild have been experienced by the less
efficient generators.
Texas Munlci al Power Agency 1n July 1975, the Cities of Bryan, Garland, Denton and Green-
vi a the "C Iles" , 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 accordance with Article 1435a, 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, acquire, construct, own, operate and
maintain facilities 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.
Power Sales Contract Each of the Cities has entered into an identical Power Sales Contract
(the " ontract" w 7th the Agency which obligates the Agency to use reasonable diligence to
provide a constant and uninterrupted supply of power and energy to the Cities and, subject to
certain exceptions, obligates the Cities to purchase from the Agency, if available, all of
their electric 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 Contract further provides that if at any time the arwunt 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
which shall be the amount necessary to maintain the Agency's Bond Fund, Reserve Fund and
Contingency Fund, 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") shall 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 follows:
City of Bryan 18.97% v'
City of Denton 21.49%
City of Garland 43.93%
City of Greenville 9.61%
Total 100.00%
Each of the Cities unconditinnal1v rnvenants in the Contract that its Percentage Share of the
payments to the Agency's Bond Fund, Reserve Fund and Contingency Fund will be made, if re-
quired, and none of the Cities shall have the right of set-off, rccoupment or counterclaim
against any such payments.
All amounts payable by the City under the Contract, including any amounts payable pursuant to
the contractual guarantee described above, are expenses of the City's Utility System and
constitute a first and superlor 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 financing, 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 Projects" for
facilities and purposes when authorized by the Cities. Certain expenditures for "Development
Projects", as defined in the Contract, may be made by the Agency without the approval of the
Cities.
A raved Projects The first generating project of the Agency approved by the Citles is the
Gibbons Creek team Electric Station, now under construction in Grimes County, Texas, and
includes a net 390 megawatt ("MW") lignite-fueled steam electric plant, related reservoir,
railroad spur and transmission facilities, an adjacent surface mine and associated properties
and equipment, Gibbons Creek is expected to go into commercial operation in March, 1983.
The second generating project of the Agency approved by the Cities is an interest in the
nuclear-fueled Comanche Peak Steam Electric Station and certain associated transmission facil-
ities. On January 2, 1979, the Agency entered into a joint ownership agreement with Dallas
Power b Light Company, Texas Electric Service Company, Texas Power S Light Company and Texas
Utilities Generating Company, under which the Agency acquired a 6.2% ownership interest in the
Comanche Peak station presently under construction. The station will consist of two 1,150 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 One is
presently scheduled to be in commercial operation in 1934 and Unit Two in 1986.
The Cities have also approved, as "System Development and Reliability Expenditures," certain
transmission facilities,
Estimated Cost of Pro ects The estimated cost of the Approved Projects, according to the
Te~esI 1nf5Rat on ran the Agency, is 31,361.600.000. The Agency currently has outstanding
$1,150,000,000 of its revenue bonds, leaving $211,600,000 to be issued to complete financing of
such Projects.
C_it f's Statement as to Flnancfal Impact of Agency Projects The City, along with the other
Cities, nom t me to t rev news an eva ua es a nano al impact of the Agency projects and
financing requirements on the City's municipal electric 119ht 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 supply from the Agency in accordance with the Contract, due principally to the
Agency's use of fixed-cost boiler fuel, the efficiencies of scale and the economies of opera-
tion achieved by the operation of all present generating facilities of the Cities and the
projects of the Agency on an economic dispatch basis, will provide an economically feasible
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 Affectln Age nc Pro ectsithe C1t and U_ t flu or Gy new Tte City has
threatened
ee5 aw se y t hi 9ency that no Iit~tu 5 now pending or to its Knowledge
which challenges its projects or the legality of its bonds or actions taken in connection
therewith or challenging 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 capital outlays and
longer construction periods for the larger and more coaplex new generating units, uncertainties
In predict 'ng 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 these
factors may require modification of the City's present facilities or 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 case the revenue forecasts, demand forecasts and estimates of
growth of the City and tha remaining Cities to vary significantly from those contained in prior
evaluations.
Proposedd Hydroelectric Projects The City has commissioned and received a feasibility study
y Black L Veatch, Ccns~f ng_rngineers, relative to proposed hydroelectric developments to be
located at nearby lake Lewisville and the planned Ray Roberts Reservoir which is scheduled for
completion in 1986/87. 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 released through the low-flow discharge pipes. The two units planned for the tewis-
viile Project (the "Project") would generate an average annual generation of 10,100,000 kilo-
watt hours.
Anticipated cost of the Project would be approximately 55,045,000 and could be in operation by
1984. The Consulting Engineers estimate the savligs to the City's customers during the first
20 years of operation would be in excess of $43 million when compared with the projected cost of
natural gas generated power. Construction and operation of the Project would be subject to the
jurisdiction of the Federal Energy Regulatory Convissiom ("FERC") and would be licensed as a
major water power project of 5 megawatts or less. A comprehensive environmental report is
required and Black 6 Veatch estimates approximately 18 months will be needed to complete the
tic=using process.
The City Council has authorized Black 6 Veatch to proceed with the licensing application and it
is anticipated the application will be submitted in mid-1982.
Electric S em Revenue Bands The City has no authorized but unissued Electric System
115e-venue Book.-
20 -
1
VALUATION AND DEBT INFORMATION
1931 Taxable Assessed Valuation (100% of Actual) $663,437,088
City Funded Debt Payable From Ad Valorem Taxes:
General Obligation Bonds (as of 3-1-82) $ 13,870,000
Interest and Sinking Fund (as of 1.1-82) $ 30,831
Ratio Total Funded Debt to Taxable Assessed Valuation 2.09%
1980 U. S. Census Population - 48,063
1981 Estimated Population - 51,150•
Per CaFita Taxable Assessed Valuation - $12,970.42
Pc, Ctplto Total Dcbt $271.16
Area - 33.2 Square Miles
a Source: North Central Texas Council of Governments.
`f Note 1: Pursuant to authority permitted by Section 1-b, Article VIII of the State Consti-
tution, which became effective January 1, 1973, the City has granted an exemption of up to
C $16,666 of Assessed Valuation to the residence homestead of property owners over 65 years of
age. The Taxable Assessed Valuation, as shown above, does not Include $19,465,102 Assessed
Valuation of properties exempted under this authority.
Note 2: The Legislature, pursuant to a constitutional amendment and Article 7150h, VATCS,
1 mandated an additional property tax exemption, beginning in 1976, for disabled veterans or the
surviving spouse or children 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 $1,500 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 fray the net revenues of the System, as defined in the
Bond Ordinance authorizing the bonds: $8,975,000 Water and Sewer Revenue Bonds; $22,255,000
Electric System Revenue Bonds; and $1,500,000 Water and Sewer System Revenue Bonds now being
issued.
NON-FUNDED DEBT
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 follows:
1982 $121,621
1983 121,621
1984 121,475
1985 103,157
1986 35,789
The City has no other non-funded debt as of March 1, 1982.
21
VALUATION AND FUNDED DEBT HISTORY
Ratio Funded
Fumed Debt Debt to
Taxable Outstanding Taxable
Fiscal Assessed at End Assessed
Period Valuation of Year Valuation
1972-73 3MZ35 M VT.RTC bQ -1..18%
1973-74 102,222,840 0,165,000 7.99%
1974-75 112,158,726 7,695,000 6.86%
1975-76 124,327,113 9,585,000 7.71%
1976-11 136,540,625 12,024,000 8.81%
1977-78 271,339,229(1) 11,533,934 4.25%
1978-79 288,902,702 15,215,101 5.27%
1979-80 364,943,680 15,364,488 5.04'i
1980-81 337,948,941 15,053,000 4.45%
1981-82 663,437,088(2) 12,935,000(3) 1.95%
(1) Increased basis of assessment from 40% to 60%.
(2) Increased basis of assessment from 60% to 100%.
(3 Projected.
TAXABLE ASSESSED VALUATIONS BY CATEGORY
Property
Assessment
As % of Real Property _ Personal Property _ Taxable
Fiscal Appraised o o Assessed
Period Value Amount Total Amount Total Valuation
Wr -77--4W_ T76-. M-, 4 8631% TI dB M TM. T- FTW, M
1973-74 40% 82,409,280 80.62% 19,813,560 19.38% 102,222,840
1974-75 40% 89,883,677 80.14% 22,275,049 19.86% 112,158,726
1975-76 40% 95,735,078 77.00% 28,592,085 23.00% 124,327,163
1976-77 40% 98,863,846 72.41% 37,676,779 27.59% 136,540,625
1977-78 60% 213,135,760 78.55% 58,203,469 21.45% 271,339,229
1978-79 60% 221,300,412 76.60% 67,602,230 23.40% 288,902,702
1979-80 60% 229,022,620 75.10% 75,921,060 24.90% 304,943,680
1980-81 60% 246,205,248 72.85% 91,743,693 27.15% 337,948,941
1981-82 100% 450,732,259 67.94% 212,704,829 32.06% 663,437,088
ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES
(As or .1- -lS2J
Esti,iated
Total % Overlapping
Taxis Jurisdiction Funded Debt Applicable Funded eebbtt
My o entNI 3]~87rw M.Om Denton Independent School District 12,605,000 93.76% 11,618,448
Denton County 2,550,000 29.44% 750,720
Total Overlapping Funded Debt $26,439,168
Ratio Overlapping Funded Debt to Taxable Assessed Valuation 3.99%
Per Capita Overlapping Funded Debt - $516.89
TAX RATE LIMITATION
All taxable property within 0e City is subject to the assessment, levy and collection by the
City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of
principal of and interest on all types of tax obligations of the City within the limits
prescribed by law. Article X1, Section 5, of the Texas Constitution is applicable to the City
of Denton, and limits its maximum ad valorem tax rate to $2.50 per SIDO Assessed Valuation
for all City purposes. The City operates under a Home Rule Charter which adopts the Constitu-
tional provisions.
- 22 -
TAX DATA
(Year T-n~-ing 9-30~
Distribution
Tax Tax ~eneraT- merest and X Current % Total
Year Rate Fund Sinkina Fund Tax Lfvy~ Collections Collections
3➢ - J b~7011 $D~b4; --071533 $1,-n7, 7 39~- 9U.T7V
1973-74 1.700 0.8960 0.8040 1,737,788 96.20% 97.03%
1974-75 1.700 0.8978 0.8022 1,906,698 95.12% 97.64%
1975-76 1.700 0.8174 0.8826 2,113,562 94.74% 97.54%
1976.71 1.780 1.0938 0.6862 2,430,423 94.74% 97.74%
1977.78 1.240 0.7128 0.4672 3,364,606 93.04% 94.35%
1978-79 1.240 0.7280 0.5120 3,582,394 94.05% 96.37%
1979-80 1.240 0.7286 0.5114 3,770,142 93.67% 96.69%
1980-81 1.290 0.6700 0.6200 4,359,541 93.96% 96.64%
1981-82 0.774 0.4650 0.3090 5,135,003 73.16X` 14.16%k
' Collections for part year only, thrcc,h 2-1-82.
Property within 0e City is assessed as of January 1 of each year; taxes become due October 1 of
the same year; and become delinquent after January 31 of the following year. Split payments are
permitted: first half by December 31; second half by March 31. Discounts are not allowed.
Charges for penalty and interest are made as follows:
1981 and Prior Years 1982 and After
February February /71
March 6% March 9%
April 7 112% April 11%
May 9% May 13%
June 10 112% June 15%
July 18%
After June add 112% of 1% per After July add 1% per month
month in addition to above. In addition to above.
MUNICIPAL SALES TAX
ec ve
The City has adopted the provisions of Article 1066c, Vernon's Texas Civil Statutes, as
amended, which grants the City the power to impose and levy a 1% Local Sales and Use Tax within
the City, the proceed; being credited to the General Fund, Collections and enforcements are
effected through the offices of the Comptroller of i'ublic Accounts, State of Texas, who remits
the proceeds of the tax, after deduction of a 2% service fee, to the City monthly. Revenue from
this source has been:
% of Equivalent of
Total Ad Valorem Ad Valorem Per
Year Collected Tax Lev Tax Rate Capita
= X7 48.121 - - --p r- 3
1973 875,564 50.38% 0.8564 19.68
1974 926,080 53.29% 0,9059 20.81
1975 1,000,932 52.68% 0.8924 21.39
1976 1,194,335 56.66% 0.9632 25.28
1977 1,254,452 51.88% 0.9234 26.19
1918 1,629,832 48.44% 0.6007 31.62
1979 2,061,124 57.53% 0.!134 39.83
1980 2,556,124 67.62% 0.8382 47.96
1981 3,017,806 58.76% 0.8930 59.00
TAX RATES OF OVERLAPPING SUBDIVISIONS
TTaax_l_ng Jurisdiction 1981 1980 1979 1978 1971 1914 1975 1974
City of Oen N 55714 SIN TI:'I4 W-M TC.9 W79 IT77U "
Denton Independent School District 1.220 1.25 1.68 1.51 1.57 2.00 2.00 2.05
Denton County 0.237 0.77 0.67 0.67 0.67 0.95 0.95 0.95
23 .
TOP TEN TAXPAYERS
1981 % of Total
Taxable Taxable
Assessed Assessed
Name of Tax a er Nature of Pro ert Valuation Valuation
Genera T~Te ep one comp any Te e-T prone Uti ty 3 77,777 M 3ff-
Victor Equipment Company Welding Equipment 15,611,032 2.35%
Paccar, Inc. Peterbilt Truck Manufacturer 11,192,800 1.69%
Denton Mall Shopping Center 11,099,031 1.57%
First State Bank Bank 10,874,8;5 1.64%
First Denton County National
Bank Bank 8,995,054 1.36%
J. Newton et al Commercial and Ranch 5,487,261 0.83%
Moore Business Forms, Inc. Business Form Manufacturer 5,439,499 0.82%
Montgomery Ward Department Store 5,056,599 0.76%
J. C. Penney Department Store 4 535 TH I T"
AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS - NONE
GENERAL INFORMATION REGARDING CITY AND ITS ECONOMY
LOCATION !
Denton is the County Seat of Denton County, located at the apex of the Dallas-Fort Worth-Denton 1
Industrial triangle.
T .e City covers an area of 33.2 square miles and is located only 38 miles from downtown Dallas,
and 36 miles from Fort Worth.
ECONOMY
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 refl.,cted in the spendable annual income per household.
Denton County's Effective Buying intone for 1980 totaled approximately $1,221,000,000.
Denton County's retail sales for 1980 totalel $493,479,000.
In 1980, over 37% of Denton County households had cash income in excess of $25,000 annually.
Median income was $20,318.
(Source: Sales and Marketing Management, Ju y 27, 1981.)
24 -
ECONOMIC AND POPULATION GAINS
Denton has noted a consistent population Increase and a steady economic growth in the past four
decades.
Historical popilation totals from U. S. ~ensus r,:ords are:
1940 Census 11,!'11
1950 Census 21,372
1960 Census 26,844
1970 Census 39,874
1960 Census 48,063
The North Central Texas Co„nciI of Governments estimates the 1951 population of the City at
51,157.
The City's ascension toward a top rung on Texas' economic ladder is attributed partly to the
steady influences of governmental activity which iccludes the year-ty-year expansion of the two
State-supported universities, and partly because of s:ch environmental factors at its location
in a rich a;ricn,Itural re3ion, Scmc ail and gas producti,,n in the northwest section of Denton
County, its inclusion in the Pi!las-Fort Werth Metrcplc-, its proximity to three of Texas'
largest res=:rvoirs (Lake Texoi-ii iS only 4 -;le, from Centon), its excellent highway and
traosprrtatior faciiitits mild cli -rat,, , a'1 tn•= lrss tangible but 1rflu5rtial asper- t•, f
sor,ial, rultvraI and cl. aIion31 aUv ttrot ' ;l•,i professional or "waite collar"
wn rierS t _r Denton 1 a place of r .sr_ .
I0'1 T'7Y ANG ; I NESS
In excr,s of 50 diversif1 1 canufact;rir7 plants are located in the City. Some of the largest
are as follows:
Approximate
Number of
_Company Product -Employees*
tnr ~pment rim.. y -T3,, w - ~-t r ng -J- eq-.u ,_pm-en--t -
y it ?T rc g
awn
pressure valves 900
Moore Business Forms, Inc. Business forms, sales books, etc. 495
Jostens, Inc. School class rings 285
Russell-Newman Manufacturing Company Wcmens and girls lingerie 250
Paccar, Inc. Diesel trucks 235
Andrew Corporation Microwave antennae 220
Acme Brick Company Brick and talc 210
Trinity Industries LPG fuel tanks 175
Denton Record Chronicle Newspaper and printing 155
Morrison Milling Company Flour and cornmeal products 145
Cmconitr, Division of Amerace Multi-color plastic parts 110
Turbo Refrigerat',,I :ompany Ice-making machines 110
Ohio Rubber Molded plastic parts 90
Transport S"temc, Tr(, Trailers DO
Beamen Company Prefab buildings 75
* Denton Chamber of Commerce.
INDUSTRIAL FUTURE
Denton is most favorably located within 38 milts of two mayor 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 of skilled labor is available to industry in the Denton area, Total -labor
force in Denton County is approximately 62,165, with approximately 59,371 presently employed -
for an unemployment percentage of only 4.5%. There are two principal industrial dis-
tricts Denton Industrial Park and Rayzor Industrial Park bnth of which hxvo xrrocc to
more than adequate rail and highway facilities, and all necessary utilities,
25 -
AGRICULTURE
Denton County Is ore of the more diversified agriculture counties in Te:,as. 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, corn, wheat, oats, hay, grain sorghums and peanuts. Dairy cattle,
beef cattle, sheep, hogs, chickens and turkeys contribute a substantial and steady intone 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 Experiment Station, Sub-Station No. 6, ]orated about five miles north-
west of Denton, is contributing to the prosperity of not only the farmers in Denton County, but
to farmers all over Texas, through experiments in small grain research work, crop rotation,
pastures, soil building, contouring and plant disease.
UNDERGROUND COVROL.CENTER
Denton is the site of the first Underground Control Center to be built by the Federal Government
in the United States. This center was corpletrd at a cost of 52,400,000.
It consists of an at-see ground "frangible" building, for entrance and exit during no,nal
operations, and a two-story undcrgr;,,,,I fortress, 112 feet wide and 172 feet long. T!:',
structure has its ewn water well, an infirmary, first aid stetioo, and cn-+_.r~ at hens t=.1-
quarters. Site for tr -,mire is aGeat three miles east of Dertcn
The huge nderg e,nd center Serves Region 5 Headquarters for tre Office of Civil and Defense
Mobilization and is designed to resist nuclear blast and radiatir". R.egien 5 consists of
Texas, Oklahoma, Arkansas, Louisiana and New Mexico.
In time of emergency the renter will house the administrative personnel of 16,000 federal
employees in Dallas and Fort Worth. In the event of a national emergency the center would serve
as the coordinating and directing point for the activities of sane 235,000 civilian employees
of the federal government. It will house 200 persons on a day-to-day basis, or 500 on a 30-day,
emergency, "buttoned-up" basis.
The control center emi loys 83 full-time people with an annual payroll in excess of $150,000.
TRANSPORTATION
~
Denton is located only 1B miles northeast of tho Uallas-rcit Worth Regional Airport. This j
facility began operations in January, 1974. It is the largest airport in the United States,
second largest in the world, and represents an investment in excess of $700,000,000.
Denton is the focal point in the new Interstate Highway System (U. S. 35-E and U. S. 35-W).
U. S. 35-E connects Denton with Dallas, and U. S. 35-W ties to Fort Worth.
The east and west sections of the U. S. Interstate 35 form part of a vast network that begins at I
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 three railroads - Santa Fe, Texas and Pacific, and
Missouri-Kansas-Texas bus transportation by Trailways Bus System motor freight by
twelve truck lines.
EDvCATION
Denton is the home of North Texas State University, founded in 1890, and Texas Woman's Uni-
versity, founded in 1901.
The two colleges have a combined enrollment of approximately 24,955 students, and more than J
1,000 faculty members. 1J
-26-
As of UeceTber 1, 1981, 17,487 students were enrolled in co-educational North Texas State
University. This university has a larger enrollment than Southern Methodist University at
Da Pas, Texas Christian University in Fort 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 350 acres and sixty-nine
buildings valued in excess of $52,000,000. The University embraces seven academic units of
colleges and schools, and offers Bachelor's degrees in 66 fields and Master's degrees in 113
areas. Doctoral programs are In 45 areas.
Texas Woman's University, a State-supported institution of higher learning, has completed an
extensive building program, emphasized Ly three high-rise structures. These are a 14-story
office and classroom portion of the College of Education (opened in 1968), a 21-story dormitory
designed to house 640 students (completed in 1967), and a 24-story dormitory designed to house
I 707 students (completed in the fall, 1969). Academic components are embodied in eight schools.
Science research programs are conducted in chemistry, biology, physics, nutrition, textiles,
bone microradiology and other related fields.
Over 400 Denton citizens hold earned Doctoral den ees.
Denton has an outstanding Piblic School System, accredited by the Southern Assoclation of
Colleges and Secondary Schools and Accreditation Division of the Texas Education Agency.
Approximately 69% of the gra.i rtes of Denton Higk School ya en to college. The Denton school
system offers accelerated prc;rams in such courses as S.M.S.G. Math and P.S.S.C. Physics. A
few of the vocational trainrrg courses iii ]able In public schrvols are agriculture, homeraking,
distributive educaticr, in,iistrial ea,-aticn, hanical Jra,ing wood«° rk, ctc. 67% of the
faculty hold Master's d-3rers.
f Num'uer of elementary schools 7 Enrollment in school for exceptional
Number of junior high schools 2 children 951
Number of senior high schools 1 Pupil to teacher ratio:
Average students per classroom 25 elementary 24:1
Average number of high school high school 20:1
graduates 275 1981 Fall Enrollment 8,497
$11,000,000 Denton State School . Construction began in 1958 on the $11,000,000 Denton State
School, with the first phase of the construction being completed in duly, 1960, at which time
the first group of students was admitted. The second phase was completed in 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
on a 200-acre site paid for by Denton citizens.
Present facilities include 47 (including outreach dorm;) dormitories which accommodate more
than 1,168 students, 5 buildings for physically handicapped children with a capacity of 600,
and a 52-bed acute hospital with supporting facilities such as X-ray, laboratory, dental, and
pharmaceutical. In addition to these buildings, there is a modern 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 $17,364,613.
BANKING
There are five banks in the City First Denton County National Bank, established
1892 First State Bank, established 1912 . University State Bank, established
1963 Western National Bank, established 1953 Citizens National Bank, established 1976.
Combined Bank Deposits
1972 $114,161,439 1977 $175,006,073
1973 126,209,608 1978 198,908,000
1974 131,018,000 1979 207,085,011
1975 140,747,770 14Pn P7H,F11,173
1976 167,805,982 1981 254,567,591
-27 -
Four savl,,gs and loan associations had combined year-end deposits as follows:
1972 S 53,692,053 1977 $ 94,168,257
1973 63,584,045 1978 105,901,284
1974 66,262,425 1979 127,299,490
1975 69,310,598 1980 159,535,122
1976 84,238,471 1991 160,674,680
RECREATION
Nearby take Lewisville, one of North Tesas' largest lakes, is one of T-,xas' 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 15 miles from
downtown Denton.
Grapevine Reservoir, another large body of water created by the U. S. Army Corps of Engineers,
is located 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, which, because of this area's favorable climate, are in use
the year round.
Growth Indices
Calendar Building Gas Water Light
Year Permits Meters Meters Meters
V 2T,_5 ,863 7-,911 II1M IT,837
1973 24,037,860 11,174 11,251 12,227
1974 12,498,521 11,416 11,592 12,673
1975 18,306,334 11,755 11,755 13,061
1976 12,142,334 11,745 1?,077 14,117
1977 22,244,075 12,294 12,490 15,650
1978 32,324,274 12,661 12,803 16,404
1979 11,556,446* 13,224 13,094 17,150
19Do 35,454,504 13,566 13,292 18,125
1981 40,537,746 13,680 13,506 18,545
Includes construction of Golden Triangle Mall and Peterbilt truck factory.
I
4
28 -
RAT INr
,S
II
Applications for contract ratings on +his ve been made to Moody's Investors Service,
Inc. and Standard R Poor's Corporation. An explanation of the significance o such ratings may
be obtained from the compa-.y furnishing the rating. The ratings reflect only the respective
views of such organiWions and the City makes no representation 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 revised 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 retings, or either of them, may have an adverse effect
on the market price of the Bonds.
TAX EXEMPTION
The delivery of the Bonds is subject to an opinion of Messrs. McCall, Parkhurst 6 Norton, Bond
Counsel to the City ("Bond Counsel"), to the effect that interest on the Bonds is exempt from
all present Federal income taxes under existing statutes, rulings, regulations and curt
decisions. The laws, regulations, court decisions and administrative regulations and rulings
upon which the conclusion stated in Bond Counsel's opinion will be based are subject to change
by the Congress, the Treasury Department and later judicial and administrative decisions.
REGISTP.ATICN AAD QUALIFICATIt., OF BONDS FOR SALE
The sale of the Bone; has not been registered under the Federal Securities Act of 1933, as
amended, in reliance upon the exemption provided thereunder by Section 3(a) (2); and the Bonds
have rot been qualified under the Securities Act of Texas in reliance upon various exemptions
cortaine: th~ireln; nor have the Bonds been ¢valified under the securities acts of any jurisdic-
tion. The City aasumes no responsibility for qualification of tt,e Bonds under the securities
laws of any jurisdiction in w'tich the Bonds may be sold, assigned, pledged, hypothecated or
otherwise transferred. This disclaimer of responsibility for qualification for sale or other
disposition of the Boris 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 legal 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 CERTIFICATE
The City will furnish a complete transcript of proceedings had incident to the authorization
and issuance of the Bonds, including the unqualified approving legal opinion of the Attorney
Ger=ral 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 proceedings, the
unqualified approving legal opinion of Bond Counsel, to like effect and to the effect that the
interest on the Bonds 1s exempt from Federal income taxation under existing statutes, regula-
tions, rulings and court decisions. The customary closing papers, Including a certificate to
the effect that no litigation of any nature has been filed or is then pending to restrain the
issuance and delivery of the Bonds, or which would affect the provision made for their payment
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 preparaticn of the Notice of Sale and Bidding Instructions, the Official Bid
Form and the Official Statement, and such firm has not assumed any responsibility with respect
thereto or undertaken independently to verify any of the Information contained therein, except
that, in ':s capacity as Bond Counsel, such firm has reviewed the information describing the
Bonds in the Official Statement to verify that such description conforms to the provisions of
the tend revolution. The legal fees to be paid Bond Counsel for services rend_re;, 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
records, audited financial stateme is and other sources which are believed to be reliable.
There is no guarantee that any of the assumptions or estimates contained hereii, will be
realized. All of the summaries of the statutes, documents 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 Company is employed as Financial Advisor to the City in connection with the
issuance of the Bonds. The Financial Advis Gr', fit, fnr corvirac rondaroA with respect tm 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 independently or as a member of a svndicate
organized to submit a bid for the Bonds.
CERTIFICATION OF 1H£ OFFICIAL STATEMENT
At the time of payment for and delivery of the Bonds, the Purchaser will be furnished a
certificate, executed by proper officers, acting in their official capacity, to tht effect that
to the best of their knowledge and belief: (a) the descriptions and statements of or pertain-
ing to the City contained in its Official Statement, and any addenda, supplement o- amendment
thereto, on the date of such Official StateTent, on the date of sale of said Bonds and the
acceptance of the best bid therefor, and on the date of the delivery, were and are true and
correct in all material respects; (b) insofar as the City and its affairs, including its
financial affairs, are concerned, such Official Statement did not and does not contain an
untrue statement of a material fact or cmic to state a material fact required to be slated
therein or necessary to make the statem,rits 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 the date of the last audited financial
statements of the City.
The 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
form and content of this Official Statement, and any addenda, supplement or amendment thereto,
and authorize its further use in the reoffering of the Bonds by the Purchaser.
DICK STEWART
Mayor
ATTEST:
CHARLOTTE ALLEN
City Secretary
l
30 -
CERTIFICATE FOR
ORDINANCE DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO
ISSUE CITY OF DENTON WATER A140 SEWER REVENUE BONDS, SERIES
1982, IN THE PRINCIPAL AMOUNT OF $2,000,000, AND CITY OF DENTON
ELECTRIC SYSTEM REVENUE BONDS, SERIES 1982, IN THE PRINCIPAL
AMOUNT OF $3,000,000
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned officers of said City, hereby certify
as follows:
1. The City Council of said Citv convened in
SPECIAL MEETING ON THE 26TH DAY OF JANUARY, 1962,
at the Municipal Building (City Hall), and the roll was called
1 of the duly constituted officers and members of said City
Council, to-wit:
Brooks Holt, City Secretary Richard 0. Stewart, Mayor
Mark Chew Richard H. Taliaferro
Dwight L. Gailey Dr. A. Ray Stephens
Jim Riddlesperger Joe Alford
and all of said persons were present, except the following
absentees: ;t .-r
,
thus constituting a quorum. t:hereupon, along oterF business,
the following was transacted at said .Meeting: a wri-.ten
ORDINANCE DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO
ISSUE CITY OF DENTON WATER AND SEWER REVENUE BONDS, SERIES
1982, IN THE PRINCIPAL PI!OUNT OF $2,000,000 AND CITY OF DENTON
ELECTRIC SYSTEM REVENUE BONDS, SERIES 1962, IN THE PRINCIPAL
AMOUNT OF $3,000,000
was duly introduced for the consideration of said City Council
and duly read, it was then duly moved and seconded that said
Ordinance be passed; and, after due discussion, said motion,
carrying with the passage of said Ordinance, prevailed and
carried by the following vote:
AYES: All members of said City Council
shown present above voted "Aye",
NOES: None.
2. That a true, full, and correct copy of the aforesaid
Ordinance passed at the Meeting described in the above and
foregoing paragraph is attached to and follows this Certifi-
cate; that said Ordinance has been duly recorded in said City
Council's minutes of said Meeting; that the above and foregoing
paragraph is a trve, full, and correct excerpt from said City
Council's minutes of said Meeting pertaining the passage of
said Ordinance; that the persons named in the above and fore-
going paragraph are the duly chosen, qualified, and acting
officers and mer,bers of said City Council as indicated therein;
and that each of the officers and members of said City Council
was duly and sufficiently notified officially and personally,
in advance, of the time, place, and purpose of the aforesaid
Meeting, and that said Ordinance would be introduced and
considered for passage at said Meeting; and that said Meeting
was open to the public, and public notice of the time, place,
and purpose of said meeting was given, all as required by
Vernon's Ann. Tex. Civ, St. Article 6252-17.
3. That the mayor of said City has approved, and hereby
approves, the aforesaid Ordinance; that the Mayor and the City
Secretary of said City have duly signed said Ordinance; and
that the Mayor and the City Secretary Of said City hereby de-
clare that their signing of this Certificate shall constitute
the signing of the attached and following cony of said Ordi-
nance for all purposes.
SIGN ARID SEALED the 25th day of Ja.uarv, 1 82.
City SecreEary
(SEAL)
we, the undersigned, being respectively the City Attorney
and the Bond Attorneys of the City of Denton, Texas, hereby
certify that we prepared and approved as to legality the at-
tached and foi owing Ordinance prior to
said. its passage as afore-
J f City ttor
Bon attorneys
s
F
ORDINANCE NO. 82 -f~-R
ORDINANCE DIRECTING THE PUBLICATION OF NOTICE OF
INTENTION TO ISSUE CITY OF DENTON WATER AND SEWER
REVENUE BONDS, SERIES 1982, IN THE PRINCIPAL
AMOUNT OF $2,000,000
AND
CITY OF DENTCN ELECTRIC SYSTEM REVENUE BONDS,
SERIES 1992, IN THE PRINCIPAL 'V^CUNT OF S3,000,000
THE S -.ATE OF TE:CNS
COUNTY OF DES7'ON
CITY OF DE`:TON
4FFEAS, the City Council of the Cit.; of Denton, Texas,
deems it necessary and advisable that the bonds hereinafter
described be authorized, issued, sold, and delivered.
THE COUNCIL OF THE OI'L'Y OF, _QENTOCi ORDAINS:
That the following notices shall be published in the
"Denton-Chronicle", whlcn is a newspaper published in, and hav-
ing Genera` circulation in, the City o Denton, or, the S-ime day
of each of two consecuti•;n tceeks, tJ1 t.'1 the date of the first
Publication to be at least two weeks _icr to the date u--en
which the City Council '.ntends to _pass the Ordinance=_ ~escribed
in the follcwing notices:
"NOTICE OF INTENTION
TO ISSUE CITY OF DENTON WATER AND
SEWER SYSTEM REVENUE BONDS, SERIES 1962, IN THE
.PRINCIPAL. AMOUNT OF $2,000,000
Notice is hereby given, in accordance with Article 2368a,
Vernon's Annotated Texas Civil Statutes, that the City Council
of the City of Denton, Texas, intends to pass, at a Regular
Meeting to be held at 7:00 PM, on March 2, 1982, at the City
Hall, an Ordinance authorizing the issuance, sale and delivery
of an issue of negotiable coupon bonds tc, be designated as
"City of Denton Water and Sewer System Reve;ue Bonds, Series
1982, in the maximum principal amount of $2,000,0001 to be pay-
able from and secured by a first lien on and pledge of the Net
Revenues of the City's Waterworks and Sewer System, all as will
be defined and provided in the aforesaid Ordinance. Said bonds
will bear interest from their date at maximum rates not to
exceed fifteen percentum per annam., will be scheduled to mature
serially within a maximum of not to exceed thirty years from
their date, and will be subject to redemption prior to
maturity, and will have such other and further characteristics,
as will be provided in the aforesaid Ordinance. Said bonds
will be authorized, issued, sold and delivered pursuant to
Articles 1111b, 1112, 1113, and 1114, Vernon's Annotated Texas
Civil Statutes, and other applicable laws, for the purpose of
providing money for improvements and extensions of the combined
Waterworks and Sewer System of the City.
CITY OF DENTON, TEXAS"
"NOTICE OF INTENTION
TO ISSUE CITY OF DENTON
ELECTRIC SYSTEM REVENUE BONDS, SERIES 19821
IN THE PRINCIPAL AMOUNT OF $3,000,000
Notice is hereby given, in accordance with Article 2368a,
Vernon's Annotated Texes Civil Statutes, that the City Council
of the pity of Denton, Texas, intends to pass, at a Regular
Meeting to be held at 7:00 PM, on March 2, 2982, at the City
Hall, an Ordinance authorizing the issuance, sale, and delivery
of an issue of negotiable coupon bonds to be designated as
"City of Centon Electric System Revenue Bonds, Series 1982", in
tha maximum principal amount of $3,000,000, to be payable from
and secured by an irrevocable first lien on and pledge of the
Net Revenues of the City's Electric Light and Power System, all
as will be defined and provided in the aforesaid Ordinance.
Said bonds will bear interest from their date at maximum rates
not to exceed fifteen percentum per annum, will be scheduled to
mature serially within a maximum of not to exceed thirty years
from their date, and will be subject to redemption prior to
maturity, and will have such other and further characteristics,
as will be provided in the aforesaid Ordinances. Said bonds
will be authorized, issued, sold, and delivered pursuant to
Articles 1111b, 1112, 1113, and 1115, Vernon's Annotated Texas
Civil Statutes, and other applicable laws, for the purpose of
providing money for improvements and extensions of the Electri-
Light and Power System of the City.
CITY OF DENTON, TEXAS"
I
CERTIFICATE FOR
ORDINANCE DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO
ISSUE CITY OF DENTON WATER AND SEWER REVENUE BONDS, SERIES
1982, IN THE PRINCIPAL AMOUNT OF $2,000,000, AND CITY OF DENTON
ELECTRIC SYSTEM REVENUE BONDS, SERIES 1982, IN THE PRINCIPAL
AMOUNT OF $3,000,000
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned officers of said City, hereby certify
as follows:
1. The City Council of said City convened in
SPECIAL MEETING ON THE 26TH DAY OF JANUARY, 1982,
at the Municipal Building (City Hall), and the roll was called
of the duly constituted officers and members of said City
Council, to-wit:
Brooks Holt, City Secretary Richard O. Stewart, Mayor
Mark Chew Richard H. Taliaferro
Dwight L. Gailey Dr. A. Ray Stephens
Jim R:.ddlesperger Joe Alford
and all of Said persons were present, except the following
rq
absentees:
thus constituting a quorum. Wcereupon, among otrer business,
the following was transacted at said Meeting: a written
ORDINANCE DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO
ISSUE CITY OF DENTON WATER AND SEWER REVENUE BONDS, SERIES
1982, IN THE PRINCIPAL AMOUNT OF $2,000,000 AND CITY OF DENTON
ELECTRIC SYSTEM REVENUE BONDS, SERIES 1982, IN THE PRINCIPAL
AMOUNT OF $3,000,000
was duly introduced for the consideration of said City Council
and duly read. It was then duly moved and seconded that said
Ordinance be passed; and, after due discussion, said motion,
carrying with the passage of s,:id Ordinance, prevailed and
carried by the following vote:
AYES: All members of said City Council
shown present above voted "Aye".
NOES: None.
2. That a true, fu'_l, and correct copy of the aforesaid
Ordinance passed at the Meeting described in the above and
foregoinc paragraph is attached to and follows this Certifi-
cate; tr,at said Ordinance has been duly recorded in said City
Council's minutes of said Meeting; that the above and foregoing
paragraph is a true, full, and correct excerpt from said City
Council's minutes of said Meeting pertaining the passage of
said Ordinance; that the persons named in the above and fore-
going paragraph are the duly chosen, qualified, and acting
officers and members of said City Council as indicated therein:
and that each of the officers and members of said City Council
was duly and sufficiently notified officially and personally,
in advance, of the time, place, and purpose of the aforesaid
Meeting, and that said Ordinance would be introduced and
considered for passage at said Meeting; and that said Meeting
was open to the public, and public notice of the time, place,
and purpose of said meeting was given, all as required by
Vernon's Ann. Tex. Civ. St. Article 6252-17.
3. That the Mayor of said City has approved, and hereby
approves, the aforesaid Ordinances that the Mayor and the City
Secretary of said City have duly signad said Ordinance; and
that the Mayor and the City Secretary of said City hereby de-
clare that their signing of this Certificate shall constitute
r -
the signing of the attached and following copy of said Ordi-
nance for all Purposes.
SIGN AVID SEALED the 26th day of 7a uarv,
182.
C3.ty Secre ary
(SEAL)
Wee the undersigned, being respectively the City Attorney
and the Bond Attorneys of the City of Centon,
certify that we prepared and approved as to legality Texas, the heart-eby
tached and following Ordinance prior to
said, its Passage as afore-
~1 l C1Yy~..tfor _
Bon Attorneys
ORDINANCE NO.82
ORDINANCE DIRECTING THE PUBLICATION OF NOTICE OF
INTENTION TO ISSUE CITY OF DENTON WATER AND SEIVER
REVENUE BONDS, SERIES 1982, i.' THE PRINCIPAL
AMOUNT OF $2,000,00
AND
CITY OF DENTON ELECTRIC S:STEM REVENUE BONDS,
SERIES 1982, IN THE PRINCIPAL AMOUNT OF 53,000,000
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, the City Council of the City of Denton, Texas,
deems it necessary and advisable that the bonds :iereinafter
described be authorized, issued, sold, and delivered.
THE COUNCIL OF THE CITY OF.DENTON ORDAINS:
That the following notices shall be published in the
"Denton-Chronicle", which is a newspaper published in, and hav-
ing general circulation in, the City of Denton, on the same day
of each of two consecutive weeks, :,ith t__., of the first
publication to be at least two weeks prior to the date r^n
which the City Council intends to pass the ordinances described
ir. the following notices:
"NOTICE OF INTENTION
TO ISSUE CITY OF DENTON WATER AND
SEWER SYSTEM REVENUE BONDS, SERIES 1982, IN THE
-PRINCIPAL AMOUNT OF $20000,000
Notice is hereby given, in accordance with Article 2368a,
Vernon's Annotated Texas Civil Statutes, that the City Council
of the City of Denton, Texas, intends to pass, at a Regular
Meeting to be held at 7:00 PM, on March 2, 1982, at the City
Hall, an Ordinance authorizing the issuance, sale and delivery
of an issue of negotiaole coupon bonds to be designated as
"City of Denton Water and Sewer System Revenue Bonds, Series
1982, in the maximum principal amount of $2,000,000, to be pay-
able from and secured by a first lien on and pledge of the Net
Revenues of the City's Waterworks and Sewer System, all as will
be defined and provided in the aforesaid Ordinance. Said bonds
will bear interest from their date at maximum rates not to
exceed fifteen percentum per annum, will be scheduled to mature
serially within a maximum of not to exceed thirty years from
their date, and will be subject to redemption prior to
maturity, and will have such other and f,lrthev characteristics,
as will be provided in the aforesaid Ordinan,:e. Said bonds
will be authorized, issued, sold and delivered pursuant to
Articles illib, 1112, 1113, and 1114, Vernon's Annotated Texas
Civil Statutes, and other applicable laws, for the purpose of
providing money for improvements and extensions of the combined
Waterworks and Sewer System of the City.
CITY OF DENTON, ':ERAS"
"NOTICE OF INTENTION
TO ISSUE CITY OF DENTON
ELECTFTC, SYSTEM REVE'_VLTE BONDS, SERIES 1982,
IN THE PRINCIPAL AMOUNT OF $3,000,000
Notice is hereby given, in accordance with Article 2368a,
Vernon's Annotated Texes Civil Statutes, that the City Council
of the City of Denton, Texas, intends to pass, at a Regular
Meeting to be held at 7:00 PM, on March 2, 1982, at the City
Hall, an Ordinance authorizing the issuance, sale, and delivery
of an issue of negotiable coupon bonds to be designated as
"City of Denton Electric System Revenue Bonds, Series 1982", in
the maximum principal amount of $3,000,000, to be payable from
and secured by an irrevocable first lien on and pledge of the
Net Revenues of the City's Electric Light an? Power System, all
as will be defined and provided in the aforesaid Ordinance.
Said bonds will bear interest from their date at maximum rates
not to exceed fifteen percentum per annum, will be scheduled to
mature serially within a maximum of not to exceed thirty years
from their date, and will be subject to redemption prior to
maturity, and will have such other and further characteristics,
as will be provided in the aforesaid Ordinances. Said bonds
will be authorized, issued, sold, and delivered pursuant to
Articles 1111b, 1112, 1113, and 1114, Vernon's Annotated Texas
Civil Statutes, and other applicable laws, for the purpose of
providing money for improvements and extensions of the Electric
Light and Power System of the City.
CITY OF DENTON, TEXAS"
r
i
J
r
IN THE 31ATTER OF
CITY OF DENTON
THESTATEOFTECAS Roy Appleton, Jr.
County of Denton
being duly sworn, says he is the General Manager of the Denton Record-Chronicle, a
newspaper of general circulation which has been continuously and regularly published
for a period of not less than one year in.the County of Denton, Texas, preceding the date
of the attached notice, and that the said notice was published in said paper vn the follow-
ing dates:
Notice of Intention to issue City of Denton Electric System Revenue Bonds,
'tries 19821 in the Principal amt of 8310009000. Notice of Intention to Issue
Ctty of Denton Water & Sever System Revenue Borri Ser 'es 1982111n the principal
amt of $210001000, JANUARY 291 1982
Stwscribed and sworn to before me this 9 day of Ha r c h ,1982
Witness my hand and official seal. bmlr~
Notary Puhllc, Denton County, Texas
10
_ _ I maximum rates not not per
e....d fi fl ltceri pert
"NOTICE OfINTENTiOfI _.,.td
TOISSUIE v r'• t
CITYOiDENTON imaximum of nu, io c.. 1
ELECTRICSYSTEM thirty years from their date,
REVENUE BONDS, and will be subject to re
SERIESIM2, oemption prior to maturity
IN TbE PRINCIPAL and will have such other and
AMOUNT OF 13,000,00o further characlgrlstic, as
Notice Is hereby given. In will be 'provided In the
accordance with Article ofvneld Ordinance. Sold
2»ta. Vernon'{ Annr'. • d bonds will be WhOrlied,
Taxes CNII Statutes issued, sold and delivered
f City '+imcll ke r ,R-d pursuant t0 Articles 1111b,
.xaa, nu ends to 1112, 1113, and 1114. Vernon's
pass, N a Regular Meeting to Annotated Texas Civil slat.
be held of 1:00 PM, on March life% and other applicable
2. 1992, of the City Hall, an laws, for the purpose of
Ordinance outnorlting the providing money for Im,
Issuance, sale, and delivery pavements and extensWns
of an issue of negotiable of the combined Waterworks
coupon bonds to be desig- and Sewer System of the
noted as the "City of Denton City.
lectrk System Revenue CITYOF DENTON, TEXAS
Dods. Series 196Y', in the
maximum principal amount OFFICIALNOTICE OF
of 93,00400 to be payable SALE
from end secured by an CITY OF DENTON, TEXAS
I irrevocable first Hen on and 921000000
pledge of the Not Revenues WATER ANDSEWER
of the City's Electric Light SYSTEM REVENUE
and Power System, all as BONDS,
will b- cieflnM and rnv'lled SFomstsa2
in IM aforesaid Ordinance.
Said bonds will bear Interest 95171
from their data at maximum ELECTRIC SYSTEM
rates not to exceed fifteen REVENUE BONDS,
percentum pw annum, will SERIESI91112
be scheduled to mature
serially within a maximum The City Council Of Ina City
of nor to exceed thirty years of Denton, Denton County,
from their date, and will be Texas, will receive sealed
subject to redemption prior bids of the Municipal Build-
to maturity, and will have in, 213 E. McKinney Street,
such other and further char in IMClty of Denton until:
octer{slics, as will be pro
-
vided in the aforesaid Ordi 2:00 p.m., Tuesdry, March 2,
modes, Said bonds will be 1952 {
"
9uthnrlted, Issued, sold, and
daliveyed pursuant to for the purchase of:
Articles 1111b, 1112, 1113, and E a aa4:0 Wefor and Sewsr
1111, Vernon's Annotated. to Revenue Bonds, to be t
Texas CNfI Stables, and ~I dated March 13, 1912, and 10 1
other appikable laws, kr the moture sc'rl_!!y yny sa .wh
purpose of providing money ' year 7":) nir0ugh 1999.
for Improvements and 3 91,Aeli Elactrk Usfetn
extensions of the Ekctrk Revenue aolds, to be dafrd
Light and Power System of ' April 1, 1912, and to malwe
the City. serlalty O.rember I each
C1fYOFDENTON, ` year 1983 lfwugh M.
TEXAS"
Sealed bws, plainly marked
NOTICE Of INTENTION "Bid for Bonds should be
TO ISSUE addressed 10 "Hpnorsble
CITY OF DENTON Mayor and city Council, City
WATERANOSEWER Of Dentin. Texas". and must
SYSTEM REVENUES, be submiHedon the '0Nkle1
SERIES Iti Bid Form" to be made
iNTHEPRINCIPAL available by the city Council
NT Of SUOOA" prOr ens des of sale.
Notes k hereby given, 1n All sealed bids will be
ace dance. with Article publicly dime' and tabu
Vernon's Annotated l afedt3alon ins Cainsil.
CM' SfatuNe, that the COples of IM "s ff7cs,
Cauik?I of the city Of Statomenti'f "Nerlca of
inf~n, rqx&% Intends to Sde", and "Official Bid
afa Regina AAWIPO10 Form W bung prepared
w of 1:00,PM, on March and will be metled tO Prtr
at 14 C"y mail, an edetflve bidders on or atdu} V j
foci outhorltKtg The rebrayy 1S. 1912, and will be
erA "s and dellWry of b rnishod s any poospectlve
M 111141114111 of rkWiable Coupon bidder upon request by FNN
to be d"gnatep as Sduthw of Company, 100
"eI d OMB Water and MertaMila Bank Bviwit/g, i
tYSf/Iq Revenue Oal15s, Toas 1$201, FKUrr f
tided 0*6 1901, In The ~ dial AdvisoratolhocltY• j
m prlntlpal Smoot 3 The Clfyri»in{th,flghls
000,. fa Be payable ! reject any atld ate Dille and ill
kO*d by a first I wave any and ,411 It,
d IM NN regularltles.
of "1 City's iJy Order, W VA City CouncR
orks and Sewer of the Cltl oalt ao wIll be 0otihid t Wm. Saw boonndds well City ofCD~,Tout
War bNeraN iron M& doe IJonuary P. "a2
"NOTICE of '
INTENTION
TO ISSUE
CITY OF DENTON
ftECTRICSYSYLM I
REVENUE 60NDS, /
SERIESHeZ
IN THE PRINCIPAL
AMOUNT Oiewoo0,e ie
Notice is hereby given, In
:ccordence. wiih Article
7368a, Vernon's Annotated
Texas Civil Statutes, that the
city Coumil of the City of
s. at Texas. {moods to
Dart^
~ pass, eta Regular Heeling to
be held at 7, 00 PM, on March
7. 1967, at " City Hall, en
Ordinance authorleing the
issuance, sale, and delivery
of an Issue of negotiable
cOu POM bonds to be desig „
mated as "City of Denton
Electric System Revenue
:,Or„;r„ Sw;efi 1;81". In Me
maximum Principal amount
of s0,OM,000, 10 be payable
from and secured by an
irrevaable first lien on and
1 pledge Of me Net Revenues
of the City's Electric Lyht
and Power Sys M. D a
will be (Wned and PrWided
In the aforesaid Ordinance,
Said beds will bear Interest
from their date at maximum
'rates not to exceed fifteen
' Percenrum Per annum, will
I,N THE MATTER OF a {e Scheduled rl at at~re
CITY OF DENT O N a of nOl to exceed thirty years
y from their dale. ^nd will be
. subloct to redetr rion prior
tai malurlty, P-4 will have r
1 such Other an further char
I aClerlstks, N will be pro
vlded M Iheaforeuld Ordi
1 nances. Sold bonds will to
s. f'1va'ad, isWed, sty, and
delivered pgrsuanl 10eton, Jr.
ArtlcW 1TIIb, 1117, I I I L and
THE STATE OF TEXAS 7116 Yermon's Annotated
- Texas Clvil Stables, and
County of Denton other applicable laws, for the
purpose Of providlrq money
for ImprOyemenfa and, Record-Chronicle, a
being duly sworn, says he is the General Man Lronf am P~ Syihem Of ld regularly published
newspaper of general circulation which has be the Ply. Taxaa xas, preceding the date
for a period of not less than one year in.the Co City OF ry Denim. aid paper or the follow-
of the attached notice, and that the said notice INTENTION
ing dates: ' CITYOO,F~DENTON
WATERANbtewElt' o REYenue Bonds+ Series
ice of intention to issue City of Denton SYSTEM REVENUE
in the vrincipat amt of 13,000,000, Notice o, tntentiori to issue City of
,..a .
ton Water & Sewer System REYenue Bonds, Serie, 148 i in,tJIt Principal amt of
r 1
000,000. FEBRUARY 21, 1982
' 1IV yI
March ,I9 82
Subscribed and sworn to before me this. 9 day of
Witness my hand and official seal. 'jtotary public, Denton County, Texas
"NOTICEOF
INTENT" )!J
CITY OF DEN
EN JON NOT ICE Of
ELECTRIC SYSTEM I
f NTENTION
TO ISSUE
SERIESIM7 I CITY OF DENTON
iNTHE PRINCIPAL WATER AND SEWER
ANIOU NT OF $3,000, 0011 SYSTEM DS Notice is hereby given, In SERIESIM0
accordance with Article IN THE PRINCIPAL
73611a, Vernon's Annotated AMOUNT OF {7.,a00,00e
Texas Civil Statutes, that the Notice is hereby given, In
City Council of the City of accordance with Article
Denton, Texas, Intends to 7168a, Vermont's Annotated
Pass, at a Regular Meeting to Texas CIvil Statutes, Mat the
be held at 7.00 PM, on March City Council of the City Of
7. 1987, of the City Hell, an Denton, Texas, Intends to
Ordinance authorizing the ' pass, at a Regular Mel, Ing to
issuance. sale, and delivery be held At 7:00 PM. on March
of an issue at negotiable 71 19071 at she City Hall, an
coupon bonds to be desig- Ordinance authOr171ng the
noted as City or Denton Issuance, sale, and, ciellvery
Electric System Revenue of an Issue of negotiable
Bonds, Series 199711, n the coupon bonds to be deslg.
maximum Principal amount noted of 'City of Denton
or $1,000,00, fo be payable Water and Sewer Sysferr'
tram and secured by an Revenue Bonds, Sees I9111".
Irrevocable first lien on and in the maximum principal
Pledge Of the Net Revenues amount of 87,00,00, to be
of " City's Electric Light Hyebk t.r,_
- @Ad wt-n t by
and ~r an finl lien on and pledge of
tin Net Revenues of 1M
Will be defined end provided City's Waterworks end
In Rv a 0resald Ordinance. Sewer System, all as will be
Sold bonds will bear interest defined and provided In the
from heir date at maximunf aforesaid Ordinance. Said
rates not 10 exceed fifteen bonds will bear interest from
Percent" 'per annum, will their dale of maximum rates
be scheduled to mature not to exceed fifteen
WIAWy within a maximum percenNin per amum, will
fill 1161 to exceed thirty yeah be scheduled to mature
from their date' and Will ber serially WmIft a maximum
sublect to I sdempton prior of nos to exceed thirty years
te maturity, and wilt lave from their daft, and will be
such artier And further char. subiect PC redenipllon prior
~lerlatk4 as will be pro- to maturity, and will have
folded In Iitaforeseld Ordf• such other and hMmnr char-
nancee. Said bonds will be K%rlstke, ft will be pro-
evfhprlied, issued, d, end vided M the Aforesaid Droll
del War60 puraue solnt tej name. Sold bonds will be
Arlkka 1111b 911E Illl end authorized, issued, sold, er+d
1114 Cations Annotated d!l1vered pursuant e
TOSS `CNII Statutes, And Arllcks club, 1117, 1117, and
pellet applicable laws, for the 1114. Vernon's Annofat"
durpOM of providing Inoney Texas CWII Statutes, aid
roe Improyements and other opplkeble laws, for Ilse
Ift}aAslands Of the Electric purpose of provding money
I. and Power. System of fat improvement$ and
Neehy ' eKiAlWorn of the combined
CNy0f Donfoe,Tex" Waterworks and Sewer
System of the City.
City at Denton, Taxes
FEBRUARYSI L 70, 19117
}
IN THE MATTER OF
CITY OF DFNTON
Roy Appleton, Jr.
THE STATE OF TEXAS
County of Denton
ly published
being duly sworn, says he is the General Manager of the Denton Record -Chronicle
newspaper of general circulation which has been continuously and ~g~ecedin the dai_
for a period of not less than one year in.the County of Denton, Texas, p B
of the attached notice, and that the said notice was published in said paper on the follow-
ing dates: ie
Notice of intention to issue City of Denton Electric System Revenue` s=a.er -
1,1982+ in the Principal amt of $3+000+000. Notice of intention to issue City_ of
Denton Mater do Sewer System Revenue Bond s+ Serie 1482] in the-principal amt of
42+000+000. FEBRUARY 28+ 1982
E i
9.._dayof Merl^ - JLl9 r•~_-
Subscribed and sworn to before ma this
Wetness my hand and official seal. Notary Public, Denton County, Texas
"NOTICE Of
"leOTICE OF INTENTION
INTENTION TO ISSUE
TO ISSUE CITY OF DENTON
_ WATERANDS£WER
CITY Of D[NTON+ SYSTEM REVENUE
ELECTRIC IYSTtM BONDS
REYfflulf NDS, SERIE$IM
SERIESIIQ INTNE PRINCIPAL
IN THE PRINCIPAL AMOUNT OF motah"
AMOUNT OF 0,00E" NDfIce is hereof given, in
Notb Is hereby even. In accordance with Article
accordance with Article 7:768a, Vernon's Annulated
10aea, Vernon's Annotated Texas Civil Statutes, thel the
Texas CNll Statutes, that led. City Cnsncll of the Clfy Of
City Council 01 the City of! Oe^,ton, Texas, intends to
Penton, Tex^ inle X% 10 pam, at a Regular Meeting to
pass, at a Regular Meeting to be held at 1:00 pM, on March
be held at 7:00 PM, m MarchI L 1787, at the City Hall, an
21 178E at 11019 Clfy Hall, and Ordlnance allthorIting the I
Ordinance authot'1ring 11111 Isswncr, sale, and Jeilvery
hsuame, sale, and Doivery of an Nnu a negotiable
of an is" 01 negotiabk cmpm battle to be desig.
coupon bonds to be Oll noted as "City of Denton
rated m ,City of Denton Water and Sewed System
Etectrk Systen Revenue Revenue Bonds, Series 1"T'
Bonds, Series 15 O", In the in me maximum principal
maximum priec gel amount amount c' 117,000,000. to be
of W,o00,1100, t, be payable i payable from and Secured by
frmn and scoured by an I an first Ilan on and pledge of
lrrevxoble first lien m end t" Net Revenues of the
plepge of the Net RrYenuei City's waterworks and
of the City,s Electric Light Se'w'er System, all as will be
WA Power SYSIem, ell at defined and provided N it*
will be dcflned and 9mv1ded aYorese rq pdr r, Sew
IA the aforeseld Ordinance. DMds Wae it beats larrilm n
~R
Sew bonds will dew Interesf not fdat eslxC adf ifteen
from their dFte M maximum 't *fifte
percent um pear annum. w11J
rates not to, exceed fifteen ba scheduled Its maturf
percentum per annum, will iaerially wtthlr a maximum
be scheduled to mature of not to exceed thirty Yeen
serially within a maximum Irvin }heir data. and WIN be
of not ta exceed thirty yean Silbiect b redettspl plot
Irom Ihe',r dale, end will be to maturity, and will haul'
subied to re0omplim ploy such other and fwHief
10 matwilY. and, will have aclerist" as will be pro-
wen tNher and further Chan vided in the aforesaid Ordt-
ecleeistks, as will , be pro narice. Said bands will be
vi-rd M IheefornaW Ordl- pu tWiled, Isstled, Sow, and
nancat. Said bonds will be delivered Pursuant 10
suthdelmd, leaned, Well. " Articles 111i 1117, 1111, IN
dellvered Pull 10 1114, Vernon's. Annotated
AAkles 1111b. 11tt 1113, era Texas Civil Statutes, and
I'.14 Vernon's Annotated orller applkable laws, for the
Tech' Civil ' Sfatules. end purpare M prirAding r)W"
ottlat' applk" laws, for the for ImP avelnenlt and
puryltee d pro.'Idllsg .0190 extenstons of the combined
for Imptdvemorfe and waterworks And %swar
extrAs'lone 'at the E Nctrk System of the rny.
Light VW Po'AW SYstelll Of City of Denldn, Texas
the Cny. F EL R UA RY 21 L ,'tf. IM
City of Denton. T epee,.. , _
• CERTIFICATE FOR
ORDINANCE DIRECTING THE ISSUANCE OF NOTICE OF SALE OF BONDS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned officers of said City, hereby certify
as follows:
1. The City Council of said City convened in
REGULAR MEETING ON THE 2ND DAY OF MARCH, 1982,
at the Municipal Building (City Hall), and the roil was called
of the duly constituted officers and members of said City
Council, to-wit:
Charlotte Allen, City Secretary RRichard 0. ichard H. Stewart, Mayor
Mark Chew
Dwight L. Gailey Dr. A. Ray Stephens
Jim Riddlesperger Joe Alford
and all of said persons were present, except the following
absentees:L
thus constituting a quorum. Whereupon, among other business,
the following was transacted at said Meeting: a written
ORDINANCE DIRECTING THE ISSUANCE OF NOTICE OF SALE OF BONDS
was duly introduced for the consideration of said City Council
and duly read. It was then duly moved and seccnded that said
Ordinance be passed; and, after due discussion, said motion,
carrying with the passage of said Ordinance, prevailed
carried by the following vote:
AYES: All members of said City council
shown present above voted "Aye".
NOES: None.
2. That a true, full, and correct copy of the aforesaid
Ordinance passed at the Meeting described in the above and
foregoing paragraph is attached to and follows this Certifi-
cate; that said Ordinance has been duly recorded in said City
Council's minutes of said Meeting; that the above and foregoing
paragraph is a true, full, and correct excerpt from said City
Council's minutes of said Meeting pertaining the passage of
said Ordinance; that the persons named in the above and fore-
going paragraph are the duly chosen, qualified, and acting
officers and members of said City Council as indicated therein;
and that ach of the officers and members of said City Council
was duly and sufficiently notified officially and personally,
in advance, of the time, place, and purpose of the aforesaid
Meeting, and that said Ordinance would be introduced and
considered for passage at said Meeting; and that said Meeting
. was open to the public, and public notice of the time, place,
and purpose of said meeting was given, all as required by
Vernon's Ann. Tex. Civ. St. Article 6252-17.
3. That the Mayor of said City has approved, and hereby
approves, the aforesaid Ordinance; that the Mayor and the. City
Secretary of said City have duly signed said Ordinance; and
that the Mayor and the City Secretary of said City hereby de-
clare that their signing of this Certificate shall constitute
tee signing of the attached and following copy of said Ordi-
nance for all purposes.
SIGNED AND SEALED the 2ND day of Mar he 1982
~/1 lam'' . 1/Iti--=•. ~ •
city Secretary yor
(SEAL)
We, tha undersigned, being respectively the City Attorney
and the Bond Attorneys of the City of Denton, Texas, hereby
certify that we prepared and approved as to legality the at-
tached and following Ordinance prior to its passage as afore-
said.
-
C t tt bey
on Attorneys
ORDINANCE NO. 82 - L5-
ORDINANCE DIRECTING THE ISSUANCE OF NOTICE OF SALE OF BONDS
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
TAE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
1. That the City Secretary is directed to issue a Notice
of Sale of Bonds in substantially the following form:
OFFICIAL NOTICE OF SALE
CITY OF DENTON, TEXAS
WATER AND SEWER SYSTEM REVENUE BONDS,
SERIES 1982
The City Council of the City of Denton, Denton
County, Texas, will receive sealed bids at the
Municipal Building, 215 E. McKinney Street, in the
City of Denton until:
7:00 p.ra., Tuesday, April 6, 1982
for the purchase of:
City of Denton Water and Sewer System Revenue Bonds,
in a total amount which aw u y may be issued in
compliance with the earnings coverage requirements
for such bonds, but in the minimum principal amount
of $1,250,000 and in the maximum principal amount
of $2,000,000, with such bonds to be dated May 15,
1982, and to mature serially July 15 each year 1983
through 1998.
Sealed bids, plainly marked "Bid for Bonds", should
be addressed to "Honorable Mayor and City Council,
City of Denton, Texas", and must be submitted on
the "Official Bid Form" to be made available by the
City Council prior the date of sale.
All sealed bids will be publicly opened and tabu-
lated before the Council.
Copies of the "Official Statement", "Notice of Sale",
and "Official Bid Form" are being prepared and will
be mailers to prospective bidders on or about March
220 1982, and will be furnished to any prospective
bidder upon request, by First Southwest Company,
800 Mercantile Dallas Building, Dallas, Texas 75201,
Financial Advisors to the City.
The City reserves the right to reject any and all
bids and to waive any and all irregularities.
By order of the City Council of the City of Denton,
Texas.
CHARLOTTE ALLEN
City Secretary
City of Penton, Texas.
2. That said Notice shall be published once in The Bond
Buyer, New York, New York, which is a national publication
regularly and primarily carrying financial news and municipal
bond sale notices; and said Notice also shall be published once
in the "Denton Record-Chronicle", which has been designated as
the official newspaper of the City of Denton, said publica-
tions shall be made at least thirty days prior to the day set
for receiving bids.
City and County of New York, ss.r"
Copy MARY DALY, being duly sworn, says that she is the
Adrerirsing Clerk of THE BOND BUYER, a dally and weakly
newspaper printed and published at One Stale Street Plaza, In
the City of New York, County of New Yu,k, State of New York;
of and the notice, of which the annexed Is a printed copy, was
regularly published In sald THE DAILY BOND BUYER on
Advertloement
F1~!'i 5 1982
A&ertis g Clerk
Subrcribrd and emorr, to before me this
S+` _day of MR19SL
HAROLD J. O'NEILC
Notary PAM st.16 co N.. York
Rex. 174esss73
0uer,red M R&MMO COu rr
CommhNM 116n M,rch 30, 10117
OMCNL NOTICE OF SALE
City of Denton
Texas
Water and Sewer System
Revenue Bonds, Series 1982
The City Council of the City of Denton, Denton County, Texas, will
receive scaled bids at the Municipal Building, 215 L MAInney Slree4 In
the City of Denton until 7.00 p.m, Tuesday,
f.MIL S, 1982
for the purchase of:
City of Denton Water end sewer system Revenue Bonds, In a total
amount which lawfully may be Issued In cornpliame with the earnings
coverage rcqutrcmcnU for such bonds, but in the minimum principal
amount of 81,250,000 and in the maximum prlnrlpal amount of 1
82,000.000, with such bonds to be dated May 15, 19A2; and to mature
sent =bids. 15 each year 1983 throu0i I.M.
Scaled bids, plainly marked "Bid for Bonds", should be addressed to
'Honorable Mayor and City Council City of Denton, Texas', and must be
subm!tled on the "Official Bid Fotm" to be made available by the City
Council prior the date of ,tale.
All scaled bldsuld tx publlctyopened eM tabulated Mfore the Orkin! d.
Copies of the "official Statement". "Notice of SW. and "Official Bid
Form" are being prepared and will be mailed to prospect" bidders on
or about Mamh 22. 1988 and will be furnished to any prospective bidder
upon requee., by final Southwest Company. 900 Mercantile Dallas Building,
Dallas, Texas 75201, Financial Advisor to the OIL ' .
The City reserves tlr. right to reject any and all bids attd to waive
any and all irng~utrlaritics
By order or the City Council of the City of Denton, Texas.
.dEN i
CHAR' OTM ALr~
Citycoft~ Denton, t,a Te=
1
IN THE MATTER OF
CITY OF DENTON
THE STATE, OF TEXAS Roy Appleton, Jr.
Counq of Denlon
being duly sworn, says he is the General Manager of the Denton Record • Chronicle, a
newspaper of general circulation which has been continuously and regularly published
for a period of not less than one year in.the County of Denton, Texas, preceding the date
of the attached notice, and that the said notice was published in said paper on the follow.
in dates:
OF ICIAL NOTICE OF SALE, CITY OF DENTONi TEXAS, WATER & SEWER SYSTEM
REVENUE BONDSs SERIES 1982 MARCH 5, 1982
Subscribed and 9%vrn to before me this 9 day of _ Ma rch 82
Witness my h$nd and official seal, ~1Y
Notary Public, Denton County, Texas
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CERTIFICATE FOR
ORDINANCE AUTHORIZING THE ISSUANCE OF
WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1982
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
4Te, the undersigned officers of said City, hereby certify
as follows:
1. The City Council of said City convened in
REGULAf. MEETING ON THE 6TH DAY OF APRIL, 1982,
called
at the
of the municipai
members ofl said s City
constituted gof(Cit ficers Hall),
Council, to-wit:
Charlotte Allen, City Secretary Richard 0. Stewart, Mayor
Mark Chew Richard H. Taliaferro
nwiaht L. Gailey Dr. A. Ray Stephens
Jim Riddlesperger Joe Alford
and all of said persons were present, except the following
absentees:
thus constituting a quorum. Whereupon, among of er business,
aritten
O
the following Owas RDINANCE transacted AUTHORIZING 1 THE Meeting-
ISSUANCE OF
WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1992
was duly and duly read. It was for
then duly i,r ved and (second City Council the consideration ordinance be passedt and, after duo discussion, said motion,
carrying with it the passage of said ordinance, prevailed and
carried by the following vote:
AYES: All members of said City Council
shown present above voted "Aye".
NOES: None.
2. That a true, full, and correct copy of the aforesaid
ordinance passed at the Meeting described in the above and
foregoing paragraph is attached to and follows this Certifi-
cate; that said Ordinance has been duly recorded in said City
Council's minutes of said Meetings that the above and foregoing
paragraph is a true, full, and correct excerpt the pasl age to
Council's minutes of said Meeting pertaining to
said Ordinances that the persons named in the above an acting
going paragraph are the duly chosen, qualified, officers and members of sa'd City Council as indicated thereint
and that each of the officers and members of said City Council
was duly and sufficiently notified officially and personally,
is advance, of the time, place, and purpose of the aforesaid
Meeting, and that said Ordinance would be introduced and
considered for passage at said Meeting= and that said Meeting
was open to the public, and public notice of the time, place,
aiid purpose of said meeting was given, all as required by
Vernon's Ann. Tex. Civ. St. Article 6252-17,
3. That the Mayor of said city has appro-a,3, and hereby
approves, the aforesaid Ordinance= that the Mayor and the City
Secretary Maof said City yor and the City have
Seduly cretary n of said City i hereby de-
clare
thers the igningtofithe a taehed and following copysoflsaid constitute Ordi-
nance for all purposes.
SIGNED AND SEALED the 6th day of Apr , 1982
- or
ty c 40a ry
(SEAL}
We, the undersigned, being respectively the City Attorney
and the Bond Attorneys of the City of Denton, Texas, hereby
® certify that we prepared and approved as to legality the at-
tached and following Ordinance prior to its passage as afore-
said.
C ty torney
` 8o Attorneys
f
ORDINANCE NO. 82-&-;,
ORDINANCE AUTHORIZING THE
ISSUANCE OF
WATER AND SEDER SYSTEM REVENUE BONDS, SERIES 1982
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WHEREAS, the bonds hereinafter authorized were lawfully
and favorably voted at an election duly held in said City on
MAY 16, 1972; and
WHEREAS, out of the bonds voted at said election, the
' following previously have been issued and delivered:
$4,47'0000 out of a voted total of $5,275,0000 for
the purpose of improving and extending
the City's Waterworks System, represented
by pert of the Series 1972 Bonds, part of
the series 1914 Bonds, part of the Seriea
1977 Bonds, and part of the Series 1979
Bondi, and
$31525,000 out of a voted total of $5,725,000, for
the purpose of improving and extending
the City's Sewer System, represented by
part of the Series 1972 Bonds, part of
the Series 1974 bonds, part of the Series
1977 Bonds, and part of the Series 1979
Bonds) and
` WHEREAS, the bonds hereinafter authorized and designated
E were voted and are to be issued and delivered pursuant to
Vernon's Articles 1111 through 1118.
THE COUNCIL OF THE CITY OF DENTON HEREBY OR])AINS:
Section 1, That the said City's bonds are hereby author-
ized to be issued in the aggregate principal amount of
$1,500,000 FOR THE PURPOSE OF IMPROVING AND EXTENDING THE
CITY'S SEWER SYSTEM.
Section 2. That said bonds shall be designated as then
"CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES
1982".
Section 3. That said bonds shall be Bated MAY 151 1982,
`p shall be in the denomination of $5,000 each, shall be numbered
consecutively from one uraard, and shall mature serially on the
maturity dete, in each ,f the years, and in the amounts,
respectively, as set forth in the following schedules
MATURITY DATE: JULY 15
YEARS AMOUNTS YEARS AMOUNTS
1983 $ 60,000 1992 $100,000
1984 100,000 1993 100,0)0
1994 1500000
1987 750000 1995 150,000
1988 75,000 1996 150,000
1989 75,000 1997 150,000
1990 75,000 1998 150,000
1991 90,000
Section 4. That the bonds scheduled tD mature during the
years, respectively, set forth below shall bear interest at the
following rates per annum.
maturities 1983, 13.008 maturities 1991, 13.008
maturities 1984, 13.009 maturities 1992, 13.009
maturities 1993, 12.209
maturities 1987, 13.009 maturities 19940 12.409
iaturities 1988, 13.009 maturities 1995, 12.509
maturities 1989, 13.009 maturities 1996, 12.709
maturities 1990, 13.009 maturities 1957, 12.909
maturities 1998, 11.1258
Said interest shall be evidenced by interest coupons which
shall appertain to said bonds, and which shall be payable in
the manner provided and on the dates state(: in the FORM OF BOND
set forth in this Ordinance.
Section 5. That said bends and interest coupons shall be
issued, shall be payable, may be redeemed rrior to their sched-
uled maturity, shall have the characteristics, and shall be
signed and executed land said bonds ;hall be scaled), all as
provided, and in the manner indicated, in :he VORM OF BOND set
forth in this Ordinance.
Section 6. That the form of said bonds, inclL9ing the
form of Registration Certificate of the Comptroller of Public
Accounts of the State of Texas to be printed and endorsed on
each of said bonds, and the form of the aforesaid interest
coupons which shall appertain and be attached initially to each
of said bonds, shall be, respectively, substantially as
follows:
FORM OF BOND:
NO. $S,000
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
WATER AND SEWER SYSTEM REVENUE BOND
SERIES 1982
ON JULY 15, 19 , THE CITY OF DENTON, in Denton County,
Texas, hereby promises to pay to bearer hereof the principal
amount of
FIVE THOUSAND DOLLARS
and to pay Interest thereon, from date hereof, at the rate of
9 per annu:^., evidenced by interest coupons payable JULY
lam; X982, and semiannually thereafter while this bond is out-
standing.
THE PRINCIPAL. of this bond and the the interest coupons
appertaining hereto shall be payable to bearer, in lawful money
of the United States of America, without exchange or collection
charges to the bearer, 13pon presentation and surrender of this
bond or proper interest cuupon, at the following, which shall
constitute and be defined as the "Paying Agent" for this Series
-)f Bonds:
CITIAANK, N.A., NEW YORX, NEW YORK,
OR, AT THE OPTION OF THE BEARER, AT
FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS.
THIS BOND is one of a Series dated as of MAY 15, 19820
authorized, issued, and delivered in the principal amount of
$1,5001000 FOR THE PURPOSE OF IMPROVING AND EXTENDING THE
CITY'S SEWER SYSTEM.
ON JULY 15, 1992,
or on any interest pa}ment date thereafter, any outstanding
bonds of this Series may be redeemed prior to their scheduled
maturities, at the option of said City, in whole, or in part,
for the principal amount thereof and accrued interest thereon
to the date fixed for redemption. At least thirty days prior
to the date fixed for any such redemption said City shall cause
a written notice of such redemption to be published at least
once in a financial publication published in the City of Neu,
York, New York. By the date fixed for any such redemption dse
provision shall be made with the "Paying Agent" for the payment
of the principal amount of the bonds which are to be so re-
deemed and accrued interest thereon to the date fixed for re-
demption. If such written notice of redemption is published
and if due provision for such payment is made, all as provided
above, the bonds which are to be so redeemed thereby automati-
cally shall be redeemed prior to their scheduled maturities and
they shall not bear interest after the Bate fixed for redemp-
tion, and they shall not be regarded as being outstanding ex-
cept °_or the right of the bearer to r:ceive the re& nption
price from the "Paying Agent" out of 1he funds provided for
such payment.
M
IT IS HEREBY certified and covenanted that this bond has
been duly and validly authorized, issued, and delivered; that
all acts, conditions, and things required or proper to be
performed, exist, and be done precedent to or in the authoriza-
tion, issuance, and deliv=ry of this bond have been performed,
existed, and been done in accordance with law; that this bond
is a special obligation; and that the principal of and interest
on this bond, together with other revenue bonds of said City,
are payable from, and secured by a first lien on and pledge of,
the Net Revenues of said City's Waterworks and Sewer System.
SAID CITY h,js reserved the right, subject to the restric-
tions stated, a:id adopted by reference, in the Ordinance au-
thorizing this Series of bonds, to issue additional parity
revenue bonds which also may be made payable from, and secured
by a first lien on and pledge of, the aforesaid Net Revenues.
THE HOLDER HEREOF shall never have the right to demand
payment of this obligation out of any funds raised or to be
raised by taxation.
IN WITNESS WHEREOF, this bond and the interest coupons
appertaining hereto have been signed with the facsimile signa-
ture of the Mayor of said City and countersigned with the
facsimile signature of the City Secretary of said City, and the
official seal of said city has been duly impressed, or placed
in facsimile, on this bond.
xxxxxxxx xxxxxxx
city Secretary Mayor
FORM OF REGISTRATION CERTIFICATE:
COMPTROLLER'S REGISTRATION CERTIFICAT£i REGISTER NO.
I hereby certify that this bond has been examined, certi-
fied as to validity, and approved by the Attorney General of
the State of Texas, And that this bond has been registered by
3
the Comptroller of Public Accounts of the State of Texas.
Witness my signature and seal this
xxxxxxxx
Comptroller o Public Accounts
of the State of Texas
FORbI OF INTEREST COUPON:
NO. $
ON 15, 19 ,
THE CITY OF DENTON, in the County of Denton, State of Texas,
promises to pay to bearer the amount shown on this interest
coupon, in lawful money of the United States of America, with-
out exchange or collection charges to the bearer, unless due
provision has been made for the redemption prior to scheduled
maturity of the bond to which this interest coupon appertains,
upon presentation and surrender of this interest coupon, at
CITIBAI~X, N.A., NEW YORK, NEW YORK,
OR, AT THE OPTION OF THE BEARER, AT
FIRST NATIONAL BANK IN DALLAS, DALLAS, TEXAS,
said amount being interest coming due that day on the bond,
bearing the number hereinafter designated, of that issue of
CITY OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES
1982, DATED MAY 15, 1982. The holder hereof shall never have
the right to demand payment of this obligation out of any funds
raised or to be raised by taxation.. Bond No.
Xxxxxxxx xxxxxxx
City Secretary Mayor
Section 7. (a) That the term "Outstanding Bonds", as
hereinafter used in this Ordinance, shall mean all of said
City's presently outstanding bonds which are payable from, and
secured by a first lien on and pledge of, the Net Revenues of
said City's Waterworks and Sewer System.
(b) That the bonds authorized hereby are parity "Addi-
tional Bonds" as defined in the ordinance passed on July 12,
1960, authorizing the issuance, sale, and delivery of said
City's Water and Sewer System Revenue Bonds, Series 1960.
1c) That Sections 9 through 25 of said ordinance are
hereby adopted by reference and shall be applicable to the
bonds authorized to be issued by this Ordinance for all pur-
poses, except to the extent hereinafter specifically modified
and supplemented. The bonds authorized to be issued by this
ordinance and the Outstanding Bonds are and shall be on a
parity and of equal dignity in all respects, and are and shall
be payable from, and secured by a first lien on and pledge of,
the Net Revenues of said City's Waterworks and Sewer System.
Section 8. That, in addition to all other amounts re-
quired by the ordinances, respectively, authorizing the out-
standing Bonds, there shall be deposited into the interest and
Sinking Fund (created for the benefit of said Cutstanding Bonds
and all Additional Bonds), from the Net Revenues of the System,
the followings
(a) such amounts, in equal monthly installments,
made on or before the last day of each month
hararfter,, as will be sufficient to pay the
intcrczt Gchcdulad to ccria due on 6aid uoriGa
1982 Bonds on the next interest payment dater
and
4
(b) such amounts, in equal monthly installments,
made on or before the last day of each month
hereafter, commencing in July, 1982, as will
be sufficient to pay the next maturing prin-
cipal of said Series 1982 Bonds.
Section 9. That the Reserve Fund heretofore created for
the benefit of the Outstanding Benda and all Additional Bonds
now contains money and investments not less than the amount of
$858,258 in market value. 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 five years after the date of
the Series 1982 Bonds, an amount of money and investments equal
in market value to the average annual principal and interest
: Cy'u1rCmCnm.u vu vuo a~~
` t. - " ~ ding Bonds and the Series 1982 Bonds
the "Reserve Required Amount"). Thereafter, no additional
t
':'lull b%. mala `nto the Reserve Futlu d:i luilii aJ the
money and investments therein are equal to the Reserve Required
Amount, but +.f and whenever the Reserve 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 Revenues of the System (after the re-
quired deposit: 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 Amount; and the City covenants to keep
and maintain the Reserve Required Amount in the Reserve Fund in
the manner described above. The Reserve Fund shall be main-
tained, used, and may be invested, for the benefit of the Bonds
and all Additional Bands, in accirdance with the procedures, as
herein modified and supplemented, set forth in the ordinances,
respectively, authorizing the Outstanding Bonds. It is pro-
vided, 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.
Section 10. That the bonds authorized by this Ordinance
are and shall be special obligations of said City, and the
holder or holders thereof shall never have the right to demand
payment of said obligations out of any funds raised or to be
raised by taxation.
Section 11. That the Mayor of said City is hereby author-
ized to have control of said bonds and all necessary records
and proceedings pertaining to said bonds pending their delivery
and their investigation, examination, and appro,.al by the
Attorney General of the State of Texas, and their registration
by the Comptroller of Public Accounts of the Stats of Texas.
Upon registration of said bonds, said Comptroller of Public
Accounts for a deputy designated in writing to act for said
Comptroller) shall manually sign the Comptroller's Registration
Certificate printed and endorsed on each of said bonds, and the
seal of said Comptroller shall be impressed, or placed'in fac-
simile, on each of said bonds.
Section 12. That the City covenants to and with the pur-
chaser of the bonds that it will make no use of the proceeds of
the bonds at any time throughout the term of t;jis issue of
bonds which, if such use had been reasonably expected on the
date of delivery of the bonds to and payment for the bonds by
the purchasers, would have caused the bounds to be arbitrage
bonds within the meaning of Section 103(c) of the Internal
Revenue Code of 19541 as amended, or any regulations or rulings
pertaining thereto; and by this covenant the City is obligated
to comply with the requirements of the aforesaid Section 103(c)
and all applicable and pertinent Department of the Treasury
5
.
regulations relating co arbitrage bonds. The City further
covenants that the proceeds of the bonds will not otherwise be
used directly or indirectly so as to cause all or any part of
the bonds to be or become arbitrage bonds within the meaning of
the aforesaid Section 103(c), or any regulations or rulings
pertaining thereto.
Section 13. That it is hereby officially found and de-
termined: that a case of emergency or urqent public necessity
exists which requires the holding of the meeting at which this
Ordinance is passed, such emergency or urgent public necessity
being that the proceeds from the sale of said bonds are re-
quired as soon as possible and without delay for necesza:y and
urgently needed public improvements; and that said meeting was
open to the public, and public notice of the time, place, and
purpose of said meeting was given, all as required by Vernon's
Ann. Civ. St. Article 6252-17.
Section 14. That the City Council officially finds, de-
termines, and declares that said bonds have been duly adver-
tised for sale as required by the Home Rule Charter of said
City; that sealed bids have been received at a public sale of
said bonds held on March 2, 1982; that all of said bonds are
hereby sold and shall be delivered to a syndicate managed or
headed by Kidder, Peabody & Co., Inc., being the best bidder at
said public sale, for the principal amount of said bonds, and
accrued interest thereon to the date of delivery, plus a
premium of $ -0-
Section 15. It is further found and determined that, the
Official Motice of Sale for said bonds was duly published on
March 5, 1982 in The Bond Buyer, New York, New York, which is a
national publication regularly and primarily carrying financial
news and municipal bond sale notices, and on March 5, 1982 in
the Denton Record-Chronicrlu, which iias been designated as the
official newspaper of the City of Denton. The form and sub-
stance of said Official Notice of Sale, and the aforesaid
publications thereof, are hereby approved and ratified in all
respects by the City Council.
Section 16. That it is hereby officially found, deter-
mined, and declared that said bonds have been sold at public
sale to the. bidder offering the lowest interest cost, after
receiving sealed bids pursuant to an official notice of Sale
and Official Statement dated March 15, 1982, prepared and
distributed in connection with the sale of said bonds. Said
Official Notice of Sale and Official Statement have been and
are hereby approved by the Clty Council. It is further c,ffi-
cially found, determined, and declared that the statements and
representations contained in said Official Notice of Sale and
official Statement are true and correct in all material re-
spects, to the best knowledge and belief of the City Council.
1
` 6
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
1, the undersigned City Secretary of the City of Denton,
Texas, hereby certify as follows:
1. That this certificate is executed with reference to
the proposed City of Denton Water and Sewer System Revenue
Bonds, Series 198, dated May 15, 1982, in the principal amount
of $10500,000 (the "Bonds"), which Bonds were authorized by
Ordinance No. 82-,E passed by the City Council of the City of
Denton on Apr4.1 6, 1982.
2. That no petition whatsoever has been filed with the
City, the City Council, or any of its officers protesting the
r`F issuance of ':he Bonds or requesting that the City Council
submit to a referendum vote the question as to the issuance of
the Bonds, and no petition whatsoever has been filed with
respect to the Bonds.
N SIGNED AND SEALED this the 6t1. day of April, 1982.
Cit SecretaTy~
` (CITY SEAL)
THE STATE OF TEXAS
COUNTY OF DALLAS
Alexander Grant & Company, Certified Public Accountants,
hereby certify and report as follows;
That this certificate and report is executed with
` reference to the proposed City of Denton Water and Sewer System
Revenue Bonds, Series 1982, dated May 15, 1982, in the prin-
cipal amount of $1,500,000.
2. That the term "Net Earnings of the System", as used in
this certificate and report, means the gross revenues of the
City's Water and Sewer System after deducting disbursements for
;E:ar tion and maintenance, but not deducting expenditures which
under general]:, a-7epted accounting principles have been
charged as cgl ital exp~~niitures.
3. That the Net rarnings of the System for the fiscal
year next preceding the date of the aforesaid proposed bonds,
which fiscal year ended on September 30, 1981, were at least
1.30 times the combined principal and interest requirements,
and the Reserve Fund requirements, of the aforesaid proposed
bonds, and the outstanding bonds of the following issues of
said City:
Water and Sewer System Revenue Bonds, Series 1960;
Water and Sewer System Revenue Bonds, Series 1962;
Water and Sewer System Revenue Bonds, Series 1964;
Water and Sewer System Revenue Bonds, Series 1966;
Water and Sewer System Revenue bonds, Series 1969;
Water and Sewer System Revenue Bonds, Series 1972;
M Water end Sewer System Revenue Bonds, Series 1974;
Water and Sewer System Revenue Bonds, Series 1977;
W,,.ter and Sever System Revenue Bonds, Series 1979,
for the year when such requirements are the greatest.
EXECUTED this the V day of 1982.
ALEXANDER GRAPI/T~ 6 COMP
by
!z
Ce i i Pu ^ Accountant
THE STATE OF TEXAS
COUNTY OF DALLAS
BEFORE ME a un a igned authority, on this day person-
ally appeared l a Certified Public Accountant,
known to me to e e rson whose name is subscribe) to the
foregoing certif_'rate, and acknowledged to me that he executed
said certificate on the date stated therein.
rAIVEN UNDER MY HAND and seal of office, this the Z day
cf vv`~ r 1982.
Nn
_,,.r, Pu c in an r Dallas
Countyr Texas.
My Commission expires
(NOTARY PUBLIC SEAL)
GENERAL CZA11i'ICATE
THE STATE OF TEXAS
COUNTY OF D£NTON
CITY OF DENTON
We, the undersigned, hereby officially certify that we are
the Mayor and City Secretary, respective.y, of said City, and
we further certify as follows:
1. That said City is a duly incorporated Home Rule City,
having more than 5000 inhabitants, operating and existing under
the Constitution and laws of the State of Texas and the duly
adopted Home Rule Charter of said City, which Charter has not
been chanryed or amended since the passage of the ordinance
authorizing the issuance of the City of Denton Electric System
Revenue Bonds, Series 1982.
2. That no litigation of any nature has ever been filed
pertaining to, affecting, o: contesting: la) the election
which authorized the proposed City- of Denton Water and Sewer
System Revenue Bonds, S-.iries 1982, dated May 15, 1982, in the
principal amount of $1,500,000, (b) the issuance, delivery,
payment, security, or validity of said proposed bonds, (c) the
title of the present members and officers of the City Council
of said City to their respective offices, or (d) the validity
i of the corporate existence or the Charter of said City.
3. That none of the revenues or income of said City's
Water and Sewer System have been pledged or encumbered to the
payment of any debt or obligation of said City or said System,
except in connection with the aforesaid proposed Series 1982
Bonds, and the outstanding Bonds of the following issues of
revenue bonds of said City:
Water and Sewer System Revenue Bonds, Series 1960;
Water and Sewer System Revenue Bonds, Series 1962;
Water and Sewer System Revenue Bonds, Series 1964;
Water and Sewer System Revenue Bonds, Series 19561
Water and Sewer System Revenue Bonds, Series 1969;
Water and Sewer System Revenue Bonds, Series 1972;
Water and Sewer System Revenue Bonds, Series 1974;
Water and Sewer System Revenue Bonds, Series 1977;
Water and Sewer System Revenue Bonds, Series 1979,
and with the surplus revenues thereof having been pledged in
connection with that issue of City of Denton Certificates of
Obligation, Series 1978, dated March 1, 1978,
4, That the Interest and Sinking Fund and the Reserve
Fund, created and maintained for the benefit of the outstanding
bonds listed above, in accordance with the ordinances, respect-
ively, authorizing their issuance, each contains the amount now
required to be on deposit therein, and the City iv not in de-
fault in any of the covenants contained in the aforesaid ordi-
nances,
i
if
5. That the statements and information set forth in the
Official Statement dated March 15, 1982s pertaining to the
aforesaid proposed Bonds and the City, and particularly thR
Water and Sewer System operating statement and debt service
requirements and coverage factors set forth rn page 5 thereof
are true and correct, and the Water Rates and Sewer Rates set
forth on page 8 thereof are currently in effect and were au-
thorized by an ordinance duly passed by the City Council.
SIGNED AND SEALED this 6th day of April, 1982.
A
y ecr tart' Ma r
(SEAL)
1 L `1' T
1
Tile Attorney General of Texas
:day 27, 1982
1A WHITE
.RK 11o,ney General
'I'BIS IS TO CERTIFY that the following described
bonds, together with authenticated copies of the
.~wen,eewnFudd.nq proceedings relating to and authorizing the issuance
o 60.12548 of same, have been submitted to me for examination
uOn 70 75711
ue7s-zsai in accordance with the requirements of the statutes
of the State of Texas, to-wit:
CITY OF DEN'rON 11ATER AND SEWER SYSTEM REVENUE BONDS, SERIES
1982, issued by virtue of an Ordinance adopted by the City
Council of said City of Denton, Texas on the 6th day of April,
1982, for the purpose of improving and extending the City's
Sewer System; dated May 15, 1982; numbared consecutively from
1 to 300, inclusive; in the denomination of Five Thousand Dollars
($5,000) each; aggregating the principal sum of One Million
Five Hundred Thousand Dollars ($1,500,000); maturing serially
on July 15 in ouch of thu years as follows:
1983 50,000 1991 $ 900000
1584 100,000 1992/1993 100,000
1994/1998 150,000
1937/1990 75,00u
bearing intettst from d--ite at the following rates per annum,
to-wit:
Bonds maturing 1983/1992 13.00%
Bonds maturing 1993 12.208
bonds maturing 1994 12.40%
Bonds maturing 1995 12.508
Bonds maturing 1996 12.704
Bonds maturing 1997 12.908
Bonds maturing 1998 11.125%
* no bonds are scheduled to mature in the years
1985 and 1986
payable on July 15, 1982, and semiannually thereafter on
January 15 and July 15 in each year while said bonds are
outstanding; both principal and interest payable at C'.tibank,
N.A., New York, New York, or, at the option of the bearer, at
the First National Bank in Dallas, Dallas, Texas; said bonds
being subject to prior redemption to the extent and in the
manner provided in said authorizing Ordinance.
Page -2-
From a careful examination of said bonds and proceedings
and the Constitution and laws of the State of Texas on the
yit tijnrh of them executi^n and i~svinc,2 th: r!'nf, 1 find the
following facts, to-wit:
(1) That said City of Denton, Texas was, at the time of the
adoption of the ordinance above referred to, and is, as
of this date, legally incorporated;
(2) That these bonds are a special obligation; and that the
principal of and interest on these bonds, togek.her with
other revenue bonds of said City, are payable from, and
secured by a first lien on and pledg of, the Net Revenues
of said City's Waterworks and Sewer System;
(3) That said City has reserved the right, subject to the
restrictions stated, and adopted by reference, in the
Ordinance authorizing this series of bonds, to issue
additional parity revenue bonds which also may be made
pay,ible from, and secured by a first lien on and pledge
of, the aforesaid Net Revenues;
(4) That the holders of said bonds shall never have the right
to demand payment of these obligations out of any funds
raised or to be raised by taxation;
(5) That the Ordinance authorizing the issuance of said bonds
is in proper form and was legally adopted;
(6) That said bonds and interest coupons attached thereto are
proper in form and in accordance with the Ordinance
authorizing their issuance.
IT IS MY JUDGMENT, and I so find, that all of the require-
ments of the laws under which said bonds were issued have been
met; that said bonds were issued in conformity with the
Constitution and laws of the State of Texas; and that said
bonds are valid and binding special obligations of said City
of Denton, Texas.
WHEFEFORE, said bonds are hereby approved.
IN T.ES 1::J::Y :9:IEItEOF, I have h:rconto signed my name offi-
cially and caused the seal of my office to be impressed hereon,
in the City of Austin, Texas.
T. torn~y Gen:;ral of, the state of Texas
No. 18205
Book No. 71
jh
ron0 u4o-1.a
OFFICE OF COMPTROLLER E
OF THE STATE OF'fEXAS E
1, Bob Bullock, Comptroller of Public Accounts of the State of Texas, do hereby
certify that the foregoing hereof is a true and correct copy or the opinion of the Attorney
City of Denton Water and Sewer System Revenue Bolds,
General approving the
Series 1982
numbered consecutively from 1 to 300 of the denomination of
S 5,000.00 -each, dated May 15 19 82 due See foregoing
interest Various percent, under and by authority of which said bonds were registered
in this office, on the 17th day of May 19 82 , as the same appears of record
on page 478 Bond Register of the Comptrollers Office, Vol. _ 83 Register Number
46598
Given under my hand and sea] of office, at Austin, Texas, the ' 17th
day of May -119 82
Bob Bullock
Comptroler of Public Accounts of the
State of Texas
r"^"w ro,m 2140-1.031Rev. 11171
OFFICE OF COMPTROLLER l
OF THE STATE OF TEXAS l
Arlene Chisholm ❑ Bond Clerk le Assistant ,'^^•d Clerk in the office
I,
of the Comptrciler of the State of Texas, do hereby certify that, acting under the direction and
troon the 17th day of
Her of .aid Comp
signed the name of said Comptroller to the certificate of registration indorsed upon each of the
City of flenton Water and Sewer System Revenue Bonds, Series 1982
May 15, 1982
1 to 300 inclusive, dated -
numbered from
and tha in signing said certificate of registration I used the following signature:
17th day of
IN WITNESS WHEREOF I have executed this certificate this
May _ 19 82
1, Bob Bullock, Comptroller of Public Accounts of the State of Texas, do hereby certify
that the person who has signed the above certificates was duly designated and appointed by me
as Bond Clerk in the office of the Comptroller of Public, Accounts of the State of Texas under
authority vested in me by Tex. Rev. Civ. Slat. Ann. art. 4362 (1969), with authority to sign my
name to all certificates of registration, and/or cancellation of bonds required by law to be registered
and/or cancelled by me, and was acting as such on the date first mentioned in said certificate, and
that the bonds described in said certificate have been duly registered in tl,e office of said
_ o f volume 8 Registration
478
Comptroller, as appears of record on page
Number 46598 in the Bond Register kept in the office of the said Comptroller.
hand and seal of office at Austin. Texas, this 17t. h - day of
GIVEN under my
May 19 82 ,
fLt.
BOB BULLOCK
Comptroller of Public Accounts of th,
State of Texas
NO-ARBITRAGE CERTIFICATE
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
The undersigned, being the duly chosen and qualified Mayor
and City Manager, respectively, of the City of Denton, Texas
(the "City"), hereby certify with respect to that issue of City
of Denton Water and Sewer System Revenue Bonds, Series 1982,
dated May 15, 1982, in the principal amount of S1,500,000 (the
"bonds"), as follows:
1. that we, along with other officers, are charged
with the responsibility of issuing the bonds and ex-
pending the proceeds of the bonds.
2. that this certificate and covenant are made pur-
suant to Sections 1.103-13, 1.103-14, and 1.103-15 of
the proposed income Tax Regulations (the "Regulations")
of the Internal Revenue Service with respect to arbitrage
bonds described in Section 103(c) of the Internal
Revenue Code of 1954, as amended (the "Code"), and the
words and phrases used herein have the same meanings
' as defined and used in the Regulations.
3. that this certificate is based on facts, estimates,
and circumstances in existence on the date of this cer-
tificate, which is the date of issue of the bonds, and
` on such basis it is reasonably expected that the follow-
ing -vill occur with respect to the bonds, and, to the-
best knowledge and belief of the undersigned, such ex-
pectations are reasonable:
(a) that the bonds are issued for the purpose of
providing money for improvements and extensions of the
City's combined Waterworks and Sewer System (the "Sys-
tem");
Ir (b) that the City will incur, withir. six months
after the crate of issue of the bonds, binding obliga-
tions to commence each of the projects, respectively,
to be financed by the bonds, by entering into con-
tracts for architectural or engineering services for
such projects, w_+th the amount to be paid under each
such contras:': with respect to each such project to be
in excess of two and one-half percent of the part of
the money from the bonds allocated to each such project,
respectively (with the aggregate amounts to be paid
under all of such contracts to be in excess of two and
one-half percent of all rf the money received from the
sale and delivery of the bonds);
(c) that after entering into said contracts or mak-
ing such commitments, work on all of such projects will
proceed promptly and with due diligence to completion;
(d) that all of the amounts receive.' from the
saps of the bonds, including all investment income de-
rived therefrom will be expended for the purposes of
the bonds by the end of the three-year period beginning
on the date of issue of the bondst
(e) that none of the amounts received from the aale
of the bonds will be placed in a reserve or replacement
fund, and, except as provided in (g), below, none of the
amounts received `.rom the sale of the bonds and none of
the proceeds of the bonds of any kind will either (i) be
placed in a reserve or replacement fund, or (ii) be used
directly or indirectly to replace funds which were used
directly or indirectly to acquire any securities or obli-
gations of any kind;
M that a separate and special "Interest and Sink-
ing Fund" previously has been created and established to
pay the principal of and interest on the bonds and other
outstanding parity revenue bonds, with such fund being a
bona fide debt service fund for the bonds and other out-
standing parity revenue bonds; and money deposited into
the "Interest and Sinking Fund" will not be invested ex-
cept during the thirteen month period beginning on the
date of each such deposit of money, and the amounts re-
ceived from the investment of mene_v in the "Interest and
Sinking Fund" will not be invested except during the one
year period beginning on the date of receipt of such
amounts; and it is expected that the "Interest and Sink-
ing Fund" will be used primarily to achieve a proper
matching of revenues deposited therein and debt service
on the bonds within each bond year, and it is expected
that the "Interest and Sinking Fund" will be depleted
once a year on a first in - first out basis except for
a possible carry-over amount which will not exceed the
greater of one year's earnings on such fund or 1/12th of
annual debt service payable from such fund;
(g) that the bonds and other first lien parity
bonds are secured by a first lien on e:id pledge of the
Net Revenues of the City's Waterworks and Sewer system
and are payable from the above "Interest and Sinking
Fund"; and said bonds and other first lien parity bonds
also are secured 'iy a separate and special reasonably
required debt service "Reserve Fund" created and estab-
lished for the purpose of paying the principal of and
interest on the bonds and othez first lien parity bands,
in case the amounts available from the "Interest and
Sinking Fund" should be insufficient for such purpose,
and to be used finally to retire the last of the out-
standing bonds and other first lien parity bonds; and
there is now held in the "Reserve Fund" the amount of
$854,528, which s:es accumulated solely from revenues
and such amount will be increased from revenues to an
aggregate amount which is sufficient to make the "Re-
serve Fund" contain an amount at least equal to the
average annual principal and interest requirements on
the bonds and other first lien parity bonds; and the
aggregate amount to be on deposit in said "Reserve Fund"
from any source will not excised such aggregate amount
until and unless additional first lien parity bonds are
hereafter issuedt and such aggregate amount at all times
will be less than 158 of the original face amount of the
bonds and other first lien parity bonds (all of which
were sold at not less than par), and the amount to be
held in the "Reserve Fund" will not be subject to Yield
restrictions;
(h) that, except as provided in (f) and (g), above,
no money or amounts will be held or accumulated in or
invested from any sinking fund, debt service fund, re-
demption fund, reserve fund, replacement fund, or similar
fund which is reasonably expected to be used to pay
principal or interest on the bonds, either directly or
indirectly;
(i) that the amounts received from the sale of the
bonds will not exceed the amounts necessary for the
governmental purposes of the bonds;
f•,) that the City has not been notified of any
feting of it by the Internal Revenue Service as an issuer
that may not certify its bonds.
4. that it is not expected that the proceeds of the
bonds will be used in any manner that would cause such
obligations to be arbitrage bonds under Section 103(c) of
the Cude and this Requlationa prescriLed under Chat Section,
and it is further specifically covenar.',ed that the pro-
ceeds of the bonds will not be used directly or indirectly
so as to cause all or any part of the bonds to be or become
arbitrage bonds within the meaning of that Section or the
Regulations prescribed by that Section.
5. that to our best knowledge and belief there are no
other facts, estimates, or circumstances that would ma-
terially change the forec;nina conclusions or statements.
EXECUTED this t~y 2 U 1982
y r, Cit o De on, Te
City Manager, Cl of Dento
Texas
(SEAL)
OPINION OF BOND COUNSEL
Based on our examination of law and review of the above
certification and the covenants with respect to arbitrage
contained in the Ordinance authorizing the bonds described in
such certification, it is our opinion, as Attorneys at Law and
Bond Counsel to the City that the far.ts, estimates, and circum-
stances are sufficiently set forth i.3 the certification to
satisfy the criteria which are necessary under Section 103(c)
of the Internal Re-Fenue Code of 1454, as anended, and Sections
1.103-13, 1.103-14, and 1.103-15 of the Income Tax Regulations
of the Internal Revenue Service with respect to arbitrage
bonds, to support the conclusion that the obligations of the
issue of bonds described in the above certification will not be
arbitrage bonds within the meaning of said Code and Regula-
tions. Further, it is our opinion that the bonds described in
the above certification are not arbitrage bonds within the
meaning of said code and Regulations.
--irC_<<oy~~
MCC L, PA URST & [i-UAN
ATTORNEYS AT LAW
1400 MERCANTILE BANK BUILDING
DALLAS, TEXAS 75201
SIGNATURE IDENTIFICATION AND NO-LITIGATION' CERTIFICATE
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned, hereby certify as follows:
(a) That thii certificate is executed and delivered with reference to that issue of
City of Denton Water and Sewer System Revenue Bonds,
Serie: 1982 , dated May 15, 1982 , in the princ,pal amount of $ 1, 500 , 000
W That the officially executed and signed said Bonds and the interest coupons attached thereto by
causing i,,•similes of our manual signatures to be imprinted or lithographed on each of said Bonds and
interest coupons, and we hereby adopt said facsimile signatures as our own, rtcnectivei- and declare
that said facsimile signatures constitute our signatures the same as if we had manually signed each of
said Bonds and interest coupons.
(c) That said Bonds and interest coupons are substantially in the form, and have been duly ex-
ecuted and signed in the manner, prescribed in the order, resolution, or ordinance authorizing the issu-
apce of said Bonds and interest coupons,
,
(d) That at the time we so executed and ;igned said Bonds and interest coupons we were, and at
the time of executing this certificate we a,c, t'uc July chosen, qualified, and acting officers indicated
therein, and authorized to execute the same.
(e) That no litigation of any nature has been filed or is now pending to restrain or enjoin the issu-
ance or delivery of said Bonds or interest coupons, or which would affect the provision mi-qe for their
payment or security, or in any manner questioning the proceedings or authority concerning the issu-
ance of said Bonds and interest coupons..nd that so far as we know and believe no such litigation is
threatened.
(f) That neither the corporate existence nor boundaries of said issuer is being contested, that no
litigation has beca filed or is now pending which would affect the authority of the officers of said issuer
to issue, execute, and deliver said Bonds and interest coupons, and that no authority or proceedings fnr
the issuance of said Bonds and interest coupon! have been repealed, revoked, or rescinded.
(g) That we have caused the official seal of said issuer to be impressed, ; Tinted, or lithographed
of ^ach of said Bonds; and said seal on said Bonds has been duly adopted as, aw, is hereby declared to
be, the official seal of said issuer.
EXECUTED and delivered this MAY 2 a 1982
MANUAL GNATURES OFFICIAL TITLES
t
r Mayor
City Secretary
The signatures of the officers subscribed above
are hereby :ertified to be true and genuine.
(BANK SEAL) First.,.State,„9ank,,,of,,,Dento{l.r.„Tgxas
Bank
Authorized Officer
LAN' nr7ICL3
MCC&% PLAtor" ! Sonde
1100 Kawmuf Bmk Buiwinr
Dana., raw mist
TREASURER'S RECEIPT
THE STATE OF TEXAS:
COUNTY OF DENTON
CITY OF DENTON
The undersigned hereby certifies es follows-
(a) That this certificate is executed and delivered with reference to that issue of
I City of Denton ;dater and Sewer System Revenue Bonds,
Series 1982, dated May 15 , 1982, in the principal amount of $ 1,500000
(b) That the undersigned is the duly chosen, qualified, and acting Treasurer of the issuer of
said Bonds.
V
(c) That all of said Bonds have been duly delivered to the purchasers thereof, namely:
Kidder, Peabody & Co., Inc.
(d) That all of said Bonds have been paid for in full by said purchasers concurrently with the
delivery of this certificate, and the issuer of said Bonds ha- received, and hereby acknowledges
receipt of, the agreed purchase price for said Bvnd3, being the par or principal amount thereof
and accrued Interest to the date of delivery,
(e) That all interest coupons representing interest scheduled to come due on said Bonds were
attached to said Bonds at the time of delivery thereof; except that all interest coupons, if any,
scheduled to come due prior to the date of delivery of said Ponds were detached and cancelled prior
to said delivery.
EXECUTED and delivered this MAY 20 1982
~~Iw
-
TREASURER
CLOSING CERTIFICATE
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
We, the undersigned officers of said City, hereby certify
as follows:
1. That this certificate is executed for and on behalf of
said City with reference to the issuance of the p.oposed CITY
OF DENTON WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 1582,
DATED MAY 15, 1982, in the principal amount of $1,500,000, and
its Official. Statement with respect thereto:
2. That, to our best knowledge and belief:
(a) the descriptions and statements of or per-
taining to the City contained in its Official State-
ment dated March 15, 1982, and any addenda, supple-
ment, or amendment thereto, for its $1,500,000 S4ater
and Sewer System Revenue Bonds, Series 1982 on the
date of such Official Statement, on the date of sa1-~
of said Bonds and the acceptance of the best bid there-
for, and on the date of the delivery, were and are true
and correct in all material respects;
(b) insofar as the City and its affairs, includ-
ing its financial affairs, are concerned, such official
Statement did not and does not contain an untrue state-
ment of a material fact cr emit to state a material
fact required to be stated therein or necessary to make
the stances statements swhich therein, they in emade, ;not misleading;
(c) insofar as the descriptions statements, in-
cluding financial data, o, 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
of
of c the the date
City.
the financial nstatements since
the last audited financial
SIGNED AND SEALED this MAY 241982
-&4t y11d.~ a r
cr ecar
(SEAL)
LAW OrrICES
MCCALL, PARKHURST S HORTON
..01 a .01 ra. 1400 MERCANTILE BANK
.nu M Te n "VIL DING
•o. M .ow'"+r DALLAS, T
• cr..o c ro.a. ERAS 75201
•NCno ...n.t.
o c"••u .oo ea•.4. Cor[ 2~. +a OeN o ++cc a.L 4o[t -io et'
IN
try rya !'9001 M'•so q...ygn f'{Oe-•+11
wc"0190" Mn rm. cue Ewct t. c+o..t paot aetl
,o,N • •y.o„o" My 2 0 1982
TwOMy . py•a[ON A
CITY 01' DENTON WATER AND SEWER SYSTEM REVENUE
BONDS, SERIES 1982, DATED MAY 15, 1982, IN T4E
PRINCIPAL AMOUNT OF $1,500,000
AS BOND COUNSEL for the City of Denton, Texas, the issuer
(the "Issuer") of the bonds described above (the "Bonds"), we
have ~-xamined into the legality and validity of the Ronds,
Which bear interest from their date, until maturity or redcrmp-
tion, r;t the fol1O%'ir,, rates per annum:
rnatuxities 1983, 13.CO% maturities 1991, 13.00%
maturitie6 1984, 13.00% maturities 1992, 13.00%
maturities 1987, 13.00% maturities 1993, 12.20%
maturities 1994, 12.40%
maturities l
988, 13.00%
maturities 1989, 13.00% maturities 1995, 12.50%
maturities 1990, 13.001 maturities 199, 12.70%
maturities 19977, 12.90%
maturities 1998, 11.125%
evidenced by interest coupons payable on JULY 15, 1982, and
semiannually thereafter, and maturing serially on JULY 15 in
each of the years 1983, 1984, and 1987 through 1998, and with
the Bonds being redeemable prior to their scheduled maturities
on JULY 15, 1992, or on any interest payment date thereafter,
in accordance with the terms and conditions stated on the face
of each of the Bondi.
WE HAVE EXAMINED the applicable and pertinent provisions
of the Constitution and laws of the State of Texas, and a tran-
script of certified proceedings of the Issuer, and other
pertinent instruments authorizing and relating to the issuance
of the Bonds, including one of the executed Bonds (Bond No. 1).
BASED ON SAID EXAMINATION, IT IS OUR OPINION that said
Bonds have been authorized, issued, and delivered in accordance
with law, and constitute valid and legally binding special
obligations of the Issuer; and that the interest on and prin-
cipal cf said Bcnds, together with other revenue bonds of said
City, ars payable from, and secured by a first lion nn arl
pledge of, the Net Revenues of said Cityls Waterworks and Sewer
System ("Net Revenues").
ALSO, IT IS OUR OPINION that the interest on the Bonds is
exempt from Federal Income Taxes under existing statutes,
regulations, rulings, and court decisions.
WE HAVE ACTED AS BOND COUNSEL for the Issuer for .he sole
purpose of rendering an opinion with respect to the legality
and validity of the Bonds under the Constitution and laws of
the State of Texas, and with respect to the exemption of the
interest on the Bonds from Federal Income Taxes, and for no
other reason or purpose. Wa have not been requested to in-
vestigate or verify, and have not independently investigated or
verified, any records, data, or other material relating to the
financial condition or capabilities of the Issuer, and have not
assumed any responsibility with respect thereto. We have
relied solely on information and certificates furnished to us
by the issuer with respect to past and future "Net Revenues".
i'st Ied it !as reserved the right, subject to the restric-
the Bond Ordina
~ions ate3 ir. r_~e, to issue addi
revenue bonds wilich may be made tional
payable from, and secured a
first lien on and pledge of, the aforesaid "Net Revenues„Pari parity
THE HOLDERS OF THE BONDS, and the interest coupons aPPer-
taming thereto, shall never have the right to demand
n
thereof out of ay funds raised or to be raised b payment
by taxation.
Respectfully,
1
N