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Home My WebLink About02-1984 LONE STAR GAS COMPANY - TRANSMISSION DIVISION STATEMENT OF GAS COST ADJUSTMENT AND CITY GATE PATE FOR THE MONTH OF FEBRUARY, 1984 PREPARED IN ACCJRDANCE WITH THE ORDER OF THE TEXAS RAILROAD COM'dISSICI; UNDER DOCKET NO. GUD-3543 JAN 2 1. k Me attached documents consisting of an MGCA Statement and Schedules A through F showing the gas cost adjustment, the our-of-per,.od purchase account, the revenue from extracted products account, the -orrecting account, and the city gate rate to be charged to the Distr:5ution Division for gas delivered to residential and commercial customers and for company-used and unaccounted-for gas were prepared by me or under my direct supervision. I hereby certify that the information contained herein is true and correct to the best of my knowledge and belief and that it was prepared in accordance with the attachment to the order of the Texas E R.ailcoad Commission in docket GUD-3543 dated November 22, 1982. j Mike Florence, Director of Ratc: Administration and Research Lone Star Gas Company Filed: January 19, 1934 MGCA Statement LANE STAR GAS COMPANY - TRANSMISSION DIVISION STATEMENT OF GAS COST, ADJUSTMENT AND CITY GATE RATE* EFFECTIVE FEBRUARY, 1984 11; ACCORDANCE WITH ORDER OF TEXAS RAILROAD COMN,I5SIGN UNDER DOCKET NO. GUD-2543 Line Mcf Amount Amt./Mcf 1 Estimated Gas Purchases 41 278 000 $153 008 000 $ 3.7068 2 Plus Estimated Withdrawal FLOM Storage 3 989 000 13 031 000 3.2667 3 Less Estimated Injection Into Storage 2 22C COO 6 401 000 3.7842 4 Esi'Anated Net Gas deceived Into System 43 047 COO $157 63A 000 3.6620 5 Rstio Volume Sold To Volume Received - .9754 6 Estimated P.eighted Average Cost Of Gas Sold (£ACOG) 3.7544 7 Plus Gas Cost Correction Factor (MGCCF) Based On December, 1963 .1021 8 Less Base Cost Of Gas Included In Base Pate 3.5195 9 Less Extracted Products Revenue Adjustment (MEPR4) Based On December, 1983 .0154 10 Plus Base Extracted Products Revenue Per Mcf .0890 11 Plus Out-of-Period Adjustment Per Mcf (MOPA) Based On December, 1983 .0088 12 Subtotal - .4194 13 State Utility Tax Recovery Factor X 1.0025 14 Gas Cost Adjustment (MGCA) .4204 15 Plus Base City Gate Pate 4.0200 16 Regular City Gate Rate 4.4404 17 Less Credit Pursuant to FERC Incremental Pricing Surcharge .0000 18 City G:te Rate $ 4.4404 'Intracompany charge to the Company's distribution divisions for sale to residential and comrerciai customers and for distrib~ition ccmpany-used and unaccoui,ted-fct gas. Schedule A LONE STAR GAS COMPANY - TRANSMISSION DIVISION GAS COST CORRECTION ACCOUNT (GCCA) FOR THE MONTH OF DECEMEER, 1933 AND GAS COST CORRECTION FACTOR (MGCCF) FOR THE MONTH OF FEBRUARY, 1984 Line GCCA For Decerber, 1983 1 Balance in Account At Beginning Of Month (GCCA2P ) $ 151 626 2 Waichted Average Cost Of Gas During Month WACOG ) $ 3.8521 3 Less Estimated Average Cost Of Gas During Month kEACGG ) 3.7964 4 Excess Of Actual Over Estimate p $ ,6557 5 City Gate Sales Mcf During Month (RCSV ) 33 352 077 6 Charge/.addition To Account (TGCCp)p 1 857 711 7 City Gate Sales Mcf During Month (RCSV ) 33 352 077 8 Gas Cost Correction Factor Charged During Month (MGCCF ) $__.0077 9 Credit/Reduction To Account p 256 811 10 Interest On TGCC (TGCC. = Line 6 x .01167)* _0- p 1 11 Balance In Account At End Of Month (GCCA ) S 1 752 526 c MS--CF For February, 1984 12 Estimated City Gate Sales Mcf (RCSV 17 159 375 13 Gas Cost Correction Factor (MGCCFf f Line 11 - Line 12) .1021** * Applies only when [Line 3 - Line 2) - Line 2) is equal to or greater than 0.05. Enter on Line 7 of'-IrCA Statement. Adjusted City Gate Sales During February, 1983 To Normalize Weather. a. Ease Load Per Customer Per Month From Docket G1.10-3543, Mcf 4.365 b. Nua':er Of Residential And Commercial Customers Billed X 1 163 008 C. Ease Load Sales, !cf y 5 076 530 d. Totel City Ga:e Sales, tlcf IS 555 831 Heating Load Sales, Mcf (d-c) 13 479 301 f. Patio Normal HDD (580) To Actual HDD (647) At D/F11 Airport Y .8964 g. Normalized Heating Load Sales, Mcf 12 682 845 h. Base Load Sales, Mcf (c) _5 076 530 i. Normalized City Gate Sales, Mcf 17 159 375 ■ i Schedule B LORE STAR GAS C01-TANY - TRANSMISSICN DIVISION WEIGHTED AVERAGE COST OF GAS (WACOG) FOR THE MCNTH OF DECEh:BER, 1983 Line Mcf Amt./Mcf Amount All Sources 1 Gas Purchased Per Books (Before EEI Fuel And Shrin'age Exclusion) 44 837 070 $3.8713 $173 579 208' 2 less Purchases For Off.-System Sales 2 812 2.6376 7 417 3 Less Purchases For Sec 311(b) Sales - - - 4 Subtotal 44 834 25B $3.8714 $173 571 791 5 Less Purchases For EEI Fuel And Shrinkage 974 982 3.8714 3 774 545 6 less Gut-of-Period Adjustment Amount - - 952 798 7 Total Gas Purchased (TGP_, ACGP , TCOG ) 43 859 276 $3.8497 $168 844 448 a a a Non-Affiliated Suppliers 8 Gas Purchased Per Books (Before EEI Fuel And Shrinkage Exclusion) 42 487 187 $3.9020 $165 786 524 9 Less Purchases For Off-System Sales 2 812 2.6376 7 417 10 Less Purchases For Sec. 311(b) Sales - - li Subtotal 42 484 375 $3.9021 $165 779 107 12 Less Purchases For EEI Fuel and Shrinkage 974 982 3.8714 3 774 545 13 Less Ont-of-Period Adjustment Amount - - 956 920 14 Total Cas Purchased (TGP ACGP TCOG ) 41 509 393 $3.6798 $161 097 642 n, n, n, _ 15 Line 7 1••f and Lesser Ant./Mcf on Line 7 Or 14 43 859 276 $3.8497 $168 844 448 16 Plus 17ithdrawals From Storage (TGWS, ACS:i) 496 073 3.2399 24 286 527 17 Less Injections Into Storage (ACSI, TGIS) 1 545 00.7 3.8700 5 979 525 18 Net Gas Received Into System 49 810 252 $3.7573 $1.37 151 450 19 Ratite :uiL=e sold To Volume Received - - .9754 20 Weighted Average Cost Of Gas Sold (WACOG) $3.8521'* * Includes NGPA accruals of $714,841 and NGPA reversals of $119,440. Enter on Line 2 of Schedule A. 0 Schedule C LONE STAR GAS COMPAlNY - TRANSMISSION DIVISION EXTRACTED PROD.XTS REVENUE ACCOUNT (EPRA) FOR THE MONTH OF DECEMBER, )983 AND EXTRACTED PRODUCTS REVENUE AD3USTIIE:NT WEPRA) FOR THE MONTH OF FEBRUARY, 1984 Line EFFA For December, 1983 1 Balance In Accaint At Beginning Of Month (EPRA2P ) $ 1 851 685 2 Contract F.evenue From Ens. Expl. In Acct. 491 (LSCR) $ 1 661 825 3 Enserch Exploration Operating Income (EEIOI) $4 049 184 4 Portion Assigned To LSG Co. For This Purpose X .4073 5 Ano~m t Of EEIOI Assigned For This Purpose 1 649 233 6 Plus Rerairder Of Revenue In Acct. 491 (TOR) 357 033 7 Plus Incidental Oil 6 Gasoline Revenue In Acct. 492 (:OR) 683 650 8 less Windfall Profits Taxes Related To Acct. 492 Revenue (WPT) 40 499 9 Total Lxtracted Product Revenue For This Purpose 5 4 311 242 10 Y.nnthly Allocation Factor From Schedule F (MAF) X .3655 11 Credit/Addition To Account (TEPRC)* 1 575 759 12 City Gate Sales lrcf During Month (RCSV) 33 352 077 13 Extracted Products Revenue Credited During Month (MEPRA) X0 0944 14 Charge/Redaction To Acceuit 3 148 436 15 Interest (EPRA. = {Line 1 - Line 14) x .01167) (15 133) 16 Balance In Accrnlnt At End Of Month (EPRA ) $ 263 875 c NSP.RA For February, 1984 17 Estiaated Cite Gate Sales Mcf From Schedule A (F.CSVf) 17 159 375 18 Extracted P- ---,ducts Revenue Adjustment (MEPRA = Line 16 - Lire 17) $ .0154** * If less that: zero, the credit./addition to the account shall be zero. Fz.ter on Line 9 of VGCA Statenent. Schedule D LOBE STAR GAS CCMPANY - TRANSMISSION DIVISION OUT-OF-PERIOD GAS PURCHASED EXPENSE ACCOUNT (OPGPEA) FOR THE MONTH OF DECEPI?ER, 1983 AND OUT-OF-PERIOD ADJUSTMENT (MOPA) FOR THE MONTH OF FEBRUARY, 1984 Line OPGP£A FOR D£CE-%MER, 1983 1 Falarce In Account At Beginning Of Month (OPGPEA2P ) $ 280 008 2 Out-of-Period Adjustment Expense During Month (OFGPE) $ 952 798* 3 Less Ot Of Amount Pelated To Deliveries After 11-30-82 -0- 4 Less 5% Of Amount Related To Deliveries 2-3-80 To 11-30-82 (6 352) 5 Less 15t Of Amount Related To Deliveries 7-1-75 To 2-2-80 1 895 6 Less 35% Of Amount Related To Deliveries 3-1-72 To 6-30-75 -0- 7 Reduced CPGPE For This Purpose $ 957 255 8 Monthly Allocation Factor From Schedule F (MAF) X .3655 9 Net Charge/Addition To Account 349 877 10 City Gate Sales Mcf During Month (RCSV) 33 352 077 11 Cut-of-Period Adjustment Charged During Month (MO?A) X$ .0143 { 12 Credit/Reduction To Account 476 935 1 13 Interest [OPCPEAi = (Line 1 - Line 12) x .01167] (2 298) 14 Balance In Account At End Of Month (OPGPF.Ac) $ 150 652 MOPA FOR FEBRUARY, 1984 15 Estitated City Gate Sales Mcf 17 159 375 16 Cut-o`--Period Adjustment WOPA = Line 14 - Line 15) $ .0088** * Includes $401,945 in out-of-period gas purchased expense classified as roll-over. Enter on Linn 11 of MGCA Statement if less than 5.0600. If more than $.OE00 enter $.0600 plus 1/6 of amount in excess of $0600. Schedule E Page 1 of 2 L017E STAR GAS COMPANY - TPAI;S!~ISSICN DIVISION CUT-OF-PEFIOD ADJUSTMENTS - ALL SOURCeS FOP. THE MONTH OF DECEMBEP., 1963 Adjustment Anount From 3-1-72 From 7-1-75~ From 2-3-80 After To 6-30-75 To 2-2-60 To 11-30-82 11-30-82 Supplier Out-of-Pericd Price Aijustments Eastex Gas. Trans. Co. $ - $ - $ - $ 11 866 Union Oil Co. of Calif. - - (27 321) (;7 444) Various Other Adjustments 15 760 Total $ - $ - $ (27 ?21)~ S 184 Cut-of-2eriod Price Corrections Marshall Expl., Ir.c. $ - $ - $ - S 127 413 Warren Pet. Co. - - - 158 988 Enserch Expl., Inc. - - - 80 863 Ridge Oil Co. - - - (68 577) M. C. Z. Corp. - - - 494 184 Amoco Prod. Co. - - - (52 831) Dallas Prod. Co. - - - 58 037 Teco Pipeline Co. - - - 370 847 Ciajon Prod. Corp. - - - 169 615 Superior Oil Cu. - - - (332 467) Esperanza Trans. Co. - - 174 020 Chevron USA, Inc. - - - 82 12. Ladd Pet. Corp. - - - (61 330; Enserch Expl., Inc. - - - (89 584) Warren Pet. Co. - - - (92 636) Getty Oil Co. - - - 125 370 Mobil Oil Corp. Gb 456 Phillips Pet. Co. - - - 159 240 Valero ^rans. Co. - _ _ (2 168 346) Getty Oil Co. - - 14 852 112 303 Getty Oil Co. - - (94 624) - Fsperanza Pipeline Corp. - - - 61 893 Esperanza Pipeline Corp. - - - 205 148 Esperanza Pipeline Corp. - - - 85 119 FergLson Crossing Fipeline - - - (67 479) Schedule E Page i of 2 LANE STAR GAS COMPANY - TRANSMISSION DIVISION OUT-OF-FERIOD ADJUSTMENTS - ALL SOURCES FOR THE MONTH OF DECEMBER, 1983 (CONT-D) _ Adjustment Amount F.:om 3-1-72 From 7-1-75 From 2-3-80 After To 6-30-75 To 2-2-80 To 11-30-82 11-30-82 Out-of-Period Price Corrections (Cont'd) Spindletop Oil & Gas $ - $ - $ - $ (94 471) Sun Oil Co. - - (18 350) 251 688 Warren Pet. Co. - - - (134 705) Petrolero Expl., Inc. - - - (91 450) Bengal Gas Trans. Co. - - 17 797 133 931 Valero Trans. Co. - - - (95 685) Various Other Corrections - 12 635 (19 387) 519 398 Total $ 12 635 $ (99 712) $1 067 012 Total Adjust^ents & Corrections $ - $ 12 635 $ (127 033) $1 067 196 Recovery Disallowance X .35 x .15 X .05 X .00 Recovery Amount Disallowed* $ - $ 1 895 - $ (6 352) $ -0- *Enter on Lines 3, 4, 5, and 6 of Schedule D. Schedule F L< 1... nh NS r ~O y \ 2 2' P C C N N~^ J ^ L N N fV J n n n n "I n Z :J m d E ti n O O 1 N n P In r n Y .~n'11 .••~f. .1nIn V P O ' ~ f C N O S P~ P m O m O r N • R N DG~.r nnnrv•n u] V P m U J O m hn l•O bK ^JK P n b T J n n n n n n n n n n n n ~ N r .J V T m N O=.1m .JOS PLO C n1 NN n Y d In n .r P C1 rl n •n P P •n N N N n .J n U > I N C 1 N n1 n V]P.O n1m nrv C.'• N m p fl .-1 n n N A •O O m n V P n C ul N [1 u Y Y, .T .-1 •G D n h '1 J r W •O n n n % u V R SSn n O a-ID•n O.O ~r'•111 n l-• V rv rv r .-1 n r1 m1 SOON✓~P1nn O m Y w P N m •O m P n~ P C U O ~ mnn.O nrv O n Z 32 ^J n [ •O N V m P n .-1 .O P m N •O h 9 .O .J •1 r N G P ~ 14 H O r> O.O POnn Pm•-I .n rv G o ~ S G N y f• P.~ mn1N..1 ^+Nh L'~ J N H N C m m nn.0 •AS nN.y O P O D n .-1 N 1 l 1 S V S S S S C fl 1 7 ~v n•O ^J ..1 [gym .~NONPm•p •0 P N N l Of. S1 n~APn~•G~2.J ~.Nn n L'~ r O Y h Pm Obe-NOm.O 0002.-• G 1 V t•J O ,L N n ..1 n C• N Y N !J N O N n n W C ✓1 'J CZ < L' i+ 1 DNPnN •OH~• m.JOnr~ N J 1 Y. y R Q n N m n a C] N O N n h P C^ fC N Z N Snnn1 V r~nN Nr<nnN N N 1 O I ~ H z. v ~ ~ W .+PmPm.An~nn P1PO an m O V w N W D h 1 W u'1 1 N •J 1 u ~ J 'G J r m C. J m LO U Pmn vlPhvll •~m~nPPn J n N IJ < U J r. 1 a'1 V; m .O P 1 n r W W n m r N J.J :n N p.n0 CP.cO T n9 rono coo G L~ N J '+d U= ~ L •-1 H H rl H r H ~ 6 w O N m Y i O m e n.-I~Om On V •D2P Nn N 1z1 m] P 1 0 H S P .O 1- ^i W P .J 1 h .J r J Z U T• DPNm POOPm nmNn W Nr 0 '"1 J N m 1 V r' ••I N fl .-I N .l ••1 ed n H N N N N '7 bd ti J Y R O 1/i J N r w ~ L v ~ ~ .-1 Z .-1 1 1 1 11 1 1 1 1 1 1 I 1 1 1 1 1 V n h O D O O O C O 0 0 0 0 0 0 0 0 0 0 C m U I l l l l l l l l l l l l i l l 1 m V ^J 'J 9 R L: J N N O 9 C C p ..I .-1 N P N N. r, ~ N N N N m n 1'1 ^ CJ N ~ -J U n P n Nl n .-1 O ~7 O] iA '•1 P O V' m .y m ~ •DNN ti~-D Pm[. P•nN n.O YfO n V u.i N•O ~O .Ln•ON•OS HON V n Oi• P y 0 6 m ~O S.d P~✓•n1 Pf110.0 ^JOatT ~0 y H M U ✓1DN Pnn1DnM1OPtJ1 0 L] h C .J S R Nmn PIPPNO nm12 J1[Ir P YN 1 nnn.t SnnnN Nnrin rv rv H y w 7 D N J C~ m OWa ~ J ^t Y Y L ^ U Y u • T 'J L L. T J L y T 7 • J1 Y J U iY Y U G T Y Y U U T L• Y E CJ .r L J o _q C= Y a 9 a E E R 7 •-1 m u a E E ] N J :7 E ] J 7 O O J J M U N y T~ u O r J ~ J O~ J J ~ 1• ~ r td O. J Y U C .O Y Y i. 2 4 J 7 'J L l[ ] J C_ L ~ i f O t 7 W , .3j "01 C v O Z '7 L 7 7 < N 0 i. a L.J. 7C G UNITED STATES FIRE INSURANCE COMPANY THE NORTH RlYER INSURANC; r30MPANY WESTCHESTER FIRE INSURANCE. OOMaANY INTERNATIONAL INSURANCE COMPANY NOTICE OF AVU.S.InslranceGroup CANCELLATION OF BOND BY SURETY aCrurivF-steraganization CERTIFIED MAIL To: -City of Denton Data January 30, 1984 City Manager I ~ 't Denton, TX _Unitp,d 5tBL9,&_Fire Insurance Company _ as Surety, hereby notdies you that its Bond No 610 108075 8 -dated on or about- October 11 1982 or, behalf of BERXA COMPANY, INC. " as Principal, in favor of City of Denton as Obligee, described as Sidewalk, Curb and Gutter is he eby cane';eo 30 d-; !I,,; alter receipt by you of this notice which is in acccrdance wrilh the provisions of the bond and that said Surety shall not be responsible thereunder for any Acts or Defaults commilled or Loss occurring after said date of cancellalion. cer Berka Company, Inc. ii Murray Insurance Dallas, TX UNIT0 STATES FIRE INSURANCE COMPANY Surety coo Murray Insurance Agency, Inc. By--.r.Z ti i [ F. 0. Box 809041 L. M. Satterwhite Attorney in fact Dallas, TX 75380 OBLIGEE PLEASE ACKNOWLEDGE RECEIPT ON DUPLICATE OP.IGINAL WHICH IS ENCLOSED AND RETURN TO: U. S. Insurance Group P. 0. Box 2639 Dallas, TX 75221 The foregoing Notice of Can°ellalion was received on Liability undrr your bond terminales effective Obligee By_ Title (EAecute and send to Obligee in Duplicate. Use Regislered of Certified Mail as re'4uired by Bond ) FM 2[30413 r8 -911 CD LIC,, Er- POWER OF ATTORNEY UNITEDSTATFS FIRE oNSURANCE COMPANY PRINCIPAL OFFICE, NEW YORK, N.Y. s I*W ALL MEN BY THESE PRESENTS: That UNITED STATES FIRE INSURANCE COMPANY ("Company"),a cor. potation duly organized and existing under the laws of the State of New York, and having its administrative offices in the Township of Morris, State of New Jersey, has made, constituted and appointed, and does by these presents make, con- stitute and appoint L.M. Satterwhite of Lallas, Texas its true and lawful Agent(s) and Attorneys)-in-Fzct, with full power and authority hereby conferred in its name, place and stead, to execute, seal, acknowledge and deliver: Any and all bonds and undertakings SUBJECT TO THE EXCLUSIONS LISTED BELOW: 1. Bid, Proposal and Final Bonds and Undertakings guaranteeir.g co: tracts for the construction or erection of public or private buildings, improvements, and other works and guaranteeing public and private contracts for supplies. 2. Bonds on behalf of Independent Executors, Community Survivors, Community Guardians and to bind the Company thereby as fully and to the same extent as if such bonds had been duly executed and acknow• ledged by the regularly elected officers of the Company at its principal or administrative offices in their own proper persons. This Power of Attorney limits the act of those named therein to the bonds and undertakings specifically named therein, and they have no authority to bind the Company except in the manner and to the extent therein stated. This Power of Attorney revokes all previous powers issued in behalf of the attorney(s)-in-fact named above. IN WITNESS WHEREOF United States Fire Insurvice Company has causid these presents to be signed and attested by its at) ropriate officers and its corporate seal hereunto affixed this ?rd day of February y 19 • Attest: UNITED STATES FIRE INSURANCE COM PANY e Assistant ecre ary ice Presi t Richard A. Annese Ha F. Bott STATE OF NEW JERSEY) ss.: COUNTY OF MORRIS ) On t day of February I9-Al-, before the subscriber, a duly qual' ota Pub 6, the State of New Jersey, came the above-mentio.,ed Vice President and Assistant Secret off t28,6tat ,x a Insurance Company, to me personally known to b the officers described In, and who exe itFg thug ins~u. ent, and they acknowledged the execution of the sar te, and being by me duly sworn, de• posqj and t e he officers of said Company aforesaid, and that the sea; affixed to the preceding instrument is thC'r a e o ompany, and the said Corporate Seal and their sigpatu:es as officers were duly affixed and subse tQ~,Ft5 sail ent by the authority and direction of the said Company. IN TESTIMONY WHEREOF, I have hereunto set-hand and affixed fry seal at the Township of Morris, the day and year first above vQNPALES R. VAN BUSKI ( (Signed) ,y Commission PUBLIC NEW JERSEY (Seal) Ify Commission Exyit ires July 16,1985 ~ZAA No~ar~ Public This Power of Attorney i3 granted pursuant to Article 1V of the By-Laws of UNITED S'TATE'S FIRE INSURANCE COM PAM' as now in full force arid effect and which provides as follows: , ARTICLE IV., Execution of Instruments: 'The Chairman of the Board, Vice-Chairman of the Board, Resident, or any Vice- President, in conjunction with the Secretary, or any Secretary, if more than one shall be appointed by the Board, or an Assistant Secretary, shall have power on behalf of the Corporation: (a) 1 - execute, affix the corporate seal manually or by facsimile to, acknowledge, verity and deliver any contracts, ob'lgations, inSUL,n•nts and documents whatsoever in connection with its business including, without limiting the foregoing, any bonds, guarantees, undertakings, recognizances, powers of attorney or revocations of any powers of attorney, stipulations, policies of insurance, deeds, leases, mortgages, releases, satisfa7.tions and agency agreements; (b) to appoint, in writing, one or more persons for any or all of the purposes mentioned in the preceding paragraph (a), including affixing the seal of the Corporation." This Power of Attorney is signed and sealed under and by the authority of Article III, Section 9 of the By-Laws of the UNITED STATES FI RE INSURANCE COMPANY as now in full force and effect and which provides as follows: ARTICLE Ill., Section 9. Facsimile Signatures: "The signature of any officer authorized by the Corporation to sign any bonds, guarantees, undertakings, recogn"nees, stipulations, powers of attorney or revocations of any powers of attorney and policies of insurance issued by the Corporation may be printed facsimile, lithographed, or otherwise produced.... T'.:e Corporation may continue to use for the purposes herein stated the facsimile signature of any person or persons who shall have been such officer or officers of the Corporation, notwithstanding the fact that he may have ceased to be such at the time when such instruments shall be issued." CERTIFICATE State of New Jersey County of Morris I, the undersigned, Assistant Secretary of UNITED STATES FIRE INSURANCE COMPANY, DO HEREBY CERTIFY that the foregoing POWER OF ATTORNEY rkmains in full force and effect and has not been revoked and furthermore that the above quoted abstracts of Article IV. and Article III., Section 9. of the By Laws of the Company are now in full force and effect. In Testimony Whereor, I have hereunto subscribed my name and affixed the corporate seal of the said Company, this- 30th day of January 19 84 By tent S_ ecrebry K ohn K. Stewart FM 203.0.131 (7.751 ~~li~?i7~dLL7PU7-~[~X~i~~C2i~~~17?I4.$U~~,1=~~u1Vi~~~~C3G:1~G 47~~S~L`51c>? L'i ~~tcL i.i~~?o i:ic» n'S r- r TEXAS LICI;NSF ~ T `O COL?~Dg1+J~CT BINGO. It may be spe O~ =G~CT THIS LIz ENSE IS NOT Till ANSFEn R40Lw1 th AN OvMnUQ~ rBVEO FrO~ t any fime }or wl al+t~o ns of tha Taxis gN WEnaERbllnGAMES III ARE CONDUCTED Name of Ce Operator Thomas R. Vat Hns l.tcense numbar O 6 - Addteis 71`14 Chi~shi Trail __71_entons____ TeXBF 76201 Bingo licensee number - Locatio Of ION men VF11 Post 2205 HA11 _-_762!?2 Ierio ?iI001 Effective Dario _2(?9_$unfeit Denton, xs E Menton Ni h ROTC need vet t, fiet~ily elf]/P6 02/101 r - Day and uma o games OTgani-adoh Name and Mailing Address Tue : 7:00 - 11:00 pm VFW FbsE 97205 Thu: 7:00 - 11:00 p:o P.O. Box 629 _=1~ Denton, Texas 76201 Data of Issue - Tvpe 02/06/84 A4nual Rer.etral 84 BOB BULLOCK ` i Ise• 4`ST COMPTROLLER OF PUBLIC ACCOUNTS ~t~-os~ol:~i~tnr=,rpi szu "~ukivS~ta ~7t~srcrvri r,r. .~k E7FJ~IIIf~J~SC.'C~P.7.L~IG.S11r.1. ijruk~.ilLldJC_.~~A.. i1i'~.I.c~i IA rmrsrsr-ar~~~ F TEXAS LICENSE TO COLNDpUCTI~BINGO.. 1THIS IiCENSE IS N t may be ,s g pe R CAd g to LwIAQO MOST Oor revoked at any vme lof lvt olatlo i of t7ti'Oixas BIn9o EnaOgling ACLES ARE CONDUCTED Neme of . Operator Paul R. Jones License number Address 1409 Windsor 01494 L(x------ 01 le me __TE! (H S_ _jil Bingo It<ensea number ation K of C Hall - - __I LOQ Fit ey De_n [ten, 1k._ J62f}1 E3fectiva Period Purpose 'ltable a benevolent ed cc It FT- 'V and time fl lames Orgoniration Name and Moiling Addre;e Denton k pf C Council 04771 C Sur.: 6:3:1 - 10:.30 pm 1409 Windsor Drive Wed: 6:30 - 10:30 pm Denton, Texas 76201 6.30 10~IL _ b re of Issue • Type i 01/17/84 nnual Penewal 84 39~atw BOB BULLOCK (Rev. ¢A3) COMPTROLLER OF PUBLfCACCOUNTS C'.. [JL1[t1[u1'!C.'V~i~.~JjV .~II]41?C2442G12 !!!!-;.UV 4?[ [.::;L~JTISJ - 14a, LLt uadcrsigned residents of Denton are oppoged to the granting of the petition (21624) of l~na Rccco Pena: A change in zoning frow at,ricultural (A) to the planned development (PD) class if ication on a 14.0734 acre parcel located along the east side of Riney Road, adjacent and south of U.S. Highway 77, and north of Windsor Drive at a point beginning approximately 220 feet east of Riney and Windsor. If approved the planned development (PD) would permit tht: construction of single family detached housing (15 lots with a typical size of 80' x 114') alrn,.; Piney Road, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 tctLl units). ("47" dwelling units proposed.) P,driitionally, we oppose any adjustments in the above planned development which would allow for any tyie of 1aulti family dwMings,to include single family attached. We favor single family ,I,cr.c},ad dw,211ings only south of U.S. Hwy 77. :;o. ;m e Ac, Tess 0 0 7 9 0 8 8 ~I t~ n Y2 , - P-t~ A o f 2$ s 7 2 /rte ~ / S' N°'' 4--k t a4 a ~ 3 ~ o y~y~ O 00 9oy~ 3 Y~J, 3ao 00?Oq'7 V KJ12e4 710 32p Npr e- gg Oel lot) 22~ 1ST aoo S' m ' oC JPIAI`l o 3 (91016 -560 ~1 i, Q L 3 e m ~A p MOT Qp `f 4 N5 of Agg ?1b G C 4 4 "ex, a;-7 e) 0 (0 3 0 _ Crw,•a l 21 ?dl MV 377 2-0 000 l~ 321 7 4+e, [i« undersigned residents of Denton are opposed to the grai:Llug of the pec~tivii (21624) of Ana Rocco Pena: A change in zoning from agricultural (A) to the plam,r;d development (PD) classif+.cation on a 14.0734 acre parcel located alrag the east side of piney Ro<d, adjacent and south of U.S. Highway 77, and north of Windsor Drive at a point begi.ining approximately 220 feet east of Riney and Windsor. If approved the planned developmen'. (PD) would pe mit the construction of single family detached housing (15 lots with a typ-cam size of 80' x 110') alcng Riney Road, single family attached (townhouses - 56 units, and ,tuplexes (13 lots or 26 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planned development which would al_.w for any type of multi family dwellings,to include single family attached. We favor single family detached dwellings only south of U.S. Hwy 77. Voter Reg. No. Name Address u 9 9es- ~ . _!y gi D 1.9 14 i ~G le; the undersigned residents of Lienux, are opposed to _he gru: ig of the pet«.u;: t,~ia24) of Ana Rocco Pena; A change in zonin from agricultural (A) to the planned development (PD) classification on a 14.0734 acre parcel. located along the east side of Riney Poad, adjacent and south of U.S. Highway 77, and north of Windsor Drive at a point beginning spproxisnately 220 feet east of Riney and Winc:aor. If approved the planned development (PD) would permit the construction of single family detached housing (15 lots with a typical size of 80' x 110') along Riney Road, single family attache<. (towrhou:,es - 56 units, and duplexes (13 lots or 26 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planned development which would allow for any type of multi family dwellingsito include single family attached. We favor single family detached. dwellings only south of U.S. Hwy 77. 1 Voter Rag. No. Namet.}~.~~LC.Cav~ddress J t-4 I'LL) A. l r,Jd2`rts~le(Ar. _ - N If e.__. S- , ti tile,'cT vudersigned residents of renton are opposed to the granting of the petition (`!.1614) of Pala Rccco Yana: A change in zcning from agricultural (A) to the planned development !PD) clas.,ification on a 14.0734 acre parcel located along the east side of Riney Road, adjricent and south of U.S. Highway 77, end north of Windsor Drive at a point beginning approximately 220 feet east of Riney and Windsor. If approved the planned development (PD) would penAt the construction of single fanily detached housing (15 lots with a typical size cf 80' x 110') slung Riney Road, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planned development which would allow for nny type of multi family dwe;lings,to include single family attached. We favor single family d%VsiLhed dwellings only south of U, S. Hwy 77. 1.1 /~W.3 4P LA= } i We; rha undersigned residents of Denton are opposed to the granting of the petition (Z1624) of Ana Rocco Pena: A change in zoning from agricultural (A) to the planned development (PD) class ificatiom on a 14.0734 acre parcel located along the east side of Riney Road, adjacent and south of U.S. Highway 77, and north of Windsor. Drive at a point beginning approximately 220 feet i-~:st of Riney and Windsor. If approved the planned development (PD) would permit the construction of single family detached housing (15 lots with a typical size of 80' x 110') along Riney Road, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 total units). ("97" .welling units proposed.) Additionally, wr. oppose any adjustments in the above planned development which would allow for any type of multi family dwellings,,to include single family attached. We favor single family detached dwellings only south of U.S. Hwy 77. Voter Re No. Nati Address - v~59 - - o 3 7 sue. ~2 y _d r/ YJ _r ~ At XWAU A, o tv i ➢C - f - - ~'-f I'v a o s p 7o/ 7 4,tZAL , z714 Wc.., the undersigned residents of Denton are opposed to tutu grantaig of the petirlan (21624) of Ana Rocco Pena:. A change in zoning from agricultural (A) to the planned development (PD) classification on a 14.0734 acre parcel located along the east side of Piney Road, adjacent and south of U.S. Highway 77, and north of Windsor Drive at a point beginning approximately 220 feet east of Riney and Windsor. If approved the pl:,nned development (PD) would permit the construction of single family detached housing (15 :ots with a typical size of 80' x 110') along Riney Road, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 total units) .1 ("97" dwelling units propose .r Additionally, we oppose any adjustments in the above planned development which would allow for any type of multi family dwellings,te include single family attached. We favor single family detached dwellings only south of U.S. Hwy 77. Voo~t~err Reg./1110. Name ~ Address lip '1111k -Gt 0,V'2 qza 0 03 - --m 14 00- 7GW g5 hi L1L~.~- - 1A AC:V - 14_ 6 0 2A '0 ,7 lt}ir - Y~q 1~L02-Z5.3 Z 4e-] V aa~ , 4AA J6-.PA s S" raw We, t:;e dndersigned residents of Denton are opposed to the granrill, ~1 she petition (21624) of Ana Rccco Pena: A change in zoning from agricultural (A) to the planned development (PD) classification on a 14.0734 acre parcel located along the east side of Riney ?toad, adjacent and soutl. of U.S. Highway 77, and north of Windsor Drive at a point beginning approximately 220 feet east of : ine,' and Windsor. If approved the punned development (PD) would permit the construction of single family detached housing (15 lots with a typical size of 80' x 110') along Riney 'toad, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planned development which would allow for any type of multi family dwellings,to include single family attached. We favor single family detached dwellings only south of U.S. Hwy 77. Voter Reg. No. _ Name Address 0027 E~ 7,~f 0 Al" of `n 3Z4-7 So b 7K"Uk >A 42 144 U ova .-3 R L V z!!4ZA os,4 -9 j ze. % p~~. 1{~ r~'l~Yf745e 9 ,,q 9 fit, V- k4y Id t07-/A re he,. tlra undersigned residents of Denton are opposed to the granClug ut the peiltl.n. ~Zib24) of Ana Rocco Pena: A change in zoning from agricultural (A) to the planned development (PD) classification on a 14.0734 acre parcel located along the east side of Riney Road, adjacent and south of U.S. Highway 77, and north of Windsor Drive at a point beginning approximately 220 feet east of Riney and Windsor. If approved the planned development (PD) would permit the construction of single family detached housing (15 lots with a typical size of 80' x 110') along Riney P.oad, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planned development which would allow for any type of multi family dwellings,to include single family attached. We favor single family detached dwellings only south of U.S. Hwy 77. Voter Reg. No. Name) Address 00317- -17 -7 /01 172 030 ,~2 A<~ ~ 'l2 S 2 g-O / ~ v0 ~h1 ',~f' 7 We, the undersigned residents of Denton are opposed to the granting of the petition (21624) of Ana Rocco Pena; A change in zoning from agricultural (A) to the planned development (PD) classification on a 14.0734 acre parcel located along the east side of Riney Road, adjacent and south of U.S. Highway 77, and north of Windsor Drive at a point beginning approximately 220 feet east of Riney and Windsor. If approved the pknned development (PD) would permit the construction of single family detached housing (15 ots with a typical size of 80' x 110') along Riney Road, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planneu development which would allow for any type of multi family dwellings,to include single family attached. We favor single family detached dwellings only south of U.S. Hwy 77. Voter Reg. No. Name Address V V bur _LS~S r i C, L~~ 1 rl , ~E c Lr~ 7o 7 /J+ -&-0 -7 C / , 2T `7 du ' I 9;2, q 2, ` > D ^ Sde, the undersigned resident:, of Denton are opposed to the granting of the petitiuu ('1.1624) of Ana Rocco Pena: A change in zoning from agricultural (A) to the planned development (PD) classification on a 14.0734 acre parcel located along the east side of Riney Road, adjacent and south of U.S. Hid%way 77, and north of Windsor I:rive at a point beginning approximately 220 feet cast of Riney and Windsor. If approved the planned development (PD) would permit the construction of single family detached housing (15 lots with a typical size of 80' x 110') along Riney Road, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planned development which would allow for any type of multi family dwellings,to include single family attached. We favor single family detached dwellings only south of U.S. Hwy 77. Voter Reg. No. Name Address 2s~l / O l.L/ 4t-a.L _ oG_^ l~C fiILC.L~R i 7 1, '55 o Aul /~~~t~LlJ K1~~r~.~LL~.cnn. ~ n ~I /~'~-~~L~`I'~a~•~-~ 3 8~-2-- C u ~f< t~1~~ n too Ec~ Wu, the underuigned residents of Uanton are opposed to the gruu.. PoLiLio,k ~Zlb24) of Ana Rocco Pena; i, change in zoning from agricultural (A) to the planned development (PD) classification on a 14.0734 acre parcel located along the east side of Riney Road, adjacent and south of U.S. Highway 77, aid north of Windsor Drive at a point beginning approximately 220 feet east of Riney and Windsor. If approved the planned development (PD) would permit the construction of single family detached housing (15 lots with a typical size of 80' x 110') alone, Riney Road, single fsmily attached (townhouses - 56 units, and duplexes (13 lots or 26 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planned development which would allow for any type of multi family dwellings,to include single family attached. We favor single family detached dwellings only south of U.S. Hwy 77. Voter Reg. No. Name Address h ) Sty .~,L / f ' ~Vrl NeuGif 0_ 6 02 I- or- 7 ~ E 7 ~~iYt~il~ ~ ~ s ~-o ~y1,~--►.n G`o sc.._ ~-1~ - u tLG2C I ~ ~ 1YLt a-s~- &AA All -cam--r ( ~ ,r ~/7 ! / / -niO s c~ "All W ~ h ~In s~- ~ m O S 2, - c 1 w'e,,'the under:iigned residents of Denton are opposed to the granting U. the petitiu., (21624) of Ana Rocco Pena:. A change in zon-"rg from agricultural (A) to the planned development (PD) classification on a 14.0734 acre parcel located along the east side of Riney Road, adjacent and south of U.S. Highway 77, and north of Windsor Drive at a point beginning approximately 220 feet east of Riney and Windsor. If approved the planned development (PD) would permit the construction of single family detached housing (15 lots with a typical size of 80' x 110') along Riney F.oad, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planned development which would allow for any type of multi family dwellings,to include single family attached. We favor single family detached dwellings only south of U.S. Hwy 77. Voter Req. No. Name Address v, i Oc)Yet' -x-.3 S!_71 a 0 -V, ..C~, rL c . ova y 77 Irt 71 '3 7 r h c 7 S u zx~ - ~ 44412 _ (t 1rh I fir, I AA _ lJ .c h7 / I 7 13 10 DVVNIA . ~U.S o - - l *G~'7LC_l..~i~.J /y~l,t ~ i.i,<t~LJ /d C• iiCILG~-.UCi i-e of i J/dl~ t n rao~ o oil the, t' We, the undersigned residents of Denton are opposed to the granting of the p6tition (21624) of Ana Rocco Pena; A change in zoning from agricultural (A) to the planned development (PD) classificat-ion on a 14.0734 acre parcel located along the east side of Riney Ruad, adjacent and south of U.S. Highway 77, and north of Windsor Drive at a point beginning approximately 220 feet east of Riney and Windsor. If approved the planned development (PD) would permit the construction of single family detached housing (15 lots with a typical size of 80' x 110') along Riney Road, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planned development which would allow for any type of multi family dwellings,to include single family attached. We favor single family detached dwellings only south of U.S. Hwy 77. V!oter Reg. No. Name, Address Z/1 - p - L 6a 3 75. -7~ ySlti„ .tea ,d~,-. _~O ~ f. `J._L- r~.~._ ~___.e.~..~t-!✓ w~...~J ,;C~e,s~ _ /03- ~ ~~1i1+~.rP.c..sr- rt1-~--! D/O rJ S~ 3L rJ I eej 00 r 6 ! We, th,2.dude.signed restdents of Denton are opposed to the grantinb vi the petition ('11624) of Ana kccco Pena; A change in zoning from agricultural (A) to the planned development (PD) classification ion a 14.0734 acre parcel located along the east side of Riney Road, adjacent and south of U.S. Highway 77, and north of Windsor Drive at a point beginning approximately 220 feet eart of Riney and Windsor. If approved the planned development (FD) would permit the construction of single family detached housing (15 lots with a typical size of 80' x 110') along Riney Road, single family attached (townhouses - 55 units, and duplexes (13 lots or 25 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planned development which would allow for any type of multi family dwellingsito include single family attached. We favor single family detached. dwellings only south of U.S. Hwy 77. ,7 _ Voter Reg, No. Name Address 9. 4- - t fr+ ` G G L 11• [ 94 L C 1 .D k[[, G i c [ L Y • u {LL: [ L i L y [ [ C G 97 TOTAL. UNITS ~u 6.9 UNITS PER. ACRE i Ly n 1 ~ [ c c c 1 [ c A SAGLE CA4gLY DCTACHD 17 L ` D t (AMLY USES - 13LOTS 20; uNltt c .TTxHCn >morruLUr[ITs u uwi75 - 1 + - Y ~ I .t G !I i • LCG[ND Dir 1 .4 J I R sf DCT ST~GC CT CARiWIp 9fA il?I - L TMCRK Nd A Ir11MU?A DF ! / SPMCC E'ER AWACUCD AESIDfAmAL UN7Tt . FY • 1 _ ~ Ii• •DW V h.Lf ~f4.Y,u! I 2. ?983 6f1 S RJ4,9.- sprr 517E PLAN K0T3 4c. N H. 4E15EA HvMlER SU4vr.4&0 CITY Ar10 CC!UNTY OF OENTON TX ~LF/ASN 1 N c u~DF 1 Arrw- to T'~ o (2) S NrZ13 I'a "lltc aPl r tiivAL ~r`~?110+~ Enn- Tb qOA r ~ MEGA ~~w Z-E{,2y. Th6 COnN~" JF S~(NJR~1~ Ta 283 r.i .-.,,..rve~,a»c~ a~ iw.,rs.~ „wt. ai eatc~Y t~ ismcwVea:Rwn. r~,ra SJ.e, CA undersigucd residents of iienton L« opposed to Luc btaa~ ..i Lhe ptii.. ~Liu24) of Ana Ro^co PAa: A change in zoning from agricultural (A) to the planned development (PD) classification on a 14.0734 acre parcel located along the east side of kiney Road, adjacent and south of U.S. Highway 77, and north of Windsor Drive at a point beginning approximately 220 feet east of Riney and Windsor. If approved the planned development (PD) would permit the construction of single family detached housing (15 lots with a typical size of 80' x 110') along Riney Road, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 total units). ~"91" dwelling units proposed.) Additionally, we oppose any adjustments in the abrve planned development which would allow for any type of multi family dwellings,to include sin,je family attached. We favor single family detached dwellings only south of U.S. Hwy 77. Voter Reg. No. _ Name Address_ 2 1)1Y A- N\ 20 Ze "7 3 7 Y 0 Ala; ilia and ersiguEd residents of Denton are opposed to the gri:uting of the petlClou ~Z1624) of Ana Rocco Pena; A change in zoning from agricultural (A) to the planned development (PD) classification on a 14.0734 acre parcel located along the east side of Riney Road, adjacent and south of U.S. Highway 77, and north of Windsor Drive at a point beginning approximately 220 feet east of Riney and Windsor. 11' approved the planned development (PD) would permit the construction of single family detached housing (15 lots with a typical size of 80' x 110') along Riney Road, single family attached (townhouses - 56 units, and duplexes (13 lots or 26 total units). ("97" dwelling units proposed.) Additionally, we oppose any adjustments in the above planned dewy opment which would allow for any type of multi family dwellings)to include single family attached. We favor single family detached dwellings only sout% of U.S. Hwy 77. Voter Reg. No. Name Address kJ C? ! Esc LV't 5.,_kc~,C n~tQ S-- < S f 3 S - pCT e/! 5 titC~ 00 510 00 3? o 3 0 `fv ~ r his., , 3 `6 61 3 r k A"% r r 't I ~ S c ~Y' A! r y ~H ~~nyg~ rY`''y~ i NO. 'r AN ORDINANCE AMENDING THE ZONING MAP OF THE CITY OF DENTON, TEXAS, AS SAME WAS ADOPTED AS AN APPENDIX TO THE CODE OF y; ORDINANCES OF THE CITY OF DENTON, TEXAS, BY ORDINANCE NO. 69-19 AND AS SAID MAP APPLIES TO APPROXIMATELY 0.263 ACRE OF LAND OUT OF THE ROBERT BEAUMONT SURVEY, ABSTRACT NO. 31, DENTON COUNTY, TEXAS; AND NORh PARTICULARLY DESCRIBED HEREIN; AND DECLARING AN EFFECTIVE DATE. 's THE CC'INCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION I. }r The Zoning Classification and Use designation of the follow- ing described property, to-wit: :k I\ All that certain tract or parcel of land situated in the Robert t Beaumont Survey, Abstract No. 31, City and County of Denton, Texas, being a part of a tract described in a deed from Sena 1. Wright, et vir tc W. C. Wright on May 6, 1940, recorded in Volume 284, Page 101., Deed Records and part of a tract described in a seed from William W. Wright to Wm. Crow Wright on February ss 15, 1955, recorded in Volume , Page , Deed Records, and all of a tract described in a-2eed from Vm.-td. Wright, et ux, to William Crow Wright, et ux, on June 25, 1941, recorded in Volume 290, Page 567, Deed Records of Denton County, and being more fully described as follows: BEGINNING at the northeast corner of said tract from William W. Wright to William Crow Wright recorded in Volume 290, Page 557, Deed Records which is also the northwest corner of a tract from J. T. Thompson to Senatir Wright recorded in Volume 282, Page T 47,3, Deed Records of Denton County, Texas; of THENCE south a distance of 80.0 feet to a corner on the east boundary line of said tract recorded in Volume 284, Page 104, tt Deed Records of Denton County; ' THENCE west a distance of 143.5 feet to a corner on the east boundary line of a tract described in a deed frow W. C. Wright, f' et ux to City of Denton on February 15, 1955; THENCE north with the east boundary line of said City of Denton tract a distance of 80.0 feet to a corner on the north boundary line of said tract recorded on February 15, 1955 in the Deed Records of Denton County; w THENCE east a distance of 143.5 feet to the Point of Beginning and containing 0.263 acre of land, more or less. is hereby changed from Single-family "SF-7" District Classifica- tion Use to Two-Family 112-F" District Classification and Use under the Comprehensive Zoning Ordinance of the City of Denton, rr Texas. The Zoning Map of the City of Denton, Texas, adopted the 14th day of January, 1969, as an Appendix to the Code of S t Ordinances of the City of Denton, Texas, under Ordinance No. 69-1, be, and the same is hereby amended to show such change in District: Classification and Use. t Z-1627/MIKE NEBLETr/PAGE 1 r x'l t1~ '1r .L"ti t i '?T~nr + 40 7e YY J SECTION II. That the City Council of the City of Denton, Texas, hereby -x, finds that such change is in accordance with a comprehensive plan for the purpose of promoting the general welfare of the City of Denton, Texas, and with reasonable consideration, among other things for the character of the district and for its peculiar suitability or particular uses, and with a view to conserving the value of the buildings, protecting human lives, and encouraging the most appropriate uses of land for the maximum benefit to the City of Denton, Texas, and its citizens. SECTION III. That this ordinance shall be in full force and effect immediately after its passage and approval, the required public : hearings having heretofore been held by the Planning and Zoning Commission and the City Council of the City of Denton, Texas, after giving due notice thereof. f PASSED AND APPROVED this the day of , 1984. 14 s,. i MA OK CI OF D NTON, fEXAS ATTEST: G #1 ARLOTT LL N, CITY SE REfARY CITY OF DENTON, TEXAS F APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS (_y BY: i•R t rT I Z-1t,,.;/MIKE NEBLETT/PAGE 1 - -ai i Y 4 t' , r z I ~4 , y ry . ; y I r f v t iZA n 4, 1, t ~ - 1 n , ~ n 71: 1 igS 1 ~ + f t t r ~ Sr ~ I.1 try `~1 i~ NO. AN ORDINANCE AMENDING THE ZONING MAP OF THE CITY OF DENTON, TEXAS, AS SAME WAS ADOPTED AS AN APPENDIX TO THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, BY ORDINANCE N0. 69-11 AND AS SAID MAP APPLIES TO APPROXIMATELY 14.619 ACRES OF LAND OUT OF THE R. H. HOPKINS SURVEY, ABSTRACT NO. 1694, DENTON COUNTY, TEXAS; AND MORE PARTICULARLY DESCRIBED HEREIN; AND ` DECLARING AN EFFECTIVE DATE. i THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: w SECTION I. The Zoning Classification and Use designation of the follow- ing described property, to-wit: All that certain tract or parcel of land situated in the City of Denton, Denton County, Texas, a part of the R. H. Hopkins Survey, Abstract No. 1694, and being more particularly described as follows, to-wit: BEGINNING at the northwest corner of the Survey, said point being -~he southirest corner of the Wm. Teague Survey; THENCE south 87°52'10" east 1324.64 feet with the north line of the Hopkins Survey, a corner; THENCE sough 02°21' west 442.2 feet, more or less, a corner, same being the northeast corner of Block 5 of the Hopkins Hills ' Addition to the City of Denton; THENCE north 87°39' west 400 feet, a corner, same being the , northwest corner of said Block 5, THENCE south 02°21' west 50 feet, a corner, in the west line of said Block 5 THENCE north 87°39' west 924.64 feet, a corner in the west line of the Hopkins Survey, said corner being the northwest corner of Block 2 of the Hopkins Hills Addition to the City of Denton, Texas; THENCE north 01°03'40" east 492.20 feet to the place of beginning and containing 14.619 acres of land, more or less. is hereby changed from Agricultural "A" District Classification Use to Single Family "SF-16" District Classification ar' ilse under the Comprehensive Zoning Ordinance of the City of Les,.- , Texas. The Zoning Map of the City of Denton, Texas, adopted the 14th day of JanuF:y, 1969, as an Appendix to the Code of Ordinances of the City of Denton, Texas, under Ordinance No. , 69-1, be, and the same is hereby amended to show such change in District Classification and 'use. SECTION II. That the City Council of the City of Denton, Texas, hereby finds that such change is in accordance with a comprehensive Z-1628/HOPKINS & GOEN/PAGE 1 ! r ^ y~ 1 ~yt .~f1 ♦ IIe / {{Y~~~1y ~W ~~~r 'A. r~~~t Y•J..+, r i . F plan for the purpose of promoting the general welfare of the City of Denton, Texas, and with reasonable consideration, among k other things for the character of the district and for its peculiar suitability or particular uses, and with a view to a= conserving the value of the buildings, protecting human lives, s and encouraging the most appropriate uses of land for the maximum beripfit to the City of Denton, Texas, and its citizens. SECTION III. h. That this ordinance shall be in full force and effect immediately after its passage and approval, the required public hearings having heretofore been held by the Planning and Zoning Y Commission and the City Council of the City of Denton, Texas. after giving due notice thereof. 5` PASSED AND APPROVED this the day of~ , 1984. to C' CIA OF D• TON, TEXAS r ATTEST: ` urb-u -CRETARY CITY OF DENTON, TEXAS i APPROVFD AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS r BY: 1 a s.5 Z-1628/HOPKINS & GOEN/PAGE 2 20 1 1 ~ ~ ~ ~ ♦ " Lip"~ i ~ ~ ~~1P,y~Y~!~~}~I~ NO.1~~ / AN ORDINANCE AMENDING THE ZONING MAP OF THE CITY OF DENTON, TEXAS, AS SAME WAS ADOPTED AS AN APPENDIX TO THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, BY ORDINANCE NO. 69-13 AND AS SAID MAP APPLIES TO 1100 NORTH LOCUST STREET, DENTON COUNTY, TEXAS; AND MORE PARTICULARLY DESCRIBED HEREIN; AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION I. The Zoning Classification and Use designation of the follow- ing described property, to-wit: All that certain lot, tract or parcel of land situated in the City and County of Denton, State of Texas, and being a part of the B.B.B. & C. Ry. Company Survey, Scrip No. 111, described as follows: BEGINNING at a point on the east side of North Locust Street in said City of Denton in the south line of a lot sold by A. E. Tabor and wife to F. D. Cox by deed recorded in Volume 145, Page 532 of the Deed Records of Denton County, Texas; THENCE north with the east side of North Locust Street 25 feet to corner; THENCE east 125 feet to corner; THENCE south 25 feet to corner; THENCE west with the south line of said lot so conveyed by Tabor and wife to Cox 125 feet, to the place of beginning, and being the same tract of land described in - deed from G. W. Martin to Byrdie Martin Wilson dated April 21, 1945, and recorded in Volume 314, Page 176 of the Deed Records of Denton County, Texas. is hereby changed from Office "0" District Classification Use to Planned Development "PD" District Classification and Use under the Comprehensive Zoning Ordinance of the City of Denton, Texas with the following conditions and specifications: 1. The land use permitted at the site shall be limited to an art gallery, framing and supply establishment; certifi- cates of occupancy shall not be issued for, any other uses without an amendment to the planned development approved by the Planning and Zoning Commission cnd City Council. The Zoning flap of the City of Denton, Texas, adopted the a 14th day of January, 1969, as an Appendix to the Code of Ordinances of the City of Denton, Texas, under Ordinance No. 69-1, be, and I-.e some is hereby amended to show such change in ~i District Classification and Use. subject to the above conditions and specifications. SECTION II. That the City Council of the City of Denton, Texas, hereby l finds that such change is in accordance with a comprehensive plan for the purpose of promoting the general welfare of the City of Denton, Texas, and with reasonable c.or.sider,%tion, among Z-1636/RANDY AXTELL/PAGE 1 2 c ~''4Rr'"}L'y T~ r'fi ^!r 1 T',^".^`*d",^--era-.~~~•r^aw'y'-.a r,?'~T' 'r: r,;(S,"~T/~;1a-per !'rv~r ' f ktin .fin ~'mt^-rc-. I...r' re`Yf;!ssr?^~fb:..I RN.'A.'~WR t~~.rt ( 1 •~'fb[S"c .1R t `]1~ .ia4rs~ 7~ f Ji s/ R I K ` w y s r '7 7_ ~I ell 'r y`I R ♦ S P'~S e,~~ ~1( i i ~ R/• r 1 ~~j, ~l~ R s • ~ I yi ar tit ~ i~ ~n rL It e 1 ' ~ :~~~a PI 1 1 ! ~,S"~. rc 73 a 1. ~I ~ IS r { ri .~'SS r a. 1. .e / Ja .~s_ a. " a A r 717 ■ other things for the character of the distrtct and for its peculiar suitability or particular uses, and with a view to conserving the value of the buildings, protecting human lives, and encouraging the most appropriate uses of land for the maximum benefit to the City of Denton Texas a and its citizens. SECTION III. That this c.'i:dinance shall be in full force and effect immediately after its passage and approval, the required public ?::arings having heretofore been held by the Planning and Zoning Commission and the City Council of the City of Denton, Texas, after giving due notice thereof. 7lt- PASSED AND APPROVED this the day of , 1984. 1 , M 44 ACITA OF DE TON, TE XAS S ATTEST: N J - -~21 'r. L,111-111f _ CITY OF DENTON, TEXAS r F APPROVED AS TO LEGAL FORM: I C. J. TAYLOR, JR., CITY ATTORNEY f CITY OF DENTON, TEXAS BY: Z-16360/RANDY AXTELL/PAGE 2 fT.,'+k'$"^ .r; - ~•F~ --r.Q~C-tf'y.',grr n-„ar~`~..tn. •g4+,'B'.:. y{,,.'n";j r",A~, r~,~,...,z~ 1. tt F -1~ 't 1~L`x9 yr-- 'yte-n'~1.~xi l_A LA...t`''~+~ak+'~y'3~~ +-bn id:N 6~Y~ #'~E~~r SI~,{~~Z'1IJ(~` ~0ft.°l .♦~~4+~ iy t ~n.r. 4 ~wnwiwii lsa71#~W •L;f~~~~~~ i C, PARKING .APi 4 SPACES n o V W w ,a rTR--=,.e. A.C 1'I t t. P i ~ r y. O ;L7' i ` ' I I I Locuvr ra~c ter-, x r ~m~r n~r'..._ ~ •:r7 v ~ ~ 1 ^yJ+9F '➢v b'~ er.: I~r,.;~w ~A11~ ~17 ~i.'~j 7}~i~i5 iir.':~~ pr~•' r'~v -"dAkui IN THE MAWER OF CITY nF nFNTnN_ CHARLOTTE ALLEN T1 i E ST','i fE OF TEXAS Roy Appleton, Jr. Couuly of Denton heing duly sworn, says he is the Genera! Dlanager 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 Aas published in said paper on the following dates: N0. 84_13 ANIMAL_DSDINANCF 21 lines $16.80 FEBRUARY 15.r_17-1994 1.7 FEBRUARY 4 Subscribed and sworn to before me this dny of 19 S7 C' Q~m..►~-Qr ' VI'itness ira y hand and affirial seal. Notary Public, Denton County, Texas IIERI' 11 V-TI".T[IE No rici: in K BLICATION CUT FRO)l PAPER E\'rl[I:11:'1-FER ()F'rIIE DING CH APER~ t'-'ANIMALS'fl'OF,j IiE CODE' Of`tYRDIN~Ni.ES OF THE IT F 6ENTON, TE (ASC'/O~f~!) QUIItE ~ CERTAIN NO Lt SE ~FF[DAVI'T OF PU[3L15HER TO RESTRAIYEb !Y A PUBLICAT[ON'OFLEGAL NOTICE LEASH, FENCE 0 ENCLOSED STRUCTUrtL~t 'PROVIDING FOR f> PENALTY'NOT f0 rl1~ EXCEED TWO HUNDPED k ilr~l thr 0-00.00) DOLLARS FOR IOLATION' THEREOFr ,ROVVIOIJJ~iG FOR A 19 SEVERA%ILItY CLAL4Er - 'AND. DECLARING AN FErRMkY~Tlb' jIF - ik. Drputy ,E >,~~r~~r ...,f .•ijr r of ! ~ S~ ~ L LE '~,~+~'r A;r~l ~~(p ~'~i Y~k,r}7I ~,f~t~r•• h t r z '~t 1 n r `S ~d''f 1 PSUr 4. lyi~ ! p ~',~SY~('li ~r ,.'rYII~ r. r•r [rs""ni ttr ah r~: ,F}.'i~~~~K~~2~~y~~Y. ~ ,y;'r U~+~.. ~~~~{{yy,,.. yT'•ti.~S ~ ta~~ r~ q~ry y~pr° ~'rf{ ~f ~P iY~ F,wy"C,~~~'r t ~Y i C°D Z'TF +~~'rr d+h":J<Y r'!'~~V1 "eSraY T.~.fIWrY.yyAf~y~K er 6 C 4 ~ ! ~T ktil{rr j r s~o i e k -a i i $ NO. AN ORDINANCE AMENDING CHAPTER 4 ("AN,14ALS11) OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS TO REQUIRE CERTAIN ` ANIMALS BE RESTRAINED BY A LEASH, FENCE OR ENCLOSED) STRUCTURE; PROVIDING FOR A PENALTY NOT TO EXCEED TWO HUNDRED ($200.00) DOLLARS FOR VIOLATION THEREOF; PROVIDING FOR A SEVERABILITY CLAUSE; AND DECLARING AN EFFECTIVE DATE. -r~ THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION I. That Section 4-7 of the Code of Ordinances of the City of Denton, Texas be amended to read as follows: "Section 4-7. Animals Running at Large Prohibited. It shall be unlawful for an owner of an do pony, mule, cattle, goat, sheep, i y g~ cat, horse, pig, sow or other livestock ` to fail to restrain said animal by leash, fenced yard or enclosed structure. For purposes of this section, an offense, as herein defined, occurs without regard to any cupable mental state of the owner." SECTION I:. That Sections 4-24 through 4-30 of Chapter 4 of the Code of Ordinances of the City of Denton are hereby amended to reserve said sections for future use as follows: 9 "Sections 4-24 through 4-30. Reserved. .3 SECTION III. That any person violating any of the provisions of this ordinance shall, upon conviction, be fined a sum not exceeding Two Hundred Dollars ($200.00); and each day and every day that the provisions of this ordinance are violated shall constitute a a separate and distinct offense. This penalty is in addition to and cumulative of., any other remedies as may be avai.ible at law i j and equity. 41 SECTION IV. That if any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstance is held invalid by any court of competent jurisdiction, such holding shall not affect the - - - 1 ;1, YA~J,~ ~ 'L l,Y~1~Rj t 1 r.5 I ~T ^ [ I I"I nl,..~ y 7 / 3 y I 1 y ~ y 1 n! L• 1 R' , I t 4y r I ~r.i ~t~ t 'V11 ~.r ~ 4~~ 1 ~ d~ r r It.!_~ ~ >~•~yt l~ r~~a~r ~~i~ . \ i it ~ ~ V 7 1 y ' >1 } •n~ y, _ ~ ~i f ! 'j j ~r ! ~ 1 " ! t ~4 'tI r A't i 9 J 1 ' ~ 1 l C c 1 ~ ' 1.••~t 1x~ "f~~r Cf.,L c% ~'4, `F. ~2~. s~l 1 ~ , ~ ~ ; K'y, ~ '~s?. , w, X' ~ ti ~ti,~ v:.'SI t ~y,.. + ~ + ~ t~Mr~ ~ ~L?Yi''k, i'' ie M y ~ iMr~(nwilwrl~ ~er11~1111p/eI~rI1M , y validity of the remaining portions of this ordinance, and the . p City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION V. That this ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is 1 hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of 1984. `I CIT OF DE ON,, TEXAS ATTEST: CHARLOTTE L 'ITY SECRETARY i► CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS „n BY : '.i :n { ' I ..I u \01 cr r ; t SrY ^ ~ ~ ` ` f1 ~I"v rrll 'E~O. NO. +;r AN ORDINANCE AMENDING SECTION 25-6(d)(3) OF CHAPTER 25 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON TEXAS TO PROVIDE FOR AN ADDITIONAL NONVOTING MEMBER TO SERVE ON THE UTILITY ACCOUNT REVIEW COMMITTEE; REPEALINk ALL ORDINANCES IN CONFLICT HEREWITH: AND DECLARING AN EFFECTIVE DATE. s THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION I. That Section 25-6(d) (3) of Chapter 25 of the Code of Ordi- nances of the City of Denton, Texas is hereby amended to read as follows: "(3) If the customer is unable to meet these conditions or if he/she has defaulted on a deferred agreement, 11e/she will be referred to a "utility account review committee" for further action. This committee will be composed of the city manager, city attorney, finance ` director and utility director. Additionally, one citizen representative selected and appointed by the city manager will serve as a nonvoting member of the committee. If committee members are unable to attend the meeting, they may send a designated representative in their place. The utility account review committee is authorized to develop a deferred payment agreement beyond the six (6) month period blot could not extend beyond twelve (12) months. Neither the customer service department nor the utility account review committee will have the authority to waive all or any portion of the utility statement owing to the city except when an error in billing has occurred. Any account that is delinquent will be referred to the city attorney for collection, and appropriate reports regarding the account's credit rating will be processed." SECTION II. All ordinances or parts of ordinances in force when the pro- visions of this ordinance become effective which are inconsistent or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION III. That this ordinance shall become effective from and after its passage and approval. PASSED AND APPROVED this the day of ifs 1984. CCIT OFD TON, TEXAS ATTEST: 1 CITY OF OF DENTON,~TEXAS e~ APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS BY: L e r ~T~~_ a _ rt c. ; `_,e-._ v. Mr. ;1 '4 lei ~~>_.iFsil~~s~ ~~fe~a~'.~w °1Y~ !1`Y~~4k.:, AA 5 }h r~ rl ~ ~;Ya' ,i e~ rf S ~tt~, is ti~z \t t ,t IG,(f r} J x"~~~•.~ s. V/yl f i a r~ r NO. AN ORDINANCE ANNEXING A TRACT OF LAND CONTIGUOUS AND ADJACENT To Rz' THE CITY OF DENTON, TEXAS; BEING ALL THAT LOT, TRACT OR PARCEL OF f' LAND CONSISTING OF APPROXIMATELY 1414.4 ACRES OF LAND LYING AND BEING SITUATED IN tHE COUNTY OF DENTON, STATE OF TEXAS AND BEING e.- PART OF THE B.B.B. & C.R.R. Co. SURVEY, ABSTRACT NO. 192, W. BRYAN SURVEY, ABSTRACT NO. 148, J. PERRY SURVEY, ABSTRACT NO. 1040, A. COBERLY SURVEY, ABSTRACT NO. 1542 AND THE J. SCOTT SURVEY, ABSTRACT NO. 1222, DENTON COUNTY, TEXAS; CLASSIFYING THE SAME AS AGRICULTURAL "A" DISTRICT PROPERTY; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the request for annexation was introduced at a regular meeting of the City Council of the City of Denton, Texas, on the petition of the City of Dentun, Texas; and j i WHEREAS, an opportunity was afforded, at a public hearing held for that purpose on the day of C(210tt_0 , 1983 in the Council Chamber for all interested persons to state their views and present evidence bearing upon the annexation provided by this ordinance; and WHEREAS, an opportunity was afforded, at a public hearing held for that purpose on the 1Sf day of , 1983 in the Council Chamber for all interested persons to state their views and present evidence bearing upon the annexation provided by this ordinance; and WHEREAS, this ordinance has been published in full at least one time in the official newspaper of the City of Denton, Te:<as, prior to its effective date, and after the public hearings; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION I. That the hereinafter described tract of land be, and the same is hereby annexed to the City of Denton, Texas, and the same is made hereby a part of said city and the land and the present and future inhabitants thereof shall be entitled ;1 the rights and privileges of other citizens of said City a..1 ,';all be bound by the acts and ordinances of said City now in effect or which may hereafter be enacted and the property situated therein shall be subject to and shall bear its prorata part of the taxes levied by ~ !~'F' i'!7"T '~-e5~1 v~~s ~~~~'is ~i''-, ~ 'A'T.TJ'• r`.Tk* i'~^It F, ,f t i'*' h' i l a 4Y'M1'v't°Y.rT~ ii x I x ~:1 s, eaa a? a, the City. The tract of land hereby annexed is described as follows, to-wit: All that certain tract or parcel of land lying and being situated in the County of Denton, State of Texas, and being part of the A' S.B.B. & C.R.R. Co. Survey, Abstract No. 192, W. Bryan Survey, Abstract No. 148, J. Perry Survey, Abstract No. 1040, A. Coberly Survey, Abstract No. 1542 and the J. Scott Survey, Abstract No. 1222 and being more particularly described as follows: BEGINNING at a point in the present city limits as established by Ordinance No. 79-28, said point being the intersection of the north right-of-way line of Jim Christal Road with the west right-of-way line f the G.C. & S.F. Railroad; THENCE south 89036110" west along the north right-of-way line of said Jim Christal Road, same being said present city limits, a distance of 648.3 feet to a point for a corner; THENCE north 21051' west along said present city limits a distance of 748.5 feet to a point for a corner; THENCE north 68009' east along said present city limits a distance of 600 feet to a point for a corner in the west right-of-way line of said G.C. & S.F. Railroad; THENCE north 21051' west along the present city limits as established by Ordinance No. 65-43, same being the west right-of-way of said G.C. & S.F. Railroad a distance of 2928.15 feet to a point for a corner, said point lying 300 feet south of the centerline of U. S. Highway 380; THENCE north 88050' west along the present city limits as established by Ordinance No. 69-40, 300 feet south of and parallel with the centerline of U. S. Highway 380, a distance of approximately 2941.11 feet to a point for a corner; THENCE south 0001'14" east along the present city limits as established by Or-finance No. 79-83, a distance of 218.08 feet to a point for a corner; THENCE north 88045155" west along said present city limits a distance of 300 feet to a point for a corner; THENCE north along said present city limits a distance of 223.67 feet to a point for a corner; 1. THENCE north 88050' west along the present city limits as 7 established by Ordinance No. 69-40, 300 feet south of and parallel with the centerline of U. S. Highway 380, a distance of approximately 1567.11 feet to a point for a corner; THENCE south along the present city limits, as established by Ordinance No. 82-52, 1250 feet east of and parallel with the , centerline of Underwood Road a distance of approximately 3700 feet to a point for a corner said point lying in the centerline of Jim Christal Road; THENCE westerly along said present city limits same being the centerline of Jim Christal Road a distance of approximately 125 feet to a point for a corner; THENCE south along the present city limits as established by Ordinance No. 69-40 a distance of 3971 feet to a point for a corner; WiM r~pgU-7713Vrat, TL",yKx Ty"Ti k:~ -`r r t T y -a a e, _ s r .~---r<, s. e.sk i N . i5 ti f i l'S^'"`i '._""_aT •fr 1 a ~T .i, r~ A k a.~r at 5S. V' O~A itk jf ~ i~. -0 r'. e ~~it rat' ~~e rt:~ +rl : it rr a C `r V t / rt • • 1, r a ~ a pit 1 A ~ 1 ~ k~1' i. L THENCE east along said present city limits a distance of 6099 feet r, to a point for a corner; 14 Y~ THENCE north along said present city limits a distance of 3972.06 feet to a point for a corner; 14 THENCE north 89036110" east along said present city limits a distance of 305 feet to a point for a corner; THENCE north 21051' west along the present city limits as established by Ordinance No. 65-43 a distance of 32.5 feet to the place of beginning and containing 1014.4 acres of land, more or less. SECTION II. The above described property is hereby classified as Agricul- tural "A" District and shall so appear on the official zoning map E of the City of Denton, Texas, which map is hereby amended r accordingly. SECTION III. This ordinance shall be effective immediately upon its passage. Introduced before the City Council on the " Cy of 19 g✓ PASSED AND APPROVED by the City Council on the 7 ~`L day of 1 l I& ► 19 . IC RD 0. TEWA MAYOR CIT OFD PON, TEXAS ATTEST: TIAR_LOTTE -ALLEN CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS BY: 4 TsYi''° r~ -r, Y. al, ryrjjr 3iy' .'fi .$v u.•f ~7Y3CL,p~ t~A.s .y~°'~t ~.'••t ,fl: ."1 f .A ye .r a Y~lrl III fV~ a ~L F r i 10 • ~f ~ ~YY[ ~ i Y~,~1.~ ` "ter U r. PLAN OF SERVICE FOR ANNEXED AREA, CITY OF DENTON 'TEXAS WHEREAS, Article 970a as amended requires that a plan of service be adopted by the governing body of a city prior to passage of an ordinance annexing an area; and WHEREAS, the City of Denton is contemplating annexation of an area. which is bounded as shown on a map of the proposed annexation. .X NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: z Section i• Pursuant to the provisions of Article 970a as amended, Texas Code Annotated, there is hereby adopted for the proposed annexation area the following plan of service: I, Basic Service Plan A. Police ' (1) Patrolling, radio responses to call:-, and other routine police services, using present personnel and equipment, will be provided on the effective date nf annexation; (2) Traffic signals, traffic signs, street markings, wild other traffic control devices will be installed • as th,% need therefore is established by appropriate r udy and traff.c standards. B. Fire (1) Fire protection by the present personnel and equip- ment of the fire fighting force, will be provided on the effective date of annexation. C. Water (1) Water for domestic, commercial and industrial use will be provided at city rates, from existing city lines on the effective date of annexation, and thereafter from new lines as extended in accordance t witr article 13.06 of appendix A of the code of the City of Denton, Texas. D. Sewer (1) Properties in the annexed areas will be connected to sewer lines in accordance with article 13.06 of appendix A of the code of the City of DenLun, Texas. E. Refuse Collection (1) The same regular refuse collection service now pro- vided within the city will be extended to the annexed area within one month after the effective date of annexation. i ~a } r ti~1~'~ x , ~ xi. vex t. ! ~ 3r • .r ~ ~1 k. ~ ..h i t r J c I J!~ at~, art 4J tiky t'' / + i- r• '1 //y►~~~y rt 7A,. r,,i y.fS. a,`. x~r',. t ~,r r, t'1t " i~r ! ill r +1 5 J}~.Y { ° y'~+V' I I, x"~•{ 'A'4It~ t ti r i ~ riG f r C J. tF r . ! is i ! t rl r . a ~'1. ~"j S. ..}l" 1~r I~. 4/ ' G r: ~Y.~ ~tY. .r ~ k. y 9 ~ 'i• r} M1 sC~MrT 'y +,~r' y +EA~ a.~S s+ t'. i.l. ° C..~a°J' j4: r J. ~.!`s.! i". ~~'r. l.. ! ~.@•~' }F~IJ tService Plan ' Annexed Areas Page two F. Streets (1) Emergen.•y maintenance of streets (repair of hazardous i chuckholes, measures necessary for traffic flow, etc.) will begin on the effective date of annexation. (2) Routine maintenance on the same basis ao in the present city, will begin in the annexed area on the effective date of annexation, (3) Reconstruction and resurfacing of streets, installa- tion of storm drainage facilities, construction of curbs and gutters, and other such major improvements, as the need therefore is determined by the governing body, will be accomplished under the established policies of the city. G. Inpection Services (1) Any inspection services now ;provided by the city (building, electrical, plumb:.ng, gas, housing, sanitation, etc.) will begin in the annexation area on the effective date of annexation. H. Planning and Zoning (1) The Planning and Zoning jurisdiction of the city will extend to the annexed area on the effective date of annexation. City planning will thereafter encompass the annexed ;.rea. I. Street Lighting (1) Street li;hting will be installed in the substan- tially developed areas in accordance with the established policies of the city. J. Recreation (1) Residents of the annexed area may use all existing recreational facilities, parks, etc., on the effec- tive date of annexation. The same standards and policies now used in the present city will be fol- lowed in expanding the recreati^„sl program and facilities in the enlarged city. K. Electric Distributi.)n (1) The city recommends the use of City of Denton for electric power. i ` r e ♦ _ l r, 1... 1...,. 1¢ ° f .e3s~,~fi fi tM3 F '1. G1 d,,vff ^st~. s.' 1. r 1 . ! + "fit w+ ?b rlt},',r}t~"L' y s , ~-r SIIc+ rF' + e ' .'u ea y ~.kr, ~ n fMY ~..1 ~ ~+r "Ij l7~yq 4}`• +l M~~ ! i r 11 k ! . a ra a$jSp t'7r` t l'4 ' G{V. [F I ~Y 1 ~ { MY ,•l .1 .1 J 'F. C ` W' 4Fy.4 1 ~1 ~ V40'9 i.• 'Siv "'f`F ~a 1 ~ ~~}'p.r f+ DJ 'f•r. 'Y ° 'r S l)~` e~'ti ~ rt tj~ Ya. p.}, , . i~G vaa-~v+ N c-Y~ (Y `h.^'r~,~}A~ t~~ _s .n.T ~f11 ~"S'~f.i s,! 4i ~r 1l r ? ~r yyi. ~yc, ~ ~ f rr ~`a ^~.r,1C` • ~ q' d~ _tY ~ i a t ~ ~~tt ~'~i x W%~~, 9~ P afi~+ d~s 2M~'~i',. ,,,~f a %+r'' ~4C ~Y Nf ~r '+li 'Fd~ ,f y ` ~ i ~ Aa ~.i it~,Tk'AjI t('+t F_ '3'/".l r.Q'""il~'•j~h. X+IL 3Jy~~~i, + ~I 1 '"Ij#XM,' 1 _~"r ;~~~'',N-t1~~S n~'7;~ 4r•WLR~~'~~t,_:~S T~222 ~Y ~'riya~~~~•~..tM 'Q'~ `~C ~Ir~' • ~~IN I j y,~ 17 i + ,1o-. 4 ~ao1•( ' S qtr / Yt~ F~ t ~ l Y R' Y' bYr^!'yj t/ !'r 1 u-•1 l~r*r ,:'lr ~f~~C'~j::rr r,`~Sh ~~Rr i~ r( Service Plan Annexed Areas Page three L. Miscellaneous (1) Street name signs where needed will be installed within approximately 6 months after the affective date of annexation. II. Capital Improvement Program (CIP) The CIP of the City consists of a five year plan that is up- dated yearly. The Plan is prioritized by such policy guide- lines as: (1) Demand for services as compared to other areas based partly on density of population, magnitude of problems compared to other areas, established technical standards and professional studies, and natural or technical restraints or opportunities. (2) Impact on the balanced growth policy of the city. (3) Impact on overall city economics. The annexed area will be considered for CIP planning in the upcoming CIP plan, which will be no longer than one year from the date of annexation. In this new CIP planning year the annexation area will be judged accordingly to the same established criteria as all other areas of the city. 3 I tcK ~ r 1 ` ' i.{ F r +t r' 14s ,c^' F9y n "1 r i.~Y "5 Nd'1 !v ne ~ ;e f,r + ;r} . ~ftC.t N1 MI ~"~~+W'7sf^i't, 'r71~+f,.4~ { vy~rt wN ~.U1. ,.t r y~ r,r r .,k ~ 1i 1S ~1 ~~~rt ~ lr. f( K °"1r ~ rA, ~~..y3~'~,~t~~~< 6~ r q,1 C y'Y' U A + 5 y i" > i 11 ` 1+ 1' I `Li p ~ ' k N t"' } ~ .tw ~ nA ~ "~ti. '.AyiJ~t"'(~,rl ~!Z•~q'",~ }~~,'S?~•C 1i'.j~Gd^ ry.:.~,v~ ~ .p 5.r i+, 1~4 r~ wr~,'.S.etti'>AY ~f' at~Ea` ~4.a 1 E ' ~ TTT r a ti r qr + k ayyy,,,~~~ 1 ~r~,I? ~ ' t k♦in" t ~ r'S' c n~ ~~1 K :Y i• r.~~.. °rl~k~~fr i"',`~ rly't➢ ~ ~i lV 7 e7. vi ~~"1" x C t,~r ` NO. :n dr: t='!1 AN ORDINANCE ANNEXING A TRACT OF LAND CONTIGUOUS AND ADJACENT TO THE CITY OF DENTON TEXAS BEING ALL THAT LOT TRACT OR PARCEL OF LAND CONSISTING OF APPROXIMATELY 43.9 ACRES OF LAND LYING AND BEING SITUATED IN THE COUNTY OF DENTON, STATE OF TEXAS AND BEING PART OF THE 0. BREWSTER SURVEY, ABSTRACT NO. 56, DENTON COUNTY, TEXAS; CLASSIFYING THE SAME AS AGRICULTURAL "A" DISTRICT PROPERTY; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the request For annexation was introduced at a regular meeting of the City Council of the City of Denton, Texas, on the petition of the City of Denton, Texas; and 'W WHEREAS, an opportunity was afforded, at a public hearing held a for that purpose on the j W4: 0 day of 1983 in the _;F? Council Chambers for all interested persons to state their views and present evidence bearing upon the annexation provided by this tr, ordinance; and WHEREAS, an opportunity was afforded, at a public hearing held for that purpose on the ( day of , 1983 in the Council Chamb r;3 for all interested persons to state their views and presr:nt evidence bearing upon the annexation provided by this ;g ordinance; and I 'Yt WHEREAS, this ordinance has been published in full at least one time in the official newspaper of the City of Denton, Texas, `yr prior to its effective date, and after the public hearings; ,sA ',C NOW, THEREFORE, THE COUNCIL OF THE CITY OF DFNTON, TEXAS, HEREBY ORDAINS: SECTION I. I That .he hereinafter described tract of land be, and the same is hereby annexed to the City of Denton, Texas, and the same is yymade hereby a part of said City and the land and the present and J future inhabitants thereof shall be entitled to all the rights and privileges of other citizens of said City and shall be bound by the acts and ordinances of said City now in effect or which may hereafter be enacted and the property situated therein shall be subject to and shall bear its prorata part of the taxes levied by the City. The tract of lard hereby annexed is described as follows, to-wit:: t o ~Vw vs ;s, , V7 , T .Q1111 ,:.---T--~ { , r 'r e' " 9 ly K f 9 ~yt 1 y .c, All that certain tract or parcel of land lying and being situated in the County of Denton, State of. Texas, and being part of the 0. Brewster Survey, Abstract No. 56 and being more particularly described as follows: BEGINNING at a point in the present city limits said point lying at the intersection of the west boundary line of the tract °yY described in Ordinance No. 69-40 with the southeast corner of the tract described in Ordinance No. 80-56, said point also lying 500 feet west of and perpendicular to the centerline of I.H. 35W; THENCE south 22001102" west along said present city limits as established by Ordinance 69-40 and 500 feet west of and parallel with the centerline of I.H.35W, a distance of 1427.56 feet to a point for a corner in the south boundary of j tract described in ' Volume 725, Page 365 of the Deed Records of Denton County, Texas; F~ Y THENCE north 89038'30" west along the south boundary line of said tract a distance of 1208.37 feet to a point for a corner, same being the southwest corner of said tract; ` THENCE north 2042' east along the west boundary line of said tract a distance of 1322.74 feet to a point for a corner in the present 'I city limits as established by Ordinance No. 80-67; h THENCE south 89049' east along the present city limits a distance of 1681.22 feet to the place of beginning and containing 43.9 acres of land, more or less. SECTION II. The above described property is hereby classified as Agricul- tural "A" District and shall so appear on the official zoning map r of the -ity of Denton, Texas, which map is hereby amended accordingly. SECTION III. This ordinance shall be effective immediately upon its passage. } Introduced before the City Council on the l"'~ay of _ 19 93 PASSED AND APPROVED by the City Council on the day of 19. I V,4-dL^,d/ *:CARD U. EWART MAYOR DEN ON, TEXAS ATTEST: CHARLOTTE ALLEN, CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO ;LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS l' 1ni r S ~ i 1~ I 9 AYt ' ry~, s~ ,r III 1`~ N fi PLAN OF SERVICE FOR ANNEXED AREA, CITY OF DENTON, TEXAS t WHEREAS, Article 970a as amended requires that a plan of service be adopted by the governing body of a city prior to passage of in ordinance annexing an area; and WHEREAS, the City of Denton is contemplating annexation of an area which is bounded as shown on a map of the proposed annexation, NOW, :KEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY +R OF DENTON, TFXAS: Section 1. Pursuant to the provisions of Article 970a as amended, Texas Code Annotated, ttare is hereby adopted for the proposed annexation area the following plan of service: I. Basic Service Plan ' A. Police (1) Patrolling, radio responses to calls, and other routine police services, using present personnel and equipment, will be provided on the effective date of annexation; (2) Traffic signals, traffic signs, street markings, and other traffic control devices will be installed as the need therefore is established by appropriate study and traffic standards. B. Fire ~ySY. (1) Fire protection by the present personnel and equip- ment of the fire fighting force, will be provided ;t on the effective date of annexation. C. Water (1) Water for domestic, c.mmercial and industrial usq ,7J} will be provided at city rates, from existing city lines on the effective date of annexation, and thereafter from new lines as extended in accordance with article 13.06 of appendix A of the code of the City of Denton, Texas. D, Sewer (1) Properties in the annexed areas will be connected to sewer lines in accordance with article 13.06 of appendix A of the code of the City of Denson, Texas. " E. Refuse Collection (1) The same regular refuse collection service now pro- vided within the city will be extended to the ay`P annexed area within one month after the effective dwte of annexation. II AV l v ~+:1 7 d V'~F yt-21V J ~ , 1 Y i ~ aY r yf 1 t rt ~YH ,:4 pY.r i'M1 'y Yt y Y ~ f 1 F ~ 1 l ~ + M t J V ~ a . . J 17>m T ;¢d rw IMP w .f r f 1 A I W ti ri~ b t 1~ 1 i,l ( t I~F + " t,~f t'"~b Aly ie ~l ~ 1} f y(a~r ~ r~ ~S: i•:9e Y+'9k~,~,a"n:r Y~1"Ir4., n;. i,,[nra. u~. 1 + r R c ~ , 7r.. b((~+{4 ~I n b~ r '.v r .°:{¢~'"'fl,f:° YR"= + ' + e4 1 r'N' ti..f : ~~'r Y, `y 4 W,4! Service Plan j Annexed Areas f Pgge two F, Streets (1) Emergency maintenance of streets (repair of hazardous chuckholes, measures necessary for traffic flow, etc.) will begin on the effective date of annexation. (2) Routine maintenance on the same basis as in the present city, will begin in the annexed area on the effective date of annexation. , (3) Reconstr•.stion and resurfacing of streets, installa- tion o' storm drainage facilities, construction of curbF and gutters, and other such major improvements, as the need therefore is determined by the governing body, will be accomplished under the established policies of the city. G. Inspection Services (1) Any inspection services now provided by the city s" (building, electrical, plumbing, gas, housing, sanitation, etc.) will begin in the annexation area on the effective date of annexation. { ti H. Planning and ?,oning F*a~, (1) The Planning and Zoning jurisdiction of the city will extend to the annexed area on the effective date of annexation. City planning will thereafter encompass the annexed area. I. Street Lighting (1) Street lighting will be installed in the substan- tially developed areas in accordance with the established policies of the city. J. Recreation (1) Residents of the annexed area may use all existing recreational facilities, parks, etc., on the effec- tive date of annexation. The same standards and policies now used in the present ity will be fol- lowed in expanding the recreational program and facilities in the enlarged city. K. Electric Distribution (1) The city recommends the use of City of Denton for t electric power. N, 4j ` 1 Wig{}, 5 Al rNe r~ + Z i t 11 r rr r ?{`",ff ] .J~''±JN,~ ~1~i '~Ih ~r a I -~.-v'•e, e C ~t~z.~r~ t~:~1% ~Y FSr p y~ y 4. / a,~n w . P' r 1. r A~X~4Y , 1+~T, { r+ 4 V °L ( U ~ q R f~ 4 1 i F} T ~Y rv f:. t 4 .d~. i ,~y ~ n~^i+~' _F w{ aA y^~•tiii ~ .r°'rv~~ ^f~P~~{d~W~.r*~7•~S~ ~ fln lili~ ~ ` Q Fi Service Paan Annexed Areas 'a Page three L. Miscellaneous (1) Street name signs where needed will be installed within approximately 6 months after the effective date of annexation. II. Capital Improvement Program (GIP) The CIP of the City consists of a five year" plan that is up- datad yearly, The Plan is prioritized by such policy guide- lines as: (1) Demand for services as compared to other areas based partly on density of population, magnitude of problems compared to other areas, established technical standards and professional studies, and natural or technical restraints or opportunities. (2) Impact on the balanced growth policy of the city. (3) Impact on overall city economics. The annexed area will be considered for CIP planning in the upcoming CIP plan, which will be no longer than one year from the date of annexation. In this new CIF planning year the annexation area will be judged accordingly to the same established criteria as all other areas of the city. i ?t rf / e~~L kd0 ;t ,z gg ~ r A` r ! ~1 ~rr~ rF ~ , a ~ r, .fir, ~7 'y a ~ ~ 3 ~f M1 11. t .Ii A 'h+ r +t,A f5 r 1.,c~'~"~i)yf Tf ~Rti, r e F r7'E'ffi'4 ,fir A L~7. i lr'i{N gf ~y4nr AM eAi^A '?~~i P ~ k'1 i E "°_f~~. .'r?''+~r`t....x~ ;4, , i .Y;: t ; L.'~:.t t,7 t''.'~~,1 'f!~ 2 is fx + ~ r i ~'xY t +ysx. \aF i t S' ~ + J~ t r y} ;1j 1 q 1 ~Y'S SJII a ~ p tj ' } ~ j~ ~ J~ 1.~1 Gv ! ~ 4v, c t, a Y a xSY t ~ ~r { t a~ 7 N r i t A,.t + u s I r ~ ( + hr yi f Nx~' i~ ta. ~ ~,A ~ r.~~s e y"kr ~,'~1 ~ i 1• s,~. ~ K b4~ `a .4~ ~ ~ r•~~J .{~y.,4 t Sy . ~ ~M1l'1., e'"~'C x' h~'f r -a x yy ~ t s x . _ ex'n NO. AN ORDINANCE ANNEXING A TRACT OF LAND CONTIGUOUS AND ADJACENT TO TH17 CITY OF DENTON, TEXAS; BEING ALL THAT LOT, TRACT OR PARCEL OF LAND CONSISTING OF APPROXIMATELY 348 ACRES OF LAND LYING AND BEI:7G SITUATED IN THE COUNTY OF DENTON, STATE OF TEXAS AND BEING PART OF THE J. TAFT SURVEY, ABSTRACT NO. 12569 J. WHITE SURVEY, ABSTRACT 1433, D. HOUGH SURVEY, ABSTRACT NO. 6463 D. LAMBERT SURVEY, ABSTRACT NO. 784, M.E.P. & P.R.R. SURVEY, ABSTRACT NO. 950 AND THE G. WALKER SURVEY, ABSTRACT NO. 1330, DENTON CUUNTY, TEXAS: CLASSIFYING THE SAME AS AGRICULTURAL "A" DISTRICT PROPERTY; AND DECLARING AN EFFECTIVE DATE. r• r. WHEREAS, the request for annexation was introduced at a regular meeting of the City Council of the City of Denton, Texas, on the petition of the City of Denton, Texas; and ,r WHEREAS, an opportunity was afforded, at public hearing held for that purpose on the day, of fi 19is the Council Chambers for all interested persons to state their views and present evidence bearing upon `he annexation provided by this ordinance; and WHEREAS, an opportunity was afforded, at a public hearing held for that purpose on the i1r day of 19? y, in the Council Chambers for all interested persons to state their views and present evidence nearing upon the annexation provided by this ordinance; and WHEREAS, this ordinance has been published in full at least one time in the official newspaper of the City of Denton, 'texas, prior to its effective date, and after the public hearings; y NOW9 THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: x Section I. , That the hereinafter described tract of land be, and the same yy is hereby annexed to the City of Denton Texas and the same is f made hereby a part of said City and the land and the present and future inhabitants thereof shall be entitled to all the rigghts and privileges of other citizens of said City and shall be aub,ject to and shall bear its prorata part of the taxes levied by the City. The tract of land hereby annexed is described as follows, to-wit: All that certain tract or parcel of land lying and being situated a in the county of Denton, State of Texas, being part of the J. Taft survey, Abst. No. 1256, J. White survey, Abst. No. 1433, D. Hough s. survey, Abst. No. 646, D. Lambert survey, Abst. No. 784 and the M.E.P. & P.R.R. survey, Abst. No. 950 and more particularly described as follows; BEGINNING at a point in the present city limits as established by Ordinance No. 65-43, Tract 11, said point also lying at the y intersection of thR east right-of-way line of Mayhill Road with a point 750 feet nortt.east of and perpendicular to the centerline of I.H.35F.; THENCE Northwesterly along said present civy limits, 750 feet northeasterly of and parallel with the centerline of I.H.35E an approximate distance of 5812.8 feet to a point for a corned in the present city limits; PAGE ONE r.v F ~f w r i Y f i , 1 J z f.. , r y r;{{ G t d t tit 1 r F 1 ' it W 4 vrY t `d if v !a 1 "i i 'Y~"r••y, ~ * ~~11~ dl.f r• f, ~ ~}i T. at§ v ~ +~j ~+n~ i '2 1 f f tr THENCE North 1°42' East along the present citq limits as < established by Ordinance No. 80-38, a distance of 917.4 feet to rr a point for a corner, said point lying 600 feet southeasterly of and perpendicular to the southeast right-of-way line of Loop 288; THENCE Northeasterly along the present city limits as established by Ordinance No. 65-43, Tract I, 600 feet southeasterly of and parallel with the east right-of-way line of Loop 288, to the east boundary line of the J. Taft survey, Abst. a: No. 1256, same being the west toundary line of the J. Cheek survey, Abst. No. 324; THENCE South 0°54'02" West, along the present city limits as established by Ordinance No. 72-56, a distance of 939.6 feet to a point for a corner, same being the southwest corner of the J. Cheek survey, Abst. No. 324; THENCE South 89°11'35" East, along said present city limits, same being the south boundary line of the J. Cheek survey a distance of. 601.2 feet to a point for a corner, same being the northeast corner of the J. White survey, Abst. No. 1433 and the northeast corner of the D. Hough survey, Abst. No. 646; THENCE South, along the east boundary line of the J. White survey, same being the west boundary line of the D. Hough survey to a point for a corner in the Southwest right-of-way line of fj the M.K. & T. Railroad; r' THE14CE Southeasterly along the southwest right-of-way line of the M.K. & 1'. Railroad to a point for a corner at the intersection of the east right-of-way line of Mayhill Road with F the Southwest right-of-way line of the M.K. & T. Railroad, said point lying in the present city limits as established by Ordinance No. 78-38, Tract I; THE11CE South 50°47'50" West, along said present city limits, a distance of 198.49 feint to a point for a corner; THENCE South 36°3S"30" West, along said present city limits, a distance of 339.84 feet to a point for a corner; THENCE South 22°34'40" West, along said present city limits, a p distance of 151.74 feet to a point for a corner, THENCE South 16°4G' West, along said present city limits, a distance of 615 feet to tho place of beginning and containing 235 acres of land more or leas. All that certain lot or tract of land lying and being situated in the county of Denton, Stata of Texas, being part of the G. Walker survey, Abst. No. 1330 and more particularly described as follows; ap BEGINNING at a point in the present city limits, said point lying at the most easterly southeast corner of the tract as described, in. Ordinance No. 78-38, Tract II; THENCE North 4°34'57" East, along the said present city limits, a distance of 577 feet, more or less, to a point for a corner; THENCE East, a distance of 1444.6 feet, more or less, to a point for a corner, said point being the northwest corner of a tract of land conveyed to Gilbert Waldrip by deed recorded in Volume 1032, Page 971, of the Deed Records of Denton County, Texas; THENCE South 85°14'21" East, along the north boundary line of said tract, passing at 446.61 feet the northeast corner of said tract, same being the northwest corner of a tract conveyed to PAGE TWO t Slv '..a l i~ ! w ~~1 Ci a1 .3° 1 ~K iqG1 7 . Kw' M l i+ L ~ tl• ~SC a 4r t,. c r r ~ e J~ a J" L..~Y~.'+"'~.n~•e.~~d. .M" Ch_ .f'~~: Si Yritl ~ 1 et,( Z~- 1 .'f ~'!««l ~,~~,i a~'f d4$~ A"7 r~~lr61 „ r nl~ ~ , r ~ ~ • ~ ~ ~ !1 ~~''h~1 ! ° o it .7, {~4 1 ~ (,2 ' 1 }7 7'!~ l':! !)V!! Ir 11 ti ~.h 16 .~Y^ r S>.~ ~SY 4. i~ +,P ~ t.y3 r # ~"}rr~t .~rr f y~,r~~l~vF' 4K 71 ?fy~! r. ~R rl f.~k,~~' ~~~r~r a~ ~r ~G ~ ~"1 ~~3~ 1 ~ !k .Y , r.r ~ . ~ k~, 1f t r.h > f1 X ,1 a1r ~ .~i~" ~ ~Z~~' G4~~ ~ ~ 7,* r, b~lj~ y `'~,j. ~ ~+~r; 1~~'~•rlr .y t'~ ~`K. "t r A~ ~ f / 4 A. t+ ~ 7 z, 7 ps 1 ;1 '1`a Page Rd Joint Venture by deed recorded in Volume 1219, Page 388, of the deed records of Denton County, Texas, and continuing for a total distance of 1575.94 feet to a point for 3 corner, sr being the northeast corner of said Page Rd. Joint Venture trLQt; THENCE South 7°59'46" East, along the east boundary line of said tract, a distance of 355.27 feet to a point for corner; THENCE South 2°04'27" East, along the east bounary line of said tract, a distance of 497.33 feet to a point for a corner; THENCE South 2°21'48" West along the east boundary line of said tract, a distance of 315.27 feet to a point for a corner; THENCE South, along the east boundary line of said tract a distance of 165.27 feet to a point €or a corner, same being the southeast corner of said tract, said point lying L~ Page Road; Y ! ,y! THENCE North 85°14'21" West, along the south boundary line of said tract, along Page Road, a distance of 1264.7 feet to a point for a corner, same being southwest corner of said tract; r THENCE North 3°29'42" East, along the west boundary line of said tract, a distance of 738.6 feet to a point for a corner; 'k; THENCE West, passing at 463.5 feet the southeast corner of a tract conveyed to L. C. Dupree by deed recorded in Volume 530, t Page 54, and continuing for a total distance of 798.5 feet to a point for a corner, same being the southwest corner of said Dupree tract and the southeast corner of a tract conveyed to Richard H. Barca by deed recorded in Volume 543, Page 496, of the Deed Records of Denton County, Texas; THENCE 89°58'20" West, along the south boundary line of said J Barca tract, a distance of 481.26 feet to a point for a corner, same being the southeast corner of a tract conveyed to Andrews Corporation by deed recorded in Volume 912, Page 790, of the ; Deed Records of Denton County, Texas; THENCE North 86°06'50" West, along the south boundary line of said tract, a distance of 621.96 feet to the place of beginning and containing 63 acres of land more or less. All that certain tract or parcel of land lying and being situated in the county of Denton, State of Texas, being part of the G. Walker survey, Abst. No. 1330 and more particularly described as €ollows; BEGINNING at a point in the present ci:y limits as established by Ordinance No. 83-18, said point being the most southerly southwest corner of the tract as described in said ordinance and the northwest corner of a tract conveyed to Bonnie Coonrod by deed recorded in Volume 432, Page 194, of the Deed Records of Denton County, Texas; THENCE South 87°11'36" East, along the said present city limits, same being the north boundary line of said Coonrod tract, a distance of 500.6 feet to a point for a corner; THENCE South, 500 feet east of and parallel to the west: boundary line of said Coonrod tract, a distance of 1595 feet, more or less, to a point for a corner iu the south boundary line of said Coonrod tract; THENCE North 89°46'37" East along the south boundary line of said Coo#irod tract passing at 147.67 feet ti,e northwest corner of a tract conveye~ to Park Services, Inc. by ad recorded in PASS THREE ~ 1~ ►~~I~ I ' ~ r r,'~ i17 +y+y''S ~Ir 9. _ y' )1 ~F+ r, r[ n. Rn fr ~ LLit ri i.,,~ „ ' I ~11! ] ! IYr U fi~Ray~{t'k r\4 ~.kk1 r „r.; Zf Yt f! !"➢1 `aJ' i' ~I V r ~rcl~r r'.. alt T# r x}1 .f .F. ~ ~ .1:t1 _ v 1 l( Sv f~..1 .ti ';J ve .xf _ _~.ill ~_~E 3-~~~ t ~~t it .~v'.~ is l ,f ~4. r' ~ -k~ 4.w `y~ , t•. ,~t6r' 1 K y~ 7> y~~ ~ r ► t 't v, t t.t 6 r! .lu `o d , 3n ~N 1 ✓ C},~ t tM.,(v i ~ ^ t • 6 t ~ Ps ) * ~ ' ~ 1~1. ~ . fr1 t d t 1+ .F Volume 1243, Page 604 of the Deed Records of Denton County, Texas, and continuing for a total distance of 1551 feet to a point for a corner, same being the northeast corner of said Park Services, Inc. tract and lying in a north and south road known 1k as Swisher Road; THENCE South along the east boundary line of said Park Services, Inc. tract and in said road, a distance of 678.27 feet to a point for a corner, same being the southeast corner of said Park Services, Inc. tract; THENCE South 89°38'54" West, along the south boundary of said " Park Services Inc. tract , passing at 589.39 feet the most southerly southwest. corner and continuing for a total distance of 2051 feet to a point for a corner; THENCE North passing at feet the southwest corner of said Coonrod tract and continuing along the west boundary line of said Coonrod tract a total distance of 2304 feet to the place of beginning and containing 50 acres of land more or less. SECTION II. The above described property is hereby classified as Agricultural "A" District and shall so appear on the official zoning map of the City of Denton, Texas, which map is hereby amended accordingly. SECTION III. b, This ordinance shall be effective immediately upon its passage. Introduced before the City Council on the i 4jday 1 of y _r-, 198'19. / ~ PASSED AND APPROVED by tine City Council on the r`~day of :~Z6,-,,~i~,,; 1984. "rl ~ e CIT OF DE TON, TEXAS ATTEST: C OTTE~~~ SECRETARY CITY OF DENTON, TEXAS d - APPROVED AS TO LEGAL FORM: ' r C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS i r BY: AL- PAGE FOUR lei; 4 c w.k t y , x 7 7r . .7/4(r a rSai'xC l N~ T ,y t~Tf h i~~A /Ti17 \ i s Y r, i r+a v f ~fVfii T, f' W 1•" l~ ( 2~14.'~~ ~~jti\l~ yyS u 1 1 li i 4 y y~~ L(~~ Mi r' ~~V r ~A"~ i f v e , 1 ~'Y r 1~ TITy ~J°~.klyi ~x ~ v 4ti,'~ ✓h` ~~~rr J t' J ^4 ' Ali f,41 t' 1F P',AN OF SERVICE FOR ANNEXED AREA, CITV OF DENTON, TEXAS k~' WHEREAS, Article 970a as amended requires that a plan of service be adopted by the governing body of a city prior to passage of an ordinance annexing an area; and WHEREAS, the City of Denton is contemplating annexation of an area which is bounced as shown on a map of the proposed annexation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: Section 1. Pursuant to the provisions of Article 970a as amended, Texas Code Annotated, there is hereby adopted for the proposed annexation area the following plan of service: I. Basic Service Plan A. Police i- (1) Patrolling, radio responses to calls, and other routine polic:, services, using present personnel and equipment, will be provided on the effective date of annexation; (2) Traffic signals, traffic signs, street markings, and other traffic control devices will be installed as the need therefore is established by appropriate study and traffic standards. B. Fire (1) Fire protection by the present personnel and equip- ment of the fire fighting for^e, will be provided ou the effective date of anne•.:-ttion. C. Water (1) Water for domestic, commercial and industrial use mill be provided at city rates, from existing city lines on the effective date of annexation, and thereafter from new lines as extended in accordance with article 13.06 of appendix A of tne code of the City of Denton, Texas. D. Sewer (1) Properties it the annexed areas will be connected to server lines in accordance with article 13.06 of appendix A of the code of the City of Den6un, Texas, E. Refuse Collection l (1) The same regular refuse collection service now pro- vided within the city will be extended to the annexed area within one month after the effective date of annexation. r ` 4 1 44 pg11 .~j { r ,tt ry ~ a , f C f 1 I ` s l i 1 F_ ,7 ~SL "ri`^ ~ v 1 j $ti i rl 4f r t ".ij \ i ~ J tir ~Syfr ~1, kr' ~ rL:4 , 1 ..i q fr., ~..rte ~ 1 K+1 +~',Gur of 7'1S/t7 ~'S \FY ° ° l 1' , 1. } i~ . .411 , T~f[.•a 1 «,r n~ R Z °r ~ ~ r TP ♦ F° r YJ+ r J\ r f f s' , 7 ,X11. \ i IIn*' 'S rx'~,,,J'yttt~~~~~t op v< f w Y.r , ~ r '4 :t r 1C r, i w`1 1 ar,3 a'y J fv~~~. R 1 M d ,Y "r J I r i ,l .'Q n ~ , it rr ~Y ~ v„ ~ 1 r. 1 i 1 nr y 1 fry a< l.i ef'r (yA; 1( rl'1 tiiry~p 'q. ~ 4 ~R wit P•W ~ C 1 ~ 4' ~ 1 A '9 Vi I~ G 9 'Y"' 0 X 4 ,`7A f~j 4 / 17~'rf1. I ~ ~ WEIM F lot 1 Y R • :4.~ • t{. It, r. y'.'. ra yt.:. 7:.° v'. a77'•• • .'„'aC .a..'F rlL:C'.i1 ~ficC Service Plan Annexed Areas Page two F. Streets' (1) Emergenc- maintenance of streets (repair of hazardous i chuckhu' s, measures necessary for traffic flow, etc.) will begin on the effective date of annexation. (2) Routine maintenance on the same basis as in the present city, will begin in the annexed area on the effective date of annexation, I (3) Reconstruction and resurfacing of streets, installs- f tion of storm drainage facilities, construction of curbs and gutters, and other such major improvements, as the need therefore is determined by the governing body, will be accomplished under the established policies of the city. G. Inspection Services } (1) Any inspection services now provided by the city I (building, electrical, plumbing, gas, housing, f ! sanitation, etc.) will begin in the annexation area >Ri on the effective date of annexation. H. Planning and Zoning (1) The Planning and Zoning jurisdiction of the city will extend to the annexed area on the effective date of annexation. City planning will thereafter ' encompass the inexed area. p= I, Street Lighting (1) Street lighting will be installed in the substan- tially developed areas in accordance with the JJ established policies of the city. I J. Recreation (1) Residents of the anne::ed area may use all existing s: recreational facilities, parks, etc., on the effec- tive date of annexation. The same standards and policies now used in the present city will be fol- lowed in expanding the recreational program and facilities in the enlarged city. kJ K. Electric Distribution as (1) The city recommends the use of City of Denton for electric power, 1 i g i.'r•y i r i s 1 .1 11 ♦ / { i .'..J- : 0.'b. a,T:e u' s.-.. p. ♦ ~.t,'i"YC V`Yj' Service Plan Annexed Areas Page three L. Miscellaneous ~ (1) Street name signs wher•~ needed will be installed within approximately 6 months after the effective date of annexation. II. Capital Improvement Program (CIP) The CIP of the City consists of a five year plan that is up- dated yearly, The Plan is prioritized by such policy guide- lines as: +y (1) Demand for services as compared to other areas based partly on density of population, magnitude: of problems compared to other areas, established' ri technical standards and professional studies, and natural or technical. restraints or opportunities. } (2) Im an.t on the balanced i p growth policy of the city. JC i (3) Impact on overall city economics. i The annexed area will be considered for CIP planning in the upcoming CIP )lan, which will be no longer than one year from the date of annexation. In this new CIP planning year the annexation area will be judged accordingly to the same; established criteria as all other areas of the city. kx: 1 t; ' 1 I 4 A lj ye" • i E NO. AN ORDINANCE ANNEXING A TRACT OF LAND COLITIGUOUS AND ADJACENT TO THE CITY OF DENTON, TEXAS; BEING ALL THAT LOT, TRACT OR PARCEL OF LAND CONSISTING OF APPROXIMATELY 267.08 ACRES OF LAND LYING AND BEING SITUATED IN THE COUNTY OF DENTON, STATE OF TEXAS, AND BEING x PART OF THE 0. BREWSTER SURVEY, ABSTRACT NO. 56, A. THOMPKINS SURVEY, ABSTRAAT NO. 1246, A. HICiCMAN SURVEY, ABSTRACT NO. 521 AND y' THE J. EDMONSON SURVEY, ABSTRACT NO. 400, DENTON COUNTY, TEXAS; CLASSIFYING THE SAME AS AGRICULTURAL. "A" DISTRICT PROPERTY: AND DECLARING AN EFFECTIVE DATE. i WHEREAS, the request for annexation was introduced at a regular meeting of the City Council of the City of Denton, Texas, on the petition of the City of Denton, Texas; and WHEREAS, an opportunity was afforded, at a public hearing held for that purpose on the T~L day of 1983 in the Council Chambers for all interested persons to state their views and present evidence bearing upon the annexation provided by this ordinance; and WHEREAS, an opportunity was afforded, at a public hearing held for that purpose on the jf+ day of , 1983 in the Council Chambers for all interested persons to state their views and present evidence bearing upon the annexation provided by this ordinance; and WHEREAS, this ordinance has been published in full at least one time in the official newspaper of the City of Denton, Texas, prior to its effective date, and after the public hearings; x NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION I. That the hereinafter described tract of land be, and the same is hereby annexed to the City of Denton, Texas, and the same is made hereby a part of said City and the land and the present and future inhabitants thereof shall be entitled to all the rights and privileges of other citizens of said City and shall be bound by the acts and ordinances of said City now in effect or which may hereafter be enacted and the property situated therein shall be subject to and shall bear its prorata part of the taxes levied by the City. The tract of land hereby annexed is described as follows, to-wit: i All that certain tract or parcel of land lying and being situated in the County of Denton, State of Texas, and being part of the 0. Brewster Survey, Abstract No. 56, A. Thompkins Survey, Abstract No. 1246, A. Hickman Survey, Abstract No. 521 and the J. Edmonson Survey, Abstract No. 400 and being more particularly described as follows: BEGINNING at a point in the present city limits as established by Ordinance No. 60-40, said point lying in the intersection of the west right-of-way line of the G.C. & S.F. Railroad with the south boundary line of the A. Hickman Survey, Abstract No. 521; S THENCE crest along the south boundary line of said Hickman Survey, a distance of 1730 feet, more or less, to a point for a corner, same being the southwest corner of the said Hickman Survey; THENCE north along the west boundary line of the said Hickman Survey, a distance of 2130 feet, more or less, to a point for a corner lying in an east and west county road (Roselawn); PAGE 1 P' rs 'xt T I III w 1 THENCE west along the center of said county road a distance of 1880 feet, more or less, to a point for a corner in the west } boundary line of the J. Edmonson Survey, Abstract No. 400 and the east boundary line of the W. Sajvis Survey, Abstract No. 1174; THENCE north along the east boundary line of W. Sajvis Survey, a distance of 1100 feet, more or less, to a point for a corner, same being the northeast corner of the W. Sajvis Survey, said point also lying in an east and west county road; THENCE west along the north boundary line of the W. Sajvis Survey and in an east and west county road to the southwest corner of Lot 23 of the Solarway Addition for a corner; THENCE north 1°18'49" east a distance of 592.76 feet to a point for a corner, same being the northwest corner of Lot 21, Solarway Addition; THENCE south 87°17'13" east a distance of 387.56 feet to a point for a corner, same being the southwest :orner of Lot 10, Solarway Addition; THENCE north 4°55' east a distance of 33.3 feet to a point for a corner same being the southeast corner of Lot 9, Solarway Addition; THENCE north 42°52'40" west a distance of 75.76 feet to a point for a corner; THENCE north 69°49'15" west a distance of 80.26 feet to a point for a corner; THENCE north 14°56'43" west a distance of 70.14 feet to a point for a corner; THENCE north 39°25'17" west a distance of 119.03 feet to a point for a corner; THENCE north 2°30'08" ea3t distance of 186.85 feet to a point for a corner, same being t.,e northwest corner of Lot 9 and the southwest corner of Lot 8, Solarway Addition; J THENCE north 19°47'27" east a distance of 713.54 feet to a point for a corner, same being the northwest corner of Lot 1, Solarway Addition; THENCE south 89°12'11" east, along the north boundary line of said Lot 1, a distance of 483.25 feet to a point for a corner, said point lying 500 feet west of the .-ast boundary line of the O. S. Brewstut Survey, Abstract No. 56; q THENCE north, 500 feet west of and parallel with the east boundary line of said Brewster survey, an approximate distance of 700 feet to a point for a corner, said point lying 500 feet west of and perpendicular to the -intersection of the east boundary of said survey with the southwest tight-of-way line of the G.C. & S.F. Railroad; THENCE east, a distance of 500 feet to a point for a corner, said point lying at tLe intersection of the east boundary line of said survey with the southwest right-of-way line of the G.C. & S.F. Railroad, said point also being the present city limits as estab- lished by Ordinance No. 60-40; THENCE southeasterly along the present city limits as established 114 by Ordinance No. 60-40 same being the west right-of-way line of the G.C. & S.F. Railroad a distance of 7000 feet, more or less, to PAGE 2 ~~ti,k r I I K140=~~ the place of beginning and containing 268.74 acres of land, more or less. ' SAVE AND EXCEPT all that certain lot, tract or parcel of land lying and being situated in the City and County of Denton, Stake of Texas, and being part of the 0. S. Brewster Survey, Abst. No. 56 of Denton, and also being part of a tract of land as conveyec; from Earl W. Wilson to Sue M. Wilson by deed recorded in Volume 774, Page 633, of the Deed Records of Denton County, Texas, and more particularly described as follows: BEGINITING at an old iron pin at a fence corner at the southeast corner of said 2.11 a re tract and on the east boundary line of said Brewster Survey; THENCE 87°03'10" W. with said fence 269.36 feet to a steel pin at a fence corner on the east line of Connie Brae Street; THENCE N. 20055' E. with the east line of said Street 420.5 feet to a steel pin at a fence corner at the southwest corner of a tract out of said 2.11 acre tract as described in a deed from Lavella Barber to J. H. Howard and wife, on November 14, 1964, and recorded in Volume 516, Page 140, Deed Records of said County; THENCE S. 72'12'40" E. with said fence 124.85 feet to a steel pin at a fence corner on the east line of said 2.11 acre tract and of said Brewster Survey; THENCE South with said fence and said survey line 340.8 feet to the place of beginning, CONTAINING in all 1.654 acres of land. SECTION II. The above described property is hereby classified as Agricultural "A" District and shall so appear on the official zoning map of the City of Denton, Texas, which map is hereby amended accordingly. SECTION III. This ordinance shall be effective immediately upon its passage. Introduced before the City Council on the /j 0- day of 1983. PASSED AND APPROVED by the City Council on the day of 1984. r I ~ RI HARD 0 STEWA MAYOR CIT OF NTON, TEXAS r P ATTEST: A 1114b C RLOTTE'ALLLNO CITY-SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS ff e~tat BY:~ PAGE 3 w l r. ~ qkk •E:: .r: }ri ~ t'.'-.>?,r . _ re _...L-.::... r.r +M-'_..W. ~'FlFA .:aViK.Gr wh. 74 PLAN OF SERVICE FOR ANNEXED-AREA, CITY OF DENTON, TEXAS WRFREAS, Article 970a as amended requires that a plan of service be adopted by the governing body of a city prior to passage of an ordinance annexing an area; and i x. WHEREAS, the City of Denton is contemplating annexation of &n area which is bounded as shown on a map of the proposed annexation. w NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: lr ' Section 1. Pursuant to the provisions of Article 970a as amended, Texas Code Annotated, there is hereby adopted for the proposed annexation area the following plan of service: I. Basic Service Plan r A. Police Patr,'ling, radio responses to calls, and other _ routine police services, using present personnel and equipment, will be prov4.ded on the effective date of annexation; ' x (2) Traffic signals, traffic signs, street markings, and other traffic control devices will be installed _ as the need therefore is established by appropriate study and traffic standards. B. Fire rr' F: 'r (1) Fire protection by the present personnel and equip- ment of the fire fighting force, will be provided ' on the effective date of annexation. C. Wat er (1) Water for domestic, commercial and industrial use will be provided at city rates, from existing city r lines on the effective date of annexation, and thereafter from new lines as extended in accordan^,e with article 13.06 of appendix A of the code of the { City of Denton, Texas. D. Sewer AF (1) Properties in the annexed areas will be connected to sewer lines in accordance with article 13.06 of appendix A of the code of the City of Den6un, Texas. E. Refuse Collection (1) The same regular refuse collection service now pro- vided within the city will be extended to the annexed area within one month after the effective date of annexation. k. s; ` l ! I{j w W nr r, , ' • r. -..+1. s.:.a J,'._aru;.i ji.i►,..41::-!~~,tra4ii•,M.t s~?,; ?r; =~s Service Plan Annexed Areas Page two F. Streets R,. (1) Emergency maintenance of streets (repair of hazardous i chuckholes, measures necessary for traffic flow, etc.) +.R will begin on t'..e effective date of annexation. i - (2) Routine maintenance on the same basis as in the Fy: i present city, will begin in the annexed area on i the effective date of annexation. (3) Reconstruction and resurfacing of streets, installa- tion of storm drainage facilities, construction of i curbs and gutters, and other such major improvements, i as the need therefore is determined by the governing body, will be accomplished under the established policies of the city. G. Inspection Services (1) Any inspection services now provided by the city (building, electrical, plumbing, gas, housing, sanitation, etc.) will begin in the annexation area on the effective date of annexational H. Planning and Zoning (1) The Planning and Zoning jurisdiction of the city will extend to the annexed area on the effective date of annexation. City planning will thereafter encompass thes annexed area, °.3 I, Street Lighting` (1) Street lighting will be installed in the substan- tially developed areas in accordance with the established policies of the city. ,F J, recreation (1) Residents of the annexed area may use all existing -i recreational facilities, parks, etc., on the effec- tive date of annexation. The same standards and } policies now used in the present city will be fol- lowed in expanding the recreational program and facilities in the enlarged city. r 1 K. Electric Distribution. (1) The city recommends the use of City of Denton for electric power. f i j t1 3 ~5 w i R 7_7 77 _ .y,. yyC ~ ; v y service Ptan 3 Annexed ..reas Page three L. Miscellaneous (1) Street name signs where needed will be installed within approximately 6 months after the effective date of annexation. II. Capital Improvement Program (CIP) i s The CIP of the City consists of a five year plan that is up- dated yearly. The Plan is prioritized by such policy guide- lines as: (1) Demand for services as compared to other areas based partly on density of population, magnitude 1 of problems compared to other areas, established technical standards and professional studies, and :y natural or technical restraints or opportunities. (2) Impact on the balanced growth policy of tae city. (3) Impact on overall city economics. `rl The annexed area will be considered for CIP planning in the upcoming CIP plan, which will be no longer than one year from the date of annexation. In this new CIP planning year the annexation area will be judged accordingly to the same established criteria as all other areas of the city. 16 3c 'A 7 .,K i y g 4 i. } k ~ q RESOLUTI6N t WHEREAS, the City Council of the City of Denton, Texas, R recognizes that the consumption of alcoholic beverages while s operating a motor vehicle is a significant factor in a large number of tragic accidents and deaths on Texas Highways; and "'`tsk WHEREAS, the Attorney General of the State of Texas has I. +,~rr declared that cities do not have the authority to adopt local ky. ordinances banning the possession of alcoholic beverages in motor yry vehicles; now, therefore x BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON, TEXAS: SECTION I. That the Legislature of the State of Texas is urged to enact legislation prohibiting the possession of alcoholic beverages in motor vehicles or, alternatively, authorizing cities to do so by , 1 j local ordinance; That all citizens of the City of Denton are hereby encouraged to support such legislation by contacting their elected state representatives; and That the City Secretary is hereby directed to forward a copy of this Resolution to the elected state representatives and senators representing the citizens of the City of Denton, Texas. PASSED AND APPROVED this the 7k day of February, 1984. G I D 0. STE T, MA R CIT OF D NTON, TEXAS f i ATTEST: r ; . -ALLEN, -CITY bELALTAKI CITY OF DENTON, TEXAS r, ,..r APPROVED AS TO LEGA,. FORM: C. J. TAYLOR, JR., CITY ATTORNEY i' , -„k INDEPENDENT CONSULTANT'S AGREEMENT THE STATE OF TEXAS § +p KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DFNTON § The City of Denton, Texas, a Municipal Home Rule City situated in Denton County, Texas, hereinafter called "City," acting herein by and through its City Manager, and Jerry Wright, hereinafter called Consultant, hereby mutually agree as follows: 1. SERVICES TO BE PERFORMED: City hereby retains Consultant to perform the hereinafter designated services and Consultant agrees to perform the following services: A. To provide professional space planning services for the Municipal Building Renovation Projects. 2. COMPENSATION TO BE PAID CONSULTANT: City agrees to pay Consultant for the services performed hereunder as follows: A. An hourly rate of Fifty ($50.00) and No/100ths Dollars, not to exceed a total sum of Five Thousand ($5,000.00) and s No/100ths Dollars. .r~ B. Dates of Payments: By monthly invoice. 3. SUPERVISION AND CONTROL BY CITY: It is mutually understood and agreed by and between City and Consultant that Consultant is an independent Contractor and shall not be deemed to be or con- sidered an employee of the City of Denton, Texas, for the purposes of income tax, withholding, social security taxes, vacation or rick leave benefits, or any other City employee benefit. The City shall not have supervision and control of Consultant or any ,r employee of Consultant, but it is expressly understood that `x Consultant shall perform the services hereunder at the direction ` of and to the satisfaction of the City Manager of the City of - Denton or his designee under this agreement. 4. SOURCE OF FUNDS: All payments to Consultant under this `s agreement are to be paid by the City from funds appropriated by x1; the City Council for such purposes in the Budget of the City of Denton. 5. SERVICES AND SUPPLIES TO BE FURNISHED BY CITY: City agrees to furnish to Consultant the following services and/or supplies: A. None. rA ~ ~l';S"~'• fRF ~r~y1~`~it .t { ~,'y, : ;.fX J, ~ 'f:rt . a'~r>> y i:- S ♦,Yj-' E.}.'.?..' ya a '',S ?r.-1.'%4~ ~ 'i~l, ,r b4 , Jh } 6. INSURANCE: Consultant shall provide at his own cost and expense workmen's compensation insurance, liability insurance, - and all other insurance necessary to protect Consultant in the r operation of his business. 1. CANCELLATION: City reserves the right to cancel this Agreement at any time by giving Contractor fourteen (14) days written notice of its intention to cancel this Agreement. 8. TERM OF CONTRACT: This Agreement shall commence on the 8th day of February, 1984, and end on the 30th day of September, 1984. EXECUTED this the day of 1984. CITY OF DENTC TEXAS BY L ATTEST: CHARLOTTE ALLEN9 GifY bECKETARY /APPROVED AS TO LEGAL FORM C. J. TAYLOR, JR., C'_TY ATTORNEY BY:D`~ 1'c1 Lyr ' Y. fl BY: 7 , ,:y 6 :pY is hereby designated as That 141 ' the person to administe the provision of this agreement. D.cr,eMA7, wl1fwGL'!1'~.l~1EJa~ / a L -~x f 1(t1. Y' fu t i ✓ a' . ° X ' 1 f { 1 9 ~ ~ ^vr f~ ~ i s ♦ Yr j dRi a . 5 . iY r. 'f.~ ° i 1'' , f t'°.r,X. \ y~. y,. ur. 4, Y~'Ji~~ Tr ~:~,.E ~ ~_.f: .fiy~,. S 11h~Tf ;0000 j! r THE STATE OF TEXAS § LEASE AGREEMENT COUNTY OF DENTON 4 _ This lease is made between the City of Denton, Texas, a homo rule municipal corporation, as Lessor, and Mr. Louie Hubbert, doing business c { 4.; I as Consultant Service Associates, Ltd. Lessor hereby leases to Lessee and Lessee hereby hires :ro- Lessor, office space as presently constituted (hereinafter called "premises") in the City of Denton Air;,ort Administration Building located at the Deuton Municipal Airport, herein referred to as Office "B" as described on Exhibit "A" attached hereto and incorporated herein by reference. The office space is leased fora period of one (l ) year, commencing on the day of 1984, and ending on the M day of 198/ der the terms contained herein, +y' However, either part may cancel this lease upon thirty (30) days t advance written notice to the other party. The Lessee shall pay to the Lessor the monthly rental of One Hundred Dollars ($100.00), due and payable in full, in advance, on the ' first day of each calendar month. Al] monthly rental and any notice of cancellation to Lessor shall be addressed or made payable to the City of r+ ` Denton and delivered to the Denton Municipal Airport Manager at his office or such other place as the Lessor may designate in writing. S Lessee shall commit no act of waste and shall take good care of the premises and fixtures and appurtenr,aces therein, and that at the ex- piration of the lease, peaceable possession of the said premises shall be given to the Lessor in as good condition as at the beginning of this 4 lease, usual wear and tear, damage by fire, and acts of God or the c; elements excepted. Lessor shall furnish heating, air conditioning, and necessary electricity for lighting and the operation of usual office machines. Lessor shall have the right of access at reasonable times for examining and raking repairs to said premises. t LEASE AGREEMENT/PAGE ONE t t ! Y 200 Pt' Lessee shall not engage in, nor permit any third party to engage in, the following activitieq: 1. Avionic Sales and Services ' 2. Selling of Pilot Supplies 3. Operation of a Flight School x. 4. Aircraft Storage rq y 5. Aircraft Maintenance 6. Aircraft Sales 7. Aircraft Rental 8. Aircraft Charters 9. Fuel Sales 10. Overnight or monthly tie-down rentals. Lessee shall not assign nor sublet this lease nor any part thereof without first obtaining the written consent of Lessor. Time is of the essence of this lease with respect to the perfor- mance by the Lessee of its obligations hereunder. The covenants herein shall extend to and be binding upon the heirs, executors and administrators of the parties to this lease. Lessee's failure to cure a breach of any of the covenants and conditions contained herein after thirty (30) days written notice of such breach shall constitute an automatic termination of this lease and any and all of Lessee's rights hereunder shall cease. IN WITNiSS WHEREOF, the parties to this Lease Agreement have hereunto set their hands on this the day of 1984. LOUIS HUBBERT, d/b/P CITY OF DENTON, TEXAS CONSULTANT S£RV:S"ES LESSOR ASSOCIATES, LTD., LESSEE i BY: BY: ~F~ /4/ " IAA LOUIS HUBBERT IC RD 0. EWAR MAYO P. 0. BOA 51 KRUM, TEXAS 76249 ATTEST: CHARLOTTE ALLEN, CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS BY: e LEASE AGREEMENT/PAGE TWO 't t"j'~},~. ♦`^~'•T~':r~.~~~. lJ~p~"~'aa~'ibi ~}'4..'T '}'t` ~`.%f,' ' all . t.4 t. ,K. vM 3 V O Y ~ "a:zyrrt:~-~•rr ,--~'-tiii »~f-.~.~ r'_..._ yF' r .,,rw~, y, ~r:.r+3 awl UNITED STATES-BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION IN RE: § AEROSMITH DENTON CORPORATION § d/b/a DENTON PIPER SALES § S CITY OF DENTON, TEXAS § CASE NUMBER A HOME RULE MUNICIPAL § CORPORATION § 383-00278G Plaintiff § VS. § AEROSMITH DENTON CORPORATION § d/b/a DENTON PIPER SALES § Defendant § STIPULATION TO THE HONORABLE BANKRUPTCY JUDGE: WHEREAS, CITY OF DENTON, TEXAS, has filed its Second Amended Motion for Recovery of Real Property or, In the Alter- native, for Appointment of Trustee and to Require Rejection or Assumption of Unexpired Airport Lease, and WHEREAS, Aerosmith Denton Corporation desires to assign its lease through the Bankruptcy Court to Maverick Aircraft, Inc., a distinct and separate corporate entity, now, therefore, STIPULATION - PAGE 1 It is hereby stipulated and agreed by and between the parties hereto that: 1. Prio: to March 1, 1984, Aerosmith Denton Corporation will move the Bankruptcy Court to assign its lease to Maverick Aircraft, Inc. 2. The City of Denton, Texas, agrees that its above- referenced motion be dismissed upon the assignment of the lease. 3. Aerosmith Denton Corporation agrees to dismiss its action against the City of Denton filed in the District Court of Denton County, Texas, in the 158th Judicial District, Cause No. 83-5278-B and styled Aerosmith Denton Corporation d/b/a Denton Piper Sales v. The City of Denton, Texas at the time of the assignment. 4. Aerosmith Denton Corporation and Maverick Aircraft, Inc.., agree that the existing airport lease agreement be renegotiated with Maverick Aircraft, Inc., a corporatioi. i organized and existing under t'.ie laws of the State of Texas whose officers and principal stockholders are Otho Henderson, Jr., and William Smith, to provide for the return to the City of all or most of the leased premises north of Aerosmith's existing hangar and the road entering the airport save and e!ccept for Aerosmith's fuel farm, an easement for ingress and STIPULATION - PAGE 2 egress thereto, and retention of the existing ramp space west of Aerosmith's hangar and such other terms and provisions as permitted by FAA rules and regulations and upon which the parties may mutually agree. Upon execution of such renegotiated lease with Maverick Air, Inc., the existing lease with Aerosmith shall be null and void and all rights thereunder shall cease. 5. The City of Denton agrees not to object to the assignment of the lease to Maverick Aircraft, Inc., under such terms and conditions as are T.,utually agreeable to the parties hereto. DATED the ~ day of F~~RURR~ , 1484. CITY OF DENTON, TEXAS AEROSMITH DENTON CORPORATION d/~~b/a// DENTON PIPER SALES BY: RICHARD 0. STEWART, MAYOR ROBERT SMITH, PRESIDENT e~' - oce\ ~Ic"'Z-ta -0 t - " I C. J TA , JR. WILLIAM L. SMITH, JR. CITY ATTOR EY ATTORNEY FOR AEROSMITH DENTON CORPORATION MAVERICK AIRCRAFT, INC. BY: OTHO HENDERSON, PRESI NT STIPULATION - PAGE 3 ORDER The above and foregoing Stipulation is hereby APPROVED. ENTERED this the day of 1984. BANKRUPTCY JUDGE STIPULATION - PAGE 4 GXOfd, SAVE AN t , Davis-Walls Co. COMPANIES AFFORDING COVERAGES P.O. Box 461867 Garland, Texas 75046 Q National Indemnity Co. B National Fire 81 Marine Co. The Residence Service Department,In P.O. Box 50482 D Denton, Texas 76206 IE'1D' ai, d w.. ^1 !C1 2 5 c`2'l ( :.Cd ~a in !Gr Pd1 51'-e r n"c'd j y r(.V r rtn r, Ie'rl Gr conj6l On 01d^~yrr dI"';!' -.,^C'JM '~S 3'P'drG'-S..M .rr 1'p ."5.d Ue~,'~•j CY '_';;Ces dPSCr[~j I'e'eni 5s"btw to BID Ehe 1e7^ 53 7c 5 C15 h 5 r 1 limit, ct lubillty in ThOU'ta_nds{DW) IFt,.r I -1 la, E- n .q r.el.F GENERAL LIABILITY r i I s s J E t s iF r.FVa'..E f s rlr FEB 1984 Cn)t rL '.C U rlJ 'C'.! ~ cn r E V i%AL N.', c:. S AUTOMOBILE LIABILITY - IY •.,,.a, C_7' AG„ f 100, ,N W. I N - 1 1 BC pgY I'ifJFl f 30~0f a[.'. ,EACH VCIUNT1 A „ • GLA240532 2-8-85 - - 'r. rrxr't ~'r laVA ;C -f_rn E r:;.r EGrY paMP,C f .'FNV) E%CESS LIABILITY - Ell! C~ LMEtnIU IViI C~ G^~I t+l^~eY~_ MC~FER;r DaV ep[ ! It ~f'M? Nt WORKEP.S' COMPENSATION crAIUl:'P r 3f. J EMPLOYERS' LIABILITY s OTHER 100. ded, Firer Theft, CAC LB Physical Damage 3GL51182 2-8-85 500. ded. collision NoCRIVTr IN Of r~~[F~nONS 10l:A nilNS VEiaCI FS 1984 Ford Van, 1FBHS31GXEHA78213 Caneeilation: Should any of the above descnbed policies be cancelled be' -,.,e the eRplrat,on date thereof, the issuing corn- piny will endeavor to m31I t@n- days wr tier) notice to the belo'r% named certificate holster, but failure to m.11 such notice shall impose no obligation or Pabdlty of any hind upon the company. - - - - NAVE ati 'VA[ SOrl tqt rjr nFtin~rCo 2-10-84 City of SecretaDenton ,ArE SSUEG City Charlotte Allen _ Municipal Bldg. j~ Dentons Texas 76201 ei~ .~p;r~tEn fEPFEStat a: v,E A: cx~ s s I I r. I r February 14, 1984 City of Denton 215 E. McKinney Denton, TX 76201 SUBJECT: South Bonnie Brae Street Annexation CASE d : 1612 Honorable Mayor and City Council: With reference to the above, I am the owner of 32 acres of track subject to the Annexation. A copy of the survey is enclosed for reference. I respectfully submit that I was not aware of these proceedings until about two weeks ago. At the last coun^il meeiing I discovered that in certain options, some of the owner's property was being considered to be excluded from annexation. I am not sure what the reasoning behind it is, but whatever the reasoning, I would like this to be applied in my case as well. At this time, the general condition of the area, including roads, does not permit any reasonable development under city guide lines. In addition to a railway line bisecting my property, the sewer line is more than one mile away. Urder these conditions, I request that my property be excluded from annexation. Thank you for your kind consideration. Sincerely, Om Pfiiin a 529 Oakcrest Coppell, TX 75019 Copies distributed to: Mr. R.O. Stewart, Mayor Mr. Joe Alford, C.M. Mr. J. Barton, C.M. Mr. M. Chew, C.M. Mr. C. Hopkins, C.M. Mr. J. Riddlesperger, C.M. Mr. R. Stevens, C.M. Mr. C. Watkins, City Staff 9 to so w i r~ s i , O ` rll..i~J~M i ~ IJ r, r. i ~ 41 . / r Ir , , r r i~ J ~ I,l Y IIr t v 1 I Iv ~ >r ril OJ 71 r.r >lICrJ-. S , •Z J7./an dl f!! 1 •r Ysrr.e >u/> w P. Al f /u!J r I 1•N .1 IS J/r. I/ryy . r' Io!/t. raj.. fee 1 ,rn r[YYu rrlK( rIMI.II C'_LIL•.f!!.dN.lltcS!•/~Y..!-I!•SC ~•l..Ca+r✓►n.+l wslr. . r.•r.:i `lyS'.lr.Jd n~. GS1?JS--LlL.r.far• TO: City Council of Denton, Texas SUBJECT: South Bonnie Brae Street Annexation CASE NO: 1612 We, the following o4.ners of land in the above referenced Annexation proposal, respectfully submit, that. at the present time, we are against the annexation of our properties in the city of Denton. Goads and other development facilities do not permit any reasonable developments with the city guidelines. We hope that the council will consider our otjection seriously and not annox the proposed land under case # 1612. NAME (please print) ACRES SIGNATURE DATE OM R SINS C.A 32~/ 2VI-3 Y'13 / To 3 a~ 6. u. I- ni `A1-~~e 9s2xI 21 v 7. P PANS W iz 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. ADMINISTRATIVE SEKVICES GONTRACr FOX FINALIZING EPA GRANT I?OCU[IEyTATIUN s Contract made this ( Day of L, 1984, by and between the City of Denton, Texas, a wunicipal corporation organized and existing under t„e Home Rule Amendment to tiie Constitution of Texas, (aereina ter referred to as Denton) and Robert Fiorini (+iereinatter referred to as Consultant). WITNESSETH: WHEREAS, Denton wisnes to employ Consultant for the purpose of finalizing documentation of etie EPA Grants for Pecan Creek Wastewater i'reatment Plant, Hickory Creek interceptor lines and lift station and otuer associated collector and interceptor sewer lines. NOW, THEREFORE, the parties Hereto du uPreby agree as follows: 28[2U/1 SECTION 1 Consultant sLiall perform the services aua provide computer software as follows: A. Finish tiie building of a data uase for the wastewater treatment plant grant (C-46-libel-03) and toe corresponding report document. B. Build data bases and report documents for _ue Hickory Creek grant projects (C-48-118el-13 & C-48-11813-23). C. Provide Grant Administration computer software system complete with listings and documentation capable of operating on an 1dM PG3470 personal computer. V. 'Frain City of Denton personnel to use the system. E. Provide one day of audit assistance, when needed, during the grant audit. SECTION II In consideration of toe services performed by Consultant under this Contract, Denton shall pay Consultant $[,900. 28LLU/2 SF.C i IOiQ I I I Invoices stiall ue rendered upon completion of ttie project. SECTION 1V Tne Assistant Director of Utilities, Water/Wastewater Divisions, will serve as Project Hattager. 'file City will mane available to the Consultant all iniormation teat may ue relevant to the subject EPA Grants and associatea construction work. SEC'TIOi4 V Consultant will complete it's services under tnis Contract and deliver tiie requirea reports by April i5, 19d4. SECTION VI In no event shall Consultant oe liable in any cause of action for special, indirect or consequential damages of any nature. SECIOi3 VII The provisions of rnis Contract constitute the entire agreement between the parties and supersede all prior communications, representations, and aQreements, oral or written, between the parties hereto witti respect to ti,e subject. of t.iis Contract. 28'22U/3 IN WITNESS WHEREOF, the parties rtereunto set their hands and seals the ddy and year first aoova written. Robert Fiorini AT PEST By BY Title_ Titie_~ ATTEST: CITY OF DENTON, TEXAS By BY Title ' / / !Lll "Pit le ! --Ile 26220/4 Mr. Robert E. Nelson, Director Janue,-y 17, 1984 Denton Municipal Utilit:e 215 E. McKinney Street Denton, Texas 76201 Dear Bob, As you know, I have heer engaged in the deveicYment of a computerized grant administration system for micro-computer use. The system was designed to aid grant administration personnel by giving then a fast and easy way to tract: grant activities. Several weeks ago I picked up information (grant ledgers, engineering statements, etc.) on the Denton wastewater treatment plant expansion grant to be used as a sample data base for demonstrating the system. I have spent the past two weeps building the data file and debugging the system programs. Upon completion of this effort, it appeared to me that Denton could benefit greatly by having this information available for the State and Federal audits. In light of the fact that Denton will soon be receiving micro-computers and will also be involved in grant audits in the very near future, I would like to perform an end-of-project recap on all the City of Denton EPA grants. I would propose the following: A. Finish the building of a data base for the wastewater treatment plant grant (C-48-1188-t-3) and the corresponding report document. B. Build data bases and report documents for the Hickory Creek grant projects (C-48-1188-13 & C-48-118(3-23). C. Provide system program listings and docurrentatiutr . D. Train City of Denton personnel to use the system. E. Provide one day of audit assistance, when nefded, during the grant audit. The fee- for this effort is 129500. and will include any system modifications that might be neces<_•ary in running the system on your rricru-computer. I look: forward to discussing this further with you and demonstrating the system's capabilities. I think you will be more than impressed with what the system can do for you. Sincerely, Bob Fiorini J, J PROJECT INFORMATION FILE { I { NAME OF CITY DENTON I I NAME OF PRCaEC7 PECAN CREEK WWTP EXPANSION I SEGMENT DESIGNATION........ A STEP III I PROJECT NUMBER C-48-1188-03-01 WORK ORDER NUMBER.......... 9976 I GRANT AWARD AMOUNT......... $ 81565,000 PARTICIPATION PERCENT...... .750 PROJECT DAYS 365 PROJECT START DATE......... 101583 AFTER VIEWING FILE...PRESS THE ENTER KEY i CONTRACT INFORMATION FILE by COMPANY NAME OF COMPANY............ GRACON CONSTRUCTION CO. COMPANY PRESIDENT.......... JIM GRAVES PROJECT MANAGER............ JIM KERN PROJECT NAME PECAN CREEK WWTP EXPANSION PROJECT NUMBER C--+8-1188-03-01 ORIGINAL CONTRACT AMOUNT... $ 819859350 CONTRACT ADDITIONS......... $ 19,500 REVISED CONTRACT AMOUNT.... $ 91004,850 ORIGINAL RETAINAGE%........ .05 RETAINAGE REDUCTION .00 REVISED RETAINAGE%......... .05 ORIGINAL CONTRACT DAYS..... 365 CONTRACT ADDITIONS......... 50 REVISED CONTRACT DAYS...... 415 START DATE 101583 PURCHASE ORDER 99789 WORK ORDER # 9976 SEGMENT DESIGNATION........ A AFTER VIEWING FILE... PRESS THE ENTER KEY I GRANT BUDGET FILE ADMINISTRATION EXPENSE t 21500 PRELIMINARY EXPENSE t 0 LAND STRUCTURES/FLIGHT-OF-WAY t 0 ARCHITECTURAL ENGINEERING BASIC FEES..... t 46,975 OTHER ARCHITECTURAL ENGINEERING FEES..... t 329774 PROJECT INSPECTION FEES t 190,204 FINAL PLAN OF OPERATION t 775 0/M MANNUAL S 71000 LAB TESTING FEES S 30,000 OPERATOR TRAINING/START-UP t 45,479 CONSTRUCTION AND PROJECT IMPROVEMENT..... t 29045,662 INDUSTRIAL PRETREATMENT SURVEY........... t 0 INDUSTRIAL PRETREATMENT PROGRAM.......... t 0 CONTINGENCIES t 156,004 TOTAL GRANT BUDGET...... Z 295579-1-173 FEDERAL SHARE (75%) t 11918,O'-"C LOCAL SHARE (25%) t 639,343 AFTER VIEWING FILE... PRESS THE ENTER KEY PROJECT COMMUNICATIONS I HNMM1tltNNHhIMfiHHNhfHh1HHHNNNHHNHNHNHHHhfHHHNHHHHNNNHHHNNNNHHHh1HHHhHHNHHN!INNNHHNNNHH j t . DOCUMENT FILING SYSTEM t , t ADD record to file........ 1 t DELETE record from file... 2 t s REVISE record on file..... 3 s SET file printer.......... 4 s RUN reports... 5 t t t KEY PERSONNEL DIRECTORY PROPERTY INVENTORY SYSTEM s s ADD record to file........ b ADD record to file.......... 11 s DELETE record from file... 7 DELETE record from file..... 12 t REVISE record on file..... 9 REVISE record on file....... 13 s SET file pointer.......... 9 SET file pointer............ 14 RUN reports 10 RUN reports................. 15 s t NHIilfhlhlhlNMNHMHlfhl hlMHlilf/tHHItliHliNNNHh1MNNHhJHWNNhlHHHNIf hJW NHhJNHHNNNF!!!llNHNHNNHh1NlfHHHHHHHHI ENTER APPROPRIATE NUMBER FROM ABOVE (for MAIN MENU enter 99) ? i I I I I REPORT OPTIONS •r REPORT LISTING FOR ALL DOCUMENTS...... 1 s REPORT LISTING BY MONTH AND YEAR...... 2 I REPORT LISTING BY SENDER 3 REPORT LISTING BY RECEIVER............ 4 REPORT LISTING BY SENDER AGENCY....... 5 REPORT LISTING BY RECEIVER AGENCY..... 6 REPORT LISTING BY KEYWORD............. 7 ENTER APPROPRIATE NUMBER FROM ABOVE ? I I I KEYWORDS I I APPLICATION INSPECTION CHANGE ORDER MBE CONSTRUCTION M:SCELLANEOUS ENGINEERING REGULATIONS FINANCIAL WBE ENTER KEYWORD DESCRIPTION FROM ABOVE DATE 01-10-1982 TIME 13x24:40 FASE 1 • PROJECT GENERAL LEDGER ALL SEGMENTS f CATE I FEC 1 IRANSACTIGN I SES CHECK RECEIPTS I DISBURSEMENT : B+LAI:CE 1 DISBURSE 1 COMMENTS ! : 1740, ! DESCRIPTION I DES ; NUMOER 1 ff : 11 : $1 1 TYPE 1 : : 070120 1 12 1 C4SH DN HAND f A 1 1 f 2,182,930 I f 0: f 2,182,930 1 4RECEIPT 1 MATCHIIIS FUNDS 1 1 070180 : 14 1 CASH Cm HAND : B I 1 f 326,185 I f 0 1 f 29509,115 1 QECEIPT : MATCHING FUNDS I 1 02230 1 16 : 6RACGN CCNSTR. CO. : A 10l 90 ! f 0 1 t 2a1,C40 f 2,227,775 : CONSTR. 1 CCNSTR. EST. NO.1 1 : 09145; 1 l8 : EFA REIMB. N9.1 ! A I 1 f 211,005: 1 0 1 f 2,4381780 1 4RECEIPT 1 CK. NO. 14100324 1 : 091380 1 20 1 EAGL£ FORD CONSTR. ! B f 67329 : f 0 1 f 223,459 . f 21210,322 1 CONSTR. 1 CP`TR. (ST, NO.1 1 : 100180 ! 22 1 FFEESE/NICHOLS, INC. 1 A 1 61347 I f 0 f 14,886 1 f 2,195,636 1 ENG. 1 ENB. EST. NO.I I 1 1001&) 1 24 1 6RACCN CONSTR. CO. 1 A: 67348 I f 0 1 f 301,972 1 f 1,8931664 I CONSTR. I C%STR, EST. 10.2 I : 1001B0 : 26 1 FREE6EINICHAS. INC.: B : 67347 : f 0 1 1 6k413 1 f 118ES9251 : ENS. ! ENG. EST. NO.I 1 1 102:60 1 28 1 EFA REIMB. NO."' : A : I f 211,494 ! f 0 1 f 2,122,745 1 *RECEIPT : CK. NO, 15691780 : 1 162380 : 30 : EPA PEIM3. NO.2 I B I I 1 177,653 I f 0 1 f 2.30,390 ! (RECEIPT : Ck. NO. 156917EI 1 1 102780 :-32 1 SOUIHESTERN LAB I A: 67399 1 1 0 1 f 198:0 : f 21298,778 I MISC. : LA9 EST. NO.1 I 1 1027EO : 34 ! EASLE FCP.D CCNSTR. 1 B 1 61385 1 $ 0 1 f 1539027 I 1 21145,751 I CONSTR. 1 CCNSTR. EST. NO.2 1 1 102880 : 36 1 BRACON CCNSIR. Di. : A 1 67396 I f 0 ! f 4909529 1 1 1,655,222 I CONSTR. 1 CONSTR. EST. 740.3 1 111780 1 38 1 FREESPNICHR3. INC. : A : 8741] 1 f 0 : f 16,095 1 f 1,639,127 I ENS. : ENS. EST. N3.2 ! ® 1 111780 1 40 1 FFEESEMICNOL. , INC.: B 1 67417 ! f 0 ! f 19,162 1 f 1,6191965: ENG. : ENG. EST. N6.2 ! 1 11172) I 42 1 EPA REIMB. NO.3 1 B f 114,770 ! f 0 1 f 11134,735: WECEIPT 1 CK. NO. 65596975 : : 1117BD 1 44 1 EFA REIMB. NO.3 f A 1 : f 169,111 I f 0 1 1 21103,846 1 #RECEIPT 1 CK. NO. 65596975 1 ! 120180 ! 46 ! EASLE FORD CONSTR. : B : 67459 1 f 0 1 1 230,165: J 11813,681 : C0,STR. 1 CONSTR. EST. NO.3 ! 1 120580 ! 48 ! SOUIHXSTEFN LAB ! A 1 67462 1 f 0 : f 743 1 1 1,972,933 1 Al-C. 1 LAB ESI. NO.2 I 1 120550 ! 50 1 6RACGN CONSTP. CO. : A 167450 1 f 0 1 f 91450 : f 1,863,488 1 CONSTR. 1 SPECIAL EST. ND.1 1 1 120iP : 52 : SRACDN WiSTP. CO. ! A ! 67461 : f 0 1 $ 707,406 ! f 11156,082 : CONSTR. 1 CONSTR. EST. NO.4 1 :7.980 1 5) 1 SOUTOESTERN LAB : A 1 67502 1 f 0 1 f 31390 : f 1,1521892 : MISC. I LAB EST. NO.3 1 1 122430 1 56 1 EPA REIMB. N0.4 I A: : 1 550.270 1 1 0: f 11702,962 1 4RECEIPT 1 CK. NO. 18104289 1 1 122420 1 59 1 EPA REIM6. ?10.4 f B f 158,995 1 f 0 1 f 1,859,951 : 4REC:iPT : CK. NO. 16104209 : : 123084 1 60 1 FFEESEINICHOLS, INC. 1 A! 67517 I f 0 1 f 18,848 1 f 1471,309 I ENG. 1 ENS. EST, NO.3 f 1 123660 1 62 : EAGLE FORD CONSTR. 1 B 1 67516 : f 0 : f 165,977 1 f 11105,432 1 CONSTR. 1 CONSTF, EST. NO.4 1 1 123090 : 64 1 FFEESEINICHDLS, INC.: B 1 67517 1 f 0 1 f 1811-24 1 f 11687,308 ! ENS. ! ENS EST. ND.3 I 1 410581 1 66 1 GRACCS CO'iSTR. L0. 1 A 1 67518 1 f 0 1 f 8091222: f 1,078,06 1 CONSTR. 1 CONSTR. EST. NO.5 f 1 0114al 1 68 1 SOUTH'4ESTERN LAB I A 167543 1 1 0 1 f 3,752 I f 1,074,334 1 MISC. : LAB EST. NDA : 1 011981 : 70 f EPA FEIMB. NO.S ! A 1 1 $ 473,445 1 f 0 : f 11547,779 : 4RECEIPI 1 CK. NO. 65967390 ! 1311981 : 12 1 EPA RE IMF. NO. 5 B : 1 i 138,001 : f 0 ! f 11655.780 : +RECEIPF f CK. NO. 65967390 f 1 013091 1 74 1 EFACON CCNSTR. CO. 1 A 1 67605 I f 0 1 f 4289318 I f 1,251,462 : CONSTR. 1 CONSTR. EST. N3.6 f 013081 ! 76 1 FflEESEiNICHOLS, INC. I A : 61606 ! f 0 1 f 18,98a : f 112389474 : ENS. 1 EMS. EST. N0.4 1 1 013x81 1 78 1 EAGLE FORD CONSTR. 1 9 1 67604 I f 0: f 719355 11 1,181,119 1 CONSTR. 1 CONSTR. EST. NO.5_ ! 013081 : 80 1 EASLE FOB; CONSTR. : B f 67604 1 f 0 : f 0 1 t [1161,119 I CONSTR. : EST. ND.5 ADJ. ! 1 013031 1 82 ! FFEESE/NICHOLS, INC. 1 B : 67606 : f 0 1 f 18,:20 1 $ 11142,899 f ENS. 1 ENG. EST. ND.4 : 1 030381 I 84 1 SOJTHKESTERN LAB 1 A 1 67658 1 f 0 : f 11692 ; 1 1,141,007 : MISC. , LAB EST. NO.$ f 1 030381 1 86 f GRACON CONSTR. CO. 1 A : 61864 : f 0 : f 190221552 f 118,455 f CONSTR. 1 CONSTR. EST. ND.? I 1 030381 : 68 ! EASLE FORD COlISTR. : B ! 67657 : f 0 1 f 68,944 1 f 29,511 f CONSTR. 1 CONSTR. EST. NO.6 1_ ® 1 030591 : 90 : EPA REIMP. NO.6 1 A 1 1 f 3361293: t 0 : 1 367,804 : 4RECEIPT 1 V. NO, 66?19045 : 1 030981 : 92 1 EPA REIMS. NO.6 : B ! : f _70 'S3 1 f 0 ! f 432,162 ! 4PECEIPT : CK. NO. 65219045 1 : 012481 1 94 1 FFEESEINICHOLS. INC. I A: 67722 1 f 0 1 1 22,329 1 1 415,833 1 £NG. 1 ENS, EST. NO.5 : 032431 1 96 1 FFEESEINICHOtS, INC, I A: 67722 1 1 1 1 f 20,243: f 3951590 f ENS. f CIM EST. NO.1 1 DATE 01-10-1982 71ME 13:04:01 PAGE 1 e PROJECT GENERAL LEDGER GRANT COST ELIGIBILITY REPORT ALL SEGMENTS 1 GATE 1 AEC. 1 TRA113ACTIGN AEIMB. I DISBURSE I ELIGIBLE 1 BELI61FLE I PEI". I CUMMULATIVE I CUMMULATIVE 1 1 : NO. [ESCRIFTION 1 NUMBER 1 if COST 1 CUT 1 AMOUNT 1 ELIGIBLE INEL131PLE : 1 0,630 : Ib 1 SRACON CONSTR. CO. : I 1 f 281,340 1 f 281,340 1 f 0 1 1 211,005 : f 231,340 1 f 0 : 09:380 1 20 1 EAGLE FC';D COIISTP. 1 2 : f 228.458 1 f 228,458 1 f 0 1 1 171,344 : 1 509,794 1 I 0 1 1 1.00180 . 22 1 FFEESEINICHOLS, INC. 1 2 1 f 14,646 1 f 14,686 : f 0: f 11,015 . f 524,484 1 f 0 1 100160 1 24 1 BRACON CONSTR. CO. 1 2 1 f 301,972 1 S 301,972 1 f 0 : f 22bt419 1 f 826,456 1 f 0 100180 1 26 1 FPEESE/NlCHGLS, INC. 1 2 : f 8,413 1 f 8,413 : f 0 1 f 61310 : f 834,869 1 f 0 1 102780 1 32 1 50UTH11ESTEF,4 LAB : 3 : f 1,620 1 f 196,-o : f 0 1 f 11215 1 f 835,489 1 f 0 1 102780 1 34 : EAGLE FCPD CONSTF. 1 3 : f 153,027 : f 153,027 1 f 0 1 1 114,770 1 f 989,516 1 f 0 1 1 102530 1 36 1 EFACDN CONSTR. CO. 1 3 f 4901529 1 f 490,529. f 0 1 1 361,697 1 f 1,4809045 1 f 0 1 1 111780 1 38 : FFEESEIN118OLS, INC. 1 4 1 f 16,095 : f Ib,095 1 f 0 1 1 12,071 1 f 1,4951140 : f 0 1 : 111780 1 40 1 FREESEiNICHOLS, INC. 4 19,162 1 f 19,162 1 f 0 1 1 14,372 1 f 11515,302 : f 0 1 1 120180 1 46 1 EAGLE FORD CONSTR. 1 4 : 1 230,165 1 f 230,165: S 0 1 1 172,624 1 f 11745,467 : f 0 1 1 120580: 49 1 SOCTHNESTERN LAB 1 4 1 f 743 1 f 743 1 f 0 1 1 557 1 f 11745,210 1 f 0: 1 120560 : 50 . EFACCS C02STR. CO. 1 4 1 f 91450 1 f 9,450 : f 0 1 1 71088 : f 19755,660 1 f 0 1 1 1:0580 1 52.1 ERACON CO:,SIP. CO. 1 4 1 f 707,406 : f 707,406 : f 0; f 530,555 : f 21463,(66 1 f 0: 1 121980 1 54 1 SOUTNNESTERN LAB 1 5 1 f 31390 1 f 3;390 1 f 0 1 1 2,543 1 f 21456,456 1 f 0 1 1 123030 1 60 1 FPEEsElUlDQL5', INC. 1 5 1 f 18,648 1 f 1B,64F : f U l f 13,986 : f 2,485,104 1 f 0 1 1 123080 1 b2 1 EASLE FCRD CONSTR. 1 5 1 f 165,871 1 f 165,877 : f 0: f 124,408 1 f 2,6501981 1 f 0 1 1 123080 1 64 1 FREESEINICHOLS, INC.: 5 1 f 18,124 : f 18,124 : f 0 1 1 13,593 : f 216691105 1 f 0 1 1 010581 : 66 : ERACON CONSTR. CO. 1 5 : f 609,222 1 f 609,222 1 f 0 1 1 456,917 1 f 31278,327 1 f D 1 : 011481 1 68 : SOUTH.;ESTZRN L99 : b 1 f 3,752 : f 3,752: f 0 1 f 29814 1 f 3,282,079 : f D 1 : 013081 1 74 1 6R'ACM C05TF, CO. 1 6 : f 428,318 1 f 4289318 1 f 0 1 1 321,239 1 f 31710,397 : f 0 1 013031 1 76 1 FREESE/NICHOLS, INC.: 6 I f 18,988 : f 18,988 : f 0 1 1 14,241 1 f 3,729,385 1 f D 1 : 013(,Sl 1 78 : EAGLE FORD C0STR. 1 b 1 f 77,355 1 f 75,591 1 11764 : f 569693 . f 3,804,976 : f 11184 ! 01306! 1 9D : EAGLE FOPD CCNSTR, 1 6 : f 0 1 f 19754.: 1 -11-64 1 f 1,323 . f 3,806174D 1 f 0 1 1 013081 1 82 : FREESEINICROLS, IIIC. 1 6 1 f IB,220 : f 18,220 : f 0 1 f 13,665 1 f 3,8.49960 . f 0 1 1 030381 : B4 : SOUTHNs'STERN LAB 1 7 1 f 1,892 : f 1,892 1 i 0 1 f 1,419 : f 31826,652 . f 0 1 : 030361 1 86 : ERACON CONSTR, CD. 1 7 1 $1,022,552 : $I,D22,552 1 f 0: f 766,914 : f 41849,404 1 f 0 1 1 630381 : 89 1 EAGLE FORD C016TP. 1 7 1 1 68,944 1 f 881944 1 f 0: f 66,7D8 1 f 41938,348 . f 0 1 1 032481 : 94 : FREESE001NOLS, INC. 1 B 1 f 22,329 1 f 22,329 1 f 0 1 f 169747 1 f 41960,677 : f 0 1 1 032481 1 96 : FF.EESEPd CHOLS, INC. 1 8 1$ 201243 : f 20,243 1 f 0: f 159182: f 4,960,920 1 f 0 1 1 032461 1 98 1 SOUTHPESTEPN LAB : 8 1 f 51519 : f 51519: f 0: f 4,139 1 f 4,9861439 1 f 0 1 1 032481 1 100 : FREESE/NICHOLS, INC. 1 8 1 f 71074 : f 11074 1 f 0: f 5,306 1 f 4x993,513 I f 0 1 1 032781 : 104 : EAGLE FORD CONSTR. I 8 : f 112,963 1 f 112,963 1 f ) : f 64,722 : f 51105,476 1 f 0 1 1 033181 1 108 1 6F.'ACCN CO161R. CO. : 6 1 f 562,407 1 f 562,401 1 f 0: f 421,905 1 f 5,668,833 1 f 0 1 : 033181. 110 1 SG9THkESIER4 LAB 1 B f 11460: $ 11460 1 f 0: f 11095 : f 59670,343 1 f 0 1 1 033181: 112: FPEESEINICHOLS, INC. 1 8 : f 19,842 1 f 199 42 1 f 0: f 14,832 1 f 5,690,185 1 f 0 1 033181. 114 1 FFEESEMICHOLS, 19C.: B : f 11,304 1 f 11,304 1 f 0: f 81478 1 f 5970114B9 : f 0 1 _ f 44k527 1 0 1 f 331,145 1 f 6,143,018 1 f 0 1 050561 1 120 : 6PACI CGIISTR. CO. 1 9 1 f 441,527 1 : ® : WIN 122 1 FPEESE/NICHOLS. INC. 1 10 1 f !1,393 1 f 11,693 : f 0 : f 82920 : f 6,154.909 1 f 0 : 1 00321 1 12' 1 FFEESElNICHOLS, INC. 1 10 1 f 4,232 : f 41232: f 0: f 3,174 I i 6,159,141 1 f 9 1 : (40931 1 126 1 FAUN 1ONSTR. CO. : 10 : f 373,461 1 f 373,481 1 f 0 1 1 280,111 1 1 8,532,522 1 f 0: DATE 01-09-1984 TIME 15:51:00 • GRANT BUDGET STATUS'REPORT BUDGET BUDGET EXPENSES BALANCE CATEGORIES AMOUNT TO DATE REMAINING USED ADMINISTRATION EXPENSE $2,500 $0 $29500 0.000 PRELIMINARY EXPENSE $0 $0 $0 0.000 LAND STRUCTURES/R.0.14 $0 $0 $0 0.000 ARCH/ENGINEERING BASIC FEE $115,041 $121,79S -$69754 1.059 OTHER AR--H/ENGINEERING FEE $0 $0 $0 0.000 Zlr.,%OJECT INSPECTION FEES $226,978 $2499345 -$221367 1.099 FI14AL PLAN OF OPERATION $1,290 $0 $1,290 0.000 O/M MANNUAL $26,990 $30,042 -$39052 1.113 LAB TESTING FEES $259000 $32,324 -$7,324 1.293 OPER. TRAIN/START-UP $79189 $79914 -$725 1.101 CONST/PROJECT IMPROVEMENTS $8,843,000 $9,62918B2 -$7869882 1.089 IND. PRETREAT CURVEY $29202 $0 $29202 0.000 IND. PRETREAT PROGRAM $34,084 $0 $34,084 0.000 CONTINGENCIES $7869270 $0 $786,270 0.000 TOTALS .$10,070,544 $10,07t,302 -$758 1.000 I awsK o V72 Ll.ngement and PAu OUTLAY REPORT AND REQUEST FOR REIMSURSE• 'AaLa MENT FOR CONSTRUCTION PROGRAMS L TMPL0/MR4 LAa~1 G KQU IIT 1 Cre IerlrYrhM\J ne Antkl I CD rl"L 0 PAMTIAL CASH 0 ACCAUAL I fLDUAL aroMa04MG AOOtCI AMD OPGAMILATIOAWL I%IMLWf lO L I[ I[ DL4AL GAAMP 0e OTH[R - L PMTIA PAIN wMKH rHIS ALPCrf 11 aUIYIITIG IDLw Ala: 6M10 I [MT lL'JVLST FO WT FLDIALA, LULAQLAKr ! 6 4 tYrydv [R +otM flared JTpM -T 1. RtpntMr rtCOUMT a or/ln mwe came n nm wvw MLIYa[A J 10"nPYING MumeLi MMCH ~ A 1 I t~l ~Sl"~ r 1981 t. P[L~M(nt OMOAM~LATIOII IIPATt[lR4n ar►rL~It J[rwlM Wnrr Yr RrM It .b+I I.vA~A ,Vr AAf INA Awl rH tln.l VAIi W CJP. !!P faAl .[IVrr AAA tIP fall it. STATUS OF FUNDS IROGRAMS-FUNCTIONS-ACTIVITIES I CLASSIFICATION fel (1) TOTAL ' I 1 Adm~mttrslne a.penee O 01 Ss S f O I 0. Prel.mmery eApf nae f 0 f Oi f Jr 0 Lend. Llryctutn. nSgtgf.-AF s O f 0 f Q S; O d Arct:eedturet englneedng base; fees Is 37,031 It 11,5151 f Q f 48,546 1 ~ e. Other Arthmem,al enpneenne feet #f 0' f OJ t O 1. Rrointm1pecnon4+a !f 31386 ~ f 52[404 f 0 IF 83,790 g Land dealoDment f 0 f 0; t 0 f 0 h RNO<ehun erpanq ( ~ o 1 f Do, f 0 f 0 ® I 1. RHaehon OJrmfnte to mdrndYela and ! I `-Dusmfasof Is 9,505 f Of f 0 3 9,505 1. Oemo+dvm end rerl+oal 1 - !s 01 IF o s b s o L. ('0n1trVC1,CM And pmire[ ImprovemAnt j coat + S 2.828.237 ! IF 850,88 t f 3,683, 119 COuDmrn'~_ _ Is go,' f d t D f 0 I I M. WudlanfOUs cost f 0 IF b 1 O M. Total t4mu1r1n0 to date (rum of Ane/ I I along my S 7-90A-159 ! IF 918,801 f b f 3,824,960 o. Otd W,0n1 for program om"o, 01 f 14 f f 0 0. Net CumulaWt to dote (lint n minus : - "e°) S 2 906 f 918,90) f f 3,e24,960 ( g. Feorrn anere m data f 689 10i Jr 10 f 2,868y720 f. Renepdnat" pants (10^ nim• ` i Duyement) I Cr f ,0 f 0 and ____T7 179.6 fe89 0 f j0 f 2 , B68 , 20 tFr! I ! s. TotEM-41E t p f 2,45Bs745 ent 1541E - F244 : 7A~ i ! .409„ 975 V. Pncmlage M phrs:cst domp4tlon ofd y I ry y Rro!tC[ q A I % 12. CLRTIFiCATWN IKMATUMC OF AUTMOR+rLD C[Rnc:b, 10 11r1 ■CPORf OAK41L SUe,11 TTCD I CMJa MAI to the best of"knowledge I AM Dehe71"e yuy tosL the deburst. A. RECIPIENT manta a9 .n arcOrOfme wdh the fem+s APIC OR PAINTED MAYS" 0 fITLC ftUd CM[A• ear. I 'NO W Arrw.AMi ® of the s amgtt and that l alt Dun emtM - - - _ - - I rA _ reCiHtntt lost frdAal sou! dare rh.ch - a SiGMRUr[ 01 A17IWRi2[D C[M M1rYIHd DAfI LGM eO nN nnl Deco art a0uelr rc0vntrd and gr14 JL ~ that an m>DttUOn has been performed ReCreNnraha i 1 and Jh wo,% .e .n A[GDrdence w.fh the CArtdr.ng ro I.Mr _ I IA. "IC OR Pe111ttD MAY[AMD tIrLL TCL[PHONI 'b•, 14, Ifemt 0114 I-a,d, I...A rrr nI., f ~ I , [n_lal ,W R0 IORr 171 II-7a1 11 AAtnM by DRHe N re+atA^'Anl I+t f+GPI CM. IeA. M7IQ L ~w DATE 01-11-1484 TIME 11t41r44 FASE I MONTHLY FINANCIAL STATEMENT SCHEDULE OF RECIEPTS AND DISBURSEMENTS ALL SEGMENTS 10/01/1980 through 10/31/1980 CURRENT PROJECT RECIEPTS: MONTH TO DATE EPA GRANT RECIEPTS $4151147 $6269152 CITY-CASH ADDITIONS $0 $2,509,115 OTHER RECIEPTS to $0 TOTAL RECIEPTS 3415,147 $3,1359267 DISBURSEMENTS: ADMINISTRATION EXPENSE 30 $0 PRELIMINARY EXPENSE $0 $0 LAND STRUCTURES/RIGHT-OF-WAY EYPENSE $0 $0 ARCHITECTURAL/ENGINEERING BASIC FEES $101998 $10,998 OTHER ARCHITECTURAL/ENGINEERING FEES $0 $0 PROJECT INSPECTION FEES $12,101 $12,101 PLAN OF OPERATION EXPENSE $0 $0 0/M MANNUAL EXPENSE $0 $0 LAB TESTING FEES 311620 $1,620 OPER. TRAIN/STAR'-UP EXPENSE $0 30 .CONSTRUCTION/PROJECT iMPROVEMENT EXPENSE $945,523 $114559326 IND. PRETREAT SURVEY EXPENSE $0 $0 IND. PREIRF'ir PROGi 14M EXPENSE - $0 $0 * GRANT INELIGIBLE EXPENSES .10 $0 TOTAL DISBURSEMENTS $970,247 $19440,045 NET RECIEPTS OVER DISBURSEMENTS -$5759100 $1,6559222 DATE 01-11.1981 11ME 1731208 PASS 2 MONTHLY FINANCIAL STATEMENT SCHEDULE OF RECIEPT$ AND DISBURSEMENTS ALL SEGMENTS 10/01/1980 through 10/31/1980 LIST OF EXPENDITURES DATE PAYEE EXPLANATION SEGMENT CK NO. AMOUNT !00180 FREESE/NICHOLS, INC. ENG. f. NO.1 A 67347 $ 14,686 100180 GRACON CONSTR. CO. CONSTR. EST. NO.2 A 67340 S 3019972 100180 FREESE/NICHOLS, INC. ENG. EST. NO.1 8 67347 :t- 8,413 102780 SOUTHWESTERN LAD LAP EST. N0.1 A 67389 $ 1162220 X780 EAGLE FORD CONSTR. CONSTR. EST. NO.2 8 67385 $ 1531027 880 GRACON CONSTR. CO. CONSTR. EST. NO.3 A 67396 $ 4901529 TOTAL DISBURSEMENTS $ 9701247 INDEPENDENT CONSULTANT'S AGREEMENT THE STATE OF TEXAS § KNOW ALI. MEN BY THESE PRESENTS: COUNTY OF DENTON § The City of Denton, Texas, a Municipal Home Rule City situated in Denton County, Texas, hereinafter called "City", acting herein by and through its City Manager, and Robert Fiorini, hereinafter called Consultant, hereby mutually agree as follows: 1. SERVICES TO BE PERFORMED: City hereby retains Consultant to perform the hereinafter designated services and Consultant agrees to perform the followi,-,g services: A. Finalize documentation of the EPA Grants for Pecan Creek .Wastewater Treatment Plant, Hickory Creek interceptor, lines and lift station and other associated collector an,1 interceptor sewer lines; B. Perform the services and provide computer software as follows: 1. Finish the building of a data base for the wastewater treatment plant grant (C-48-1188-03) and the corres- ponding report document. 2. Build data bases and report documents for the Hickory Creek grant projects (C-48-1188-13 & C-48-1188-23). 3. Provide Grant Administration computer software system complete with listings and documentation capable of operating on an IBM PC3470 personal computer. 4. Train City of Denton personnel to use the system. 5. Provide one day of audit assistance, wt..:n needed, during the grant audit. C. C{-y will make available to Consultant all information that may be relevant to the EPA Grants and associated construction work. 2. COMPENSATION TO BE PAID CONSULTANT: Cl.ty agrees to pay Consultant for the services performed hereunder as follows: A. Amount of Payment for Services: Two Thousand Five Hundred and No/100 ($2,500.00) Dollars B. Dates of Payment: Invoices shall be rendered upon completion of project. f f ADMINISTRATIVE SERVICES CONTRACT FOR FINALIZING EPA GRANT DOCUMENTATION-PAGE 1 3. SUPERVISION AND CONTROL BY CITY: It is mutually understood and agreed by and between City and Consultant that Consultant is an Independent Consultant and shall not be deemed to be or con- sidered an employee of the City of Denton, Texas for the purposes of income tax, withholding, social security tares, vacation or sick leave benefits, or any other City employee benefit. The City shall not have supervision and control of Consultant or any employee of Consultant, but it is expressly understood that Consultant shall perform the services hereunder at the direction of and to the satisfaction of the City Manager of the City of Denton or his designee under this agreement. 4. SOURCE OF FUNDS: All payments to Consultant under this agreement are to be paid by the City from funds appropriated by the City Council for such purposes in the budget of the City of Denton. 5. INSURANCE: Consultant shall provide at his own cost and expense workmen's compensation insurance, liability insurance, and all other insurance necessary to protect Consultant in the operation of Consultant's business. 6. CANCELLATION: City reserves the right to cancel this agreement at any time by giving Consultant thirty (30) days written notice of its intention to cancel this Agreement. 7. TERM OF CONTRACT: This agreement shall commence on the c e day of 1984 and end on April 15, 1984. CITY OF DENTON,-, EXAS ROBERT FIORINI, CONSULTANT 1-41 BY: 1 BY: 4 ATTEST: rHARLQTTEkALLEN_,CITY CITY OF DENTON.-TEXAS ADMINISTRATIVE SERVICES CONTRACT FOR FINALIZING EPA GRANT DOCUMMATION-PAGE 2 APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS BY:'.. _ T el .1 - THAT Dave Ham, Arsistant Director of Utilities, Water/Wastewater Divisions is hereby iesignated as the person to administer the pro- vision of this agreerient. tG9~ ADMI14ISTRATIVE SERVICES CONTRACT FOR FINALIZING EPA GRANT DOCUMENTATION-PAGE 3 OFFICIAL BID FORM Honorable.Mapor and Ci:y Council February 21, 1984 City of Denton Denton, Texas Gentlemen: Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated January 31, 1984, of $1,000,000 CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE BINDS, SERIES 1984, both of which constitute a part hereof. For your legally issued Initial Bond, as described in said Notice of Sale and Bidding Instructions and Official Statement, we w411 pay you par and accrued interest from date of issue to date of delivery to us, plus a cash premium of $ - O _ for the installments of principal of the Initial Bond coming due, maturing and bearing interest as aGows:_ Interest Interest Interest Maturity_ Rate_ Maturity Rate_ -Maturity Rate 12-1-1983 % 12.1.1992 L~ % 12-1•1998 Ail&r% 12-1-1986 JLSA,! % 12.1.1993W % 12.1.1999 _ -.1-6 % 12-1-1987 1LLIG % 12.1.1994 ,17 % 12-1-2000 .15% 12-1-1988 luh_% 11-1-1995 /~1 , 12.1.1001 12-1-1989 Rl(b-% 12-1-1996 '1 YU % 12-1.2002 866% 12-1.1990 12-1-1997 q.-,6 % 12-1-2003 40-% 12-1.1991 % 12-' 1 9.00% 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 $ ~~l!LtSb 1I t, EFFECTIVE INTEREST RATE "Ir ~f3&-lc~C ' % We are having the Bonds insured by , / The Initial Bond shall be registered in the name of (1~L)±_+tQY 44t /?t W5 (syndicate manager). We will advise the Corporate Trust Division, Texas American Ban Fort R rth Nei., P. 0. Box 2050, Fort Worth, Texas 76113, the Paying Agent/Registrar, on forms to be provided by the Paying Agent/Registrar, our registration irotructions for the definitive Bonds at least five business days prior to the date set for Initial Delivery. We will not ask the Paying Agent/Registrar to accept any registration instructions after the five day period. f F C UiA-'4 Check the ' ir5r 1 T Bank, (~/.l~ -7 , in the amount of $20-000.00, which re resents our Good fait h a si sa-auact»d.iseieie or has been made available to you prior to the opening 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 the Initial Bond in immediately available funds in the Corporate Trust Division, Texas American Bank/Fort Worth N.A., Fort Worth, Texas, not later than 10:00 AM, CST, on March 27, 1984, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sate and Bidding Instructions. Respectfully submitted, _ din li.}I ~}e r G n , I cl5 ~ Qj~, • _ By JA Z %4l 4 //J Authcd d Representetive ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all this s accepted by the City of Denton, Texas, tlils the 215t day of February, 1994. ATI EST: Mayor rty ccrctar-y---- Return of Good Faith Deposit is hereby acknowledged: By OFFICIAL BID FORM Honorable Alayor and City Council February 21, 1984 City of Denton Denton, Texas Gentlemen: Reference is made to your official Statc,nent and Notice of Sale and Bidding Instructions, dated January 31, 1984, of $1,000,000 CITY OF DENTON. TEXAS UTILITY SYSTEM REVENUE BONDS, SERIES 1984, both c which constitute a part hereof. Fm your legally issued Initial Bond, as described in said Notice of Sale and Bidding Instructions and Ol'icial Statement, we Atli pay you par and accrued interest from date of issue to date of delivery to tn, plus a cash preritum of S].. for the installments of principal of the Initial Bond coming due, inatu-irg and bearing interest as o lows: Interest Interest Interest Maturi,)L _Rate_ Maturity Rate Maturity Rate 12-1-198. E~19Q% 12-1-1992 ai(20-% 12.1.1998 am_% 12.1.1993 $&D_% 12-1-1999 9-51) % 12-1-1986 1LQO' 12-1-1987 10.00% 12-1.1994 8.80 12.1.2000 9.50 % 12-1-1988 10,09% 12-1.1993 9.06 % 12-1-2001 X50 % 12.1-1999 10.09% 12.1.1996 20 % 12-1-2002 9.50 96 12-1.1990 10.Q0% 12.1.1997 9.40 % 12.1-2003 9.5f) % 12.1.1991 10.00% 12.1-2004 9.50 96 Our calculation (which is not a part of this bid) of the interest cost Irom the above is: Total Interest Cost $-4059t-43Z.50-- Less Premium -364A0 NET INTEREST COST $1,,059.073.50 EFFECTIVE INTEREST RATE _x.41.49$7_% We are having the Bonds insured by _ No The Initial Bond shall be registered in the name of Faaseher Pieroe Faefs katrrehager). We will advise the Corporate Trust Division, Texas American Bank ort WortTNX., P. 0. Box 2050, Fort Worth, Texan 76113, the Paying Agent/Register, on farms to be provided by the Paying Agent/Registrar, our registration instructions for the definitive Bonds at least five business days prior to the date set for Initial Delivery. We will not ask the Paying Agent/Registrar •o accept any registration instructions after the five day period. cashier Is Check of theFirst City Natl. Bank, Austin, TX In the amount o 20,000.00, which represents our Good Faith De sit 7 }~~-s~~ or as been made available to you prior to the opening of this bid), and is sum itted in accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding nstructioris. We agree to accept delivery of and make payment for the Initial Bond in immediately available funds in the Corporate Trust Division, Texas Ameri,an Bank/Fort Wort) N.A., Fort Worth, Texas, not later than 10:00 AM, CST, on March 27, 1984, or thereafter on the date the Bonc:s are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding instructions. Respectfully submitted, RAUSCHER PIERCE REEKEMS. INC. FIRST SO(IPH4 WT MMM _ By S-e '2 V Aut rized Representative ACCEPTANCE CLAUSE The above and foregoing bid is hereby in a.t things accepted by the City of Denton, Texas, this the 21st day of February, 1984. ATTEST: - - Slayor -~-~~--~Ity ccretary Return of Good Faith Deposit is her-•Sy acknowledged: By - OFFICIAL BID FORM Honorable Mayor and City Council February 21, 1931, City of Denton Denton, Texas Gentlemen: Reference is made to you Official Statement and Notice of Sale and Bidding Instructions, dated January 31, 1984, of $1,000,000 CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE BONDS, SERIES 1984, both of which constitute a part hereof. For your legally issued Initial Bond, as described in said Notice of We 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 $_N _ for the installments of principal of the Initial Bond coming due, maturing and bearing interest as follows: Interest Interest Interest Matur jy Rate Maturity Rate Maturity Rate 12.1.1985 X00_% 12-1-1992 9.50 % 12-1-1993 9.45 % 12.1-1986 11.00_% 12-1.1993 8.70__% 12-1.1999 9.60 % 12-1.1987 11.00 % 12.1.1994 8.85 % 12-1-2000 9.70 % _-1-1983 11.00 % 12-1-1995 9.00 % 12-1-2001 9.00 % 12.1-1989 11.00 % 12.1.1996 9.15 % 12-1.2002 9.00 % 12-1.1990 11.00 % 12-1-1997 9.300_% 12.1.2003 8.00-% 12-1.1991 11.00.% f 12-1-2004 8.00% Our calculation (which is not a part of this bid) of the interest cost from the above is: Total Interest Cost $1042,343.75 Less Premium NET INTEREST COST $ 1,042 343.75 EFFECTIVE INTEREST RATE ---2,26321-&--,% We are having the Bonds insured by The Initial Bond shall be registered in the name of Kidder Peabody & Cdsyndicate manager). We will advise the Corporate Trust Division, Texas American Bank Fort Worth Nei., P. 0. Box 2050, Fort Worth, Texas 76113, :he Paying Agent/Registrar, on forms to be provided by the Paying Agent/Registrar, our registration instructions for the definitive Bonds at least live business days prior to the date set for Initial Delivery. We will not ask the Paying Agent/Registrar to accept any registration instructions after the live day period. Coodfaith Check of the First Cit Nationabank, Austin Tx. , in the amount o 20,000.50, which represents our Goo Faith Deposit tftfiJSX AX* KX as been made available to you prior to the opening of this bid), and is submitted in accordance with the terms as set forthin the Official Statement and Notice of Sale and Bidding Instruction. We agree to accept delivery of and make payment for the Initial Bond in immediately available funds in the Corporate Trust Division, Texas American Bank/Fort Worth N.A., Fort Worth, Texas, not later than 10:00 AM, CST, on March 27, 1984, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions, Respectrully submitted, Kidder, Peabody d. Co., Inc. a Antonio e s By j2 ut rizcd epresentative ames Y. Pittman, V:.~ Fresident ACCEPTANCE C 11JSE The above and foregoing bid is hereby in all things accepted by the City of Denton, Texas, this the 21st day of February, 1934. ATTEST: Mayor Return of Good Faith Deposit is hereby acknowledged: By - OFFICIAL BID FORM Honorable Mayor and City Council February 21, 1984 / City of Denton Denton, Texas Gentlemen: Reference is rnar: to your official Statement and Notice of Sale and Bidding Instructions, dated January 31, 1984, of $I,%0,000 CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE BONDS, SERIES 1984, both of which constitute a part hereof. For your legally issued Irutia;' Bond, d4 desctibgd 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 rash premium of $_Q_ for the installments of principal of the Initial Bond coming due, maturing and bearing interest as ollows: V Interest Interc~t Interest Maturit Rate Maturity_ Rate Maturity Rate 12.1.1987 1L.00% 12-1-1992 LIM% 12.1.1993 9.40 % 12-1-1986 /11.00% 12.1.1993 IM0% 12-1-1999 -9 . 5.G- % 12-1-1987 11.00% 12-1.1994 8.85% 12-1-2000 9.69% 12-1.1983 11.00% 12-1-1995 9.00% 12-1-2001 8.00 % 12-1-1989 11.00% 12.1.1996 9.15% 12-1-2002 8.00 % 12-1-1990 11.00% 12.1.1997 9.25% 12-1-2003 8.00 % 12-1-1991 11.00% 12-1-2004 8.00 % Our calculation (which is not a part of this bid) of toe interest cost from the above is: Total Interest Cost $JT034..6M.25 Less Premium - D_ NET INTEREST COST $ 1,034,656.25 EFFECTIVE INTEREST RATE __p=J96944 % h We are having the Bonds insured by _ No _ The Initial Bond s'nall be registered in the name of ROtan Mosle Inc . (syndicate manager). We will advise the Corporate Trust Division, Texas American bank/Fort Woth N .A., P. O. Box 2050, Fort Worth, Texas 76113, the Paying Agent/Registrar, on forms to be provided by the Paying Agent/Registrar, our registration instructions for the definitive Bonds at least five business days prior to the date set for Initial Delivery. We will not ask the Paying Agent/Registrar to accept any registration instructions after the five day period. Check of the First CIt Natl Bank, __A_u_ i in the amamt o X20,000.00, which represents our Good Faith Deposit g}(14)0(VfAA3L!~IP1Sa as been made available to you prior to the npening 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 the Initial Bond in immediately available funds in the Corporate Trust Division, Texas American Bank/Fort S orth N.A., Fort Worth, Texas, not later than 10:00 AM, CST, on March 27, 1934, or thereafter on the date the Bonds are tendered for delivery, pursuant to the erms set forth in the Notice of Sale and Bidding Instructions. Respectfully submitted, Rotan Mosle Inc. M r. Underwood, Neuhaus & Co.. Co-Mgr. _ 1 110 k x ~1f Mich.Alhtxe%%WTVh°; Sr. Vice President ACCEPTANCE CLAUSE. The above and foregoing bid is hereby in all things accepted by ne City of De on, Texas, this a 21st day of February, 1984. AT fST/; Mayor _i4~~~'Fit~SCtreta"ry Return of Good Faith Deposit is hereby acknowledged: By Prepared Byc First Southwest Company, SW Mercantile Dallas Building, Dallas, Texas 75201 TABULATION OF BIDS RECEIVED AT SALE ur $1,000,000 CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE BONDS, SERIES 1984 Selling Tuesday, February 21, 1584, at 7;00 PM, CST GROSS LESS NET EFFECTIVE ACCOUNT MANAGER INTEREST COST PREM1IN INTEREST COST INTEREST RATE c A Ll~ lee, I I M ee"-s /6 CERTIFICATE FOR ORDINANCE AVFHORIZn)G THE ISSUANCE OF CITY OF DUM UTILITY SY.'TEM REVU4UE BONDS, SERIES 1984, AND APPROVING AND AUn m- IZING INSTRLT9279 AND PROCEDURES R0ATING 7r[ERETO THE STATE OF TEXAS COUNTY OF DENION CITY OF DEN" jned officers of the City of Denton, Texas, hereby certify We, the undersir as follows: 1. The City Council of said City convened in REGULAR METING ON THE 21ST DAY OF FEBRUAR"., 1984, at the Municipal Building (City Hall), and the roles was called of the duly constituted officers and members of said City Council, to-wit: I Charlotte Allen, City Secretary Richard 0. Stewart, Mayor Mirk Chew Jack Barton Charles F.opkins Dr. A. Ray Stephens Jim Riddlesperger Joe Alford and all of said persons were present, except the following absentees: Ala"e, , thus constituting a quorum. Nhereupon, among other business, the following was transacted at said Meeting: a written ORDINANCE AUTHORIZ M 11,E ISSUANCE OF CITY OF DENTON UTILITY SYSTEM REVENUE BONDS, SERIFS 1984, AND APPROVING AND AUTHOR- IZING INSTRLMM AND PROCEDURES RELATING THERETO 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 it the passage of said Ordinance, prevailed and carried by the following vote: AYES: All me:rbers 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 Certificate; that said Ordinance has been duly recorded in said City Council's minutes of said Meeting; that the above and foregoing paragraph is a true, full, and correct excerpt from said City Council's minutes of said meeting pertaining the passage of said Ordinance; that the persons named in the above and foregoing 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 tine, 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 notices. 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 apprrnned, 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 tkw., City Secretary of said City hereby declare that their signing of this C}rtificate. shall constitute the signing of the attached and following copy of said Ordinance for all purposes. AND SEALED the 21st day of February 1984. 1 S GNE City Secretary or (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 attached and following Ordinance prior to its passage as aforesaid. ? 6 y FO Attorneys ORDINANCE a ZI' I ! AUTHORIZING THE ISSUANCE OF CITY OF DENTON UTILITY SYSTEM REVENUE BONDS, SERIES 1984, AND APPROVI14G AND AUTHORIZING INSTRUMENTS AND PROCEDURES RELATING THERETO THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, the City Council of the City of Denton, Texas, is authorized to issue the bonds of the City of Denton hereinafter authorized pursuant to Varnon's Ann. Civ. St. Articles 2368a, 1111 through 1118, and other applicable laws. THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS THAT: Section 1. AMOUNT AND PURPOSE OF THE BONDS. The borJ or bonds of the City of Denton, Texas (the "Issu:r") are hereby authorized to be issued and delivered in the aggregate pri:,c!- pal amount of $1,000,000, FOR THE PURPOSE OF PROVIDING FUNDS TO IMPROVE THE CITY'S UTILITY SYSTEM, WHICH CONSISTS OF THE CITY'S COMBINED WATERWORKS, SEWER, AND ELECTRIC LIGHT AND POWER SYSTEM. Section 2. DESIGNATION OF THE BONDS. Each bond issued pursuant to this Ordinance shall be designated: "CITY OF DENTON UTILITY SYSTEM REVENUE BOND, SERIES 1984", and initially t;iere shall be issued, sold, and delivered hereunder,a single fully registered bond, without interest coupons, payable in installments of principal (the "Initial Bond"), but the Initial Bond may be assigned and transferred and/or converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, having serial maturities, and in the denomination or denominations of $5,000 or any integral multiple of $5,000, all in the manner herein- after provided. The term "Bonds" as used in this Ordinance shall mean and include collectively the initial Bond and all substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Bond" shall mean any of the Bonds. Section 3. INITIAL DATE, DENOMINATION, NUMBER, MATURI- TIES, INITIAL REGISTERED OWNER, AND CHARACTERISTICS OF THE INITIAL BOND. (a) The Initial Bond is hereby authorized to be issued, sold, and delivered hereunder as a single fully registered Bond, without interest coupons, dated MARCH 1, 1984, in the denomination and aggregate principal amount of $1,000,000, numbered R--1, payable in annual installments of principal to the ii.itial registered owner thereof, to-wit: 2arl+r./ N Qf4? 1NG . or to the registered assionec or assignees of said Bond or any portion or portions thereof (i:, each case, the "registered owner"), with the annual installments of principal of the Initial Bond to be payable on the dates, respectively, and in the principal amounts, respectively, stated in the FORM OF INITIAL BOND set forth in this Ordinan:.%.t. (b) The Initial Bond (i) may be prepaid or redeemed prior to the respective scheduled due dates of installments of principal thereof, (ii) may be assigned and transferred, (iii) may be converted and exchanged for other Bonds, (iv) shall have the characteristics, and (v) shall be signed and sealed, and the principal of and interest on the Initial Bond shall be 1 payable, all as provided, and in the manner required or indi- cated, in the FORM OF INITIAL BOND set forth in this Ordinance. oection 4. INTEREST. The unpaid principal balance of thu Initial Bo-,,d shall bear interest from the date of the initial Bond to the respective scheduled due dates, or to the respec- tive dates of prepayment or redemption, of the installments of principal of the Initial Bond, and said interest shall be payable, all in the manner provided and at the rates and on the dates stated in the FORM OF INITIAL BOND set forth in this Ordinance. Section 5. FORM OF INITIAL BOND. The form of the Initial Bond, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be a:ndorsed on ;:he Initial Bond, shall be substantially as follows: FORM OP INITIAL BOND NO. R-1 $11000,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF' DENTON CITY OF DENTON UTILITY SYSTEM REVENUE BOND SERIES 1984 THE CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a political subdivision of the State of Texas, hereby promises to pay to jevmr,j t/¢sc 1"e. or to the registered assignee or assignees o this Bon or any portion or portions hereof (in each case, the "registered owner") the aggregate principal amount of $1,000,000 (ONE MILLION DOLLARS) in annual installments of principal due and pay:,ble on DECEMBER 1 in each of the years, and in the respective principal amounts, as set forth in the following sc'edule: PRINCIPAL PRINCIPAL i YEAR AMOUNT YEAR AMOUNT 1985 $50,000 1995 $50,000 1986 50,p00 1996 50,000 1987 50,000 1997 500000 1938 500000 1998 50,000 1989 50,000 1999 500000 1990 50,000 2000 504,000 1991 50,000 2001 500000 1992 50,000 2002 50,000 1993 500000 2003 50,000 1994 50,000 2004 50000 and to pay interest, from the date of this Bond hereinafter stated, on the balance of each such installment of principal, respectively, from time to time remaining unpaid, at the rates as follows: 2 /.oo % per annum on the above installment of principal due and payable on DECEMBER 1, 1985; 11-oo 8 per annum on the above installment of principal due and payable on DECEMBER 1, 1986; Itoo9 per annum on the above installment of principal due and payable on DECEMBER 1, 1987; /I•008 per annum on the above installment of principal due and payable on DECEMBER 1, 1988; /400g per annum on the above installment of principal due and payable on DECEMBER 1, 1989; I1.008 per annum on the above installment of principal due and payable on DECEMBER 10 1990; /400% per annum on the above installment of principal due and payable on DECEMBER 1, 1991; 1/.o0 8 per annum on the above installment of principal due and payable on DECEMBER 11 1992; /o•oo% per annum on the above installment of principal due and payable on DECEMBER 1, 1993; ra'8 per annum on the above installment of principal due and payable on DECEMBER 1, 1994; I oo8 per annum on the above installment of principal due and payable on DECEMBER 1, 1995; 9•0 8 per annum on the above installment of principal due and payable on DECEMBER 1, 1996; 9 per annura on the above installment of principal due and payable on DECEMBER 1, 1997; I per annum on the above installment of principal due and payable on DECEMBER 1, 1998; q s~ B per annum on the above installment of principal due and payable on DECEMBER 1, 1999; /•608 per annum on the above installment of principal due and payable on DECEMBER 1, 2000; g•Oo$ per annum on the abcve installment of principal due and payable on DECEMBER 1, 2001; 1'00 8 per annum on the above installment of principal due and payable on DECEMBER 1, 2002; 91-c0% per annum on the above installment of principal due and payable on DECEMBER 1, 2003; ir-00 8 per annum on the above installment of principal due and payable on DECEMBER 1, 2004, with said interest being payable on DECEMBER 1, 1984, and semi- annually on each JUNE 1 and DECI',MBER 1 thereafter while this Bond or any portion hereof is outstanding and unpaid. t THE INSTALLMENTS OF PRINCIPi1L OF AND THE INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The install- ments of principal and the interest on this Bond are payable to the registered owner hereof through the services of TEXAS AMERICAN BANK/FORT WORTH, N.A., FORT WORTH, TEXAS, which is the "Paying Agent/Registrar" for this Bond. Payment of all princi- pal of and interest on this Bond sk,all be made by the Paying Agent/Registrar to the registered o~rner hereof on each princi- pal and/or interest payment date b.y check or draft, dated as of such date, drawn by the Paying Agent./Registrar on, and payable solely from, funds of the Issuer required by the resolution authorizing the issuance of this Bc,n1 (the "Bond Ordinance") to be on deposit with the Paying Ageni,:/Registrar for such purpose as hereinafter provided; .,id such check or draft shall be sent by the Paying Agent/Registrar by United States Mail, first- class postage prepaid, on each such principal and/or interest payment date, to the registered owno:: hereof, at the address of the registered owner, as it appeared on the 15th day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/ Registrar, as hereinafter described. The Issuer covenants wit', the regis- tered owner of this Bond that on o:c before each principal 3 and/or interest payment date for this Bond it will make avail- able to the Paying Agent /Registrar, from the "Interest and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on this Bond, when due. IF THE DATE for the payment of the principal of or inter- est on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to closet and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND has been authorized in accordance with the Constitution and laws of the State of Texas FOR THE PURPOSE OF PROVIDING FUNDS TO IMPROVE THE CITY'S UTILITY SYFTEM, WHICH CONSISTS OF THE CITY'S COMBINED WATERWORKS, SEWER, AND ELECTRIC LIGHT AND POWER SYSTEMS. ON DECEMBER 11 1994, or on any interest payment date thereafter, the unpaid installments of principal of this Bond may be prepaid or redeemed prior to their scheduled due dates, at the option of the Issuer, with funds derived from any available source, as a whole, or in part, and, if in part, the particular portion of this Bond to be prepaid dr redeemed shall be selected and designated by the Issuer (provided that a portion of this Bond may be redeemed only in an integral multiple of $5,000), at the prepayment or redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for prepayment or redemption. AT LEAST 30 days prior to the date fixed for any such prepayment or redemption a written notice of such prepayment or redemption shall be mailed by the Paying Agent/Registrar to the registered owner hereof. By the date fixed for any such prepayment or redemption due provision shall be made by the Issuer with the Paying Agent/Registrar for the payment of the required prepayment or redemption price for this Bond or the portion hereof which is to be so prepaid or redeemed, plus accrued interest thereon to the date fixed for prepayment or redemption. If such written notice of prepayment or redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so prepaid or redeemed, thereby automatically shall be treated as prepaid or redeemed prior to its scheduled due Bite, and shall not bear interest after the date fixed for its prepayment or redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the prepayment or redemption price plus accrued inter- est to the date fixed for prepayment or redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Bool•s all such prepayments or redemptions of principal of this Bond or any portion hereof. THIS BOND, to the extent of the unpaid or unredeemed principal balance hereof, or any unpaid and unredeemed portion hereof in any integral multiple of $5,000, may be assigned by the initial registered owner hereof and shall be transferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other requirements for such transfer, this Bond must be presented and surrendered to the Paying 4 Agent/Registrar for cancellation, together with proper instru- ments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment 'ay the initial registered owner of this Bond, or any portion or portions hereof in any integral multiple of $5,000, to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be trans- ferred and registered. Any instrument or instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or a n%, such portion or portions hereof by the initial registered owner hereof. A new bond or bonds payable to such assignee or assignees (which then will be the new registered owner or owners of such new Bond or Bonds) or to the initial registered owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, shall be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond or any portion or portions hereof, but solely in the form and manner as provided in the next paragraph hereof for the conversion and exchange of this Bond or any portion hereof. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. AS PROVIDED above and in the Bond Ordinance, this Bond, to the extent of the unpaid or unredeemed principal balance hereof, may be converted into and exchanged for a like aggre- gate principal amount of fully registered bonds, without interest coupons, payable to the assignee or assignees duly designated in writing by the initial registered owner hereof, or to the initial registered owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, in any denomination or denominations in any integral multiple of $5,000 (subject to the requirement here- inafter stated"t:hat each substitute bond issued in exchange for any portion of this Bond shall have a single stated principal maturity date), upon surrender of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. If this Bond or any portion hereof is assigned and transferred or converted each bend issued in exchange for any portion hereof shall have a single stated principal maturity date correspond- ing to the due date of the installment of principal of this Bond or portion hereof for which the substitute bond is being exchanged, and shall bear interest at the rate applicable to and borne by such installment of principal or portion thereof. Such bonds, respectively, shall be subject to redemption prior to maturity on the, same dates and for the same prices as the corresponding installment of principal of this Bond or portion hereof for which they are being exchanged. No such bond shall be payable in installments, but shall have only one stated principal maturity date. AS PROVIDED IN THE BOND ORDINANCE, THIS BOND IN ITS PRESENT FORM MAY BE ASSIGNED AND TRANSFERRED OR CONVERTED ONCE ONLY, and to one or more assignees, but the bonds issued and delivered in exchange for this Bond or any portion hereof may be assigned and transferred, and converted, subsequently, as provided in the Bond Ordinance. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging this Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make any such assignment, conversion, or exchange (i) during the period commencing with the close of business on any Record Date and s 5 ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for prepayment or redemption prior to maturity, within 45 days prior to its prepayment or redemption date. IN THE EVENT any Paying Agent/Registrar for this Bond is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified sub- ,ititute therefor, and promptly will cause written notice ,:hereof to be mailed to the registered owner of this Bond. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, sold, and delivered; that all acts, conditions, and thit,9L required or proper to bo performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a special obligation of the Issuer, secured by and payable, together with other bonds, from a first lien on and pledge of the "Pledged Revenues", which include initially the "Net Revenues of the System" as such terms are defined in the Bond Ordinance, with the System consisting of the City's entire combined waterworks, sewer, and electric light and power system. THE ISSUER has reserved the right, subject to the restric- tion stated in the Bond Ordinance, to issue Additional Bonds payable from and secured by a first lien on and pledge of the "Pledged Revenues" on a parity with this Bond. THE REGISTERED OWNER hereof shall never have the right to demand payment of this Bond or the interest hereon out of any funds raised or to be raised by taxation or from any source whatsoever other than specified in the Bond Ordinance. BY BECOMING the registered owner of this Bond, the regis- tered owner thereby acknowledges all of the terns and provi- sions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordi- nance constitute a contract between the registered owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual signature of the Mayor of the Issuer and countersigned with the manual signature of the City Secretary of t-ne Issuer, has caused the official seal of the Issuer to be duly impressed on this Bond, and has caused this Bond to be dated MARCH 1, 1984. City Secretary, Mayor, City of Denton, Texas City of Denton, Texas (CITY SEAL) 6 FORM OF REGISTRATION CERTIFI'.ATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, certi- fied as to validity, and approved by the Attorney Ger+eral of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this Comptroller of Public Accounts of the State of Texas (COMPTROLLER'S SEAL) Section 6. ADDITIONAL CHARACTERISTICS OF THE BONDS. Registration and Transfer. (a) The Issuer shall keep or cause to be kept at the print pal corporate trust office of TEXAS AMERICAN BANK/FORT WORTH, N.A., FORT WORTH, TEXAS (the "Paying Agent/Registrar") books or records of the registration and transfer of the Bonds (the "Registration Books"), and the Issuer hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such transfers and registrations under such reasonable regulations as the Issuer and Paying Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such transfers and registrations as herein provided. The Paying Agent/Registrar shall obtain and record in the Registration Books the address of the registered owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each registered owner to notify the Paying Agent/Registrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. The Issuer shall have the right to inspect the Registration Books during regular business hours of the Paying Agent /Registrar, but otherwise the Paying Agent/Registrar shall keep the Regis- tration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. Registration of each Bond may be transferred in the Registra- tion Books only upon presentation and surrender of such Bond to the Paying Agent/Registrar for transfer of registration and cancellation, together with proper written instruments of assignment, in form and with guarantee of signatures satis- factory to the Paying Agent/Registrar, (i) evidencing the assignment of the Bond, or any portion thereof in any integral multiple of $5,000, to the assignee or assignees thereof, and (ii) the right of such assignee or assignees to have the Bond or any such portion thereof registered in the name of such assignee or assignees. Upon the assignment and transfer of any Bond or any portion thereof, a new substitute Bond or Bonds shall be issued in conversion and exchange therefor in the manner herein provided. The Initial Bond, to the extent of the unpaid or unredeemed principal balance thereof, may be assigned and transferred by the initial registered owner thereof once only, and to one or more assignees designated in writing by the initial registered owner thereof. All Bonds issued and de- livered in conversion of and exchange for the Initial Bond shall be in any denomination or denominations of any integral multiple of $5,000 (subject to the requirement hereinafter seated. that each substitute Bond shall have a single stated principal maturity date), shall be in the form prescribed in the FORM OF SUBSTI7UTE BOND set forth in this Ordinance, anO.. shall have the characteristics, and me.y be assigned, 7 transferred, and converted as hereinafter provided. If the Initial Bond or any portion thereof is assigned and transferred or converted the Initial Bond must be surrendered to the Paying Agent/Registrar for cancellation, and each Bond issued in exchange for any portion of the Initial Bond shall have a single stated principal maturity date, and shall not ►,e payable in installments; and each such Bond shall have a. principal maturity date corresponding to the due date of the installment of principal or portion thereof for which the substitute Bond is being exchanged; and each such Bond shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged. If only a portion of the initial Bond is assigned and transferred, there shall be delivered to and registered in the name of the initial registered owner substitute Bonds in exchange for the unassigned balance of the Initial Bond in the same manner as if the initial registered owner were the as- signee thereof. If any Bond or portion thereof other than the Initial Bond is assigned and transferred or converted each Bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the Bond for which it is exchanged. A form of assignment shall be printed or endorsed on each Bond, excepting the Initial Bond, which shall be executed by the registered owner or its duly authorized attorney or representative to evidence an assignment thereof. Upon surrender of any Bonds or any portion or por- tions thereof for transfer of registration, an authorized representative of the Paying Agent/Registrar shall make such transfer in the Registration Books, and shall deliver a new fully registered substitute Bond or Bonds, having the charac- teristics herein described, payable to such assignee or assign- ees (which then will be the registered owner or owners of such new Bond or Bonds), or to the previous registered owner in case only a portion of a Bond is being assigned and transferred, all in conversion of and exchange for said assigned Bond or Bonds or any portion or portions thereof, in the same form and manner, and with the same effect, as provided in Section 6(d), below, for the conversion and exchange of Bonds by any regis- tered owner of a Bond. The Issuer shall pay the Paying Agent/ Registrar's standard or customary fees and charges for making such transfer and delivery of a substitute Bond or Bonds, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent; Registrar shall not be required to make transfers of registration of any Bond or any portion thereof (i) during the period commencing with the close of business on any Record Date and ending with the cpening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. (b) ownership of Bonds. The entity in whose name any Bond shall a reg stere in the Registration Books at any time shall be deemed and treated as the absolute owner thereof for all purposes of this Ordinance, whether or not such Bond shall be overdue, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary; and payment of, or on account of, the principal of, premium, if any, and interest on any such Bond shall be made only to such registered owner. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (c) Payment of Bonds and Interest. The Issuer hereby further appoints the Paying AgentTegistrar to act as the paying agent for paying the principal of and interest on the Bonds, and to act as its agent to convert and exchange or 8 replace Bonds, all as provided in this Ordinance. The Paying Agent/Registrar shall keep proper records of all payments made by the Issuer and the Paying Agent/Registrar with respect to the Bonds, and of all conversions and exchanges of Bonds, and all replacements of Bonds, as provided in this Ordinance. (d) Conversion and Exchan a or Re lacement Authenti- cation. EacF -Bond-issued an delivered pursuant to this Ordr-nance, to the extent of the unpaid or unredeemed principal balance or principal amount thereof, may, upon surrender of such Bond at the principal corporate trust office of the Paying Agec,t/Registrar, together with a written request therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys or representatives, with guarantee of signatures satisfactory to the Paying Agent/Registrar, may, at the option of the regis- tered owner or such assignee or assignees, as appropriate, be converted into and exchanged for fully registered bonds, without interest coupons, in the form prescribed in the FORM OF SUBSTITUTE BOND set forth in this Ordinance, in the denomina- tion of $5,000, or any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Bond shall have a single stated maturity date), as requested in writing by such registered owner or such assignee or assignees, in an aggregate principal amount equal to the unpaid or unre- deemed principal balance or principal amount of any Bond or Bonds so surrendered, and payable to the appropriate registered owner, assignee, or assignees, as the case may be. If the Initial Bond is assigned and transferred or converted each substitute Bond issued in exchange for any portion of the Initial Bond shall have a single stated principal maturity date, and shall not be payable in installments; and each such Bond shall have a principal maturity date corresponding to the due date of the installment of principal or portion thereof for which the substitute Bond is being exchanged; and each such Bond shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged. If a portion of any Bond (ether than the Initial Bond) shall be redeemed prior to its scheduled maturity as provided herein, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in the denomination or denominations of any integral multiple of $5,000 at the request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon surrender thereof for cancellation. If any Bond or portion thereof (other than the Initial Bond) is assigned and transferred or converted, each Bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the Bond for which it is being exchanged. Each substitute Bond shall bear a letter and/or number to distinguish it from each other. Bond. The Paying Agent/Registrar shall convert and exchange or replace Bonds as provided herein, and each fully registered bond delivered in conversion of and exchange for or replacement of any Bond or portion thereof as permitted or required by any provision of this Ordinance shall constitute one of the Bonds for all purposes of this Ordinance, and may again be converted and exchanged or replaced. It is specifically provided that any Bond authenticated in conversion of and exchange for or replacement of another Bond on or prior to the first scheduled Record Date for the Initial Bond shall bear interest from the date of the initial Bond, but each substitute Bond so authenti- cated after such first scheduled Record Date shall bear inter- est from the interest payment date next preceding the date on which such substitute Bond was so authenticated, unless such Bond is authenticated after any Record Date but on or before the next following interest payment date, in which case it shall bear interest from such next following interest payment 0 date; provided, however, that if at the time of delivery of any substitute Bond the interest on the Bond for which it is being exchanged is due but has not been paid, then such Bond shall bear interest from the date to which such interest has been paid in full. THE INITIAL BOND issued and delivered pursuant to this Ordinance is not required to be, and shall not be, authenticated by the Paying Agent /Registrar, but on each substitute Bond issued in conversion of and exchange for or replacement of any Bond or Bonds issued under this Ordinance there shall be printed a certificate, in the form substantially as follows: "PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE it is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described on the face of this Bond; and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds o" an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. TEXAS AMERICAN BANK/FObT WORTH, N.A., FORT .0-ORTH, T.7XAS Paying Agent/Registrar Dated By Authorized Representa- tiveT_ An authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Bond, date and manually sign the above Certificate, and no such Bond shall be deemed to be issued or outstanding unless such Certificate is so ex- ecuted. The Paying Agent/Registrar promptly shall cancel all Bonds surrendered for conversion and exchange or replacement. No additional ordinances, orders, or resolutions need be passed or adopted by the governing body of the Issuer or any other body or person so as to accomplish the foregoing conversion and exchange or replacement of any Bond or portion thereof, and the Paying Agent/Registrar shall provide for the printing, execu- tion, and delivery of the substitute Bonds in the manner prescribed herein, and said Bonds shall be of type composition printed on paper with lithographed or steel engraved borders of :,ustomary weight and strength. Pursuant to Vernon's Ann. Tex. Civ. St. Art. 717k-6, and particularly Section 6 thereof, the duty of conversion and exchange or replacement of Bonds as aforesaid is hereby imposed upon the Paying Agent /Registrar, and, upon the execution of the above Paying Agent/Registrar's Authentication Certificate, the converted and exchanged or replaced Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Initial Bond which originally was issued pursuant to this Ordinance, ap- proved by the Attorney General, and registered by the .Comptroller of Public Accounts. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging any Bond or any portion thereof, but the one requesting any such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a cond:.tion precedent to the exercise of such privilege of conversion and exchange. The Paying Agent/Registrar shall not be required to make any such conversion and exchange or replacement of Bonds or any portion thereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion 10 thereof called for redemption prior to maturity, within 45 days prior to its redemption date. (e) In General. All Bonds issued in conversion, and exchange or repcement of any other Bond or portion thereof, (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be redeemed prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may lie converted and exchanged for other Bonds, (v) shall have the characteristics, (vi) shall be signed and sealed, and (vii) the principal of and interest on the Bonds shall be payable, all as provided, and in the manner required or indicated, in the FORM OF SUBSTITUTE BOND set forth in this Ordinance. (f) Pa ment of Fees and Charges. The Issuer hereby covenants with the registers owners o the Bonds that it will (i) pay the standard or customary fees and charges of the Paying Agent/Pegistrar for its services with respect to the payment of the principal of and interest on the Bonds, when due, and (ii) pay the fees and charges of the Paying Agent/Registrar for services with respect to the transfer of registration of Bonds, and with respect to the conversion and exchange of Bonds solely to the extent above provided in this Ordinance. (g) Substitute Paying Agent /Reistrar. The Issuer covenants wit the re igsters owners o the Bohds that at all times while the Bonds are outstanding the Issuer will provide a competent and legally qualified bank, trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Bonds under this Ordinance, and that the Paying Agent/Registrar will be one entity. The Issuer reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 120 days written notice to the Paying Agent/Registrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method) should resign or other- wise cease to azt as such, the Issuer covenants that promptly it will appoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Regis- tra.r promptly shall transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Regis- trar designated and appointed by the Issuer. "Don any change in the Paying Agent/Registrar, the Issuer promptly will cause i written notice thereof to be sent by the new Pay ng Agent/Regi- strar to each registered owner of the Bonds, by United States Mail, first-class postage prepaid, which notice also shall give the address of the new Paying Agent /Registrar. By accepting the position and performing as such, each Paying Agent/Regis- trar shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar. Section 7. FORM OF SUBSTITUTE BONDS. The form of all Bonds issued in conversion, and exchange or replacement of any other Bond or portion thereof, including the form of Paying Agent/Registrar's Certificate to be printed on each of such Bonds, and the Form of Assignment to be printed on each of the Bonds, shall be, respectively, substantially as follows, with such appropriate variations, omissions, or insertions as are permitted or required by this Ordinance. 11 FORM OF SUBSTITUTE BOND NO. UNITED STATES OF AMERICA PRINCIPAL AMOUNT STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON UTILITY SYSTEM REVENUE BOND SERIES 1984 INTEREST RATE MATURITY DATE CUSIP NO. 8 ON THE MATURITY DATE specified above the CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a a political subdivision of the State of Texas, hereby promises to pay to or to the registered assignee hereof (either being ereina ter called the "registered owner") the principal amount of and to pay interest thereon from MARCH 1, 1984, to the maturity date specified above, or the date of redemption prior to maturity, at the interest rate per annum specified above; with interest being payable on DECEMBER 1, 1984, and semiannually on each JUNE 1 and DECEMBER 1 thereafter, except that if the date of authentication of this Bond is later than NOVEMBER 15, 19841 such principal amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date (herein- after defined) but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date. THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at the principal corporate trust office of TEXAS AMERICAN BANK/FORT WORTH, N.A., FORT WORTH, TEXAS, which is the "Paying Agent /Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each interest payment date by check or draft, dated as of such interest payment date, drawn by the Paying Agent;Registrar on, and payable solely from, funds of the Issuer required by the resolution authorizing the issuance of the Bonds (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check or draft shall be sent by the Paying Agent/Registrar by United States Mail, first-class postage prepaid, on each such interest payment date, to the registered owner hereof, at the Fddress of the registered owner, as it appeared on the 15th of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent /Registrar, as hereinafter described. Any accrued interest due upon the redemption of this Bond prior to maturity as provided herein shall be paid to the registered owner at the principal corpor- ate trust office of the Paying Agent/Registrar upon presen- tation and surrender of this Bond for redemption and payment at the principal corporate trust office of the Paying Agent/Regis- trar. The Issuer covenants with the registered owner of this Bond that on or before each principal payment date, interest payment date, and accrued interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for the payment, in immediately 12 available funds, of all principal of and interest on the Bonds, when due. IF THE DATE for the payment of the principal of or inter- est on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent /Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND is one of an issue of Bonds initially dated MARCH 11 1984, authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $1,0001000, FOR THE PURPOSE OF PROVIDING FUNDS TO IMPROVE THE CITY'S UTILITY SYSTEM, WHICH CONSISTS OF THE CITY'S COMBINED WATERWORKS, SEWER, AND ELECTRIC LIGHT AND POWER SYSTEM. ON DECEMBER 1, 1994, or on any interest payment date thereafter, the Bonds of this Series may be redeemed prior to their scheduled maturities, at the option of the Issuer, with funds derived from any available and lawful source, as a whole, or in part, and, if in part, the particular Bonds, or portions thereof, to be redeemed shall be selected and designated by the Issuer (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000), at the redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for redemption. AT LEAST 30 days prior to the date fixed for any redemp- tion of Bonds or portions thereof prior to maturity a written notice of such redemption shall be published once in a finan- cial publication, journal, or reporter of general circulation among securities dealers in The City of New York, New York (including, but not limited to, The Bond Buyer and The Well Street Journal), or in the State of Texas (including, but not limited to, The Texas Bond Reporter). Such noti.:e also shall be sent by the Paying Agent/Registrar by United States Mail, first-class postage prepaid, not less than 30 days prior to the date fixed for any such redemption, to the registered owner of each Bond to hp redeemed at its address as it appeared on the 45th day prior to such redemption date; provided, however, that the failure to seed, mail, or receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Bond, and it is hereby specifically provided that the publication of such notice as required above shall be the only notice actually required in connection with or as a prerequisite to the redemption of any Bonds or portions there- of. By the date fixed for any such redemption due provision shall be made with the Paying Agent/Registrar for the payment of the required redemption price for the Bonds or portions thereof which are to be so redeemed, plus accrued interest thereon to the late fixed for redemption. If such written notice of redemption is published and if due provision for such payment is made, all as provided above, the Bonds or portions thereof which are to be so redeemed thereby automatically shall be treated as redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemp- tion, and they shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest from the Paying Agent/- Registrar out of the funds provided for such payment. If a portion of any Bond shall be redeemed a substitute Bond or Bonds having the same maturity date; bearing interest at the 13 came rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in aggregate principal amount equal to the unre- deemed por'.ion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the Bond Ordinance. THIS BOND OR ANY PORTION OR PORTIONS HEREOF IN ANY INTE- GRAL :9ULTIPLE OF $5,000 may be assigned and shall be trans- ferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, udon the terms and conditions set forth in the Bond Ordinance. Among ether requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfac- tory to the Paying Agent/Registrar, evidencing assigni.ient of this Bond or any portion or portions hereof in any integral multiple of $5,0}0 to the assignee or assignees in whose name or names this Bond or any such port'en or portions hereof is or are to be transferred and registered. The form of Assignment printed or endorsed on this Bond shall be executed by the registered owner or its duly authorized attorney or representa- tive,to evidence the assignment hereof. A new Bond or Bonds payable to such assignee or assignees (which then will be the new registered owner or owners of such new Bond or Bonds), or to the previous registered owner in the case of the assignment and transfer of only a portion of this Bond, may be delivered by the Paying Agent/Registrar in conversion of -and exchange for this Bond, all in the form and manner as provided in the next paragraph hereof for the conversion and exchange of other Bonds. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for making such trans- fer, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of this Bond or any portion hereof W during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redeLT,ption date. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar stall not be affected by any notice to the contrary. ALL BONDS OF THIS SERIES are issuable solely as fully registered bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Bond Ordinance, c!~is Bond, or any unredeemed portion hereof, may, :it the request of the registered owner or the assignee or as- signees hereof, be converted into and exchanged for a lil.e aggregate principal amount of fully registered bonds, without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case may be, having the same maturity date, and bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate registered owner, assignee, or assignees, as the case may be, upon sur- render of this Bond to the Paying Age.zt/Registrar for cancella- tion, all in accordance with the form and procedures set forth in the Bond Ordinance. The Issuer shell pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchangir.3 any Bond or any 14 portion thereof, but the one requesting such transfer, conver- sion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition prece- dent to the exercise of such privilege of conversion and exchange. The Paying Agent/Registrar shall not be required to wake any such conversion and exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond ordinance that it promptly will appoint a competent and legally qualified substi- tute therefor, and promptly will cause written notice thereof to be mailed to the registered owners of the Bonds. IT IS HEREBY certified, rocited, and covenanted that this Bond has been duly and validly authorized, issued, solc',and de- livered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a special obligation of the Issuer, secured by and payable, together with other bonds, front a first lien on and pledge of the "Pledged Revenues", which include initially the "Net Revenues of the System", as such terms are defined in the Bond Ordinance, with the System consisting of the city's entire combined waterworks, sewer, and electric light and power system. THE ISSUER has reserved the right, subject to the restric- tion stated in the Bond Ordinance, to issue Additional Bonds payable from and secured by a first lien on and pledge of the "Pledged Revenues" on a parity with this Bond and series of which it is a part. THE REGISTERED OWNER herecf shall never have the right to demand payment of this Bond or the interest hereon out of any funds rais--d or to be raised by taxation or from any source whatsoever other than specified in the Bond Ordinance. BY BECOMING the registered owner of this Bond, the regis- tered owner thereby acknowledges all of the terms and provi- sions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordi- nance constitute a contract between each registered owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the facsimile signature of the Mayor of the Issuer and countersigned with the facsimile signature of the City Secretary of the Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile, on this Bond. _ (iacsi;nile signature) (facsimile signature) City Secretary, Mayor, City of Denton, Texas City of Denton, Texas (CITY SEAL) 15 FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bor.d Ordinance described on the face of this Bond; and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of tha State of Texas. TEXAS AMERICAN BANK/FORT WORTH, N.A., FORT WORTH, TEXAS Paying Agent/Registrar Dated By Aut orized Represe;itative FORM OF ASSIGNMENT: ASSIGNMENT For value received, the undersigned registered owner of this Eond, or duly authorized representative or attorney thereof, hereby assigns this Bond to (print or type the name and address of the assignee and any other relevant information) and authorizes the Paying Agent/Registrar to transfer the registration of this Bond in the Registration Books. Dated _ Registered Owner The signature above is hereby verified as true and genuine. Section 8. DEFINITIONS. As used in this Ordinance the following terms shall have the meanings sat forth below, unless the text hereof specifically indicates otherwise: (a) Tile terms "City" and "113suer" shall mean the City of Denton, in Denton County, Texas. (b) The term "City Council" or "Council" shall mean the governing body of the City. Ic) The term "Bonds" shall mean collectively the Initial Bond as defined and described in Section 1 of this Ordinance and all substitute bonds exchanged therefor as provided in this Ordinance. (d) The term "Parity Bonds" shall mean collectively (i) the City of Denton Utility S;, tem Revenue Refunding Revenue Bonds, Series 1983, authorize, ,y ordinance passed on March 10, 1983 (the series 1983 Bonds) end (ii) --he Bonds. 16 ~s~ (e) Tre term "Additional Bonds" shall mean the additional parity revenue bonds which tiie City reserve; the right to issue in the future, in accordance with Section 25 of this Ordinance. (f) The term "System" shall mean (1) the City's entire existing waterworks and sewer system and the City's entire existing electric light and power system, together with all future extensions, improvements, enlargements, and additions thereto, and all replacements thereof, and (2) ai.y other related facilities, all or any part of the revenues or income from which do, in the future, at the option of the City, and in accordance with law, become "Pledged Revenues" as hereinafter defined; provided that, notwithstanding the foregoing, and to Lr.: extent now or hereafter authorized or permitted by law, the term System shall not mean any water, sewer, electric, or other facilities of any kind which are declared not to be a part of the System, and which are acquired or constructed by the City with the proceeds from the issuance of "Special Facilities Bonds", which are hereby defined as being special revenue obligations of the City which are not payable from or secured by any Pledged Revenues, but which are secured by and payable from liens on and pledges of any other revenues, sources, or payments, including, but not limited to, special contract revenues or payments received from any other legal entity in connection with such facilities; and such revenues, sources, or payments shall not be considered as or constitute Gross Rev- enues of the System, unless and tc the extent otherwise pro- vided in the ordinance or ordinances authorizing the issuance of such "Spe-ial Facilities Bonds". (g) The termz "Gross Revenues of the Systein" and "Gross Revenues" shall mean all revenues and income of every nature derived or received by the City from the operation and owner- ship of the System, including the interest income from the investment or deposit of money in any Fund created by this Ordinance. (h) The terms "14at Revenues of the System", and "Net Revenues' ~-hall mean all Gross Pavenues after deducting there- from an amount equal to the current expenses of operation and maintenance of the System, including all salaries, labor, materials, repairs, and extensions necessary to render effi- cient service, provided, however, that only such repairs and extensions, as in the judgment of the City Council, reasonably and fairly exercised by the adoption of appropriate resolu- tions, are necessary to keep the System in operation and render adequate service to said City and the inhabitants thereof, or such as might be necessary to meet some phys_cal accident or condition which would otherwise impair the Bonds or Additional Bonds, shall be deducted in determining "Net revenues". Payments required to be made by the City for water supply or water facilities, sewer services or sewer facilities, fuel supply, and for the purchase of electric power, which payments under law constitute operation and maintenance expenses of any part of the System, shall constitute and be regarded a3 ex- penses of operation and maintenance of the System under this Ordinance. Depreciation and amortization shall not constitute or be regarded as expenses of operation and maintenance of the System. (i) The term "Pledged Revenues" shall mean (1) the Net Revenues, plus 12) any additional revenues, income, or other resources which are expected to be available to the City on a regular periodic basis, including, without limitation, any grants, donations, or income received 17 or to be recrived from the United States Government, or any other public or private source, whether pursuant to an agreement or otherwise, which in the future may, at the option of the City, be pledged to the payment of the "arity Bonds or Additional Bonds. (j) The term "year" or "fiscal year" shall mean the fiscal year used by the City in connection with the operation of the System. (k) The term "Government Obligations" shall mean direct obligations of the United States of America, including obliga- tions the principal of and interest on which are uncondition- ally guaranteed by the United States of America, which may be United States Treasury obligations such as its State and Local Government Series, and which may be in book-entry furs. Section 9. PLEDGE. (a) The Bonds are "Additional Bonds" as permitted by Sections 24 and 25 of the ordinance passed on March 10, 1983, authorizing the Series 1983 Bonds; and it is hereby determined, declared, and resolved that the Bonds and the Series 1983 Bonds (collectively the "Parity Bonds") are secured and payable equally and ratably on a parity, and that Sections 8 through28, of this Ordinance are supplemental to and cumulative of Sections 7 through 27 of the aforesaid ordinance passed on March 10, 1383, with Sections 8 through 28 of this Ordinance being applicable to all of the Parity Bonds. (b) The Parity Bonds and any Additional Bonds, and the interest thereon, including any interest coupons appertaining thereto, are and shall be secured by and payable from a first lien on and pledge of the Pledged Revenues, and the Pledged Revenues are further pledged to the establishment and mainte- nance of the Funds created by this ordinance, and any Funds created by any ordinance authorizing the issuance of any Additional Bonds. The Parity Bonds and any Additional Bonds are not and will not be secured 3y or payable from a mortgage or deed of trust on any real, personal, or mixed properties constituting the System. Section 10. SYSTEM FUND. There heretofore has been and is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart from all other funds 3f the City, a special fund to be entitled the "City of Denton Utility System Fund" (the "System Fund"). All Gross Revenues shall be credited to the System Fund immedi- ately upon receipt, unless otherwise provided in this ordi- nance. H11 current expenses of operation and maintenance of the Syscer shall be paid from such Gross Revenues credited to the System Fund as a first charge against same. Before making any deposits hereinafter required to be made from the System Fund, the City shall retain in the System Fund at all times an amount at least equal to one-sixth of the amount budgeted for the then current fiscal year for the current operation and maintenance expenses of the. System. Section 11. INTEREST AND SINKING FUND. For the sole purpose of paying the principal of and interest on all Parity Bonds and Additional Bonds, there heretofore has been and is hereby created and there shall be established and maintained on the books of the City, a.id accounted for separate and apart from all other funds of the City, a separate fund to be en- titled the "City of Denton Utility System Revenue Bonds Inter- est and Sinking Fund" (the "Interest and Sinking Fund"). Section 12. RESERVE FUND. There heretofore has been and is hereby created and there shall be established and maintained initially at Texas American Bank/Fort Worth, N.A., Fort Worth, 18 Texas, and thereafter, at the option of the City, established and maintained at any time at any national bank having a capital and surplus in excess of $25,400,000, a separate fund to be entitled the "City of Denton Utility System Bonds and Additional Bonds Reserve Fund" (the "Reserve Fund"). The Reserve Fund shall be used to pay the principal of and interest on any Parity Bonds or Additional Bonds when and to the extent the amounts in the Interest and Sinking Fund available for such payment are insufficient for such purpose, and may be used for the purpose of finally retiring the last of any Parity Bonds or Additional Bonds. Section 13. EXTENSION AND IMPROVEMENT FUND. There heretofore iias been and is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart from all. other funds of the City, a separate fund to be entitled the "City of Denton Utility System Extension and Improvement Fund" (the "Extension and Improvement Fund"). The Extension and Improvement Fund shall be used for the purpose of paying the costs of improve- ments, enlargements, extensions, additions, replacements, or other capital expenditures related to the System, or for paying the costs of unexpected or extraordinary repairs or replace- ments of the System for which System funds are not available, or for paying unexpected or extraordinary expenses of operation and maintenance of the System for which System funds are not otherwise available, or for any other ?.awful purpose. Section 14. EMERGENCY FUND. There is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart from all other funds of the City, a separate fund to be entitled the "City of Denton Utility System Emergency Fund" (the "Emergency Fund"). The Emergency Fund shall be used for the purpose of paying unex- pected or extraordinary expenses of repair, replacement, operation, and maintenance of the System for which neither System funds ncr the moneys in the Extension and Improvement Fund are available. There was deposited in the Emergency Fund simultaneously with the delivery of the Series 1983 Bonds to the initial purchasers thereof from lawfully available funds of the City the amount of $250,000. All investment interest income from the Emergency Fund shall be transferred to the System Fund as receives:. Section 15. DEPOSITS OF PLEDGED REVENUES. Pledged Revenues shall be credited to or deposited in the Interest and Sinking Fund, the Reserve Fund, the Extension and Improvement Fund, and other funds when and as required by this Ordinance and any ordinance authorizing the issuance of Additional Bonds. Section 16. INVESTMENTS. Money in any Fund established pursuant to this Ordinance or any ordinance authorizing the issuance of Additional Bonds, may, at the option of the City, be placed in time deposits or certificates of deposit secured by obligations of the type hereinafter described, or be in- vested in Government Obligations (as defined in Section 8 hereof) or obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in obligations of instrumentalities of the United States of America, including, but not limited to, eviden. es of indebted- ness issued, insured, or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal. Home Loan Banks, Govern- ment National Mortgage Association, United States Postal Service, Farmers Home Administration, Federal Home Loan Mort- gage Association, Small Business Administration, Federal 19 Housing Association, or Participation Certificates in the Federal Assets Financing Trust; provided that all such deposits and investments shall be made in such manner as will, in t1,e opinion of the City, permit the money required to be expended from any Fund to be available at the proper time or times as expected to be needed. Such investments (except United State:: Treasury Obligations--State and Local Government Series investments held in book entry form, which shall at all times be valued at cost) shall be valued in terms of current market value as of the last day of each fiscal year. Unless otherwise set forth herein, all interest and income derived from such deposits and investments immediately shall be credited to, and any losses debited to, the Fund from which the deposit or investment was made, and surpluses in any Fund shall or may be disposed of as hereinafter provided. Such investments shall be sold promptly when necessary to prevent any default in connection with the Parity Bonds or Additional Bonds consistent with the ordinances, respectively, authorizing their issuance. Section 17. FUNDS SECURED. That money in all Funds created by this Ordinance, to the extent not invested, shall be secured in the manner prescribed by law. Section 18. PRIORITY OF DEPOSITS AND PAYMENTS FROM SYSTEM FUND. That the City shall make the deposits and payments from Pledged Revenues in the System Fund when and as required by this Ordinance and any ordinance authorizing any Additional Bonds, and such deposits shall be made in the following manner and with the following Irrevocable priorities,.respectively: First, to the Interest and Sinking Fund, when and in the amounts required by this Ordinance and any ordinance authorizing any Additional Bonds; Second, to the Reserve Fund, when and in the amounts required by this Ordinance and any ordinance authorizing any Additional Bonds; and Third, to the Extension and Improvement Fund, when i and as required by Section 21 of this Ordinance. Section 19. INTEREST AND SINKING FUND REQUIREMENTS. The City shall cause to be deposited to the credit of the Interest and Sinking Fund the accrued interest and any premium received from the sale of the Initial. Bond, and on or before the 25th day of each month the City shall cause to be deposited to the credit of the Interest and Sinking Fund, in approximately equal monthly payments, amounts sufficient, together with any other funds on hand therein, to pay all of the interest or principal and interest coming due, including the principal amount of any Parity Bonds required to be redeemed prior to maturity pursuant to any mandatory redemption requirements, on the Parity Bonds and any Additional Bonds on the next succeeling interest payment hate. Any moneys so deposited in the interest and Sinking Fund with respect to a mandatory redemption require- ment, together with other lawfully available funds of the City, may be used by the City, to purchase, in advance of a mandatory redemption date and at a price not exceeding the principal amount thereof plus accrued interest thereon to the date of purchase, Parity Bonds which would be subject to being chosen for mandatory redemption on such mandatory redemption date. The Paying Agent shall cancel any Parity Bonds so purchased. Section 20. RESERVE FUND REQUIREMENTS. There is now on hand in the Reserve Fund an amount of money and Government obligations equal to $31000,000. The City shall maintain in the Reserve Fund an amount of money and investments equal to the lesser of $3,000,000 or the maximum annual principal and 20 interest requirements of the Parity Bonds (the "Required Reserve Amount"). Following the issuance of Additional Bonds, the Required Reserve Amount shall be equal to the average anr.ual principal and interest requirements of all Parity Bonds and AVitional Bonds then outstanding; provided, however, the Required Reserve Amount shall not be less than $3,000,000, if the maximum annual principal and interest requirements on al.l Parity Bonds and Additional Bonds outstanding exceeds $3,000,000. After the delivery of any Additional Bonds the City shall cause the Reserve Fund to be increased, if and to the extent necessary, so that such fund will contain an amount of money and investments equal to the Required Reserve Amount, Any increase in the Required Reserve Amount may be funded from Pledged Revenues, or from proceeds from the sale of any Addi- tional Bonds, or any other available source or combination of sources. All or any part of the Required Reserve Amount not funded initially and immediately after the delivery of any installment or issue of Additional Bonds shall be funded, within not more than five years from the date of such delivery, by deposits of Pledged Revenues in approximately equal monthly installments on or before the 25th day of each month. Princi- pal amounts of the Parity Bonds and any Additional Bonds which must be redeemed pursuant to any applicable mandatory redemp- tion requirements shall be deemed to be maturing amounts of principal for the purpose of calculating principal and interest requirements on such bonds. When and sc long as the amount in the Reserve Fund is not less than the . -.,iced Reserve Amount no deposits shall be made to the credo., the Reserve Fund; but when and if the Reserve Fund at any time contains less than the Required Reserve Amount, then the City shall transfer from Pledged Revenues in the System Fund, and deposit to 'she credit of the Reserve Fund, monthly on or before the 25th day of each month, a sum equal to 1/60th of the Required Reserve Amount, until the Reserve Fund is restored to the Required Reserve Amount. The City specifically covenants that when and so long as the Reserve Fund contains the Required Reserve Amount, the City shall cause all interest and income derived from the deposit or investment of the Reserve Fund to be deposited to the credit of the Interest and Sinking Fund. Section 21. EXTENSION AND IMPROVEMENT FUND REQUIREMENTS. During each year, subject and subordinate to making the re- quired deposits to the credit of the Interest and Sinking Fund and the Reserve Fund, the City shall required to deposit to the credit of the Extension and I•ipr, int Fund, from Pledged Revenues in the System Fund, an amou. equal to A's of the "Adjusted Gross Revenues of the System", which term is hereby defined to mean the following: the Gross Revenues of the System for such year after deducting from such Gross Revenues an amount equal to the current expenses of operation and maintenance of the System for such year which are directly attribut- able to (i) all fuel costs related to the production of electric energy by the City and/or (ii) the pur- chase of electric energy by the City. Additional excess Pledged Revenues may, at the option of the City Couicil, be deposited to the credit of the Improvement Fund as permitted by Section 22 (b) hereof, but no such addi- tional. deposit is required. All investment interest incorr.e from the Extension and Improvement. Fund shall be retained in and remain a part of such Fund. Section 22. DEFICIENCIES; EXCESS PLEDGED REVENUES. (a) If on any occasion there shall not be sufficient Pledged Revenues to make the required deposits into the Interest and Sinking Fund or the Reserve Fund, such deficiency shall be made 21 up as soon as possible from the next available Pledged Rev- enues. (b) Subject to making the required deposits to tie credit of the various Funds when and as required by this Ordinance or any ordinance authorizing the issuance of Additional BonJs, any surplus Pledged Revenues may be used by the City for any lawful purpose. Section 23. PAYMENT OF PARITY BONDS AND ADDITIONAL BONDS. On or before June 1, 1984, and semiannually on or before each December 1 and June 1 thereafter while any of the Parity Bcads or Additional Bonds are outstanding and unpaid the City shall make available to the Paying Agents therefor, out of the Interest and Sinking Fund, or if necessary, out of the Reserve Fund, money sufficient to pay, on each of such dates, the principal of and interest on the Parity Bonds and Additional Bonds as the same matures and comes due, or to redeem the Parity Bonds or Additional Bonds prior to maturity, either upon mandatory redemption or at the option of the City. At the direction of the City the Paying Agents shall either deliver paid Parity Bonds anti Additional Bonds, and any interest coupons appertaining thereto, to the City or destroy all paid Parity Bonds and Additional Bonds, and any coupons appertaining thereto, and furnish the City with an appropriate certificate of cancellation or destruction. Section 24. FINAL DEPOSITS. (a) Any Parity Bond or Additional Bond shall be deemed to be paid, retired, and no longer outstanding within the meaning of this ordinance when payment of the principal of, rede;L+pt.ion premium, if any, on such Parity Bond or Additional Bond, plus interest thereon to the due date thereof (whether such due date be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof ;inc:ludii.g the giving of any required notice of redemp- tion or prcvision for the proper giving of such notice having been made), or (ij) shall have been provided by irrevocably depositing with or making available to a Paying Agent therefor, in trust and irrevocably set aside exclusively for such pay- ment, (1) money sufficient to make such payment or (2) Govern- ment Obligation!. which mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation, and expenses of such Paying Agent pertaining to the Parity Bonds and Addi- tional Bonds with respect to which such deposit is made shall have been paid or the payment thereof provided for to the satisfaction of such paying agent. At such time as a Bord or Additional Bond shall be deemed to be paid hereunder, ens aforesaid, it shall no longer be secured by or entitled to the benefits of this ordinance or a lien on and pledge of the Pledged Revenues, and shall be entitled to payment solely from such money or Gov rnment Obligations. (b) Any moneys so deposited with a paying agent may at the direction of tt,e City also be invested in Government Obligations, maturiig in the amounts and times as hersinbefore set forth, and all income from all Government Obligations in the hands of the paying agent pursuant to this Section which is not required for t:ie payment of the Parity Bonds and Additional Bonds, the redemption premium, if any, and interest thereon, with respect to which such money has been so deposited, shall be turned over to the City or deposited as directed by the City. Section 25. ADDITIONAL BONDS. (a) The City shall have the right and power at any time and from time to time, and in 22 r -.L~eM i. one or more series or issues, to authorize, issue, and deliver additional parity revenue bonds (herein called "Additional Bonds"), in accordance with law, in any amounts, for any lawful purpose, i,icluding the refunding of any Parity Bonds or Addi- tional Bonds, or other obligations. Such Additional Bonds, if and when withorized, issued, and delivered in accordance with this ordinance, shall be payable from and secured by an irrev- ocable first lien on and pledge of the Pledged Revenues, equally and ratably on a parity in all respects with the Parity Bonds and any other outstanding Additional Bonds. The principal of all Additional Bonds must be scheduled to be paid or mature on December 1 of the years in which si.ich principal is scheduled to be paid or mature. Section 26. FURTHER REQUIREMENTS FOR ADDITIONAL BONDS. Additional Bonds shall he issued o6ly in accordance with this Ordinance, and no installment, Series, or issue of Additional Bonds shall be issued or delivered unless: (a) The Mayor of the City and the City SecrQ--ary sign a written certificate to the effect that the City is not in default as to any covenant, condition, or obligation in connec- tion with all then outstanding Parity Bonds and Additional Bonds, and the ordinances authorising same, and that the Interest and Sinking Fund and the Reserve Fund each contains the amount then required to be therein. (b) An independent certified public accduntant, or in- dependent firm of certified public accountants, acting by and through a certified public accountant, signs a written certifi- cate to the effect that, in his or its opinion, during either the next preceding fiscal year, or any twelve consecutive calendar month period out of the 18-month period immediately preceding the month in which the ordinance authorizing the issuance of the then proposed Additional Bonds is passed, the Pledged Revenues were at least (i) 1.25 times an amount equal to the average annual principal and interest requirements, and (ii) 1.10 times an amount equal to the principal and interest requirements during the fiscal year during which such require- ments are scheduled to be the greatest, of all Parity Bonds and Additional Bonds which are scheduled to be outstanding after the delivery of the then proposed Additional Bonds. It is specifically provided, however, that in calculating the amount of Pledged Revenues for the purposes of this subsection (b), if there has been any increase in the rates or charg;-s for ser- vices of the System which is then in effect, but which was not in effect during all or any part of the entire period for which the Pledged Revenues are being calculated (hereinafter referred to as the "entire period") then the certified public account- ant, or in lieu of the certified public accountant a firm of consulting engineers, shall determine and certify the amount of Pledged Revenues as being the total of M the actual Pledged Revenues for the entire period, plus (ii) a sum equal to the aggregate amount by which the actual billings to customers of the System during the entire period would have been increased if euch increased rates or charges had been in effect during the entire period. (c) Provision shall be made in the ordinance authorizing for increasing the Reserve Fund to the Required Reserve Amount as required by Section 20 hereof. (e) All calculations of average annual principal and interest requirements of any bonds made in connection with the issuance of any then proposed Additional Bonds shall be made as of the date of such Additional Bonds; and also in making calculations for such purpose, and for any other purpose under 23 this Ordinance, principal amounts of any bonds which mist be redeemed prior to maturity pursuant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal of such bonds. Section 27. GENERAL COVENANTS. The City further cove- nants and agrees that in accordance with and to the extent required or permitted by law: (a) Performance. It will faithfully perform at all times any and all covenants, undertakings, stipulations, and provi- sions contained in this Ordinance, and each ordinance authoriz- ing the issuance of Additional Bonds, and in each and every Parity Bond and Additional Bond; that it will promptly -ay or cause to be paid the principal of and interest on every Parity Bond and Additional Bc ld, on the dates and in tl zt places and manner prescribed in such ordinances and parity Bonds nor Additional Bonds; and that it will, at the times and in Che manner prescribed, deposit or cause to be deposited the amounts required to be deposited into tAe Interest and Sinking Fund and the Reserve Fund; and any holder of the Parity Bonds or Addi- tional Bonds may require the City, its officials, an6 em- ployees, to carry out, respect, or enforce the covenants an,1 obligations of this Ordinance, or any ordinance authoriz+_ng the issuance of Additional Bonds, by all legal and equitable m(ca.ns, including specifically, but without limitation, the use and filing of mandamus proceedings, in arty court of competent jurisdiction, against the City, its officials, and employees. (b) City's Legal Auti.-)ritY. The City is a duly creatA and existing home rule c~it~y of the State of Texas, and is duly authorized under the laws of the State of Taxes to create and issue the Parity Bonds and Miitional Bonds; that all action on its part for the creation and issuance of the said obligations has been or will be duly and effectively taken, and th,t said obligations in the hands of the holders and owners thereon are and will be valid and enforceable special obligations of the City its accordance with their terms. (c) Title. The City has or will obtain lawful title to the lands, buildings, structures, and facilities constituting the System, that it warrants that it will defend the title to all the aforesaid lands, buildings, structures, and facilities, and every part thereof, for the benefit of the holders and owners of the Parity Bonds and Additional Bonds, against the claims and demands of all persons whomsoever, that it is lawfully qualified to pledge the Pledged Revenues to the payment of the Parity Bonds and Additional Bonds in the manner prescribed herein, and has lawfully exercised s,ich rights. (d) Liens. The City will from time to time and before the same become delinquent pay and discharge all taxes, assess- ments, and governmental charges, if any, which shall be law- fully imposed upon it, or the System, that it will pay all lawful claims for rents, royalties, 'labor, materials, and supplies which if unpaid might by law become a lien or charge thereon, the lien of which would be prior to or interfere with the liens hereof, so that the priority of the liens granted hereun0er shall be fully preserved in the manner provided herein, and that it will not create or suffer to be created any mechanic's, laborer's, materialman's, or other lien or charge which might or could be prior to the liens hereof, or do or suffer any matter or thing whereby the liens hereof might or could be impaired; provided, however, that no such tax. assess- vent, or charge, and that no such claims which might be used as the basis of a mechanic's, laborer's, materialman's, or other lien or charge, shall be required to be paid so long as tLe I 24 va:idity of the same shall be contested in good faith by the City. (e) Operation_ of SXstem; No Free Service. While the Parity Bonds or any Additional Bonds are outstanding and unpaid the City shall continuously and efficiently operate the System, and shall maintain the System in good condition, repair, and working order, all at reasonable cost. No free service of the System shall be allowed, and should the City or any of its ayencies, instrumentalities, lessors, or concessionaires make use of the services and facilities of the System, payment monthly of the standard retail price of the services provided !hall be made by the City or any of its agencies, instrumen- talities, lessors, or concessionaires out of funds from sources other than the revenues of the System, unless made from surplus Ple,lged Revenues as permitted by Section 22(b) hereof. (f) Further Encumbrance. While the Parity Bonds or any Additional Bonds are outstanding and unpaid, the City shall not additionally encumber the Pledged Revenues in any manner, except as permitted in this Ordinance in connection with Additional Bonds, unless said encumbrance is made junior and subordinate in all respects to the liens, pledges, covenants, and agreements of this Ordinance and any ordinance authorizing the issuance of Additional Bonds; but the right of the City to issue revenue bonds payable from a subordinate lien on surplus Pledged Revenues is specifically recognized and retained, as permitted under Section 22(b) hereof). (g) Sale or Disposal of Property. While 'the Parity Bonds or any Additional Bonds are outstanding and unpaid, the City shall not sell, convey, mortgage, encumber, lease, or in any manner transfer title to, or dedicate to other use, or other- wise dispose of, the System, or any significant or substantial part thereof; provided that whenever the City deems it neces- sary to dispose of any property, machinery, fixtures, or equipment, or dedicate such property to other use, it may do so either when it has made arrangements to replace the same or provide substitutes therefor, or it is determined by resolution of the City Council that no such replacement or substitute is necessary. (h) Insurance. (1) The Citv shall cause to be insured such parts of the Systera as would usually be insured by corpor- ations operating like properties, with a responsible insurance company or companies, against risks, accidents, or casualties against which and to the extent insurance is usually carried by corporations operating like properties, including, to the extent reasonably obtainable, fire and extended coverage insurance, insurance against damage by floods, and use and occupancy insurance. Public liability and property damage insurance also shall be carried unless the City Attorney gives a written opinion to the effect that the City is not liable for claims which would be protected by such insurance. All insur- ance premiums shall be paid as an expense of operation of the System. At any time while any contractor engaged in construc- tion work shall be fully responsible therefor, the City shall not be required co carry insurance on the work being con- structed if the contractor is required to carry appropriate insurance. All such policies shall be open to the inspection of the Bondholders and their representatives at all reasonable times. Upon the happening of any loss or damage covered by insurance from one or more of said causes, the City shall make due proof of loss and shall do all things necessary or desir- able to cause the insuring companies to make payment in full directly to the City. The proceeds of insurance covering such property, together with any other funds necessary and available for such -,urpose, shall be used forthwith by the City for 25 repairing the property damaged or replacing the property destroyed; provided, however, that if said insurance proceeds and other funds are insufficient for such purpose, then said insurance proceeds pertaining to the System shall be deposited in a special and separate trust fund, at an official depository of the City, to be designated the Insurance Account. The Insurance Account shall be held until such time as other funds become available which, together with the Insurance Acccl-Int, will be sufficient to make the repairs or replacements origin- ally required. (2) The annual audit hereinafter required may contain a section commenting on whether or not the City has complied with the requirements of this Sectio-.i with respect to the mainte- nance of insurance, and shall state whether or not all it,sur- ance premiums upon the insurance policies to which reference is made have been paid. (i) Annual Budget and Rate Covenant. The City shall prepare, prior to the beginning o each fiscal year, an annual budget, in accordance with law, reflecting an estimate of cash receipts and disbursements for the ensuing fiscal year in sufficient detail to indicate the proba`)le Gross Revenues and Pledged Revenues for such fiscal year. The City shall fix, establish, maintain, and collect, such rates, charges, and fees for the use and availability of the System at ali tines as are necessary (1) to produce Gross Revenues sufficient, together with any other Pledged Revenues, to pay all current operation and maintenance expenses of the System, and (2) to produce an amount of Pledged Revenues during each fiscal year at least equal to the greater of 1.25 times the average annual principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds or 1.25 times the succeeding fiscal year's principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds. (j) Records. The City shall keep proper books of record and account i which full, true, proper, and correct entries will be made of all dealings, activities, and transactions relating to the System,, the Pledged Revenues, and the Funds created pursuant to this ordinance, and all books, documents, and vouchers relating thereto shall at all reasonable times be made available for inEpection upon request of any Bondholder o: citizen of the City. To the extent consistent with the provi- sions of this Ordinance, the City shall keep its books and records in a manner conforming to standard accounting practices as usually would be followed by private corporations owning and operating a similar System, with appropriate recognition being given to essential differences between municipal and corporate accounting practices. (k) Audits. After the close of each fiscal year while any of the Pa ty Bonds or any Additional Bonds are outstani- ing, an audit will be made of the books and accounts relating to the System and the Pledged Revenues by an independent ce-tified public accountant or an independent firm of certified pu:.lic accountants. As soon as practicable after the close of each such year, and when said audit has been completed and made available to the City, a copy of such audit for the preceding year shall be mailed to the Municipal Advisory Council of Texas, to each paying agent for any bonds payable from Pledged ReveirAes, and to any Bondholders who shall so request in writing. The annual audit reports shall be open to the inspec- tion of the Bondholders and their agents and representatives at all reasonable times. (1) Governmental Agencies. It will comply with all of the terms and co itions o any and all fra:tchises, permits, 26 and al;horizations applicable tc or necessary with respect to the System, and which have been obtained from any governmental agency; and the City has or will obtain and keep ir, full force and effect all franchises, permits, authorization, and other requirements applicable to or necessary with respect to the acquisition, construction, equipment, operation, and mainte- nance of the System. (m) No Competition. It will not operate, or grant any franchise or, to the extent it legally may, permit the acquisition, construction, or operation of, any facilities which would be in competition with the System, and to the extent that it legally may, the City will prohibit any such competing facilities. (n) No Arbitrage. The City covenants to and with the purchasers of the Parity Bonds and any Additional Bonds that no use will be made of the proceeds of any of such bonds at any + time throughout the term of any of such bonds which, if such use had been reasonably expected on the date of delivery of any of such bonds to and payment therefor by the purchasers, would have caused any of such bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto; and by this covenant the City is obligated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating to arbitrage bonds. The City further covenants that the proceeds of all such bonds will not otherwise he used directly or indirectly so as to cause all or any part of such bonds to be or become arbitrage bonds within the meaning of the afore- said Section 103(c), or any regulations pertaining thereto. Section 28. AMENDMENT OF ORDINANCE. (a) The holders ur owners of Parity Bonds and Additional Bonds aggregating in principal amount 518 of the aggregate principal amount of then outstanding Parity Bonds and Additional Bonds shall have the right from time to time to approve any amendment to this Ordinance which may be deemed necessary or desirable by Lhe City, provided, however, that nothing herein contained shall permit or be construed to permit the amendment of the terms and conditions in this Ordinance or in the Parity Bonds or Addi- tional Bonds so as to: (1) Make any change in the maturity of the out- standing Parity Bonds or Additional Bonds; 12) Reduce the rate of interest borne by any of the outstanding Parity Bonds or Additional Bonds; (3) Reduce the amount of the principal payable on the outstanding Parity Bonds or Additional Bonds; (4) Modify the terms of payment of principal of or interest on the outstanding Parity Bonds or Addi- tional Ponds, or impose any conditions with respect to such payment; (5) Affect the rights of the holders or owners of less than all of the Parity Bonds and Additional Bos,ds then outstanding; (6) Change the minimum percentage of the prin- cipal amount of Parity Bonds and Additional Bonds neces- sary for consent to such amendment. (b) If at any time the City shall desire to amend the ordinance under this Section, the City shall cause notice of 27 the proposed amendment to be published in a financial publication of general circulation in The City of New York, New York, once during each calendar week for at least two succe- ssive calendar weeks. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the principal office of the Paying Agents for inspection by all holders or owners of Parity Bonds and Additional Bonds. Such publication is not required, however, if notice in writing is given to each holder or owner of Parity Bonds and Additional Bonds. (c) Whenever at any time not less than thirty days, and within one year, from the date of the first publication of said notice or other service of written notice the City shall receive an instrument or instruments executed by the holders or owners of at least 51% in aggregate principal amount of all Parity Bonds and Additional Bonds then outstanding, which instrument or instruments shall refer to the proposed amendment described in said notice and which specifically consent to and approve such amendment in substantially the form of the copy thereof on file with the Paying Agents, the City Council may pass the amendatory ordinance in substantially the same form. (d) Upon the passage of any amendatory ordinance pursuant to the provisions of this Section, this ordinance shall be deemed to be amended in accordance with such amendatory ordi- nance, and the respective rights, duties, and obligations under this Ordinance of the City, and all the holders or owners of then outstanding Parity Bonds and Additional 13onds and all future Parity Bonds and Additional Bonds shall thereafter be determined, exercised, and enforced hereunder, subject in all respects to such amendments. (e) Any consent given by the holder or owner of a Parity Bond or Additional Bond pursuant to the provisions of this Section shall be irrevocable for a period of six months from the date of the first publication of the notice provided for in this Section, and shall be conclusive and binding upon all future holders or owners of the same Parity Bond or Additional Bond during such period. Such consent may be revoked at any time after six months from the date of the first publication of such notice by the holder or owner who gave such consent, or by a successor in title, by filing notice thereof with the paying agents and the City, but such revocation shall not be effective if the holders or owners of 518 in aggregate principal amount of the then outstanding Parity Bonds and Additional Bonds as .iz, this Section defined have, prior to the attempted revocation, consented to, and approved the amendment. (f) For the purpose of this Section, the fact of the holding of Parity Bonds or Additional Bonds which are in bearer, coupon form, by any bondholder and the amount and niunbers of such bearer Parity Bonds or Additional Bonds and the date of their holding same, may be proved by the affidavit of the person claiming to be such holder or owner, or by a certi- ficate executed by any trust company, bank, banker, or any other depository wherever situated showing that at the date therein mentioned such person had on deposit with such trust company, bank, banker, or other depository, the Parity Bonds and Additional Bonds described in such certificate. The City may conclusively assume that such ownership continues until written notice to tha contrary is served upon the City. The ownership of all registered Parity Bonds and Additional Bonds shall Ine determined from the registration books kept by the registrar therefor. Section 29. DAMAGED, MUTILATED, LOST, STOLEN, OR DE- STROYED BONDS. (a) Replacement Bonds. In the event any 28 outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement fo: such Bond in the manner hereinafter provided. (b) Application for Replacement Bonds. Application for replacement o amaged, mutilated, lost, -stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Bond, the registered owner applyi%g for a replacement bond shall furnish to the Issuer and tr. the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a Bond, the registered owner shall furnish to the Issuer and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the registered owner shall surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or muti- lated. (c) No Default Occurred. Notwithstanding the regoing provisions o this section, in the event any such I ?nd shall have matured, and no default has occurred which is then con- tinuing in the payment of the principal of, redemptier premium, if any, or interest on the Bond, the Issuer may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished as above provided in Ciis Section. (d) Charge for Issuing Replacement Bonds. Prior to the issuance of any replacement bond, the Paying Agent/Registrar shall charge the registered owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the Issuer whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance. (e) Issuer for Issuing Replacement Bonds. In accordance with Section 6 of Vernon's Ann. Tex. Civ. St. Art. 717k-6, this Section of this Ordinance shall constitute authority for the issuance of any such replace-ont bond without necessity of further action by the governing Cody of the Issuer or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent/Regis- trar, and the Paying Agent/Registrar shall authenticate and deliver such Bonds in the form and manner and with the effect, as provided in Section 6(d) of this Ordinance for Bonds issued in conversion and exchange for other Bonds. Section 30. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND COUNSEL'S OPINION, AND CUSIP NUIMBERS. The Mayor of the Issuer is hereby authorized to have control of the Initial Bond issued hereunder and all necessary records and proceedings pertaining to the Initial Bond pending its delivery and its investigation, examination, and approval by the Attorney General of the State of Texas, and its registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the initial Bond said Comptroller of Public 29 Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate on the Initial Bond, and the seal of said Comptroller shall be impressed, or placed in facsimile, on the Initial Bond. The approving legal opinion of the Issuer's Bond Counsel and the assigned CUSIP numbers may, at the option of the Issuer, be printed on the Initial Bond or on any Parity Bonds issued and delivered in conversion of and exchange or replacement of any Bond, but neither shall have any legal effect, and shall be solely for the convenience and information of the registered owners of the Bonds. Section 33. SALE OF INITIAL BOND. The Initial Band is hereby sold and shall be delivered to ~evo j k~scc: Srie. for cash for the par value thereof and accrued interest thereon to date of delivery, plus a premium of $ .-O - It is hereby officially found, determined, and declared that the Initial Bond has been sold at public sale to the bidder offering the lowest interest cost, after receiving sealed kids pursuant to an Official Notice of Sale and Bidding Instructions and Official Statement dated January 31, 1484, prepared and distributed in connection with the sale of the Initial Bond. Said Cfiicial Notice of Sale and Bidding In- structions and Official Statement, and any addenda, supplement, or amendment the_eto have been and are hereby approved by the Issuer, and tl._-ir use zn the offer and sale of the Bonds is hereby approved. It is further officially found, determined, and declared that the statements and representations contained in said official Notice of Sale and Official Statement are true and correct in all material res-ects, to the best knowledge and belief of the City Council and the Issuer. Section 32. FURTHER PROCEDURES. The Mayor of the issuer, the City Secretary Secretary of the Issuer, and all other officers, employees, and agents of the Issuer, and each of them, shall be and they are hereby expressly authorized, empowered, and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowl- edge, and deliver in the name and under the corporate seal and on behalf of the Issuer all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Bond Ordinance, the Bonds, the sale of the Bonds, and the Notice of sale and Official Statement. In case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. 30 orlor, i AWAO Pr PERTAININti CITY OF DEN'TON UTILITY SYSTEM REVENUE BEND, r f SERIES 1489 $1,000,000, _ .T r. , . • } 'A ' 'i 1 . 1. r is R ` ~t i y ~t'' ♦ ,Y f r r 9 + r ~ 1 r< r' Y! t ♦ t . ( ! 1 Y 1 ~ i ~ ♦J ♦ M , IF: r,' Ar l t ~,,jf+ ! ♦ , i eft J J.] + C r. ~ % 1• \r y.. Y 1•' ! Ir 1 t I f d r5 J 1 Y f - At ` :1` y ~J ~a'. ~`4 r}• 'y',,} f Yh 1',' ~ '1<S,i' t y.~}t i • r{ 1 11 r ~J ~ J 1`- 1 Irl , J , 1 dJ J 1 1 0, J' r 1 ! 1 1 , f f . a~ EAW'OFFICE5 *1 14cCAL!L, PARKHuRST''.Fi 'MdRTOIV r' 1 I JtODIAMON D SHAMFOCCIt tOWFR f OALl4$r TEXAS 75261 CITY OF DENTON UTILITY SYSTEM REVENUE BOND, SERIES 1984 $1,000,000 TRANSCRIPT OF PROCEEDINGS WITH DELIVERY PAPERS I i i CITY OF IDENTON, TEXAS (Donton County) ~I f $1,000,000 Utility System Revenue Bonds, Series 1984 Selling Tuesday, February 21, 19841 at 7:00 PM, CST ; a ADDENDA AND ERRATA RE: $1,000,000 CITY OF DENTON, TEXAS (Denton County) UTILITY SYSTEM REVENUE BONDS, SERIES 1984 Selling Tuesday, February 21, 1984, at 7:00 PM, CST Addenda We have been advised of the following ratings: MOODY'S INVESTORS SERVICE, INC. - "A" STANDARD do POOR'S CORPORATION - "A+" .Y Errata Limitation on Transfer or Exchange of Bonds Page 4 of the Official Statement: Limitation on Transfer or Exchange of Bonds The Paying Agent/Registrar shall not be required to issue, transfer, or exchange any Bond (i) during the period i between the close of business on any Record Date and the opening of business on the next following interest paymf :t date, or (ii) with respect to any Bond or portion thereof called for redemption prior to maturity, within 45 days prior to its ` prepayment or redemption date. I NOTICE OF SALE AND BIDDING INSTRUCTIONS ON $1,000,000 CITY OF DENTON, TEXAS (Denton County) UTILITY SYSTEM REVENUE BONDS, SERIES 1984 r I Selling Tuesday, February 21, 1984, at 7:00 PM, CST THE SALE Bond Offered for Sale at Competitive Bidding The City of Denton, in Denton County, Texas (the "City"), is offering for sale its 1,000,000 Utility System Revenue Bonds, Series 1984, to be issued initially as a single fully registered bond, without interest coupons, payable in installments to the initial registered owner thereof, to be named by the successful bidder (the "Initial Bond"), with the Initial Bond being exchangeable for fully registered bonds, without interest coupons, in any integral multiple of $5,000. It is expected that immediately after delivery of the Initial Bond at the corporate trust office of the paying/agent registrar (hereinafter described), the Initial Bond will be converted into and exchanged by the paying agent/registrar for multiple fully registered bonds, each having a single maturity date (the "Bonds"), in accordance with the Ordinance authorizing the issuance of the Initial Bond and the Bonds (the "Ordinance") and instructions from the successful bidder, all as hereinafter provided. Address of Bids SEaJr, bids, piainly marked "Bid for Bonds", should be addressed to "Mayor and City Council, City of Denton, Texas", and delivered to the City Manager, City Council Chamber, City Hall, 213 E. McKinney Street, Denton, Texas, prior to 7:00 PM, CST, on the date of the bid opening. All bids must I be submitted on the Official Bid Form, without alteration or interlineation. Place and Time of Bid Opening "he City Council will open and publicly read the bids for the purchase ( of the Bonds at the City Council Chamber, City Hall, 213 E. McKinney Street, Denton, Texas, at 7:00 PM, CST, February 2l, 1984. Award of the Bonds The Cit- Council will take action to award the Initial Bond (or reject all bids) promptly aftethe opening t,. bids, and adopt the Ordinance authorizing the Initial Bond and the Bonds and approving the Official Statement. ` THE INITIAL BOND AND THE BONDS Descr!ption The Initial Bond will b2 dated March 1, 1984, and interest will be due on December 1, w and each June 1 and December 1 thereafter until the earlier of maturity or prior redemption. The Bonds issued in exchange ano substitution for the Initial Bond will be issued in fully registered form in an integral multiple of $5,000, each having a single maturity date corresponding to the due date of the installment of principal or rortion thereof, and bearing interest at the rate applicable to such installment of principal ce portion ther .of, for which the substitute Bond is being exchanged. Principal and semi- annual interest will be paid by Texas American Bank/Fort Worth N.A., Fort Worth, Texas, the paying ( agent/registrar (the "Paying Agent/Registrar"). Principal of the Bonds will be payable to the registered o•.tner at maturity or redemption upon presentation to the Paying Agent/Registrar. Interest on the Bonds will be payable by check, dated as of the interest payment date, and mailed on each interest payment date by the Paying Agent/Registrar to each registered owner as shown on the records of the Paying Agent/Registrar on the Record Date (see "Record [sate" herein). The principal of the initial Bond will l come du. and mature on December l in each year, with installments of principal payable and maturing as follows: t Principal Principal Principal Year Amount Year Amount Year Ama.nt 1985 $ 5C,000 1992 30,000 1999 30,000 1986 30,000 1997 50,000 2000 50,000 1987 30,000 1994 50,0:00 2001 50,000 1988 50,000 1995 50,400 2002 30,000 1989 50,000 1996 30,000 2003 50,000 1990 50,000 1997 50,000 2004 301.000 1991 30,000 1998 50,000 Optional Redem tion: The City r.:serves the right, at its option, to redeem the Initial Bond and the Bonds maturing December 1, 1995 through December 1, 2004, both inclusive, as a whole or in part, at the option of the City on December 1, 1"94, or on any interest payment date thereafter at par and accrued Interest. -i- % Successor Paying Agent/Registrar Provision is made in the Ordinance for replacement of the Paying delivery on or before April Agent Registrar. If the Paying Agent/Registrar is replaced by the City, the new Paying Agent/Registrar allow the Purchaser to exter shall accept the previous Paying Agent/Registrar's records and act in the same capacity as the previous k extend his offer within six Paying Agent/Registrar. Any Paying Agent/Registrar selected by the City shall be a competent and , City and the Purchaser shat! legally qualified bank, trust company, financial institution or other agency. Each Successor Paying any damages reason of it Agent/Registrar, if any, shall be determined by the City. beyond the City's reasonable Source of Payment The Initial Bond and the Bonds are secured by and payable solely from and secured Deliver of Definitive Bonds by a first lien on and pledge of the Pledged Revenues as defined in the Official Statement, which Agent Registrar shall cancel presently consist of the Net Revenues of the City's Utility Systern (Waterworks, Sewer, and Electric Paying Agent/Registrar, and Systems). any integral multipia of $5,C CONDITIONS OF THE SALE Purchaser and/or members of furnish to the Paying Agent/F Types of Bids and Interest Rates The Initial Bond will be sold in one block on an "All or None" basis, written instructions on fern and at a rice of not less than its r value plus accrued interest to the date of deliver of the Initial provided by, the Paying Ager price Pa Y the addresses of the register Bond. Bidders are invited to name the rate(s) of interest to be borne by each installment of principal of are not available, written insl the Initial Bond, provided that each rate bid must be in a multiple of 1/8 of 1% or 1/20 of 1% and the net Agent/Registrar will not be i effective interest cost must not exceed 15%. The highest rate bid may not exceed the Iowert rate bid by tc Initial Delivery. If such more than 3% in rate. No limilatlon is imposed upon bidders as to the number of rates or changes whin cancellation of the Initial B may be used. Each installment of principal (maturity) must bear one and the same rate. No bids involving written instructions are recei supplemental interest rates will be considered. Each bidder shall state in his bid the total interest cost in dollars and the net effective interest rate determined thereby (calculated in the manner prescribed by Conditions to Delivery... T Article 717k-2, VATCS), which shall be considered informative only and not as a part of the bid. subject to the Purchaser's rec Basis for Award ...For the purpose of awarding the sale of the Initial Bond, the interest cost of each bid Texa s, Bond Counsel for the Offedal Statement, all as furl will be computed by determining, at the rate or rates specified therein, the total dollar cost of all interest on all installments of principal (maturities) of the Initial Bond from the date thereof to their respective Legal Opinions The Initia maturities, using the table of Bond Years herein, and deducting therefrom the premium bid, if any. opinion of the Attorney Gener Subject to the City's right to reject any or all bids and to waive any irregularities except time of filing, Opinions in Official Statement the Initial Bond will be awarded to the bidder or syndicate account whose name first appears on the Official Bid Form (the "Initial Purchaser" or "Purchaser") whose bid based on the above computation Certification of Official State produces the lowest net effective interest cost to the City. City we execute and deliva Good Faith Deposit A Goai Faith Deposit, payable to the "City of Denton, Texas", in the amount of Statement. 20,000.00, is required. Such Good Faith Deposit shall be in the form of a Cashier's Check, or its Change in Tax Exempt State equivalent, which is to be retained uncashed by the City pending the Purchaser's compliance with the Purchaser may withdraw his b terms of his bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany I and character shall be declar the Official Bid Form or it may be submitted separately. If submitted separately, it shall be made rulin; of the Internal Revenue available to the City prior to the opening of the bids, and shall be accompanied by instructions from the or be required to be taken ii bank on which drawn which authorize its use as a Good Faith Deposit by the Purchaser who shall be named Federal income tax law enacte in such instructions. The Good Faith Deposit of the Purchaser will be applied on the purchase price on the date of delivery of the Initial Gond. No interest will be allowed on the Good Faith Deposit. In the event the Purchaser should fail or refuse to take up and pay for the Initial Bond in accordance with his bid, then said check shall be cashed and accepted by the City as full and complete liquidated damages. The checks Financial Advisor's Ri ht to B accompanying bids other than the winning bid will be returned immediately after the bids are open--d, ng t to bf Dane t Bo and an award of the Initial Bond has been made. DELIVERY OF THE INITIAL BOND AND ACCOMPANYING DOCUMENTS Blue Sky Laws By submissi other than Texas will be mad CUSIP Numbers It is anticipated that CUSIP identification numbers will appear on the Bonds (but not Purchaser will register the Bo are offered or sold. The City ID on the li d), but neither the failure to print or type !uch number on any of the Bondc exchanged and expense, in registering the for the Initial Bond nor any error w! h respect thereto shall constitute cause for a failure or refusal by the action is necessary. Purchaser to accept delivery of and Bay for the Initial Bond in accordance w1P, the terms of this Notice of Sale and the terms of the Official bid Form. All expenses in relation to the printing or typing of CUSIP Not an Offer to Sell This I numbers on the Bonds shall be paid ty the City; provided, however, that the CUSIP Service Bureau charge the Bonds, but is merely notice for the assignment of the numbers shall be the responsibility of and shall be paid for by the Purchaser. made by means of the Notice punch. Delivery of Initial Bond Delive: y will be accomplished by the issuance and delivery of the Initial Bond. the S itatement. nvestmennt t quality Prospective of their either in typed or printed form, in the aggregate principal amount of $I,00,006, payable in stated installments to the Purchaser, signed by the Mayor and City Secretary, either manually or by facsimile, Issuance of Additional Bonds . approved by the Attorney General, and registered and manually signed by the Comptroller of Public unissued Utility System Rever Accounts. Delivery will be at the principal corporate office of the Paying Agent/Registrar. Payment for improvement plan for the Uti the Initial Bond must be made in immediately available funds for unconditional credit to the City, or as Assuming voter approval, the c 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 of the Initial Bond can be made or, or about March Ratings The outstanding Ut 2 IhL, 7, 1984, and it is understood and agreed that the Purchaser will accept delivery and make payment for Service, Inc. and "Ar" by Stanc al Bondby tenderred for delivery, up to and including April 10, 1984. If for any thereafter reason the City is the unable l to Bond is make have been made to~',le. Moo< provided as soon as -ii- 1 i ffI 1 ~I r I of the paying ent/Registrar delivery on or before April 10, 1984. then the City shall immediately contact the Purchaser and offer to s the previous allow the Purchaser to extend his offer for an additional thirty days. If the Purchaser does not elect to ompetent and extend his offer within six days thereafter, then his Good Faith Deposit will be returned, and both the essor Paying 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 to deliver the 8~ ds, provided such failure is due io circumstances beyond the City's reasonable control. am and secured 'tenant, which Deliver of Definitive Bonds Upon payment for the Initial Bond at the time of its delivery, the Payirg r, and Electric Agent Registrar shall cancel the Initial Bo e, provided registration instructions have been received by the Paying Agent/Registrar, and shall register, authenticate, and deliver the registered definitive Bonds, in h any integral multiple of $3,000 for any one maturity, in accordance with instructions received from the I Purchaser and/or members of the Purchaser's syndica'e account. It shall be the duty of the Purchaser to f furnish to the Paying Agent/Registrar, at least five business days prior to the delivery of the liitial Bond, or None" basis written instructions on forms which the Purchaser must request and obtain from, and which shall be y of the initial provided by, the Paying Agent/Registrar designating the names in which the Bonds are to be registered, of principal of the addresses of the registered owners, the maturities, interest rates and denominations. If such forms dof and the net are not available, written instructions by letter shall be furnished to Paying Agent/Registrar. The Paying 6best rate bid net Agent/Registrar will not be required to accept registration instructions after the fifth business day prior changes which to Initial Delivery. If such written instructions are not received within the specified time period, the o bids es whip cancellation of the Initial Bond and delivery of registered definitive Bonds will be delayed until such involv'g written instructions are received. Merest cost in prescribed by Conditions to Deliver The obligation of the Purchaser to take up and pay for the Initial Bond is bid. subject to the Purchaser's receipt o. J (a) the legal opinion of Messrs. McCall, Parkhurst do Horton, Dallas, t of each bid Texas, Bond Counsel for the City, (b) the no-litigation certificate, and (c) the certification as to the Ps all interest Official Statement, all as further described in the Official Statement. heir respective Legal Opinions The Initial Bond is offered when, as and if issued, subject to the unqualified legal n bid, if any, opinion of the Attorney General of the State of Texas, and Messrs. McCall, Parkhurst do Horton (see Legal time of filing, opinions in Official Statement); the opinion of Bond Counsel will be printed on the definitive Bonds. ppears on the e computation Certification of Official Statement At the time of payment for, and delivery of the Initial Bond, the City will execute and deliver to the Purchaser a certificate in the form set forth in the Official the amount of Statement. Check, or its Change in Tax Exempt Status At any time before the Initial Bond is tendered for delivery, the ante with the Purchaser may withdraw his bid if the interest received by private holders from bonds of the same type ay accompany :.nd character shall be declared to be taxable income under prevent Federal income tax laws, either by shall be made ruling of the Internal Revenue Service or by a decision of any Federal court, or shall be declared taxable [ions from the or be required to be taken into account in computing any Federal income taxes, by the terms of any :hall be named Federal income tax law enacted suhsequent to the date of this Notice of Sale and Bidding Instructions. e price on the Ir. the event GENERAL n his bid, then s. The checks Financial Advisor's Right to Bid First Southwest Company, the City's Financial Advisor, reserves the 's are opened, rig t to bt on t Bon Blue Sky Laws By submission of his bid, the Purchaser represents that the sale of the Bonds :n states 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 9onds (but not are offered or sold. The City agrees to cooperate with the Purchaser, at the Purchaser's written request )ds exchanged and expense, in registering the Bonds or obtaining an exemption from registration in any state where such refusal by the action is necessary. this Notice of )ing of CUSIP Not an Offer to Sell This Notice of Sale does not alone constitute an offer to sell the Initial Bond or iureau charge the Bonds, but is merely notice of the sale of the Initial Bond. The offer to sell the Initial Bond is being urchaser. 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 initial Bond, the investment quality of the Initial Bond and the Bonds, ble in stated by facsimile, Issuance of Additional Bonds After the issuance of the Bonds, the City will have no authorizes but ler of Public unissued Utility System Revenue Bonds. In late Spring, 1984, the City expects to complete a capital Payment for improvement plan for the Utility System which will be submitted to the electorate in mid-Summer. ie City, or as Assuming voter approval, the City would expect to sell additional bonds in late 1984. lab fiout Mxedarch for Ratings The outstanding Utility System Revenue Bonds of the City are rated "A" b Mood s Investors ab Servie Inc. and "A+" by Standard & Poor's Corporation. Applications for contract ratings on this issue zitial Bond for have been made to both Moody's and Standard do Poor's. The results of their determinations will be able to make provided as soon as possible. -iii - I Municipal Bond insurance In the event these Bonds are qualified for municipal bond insurance, and the Purchaser 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 copies of the Official to Year Amount tat E ni ar 50 copies of an, addenda, supplement or amendment thereto), complete except arrange interest rates and other terms relating m the r tiering aof the B sif heerequi esSmore than 50 coatpies]his 1985 t 50,000 own expense have the official Statement reproduced spooned and printed and may also arrange, at his total expense and responsibility, for completion and perfection of the first or cover page of the Official Statement so as to reflect interest rates and other terns and information 1986 50,000 one other than the p nsibility or obligation for the 1487 50,000 related to the reoffering of the Bond The City assumes no distribution or _elivery of any of these copies any o Additional Co 'es of Notice Bid Form and Statement A limited number of additional copies of this 1985 50000 Notice of Sale and Bidding Instructions, the Official Bid Form and the Official Statement, as available 50000 over and above the normal mailing, may be obtained at the offices of First Southwest Company, 1989 Investment Bankers, 800 Mercantile Dallas BuEding, Dallas, Texas 73201, Financial Advisor to the City. 1490 50,000 The City reserves the right to reject any and all bids and to waive irregularities, except time of tiling. 1941 50,000 Oo the date of the sale, the City Council in the Ordinance authorizing the issuance of the Initial 1992 50,000 and the O ent Stat supplema ttor amendmentthe etouarr ~thor ieittstuse in the reoffering of theeBonds by adderchasenda, RICHARD O. STEWART 1493 50,000 Mavor City of Denton, Texas AT'T'EST: 1994 50,000 1995 50,000 CHARLOTTE ALLEN 1496 50,000 City Secretary City of Denton, Texas 1947 50,000 1998 50,000 ~ January 31, 1984 1999 50,000 2000 50,000 2001 $0,000 2002 50,000 2003 50,000 2004 50,000 Average Maturity J T _iv_ , ..............~...._,w,w,,,,. j I nco, and the the Official BOND YEARS xcept as to Year Amount Accumulated rrange at his _ Bond Year Bond Years_ Year S copies, f the e first or 1985 S 50,000 87.50 87.50 1985 information 1986 on for the 50,000 137.50 225.00 1986 1987 50,000 187.50 412.50 1987 o pies of this 1988 50,000 as available 237.50 650.00 1988 St Company, 1989 the City. 50,000 281.50 937.50 1989 of f„eng. 1990 50,000 337.50 1,275.00 1990 of the Initial 1491 50,000 387.50 1,662.50 1991 ny addenda, 1992 50,000 437.50 2,100.00 1992 Purchaser. 1993 50,000 487.50 2,587.50 1993 1994 50,000 537.50 3,125.00 1994 1995 50,000 587.50 3,712.50 1995 1996 50,000 637.50 4,350.00 1996 1997 50,000 687.50 5,037.50 1997 1998 50,000 737.50 5,775.00 1998 1999 50,000 787.50 6,562.59 1999 2000 50,000 837.50 7,400.00 2000 2001 50,000 887.50 8,287.50 2001 2002 50,000 937.50 9,225.00 2002 2003 50,000 987.50 10,212.50 2003 2004 50,000 1,037.50 11,250.00 2004 1 I~ Average Maturity ---------------------------------11.250 Years I OFFICIAL BID FORM Honorable Mayor and City Council February 21, 1584 City of Denton Denton, Texas Centlemen; Reference is made to your official Statement and Notice of Sale and Bidding Instructions, dated January 31, 1984, of $1,000,000 CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE BONDS, SERIES 1914, both of which constitute a part hereof. For your legally issued Initial Bond, as described in said Notice of Sale and Bidding Instructio s and Official Statement, we will pay you par and accrued interest from date of issue to date of delivery t, is, I plus a cash premium of $ for the installments of principal of the Initial Bond coming due, maturing and bearing interest as follows: Interest Interest Interest Maturity Rate Maturity Rate Maturity Rate 12-1-1983 12-1-1992 % 12-1-1998 % 12-1-1986 % 12-1-1993 % 12-1-1999 % 12-1-1987 % 12-1-1994 % 12-1-2000 12-1-1988 % 12-1-1993 % 12-1.2001 % 12-1-1989 % 12-1-1996 % 12-1-2002 % 12-1-1990 12-1-1997 % 12-1-2003 12-1-1991 12-1-2004 % O+r calculation (which is not a part of this bid) of the interest cost tram the above is: Total Interest Cost 5 Less Premium i NET INTEREST COST $ EFFECTIVE INTEREST RATE _ % We are having the Bonds insured by The Initial Bond shall be registered in the name of (syndicate manager). We will advise the Corporate Trust Division, Texas American Bank Fort Wort N.A„ P. O. Box 2030, Fort Worth, Texas 76113, the Paying Agent/Registrar, on forms to be provided by the Paying Agent/Registrar, our registration instructions for the definitive Bonds at least five business days prior to the date set for Initial Delivery. We will not ask the Paying Agent/Registrar to accept any registration instructions after the live day period. Check of the Bank, , In the amount of 20,000.00, which represents our Good Faith Deposit Ts attached hereto or as been made available to you prior to the opening 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 the initial Bond in immediately avadal'P funds in the Corporate Trust Division, Texas American Sank/Fort Worth N.A., Fort Worth, Texas, not fitter than 10:00 AM, CST, on March 27, 1984, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions. Respectfully submitted, By Authorized Representative ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all things accepted by the City of Denton, Texas, this the 21st day of February, 1984. ht I ATTEST: Mayor CF-y eaetary - Return of Good Fain. Deposit is hereby acknowledged: By i n i r OFFICIAL BID FOR63 r Honorable'Mayor and City Council City of De it on Felxuary 21, 1984 Denton, Texas Gentlemen: 31 ference i made to your Offjc:1aj Statement an~ Notice of Sale and ng Ins a, datey Ofs$1,000,000 CITY OF DENTON, TEXAS UTILITY SYSTEMBREVENUErBONUS, SERIIESa1984, both of which constitute a part he; cof. For your legally issued Irx1tial Band, as described in said Notice of Sale and Bidding Instructions and Official Statement, we rill pay you par and accrued interest from date of issue to date of delivery to to, plus a cash premium of for the installments of principal of the Initial Bond coming due, maturing and bearing interest as follows: Interest Interest Interest Matu"! L Rate Maturity Rate Mat'rity_ Rate 12-1-1983 12-1-1992 % 12-1.1998 % 12-1-1986 12-1-1993 12-1-1999 % 12-1-1987 12-1-1994 % 12-1-2000 12-1-1988 12-1-1995 % 12-1-2001 % 12-1-1989 12-1-1996 % J2-1-2002 % 12-1-1990 12-1-1'.x97 % 12-1-2003 % 12-1-1991 12-1-2004 Our calculation (which is not a part of this NO of tt~e interest test from the above is. Total Interest Cost $ Less Premium NET INTEREST COST $ _ EFF_CTIVE INTEREST RATE % W'e are having the Bonds insured by The f6tial Bond shall be registered in the name of (syndicate manager). ` We will advise the Corporate Trust Division, Texas American B7ank7F0rt wort -N.A., P. 0. Box 2050, Fort Vorth, Texas 76113, the Paying Agent/Registrar, on forms to be provided by the Paying Agent/R28istrer, 00r registration instructions for the definitive Bonds at least five business days prior to the date set for Initial Delivery. We will not ask the Paying Agent/Registrar to accept any registration instructions after the five day period. Check of the Bank, in the r amo mt of 20,000.00, which represents our Good Faith Deposit is attached hereto or [has been made available to you prior to the opening of this hid), and is submittee in accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding Instructions. I ` We agree to accept delivery of and ma'se payment for the Initial bond in immediately available funds in I the Corporate Trust Division, Texas American Bank/Fort Worth N.A., Fcrt Worth, Texas, not later than 10:00 AM, CST, on March 27, 1984, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Inst-uctiorzs. Respectfully submitted, - By AutrariieNRepresentativt ' ACCEPTANCE CLAUSE The above and foregoing bid Is hereby in all things accepted by the City of Dental, Texas, this the 21st day of FeSruary, 1984. AT?EST. Maror ` City Secretary Return of Good Faith Deposit is hereby acknowledged: By - . t 'I d h,is Official Statement does not constitute zn offer to still Bonds in any jurisdiction to any person to whom it is unlawful to ake such offer in such jurisdiction. No de~L'er, salesman, or any other person has been authorized to give any information or ake any representation, other than those cor,tained herein, in connection with the offering of these Bonds, and if given or made, uch information or representation must not he relied upon. The information and expressions of opinion hereir are subject to ange without notice and neither the delivery of this Official Statement tar any sale made hereunder shall, untler any rcurnstances, create any implication that there has been no change in the affairs of the City since the date hereof. F OFFICIAL STATEMENT 4r Dated January 31, 1984 ` INTEREST EXEMPT, IN THE OPINION OF BOND CCUNSEL, 1 FROM PRESENT FEDERAL INCOME TAXES r $1,000,000 CITY OF DENTON, TEXAS (Denton County) UTILITY SYSTEM REVENUE BONDS, SERIFS' 1984 Dated: March 1, 1984 Due: December ],as shown below Interest on the Bonds will be payable June I and December l of each year commencing December 1, 1984. 7 he Bonds will be isst_:d on.1y in fully registered form in any integral multiple of $5,000 for any one maturity. Principal of the Bonds will to payable to the registered owners at maturity or redemption upon presentation at the principal corporate office of Texas American Bank/Fort Worth N.A., Fort Worth, Texas, the paying agent/registrar (the "Paying Agent/Registrar" Interest on the Bonds will be payable by check, dated as of the interest payment date, and mailed by the Paying Agent/Registrar to registerei owners as shown on the records of the Paying Agent/Registrar on the Recc -d Date (see "Record Date fcr Interest Payment"). The Utility System Revenue Bonds, Series 1984 (the "Bonds" or "Bond", which shall induce for purposes of definition, the "Initial Bond"), t.r% special obligations of the City of Denton, payable, both as to principal and interest, solely from and secured by a first lien on and pledge of the revenues of the City's Utility System, after deduction of reasonable expenses of operation and maintenance. These Bonds are authorized pursuant to Articles 2368A anJ 1111 et seq., Vernon's Annotated Texas Civil Statutes, and will constitute spe_al obligations of the City. See "Security for Payment". MATURITY SCHEDULE Amount Maturity Rate Yield Amount Maturity Rate_ Yield $50,000 12-1-1985 $5(,000 12-1-1995x 50,000 12-1-1986 50,000 12-1-1996• 50,000 12-1-1987 50,000 12-1-1997' 50,000 12-1-1988 50,000 12-1-1998" 50,000 12-1-1989 50,000 12-1-1999` 50,000 12-1-1990 50,000 12-1-20004 50,000 12-1-1991 50,000 12-1-2001► 50,000 12-1-1992 50,000 12-1-2002» 50,000 12-1-1993 50,000 12-1-2003" 57,600 12-1-1994 50,000 12-1-20044 The City reserves the right, at its )ption, to redeem Bonds maturing on and alter December 1, 1995, in whole or part, on December 1, 1994, or any interest payment date thereafter, at the par value thereof plus accrued interest to the Bate fired for redemption. Not less than 30 days prior to a redemption date for the Bonds, the City shall causs a notice of redemption to be published as required by the Ordinance, and the Paying Agent/Registrar will be obligate, to send a notice of redemption by United States mail, :first class, postage prepaid, to each registered owner of a 5ond to be redeemed, in whole or In part, at the address of the owner appearing on the registration books of the Paying Agent/Registrar as of the 45th day prior to such redemption date. PVacnt Record: The C,'ty has never defaulted. LeRali1! The~Attornej qenera) of Texas, and Messrs. McC 1, Pawl rkhurst & Horton, Aiterneys, Dallas T~exas_. Opinion Printed on the Bonds; See Legal O )Fdoru.l Delivery: Anticipated on or about March 27 1984. TABLE OF CONTENTS t Pa~_ Official Statement: City Council Description of the Bonds l Ric d O. Stew Elected Officials, Appointed Officials, Consultants and Advisors 3 Mayor Registration 4 ,i ay Stephens Int:nsuctory Statement S Mayor Pro-Tern Security for Pe.yrnent------------------------------------------------------------ 6 Joe G. Alford Condensed Statement of Utility System Operations 6 Councilmember Debt Service Requircnents 7 Mark R. Chew Summary of Ccztain Provisiors of the Ordinance 8 Coutcilmember I/ 13 Jack Buton ail~e of the Utility System City's Equity in System lS Utility System 13 Jim Rlddlesperge The Electric System 16 C ber Historical Statistical Data 21 Charles Hopkins The Water and Wastewater System 23 000ncilmember Utility Rates------------------------------------------------------------------- 24 Electric, Water and Wastewater Systems Combined Revenue and Expense Projections 28 blame _ C- Valuation and Debt Information 29 FT Hattutg Ad Valorem Tax Legislation 29 Rick Svehla Capital Leases 31 Betty McKean Valuation and Funded Debt History 31 R. E. Nilson Taxable Assessed Valuations by Category 31 Estimated Overlapping Funded Debt Payable From Ad Valorem Taxes 32 William J. Andersc Tax Rates of Overlapping Subdivisions 32 Tax Rate Limitation 32 C harlotte Al fen Tax Data 32 C. J. Taylor, Jr. Municipal Sales Tax 33 Top Ten Tsxpayer-- 33 CON' Authorized But Unissued General Obligation Bonds 33 Bond Counsel Ratings Information Regarding City and Its Economy 34 Ratings Auditors Tax Exemption Registration and Qualification of Bonds for Sale 39 Financial Advisor Legal Investments and Eligibility to Secure Public Funds in Texas 39 Leval Opinions and No-Litigation Certificate Authenticity of Financial Dat-i and Other Iriformatior - 39 Authenticity of Financial Data and Other Information _ i 40 Financial Advisor - 40 Certification of the official statement Financial Statements, September 30, 1983 Appendix The cover page hereof, this page, the appendix included herein and any addenda, supp!ement or amendment hereto, are Part of the Official Statement. _2_ i . i E ,j i -Lae ELECTED OFFICIALS Term City Council Expires - I Richard O. Stewart April, 1984 _ 3 Mayor 4 Ray Stephens April, 1985 5 Mayor T,ro-Tem 6 Joe G. Alford April, 1985 6 Councilm em ber 7 Mark R. Chew April, 1985 8 Concilmember - 15 Jack Barton April, 1984 Co.ncilmember 15 15 Jim Riddlesperger April, 1985 Concilmember 16 21 Charles Hopkins April, 1984 Co,ncilmember t 24 APPOINTED OFFICIALS _ Name Position I 28 29 Chris Hartung City Manager I-- 29 Rick Svehla Assistant City Manager - 31 Betty McKean Assistant City Manager 31 R. E. Nelson Director of Utilities 31 William I Andersen Assistant to the Director 32 32 of Finance - 32 Charlotte Allen City Secretary 32 C, ].'Taylor, Jr. City Attorney 33 33 CONSULTANTS AND ADVISORS - 33 Bond Counsel McCall, Parkhurst 6: Horton _ 34 Datias, Texas 39 Auditors Arthur Andersen & Co. 39 Dallas, Te: as 39 Financial Advisor First Southwest Company 19 Dallas, Texas 39 40 40 40 Apperdix supplement or -3- . y t+ REGISTRATION I Tax E4uity and Fiscal Rcsporaibilit Act of 1982 KEFRA") TEFR.A, as amended, mandates, among This Official Statement of the Cit other things, that all new issues of municipal bonds delivered after June 30, 1983, (excepting those with a (the "City"), is provided to furnish in one year maturity or less) must be registered in the owner's name. System Revenue Bonds, Series 19841 Pa in A ent/Re ttrar The Bonds will be issued only in fully registered form in any integral multiple The Official Statement was prepare( of 5,000 or any one maturity. Principal of the Bonds will be payable to the registered owners at Bonds, the revenues pledged to the maturity or redemption upon presentation at the principal corporate office of Texas American Bank/Fort pledged revenues, and other pertinen Worth N.A., Fort Worth, Texas, the Paying Agent/Registrar. Interest on the Bonds will be payable by Source of Pa meet The Bonds a check, dated as of th(~ interest payment date, and mailed by the Paying Agent/Registrar to registered P edged Revenues, which presently c owners as shown on the records of the Paying AgentiRegistrar on the Record Date (see "Record Date for Interest Payment"). System (which Includes the combi extensions and Improvements therel Successor Pa in A ent/Registrar Provision is made in the Ordinance for replacement of the Paying expenses of operation and maintenan Agent Registrar. The City covenants to maintzin and provide a Paying Agent/Registrar at all times while the Bonds are outstanding and any successor Paying Agent/Registrar shall be a bank, trust company, pun .e , , ,proceeds of the $1,00 financiai institution, or other entity duly qualified and legally authorized to serve as and perform the tmprovz P to the existing ware ents duties and services of flaying Agent/Registrar for the Bonds. Upon any change in the Paying over-sized water tines and other atei mis< Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice thereof to be sent to each registered owner of the Bonds by United States mail, first class, postage prepaid, which notice shall Future Bond issues ...In late Spring also give the address of the tew Paying Agent/Registrar. the Utility System which will be,sub the City would expect to set! affil Future Re istration The ponds may be transferred, exchanged and registered only on the registration subject to certain specific conditions s o t aying Agent/Registrar, and such registration and transfer shall be without expense or for ect t o certain Bonds", pages n and 1 service charge to the owner, except for any tax or other governmental charges required to be paid selth 10 respect to such registration and transfer. A BDrd may be assigned by the execution of an assignment form Annual Bud et ea Rate Covenant . on the Bond. A new Bond or Bonds will be delivered by the Paying Agent/ Registrar, in lieu of the Bond an ann budgn accordance with being transferred or exchanged, at the principal corporate office of the Paying Agent/Registrar. To the the ensuing fiscal year in sufficient ( extent practicable, new Bonds issued in an exchange or transfer of Bonds will be delivered to the for such fiscal year. The City shall f registered owner or assignee of she owner in not more than three business days after the receipt of the the use and availability of the Sys Bonds to b; cancelled, and the written instrument of transfer or request for exchange drily executed by sufficient, together with any other the registered owner or his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. expenses of the System, and (1) to pro New Bonds registered and delivered in an exchange or transfer shall be in any integral multiple of $5,070 equal to the greater of 1.23 times I for any one maturity and for a like aggregate principal amount as the Bond or Bonds surrendered for clitstanding Parity Bonds and Additi~ exchange or transfer. interest requirements of all then outs Limitation on Transfer or Exchange of Bonds The Paying Agent/Registrar shall be required to issue, Administration of th(. C~it~ . The C transfer, or exchange any Bondi du~mg eth period between the dose of business on any Record Date and eFrctorate February 24, 1959. i'he Ci the opening of business on the next following interest payment date, or (nil with respect to any Bond or City. Policy-making and supervisory portion thereof called for redemption prior to maturity, within 45 days prior to its prepayment or Ccu ncil, consisting of seven members redemption date. for rotating two-year terms. The Cit to execute the laws and administer th Record Date for Interest Payment . , . The record date e'Record Date") for the interest payable on any interest payment date means the 15th dry of the preceding month. -4- . _._~_.....e.~w.Nn.earwsfw.s~ww.m~~~n....r...i..-~..-...--..-..._._._.._,_._._~..__..,.____~_......_~~..-~__... - .....~....-.w~+w~w,p+.7 I I INTRODUCTORY STATEMENT tes, among This Official Statement of the City of Denton Texas a hose with a Y , , political subdivision located In Denton County (the "City"), is provided to furnish irformation in connection with the sale of the City's $1,000,000 Utility System Revenue Bonds, Series 1984 (the "Bonds" or "Bond"). a] multiple The Official Statement was prepared to present for the Purchaser of the Bonds information concerning the owners at owners at Bonds, the revenues pledged to the Bonds, the description of the revenue base, factors that may affect payable r pledged revenues, and other pertinent data, all as more fully described herein. See "Table of Contents". o registered Source of Payment The Bonds are and shall be rd Date for payable as to principal and interest solely from the Pledged Revenues, which presently consist of the revenues derived from the operation of the City's Utility System (which includes the combined Water, Sewer and Electric Systems), including all additions, f the Paying extensions and improvements thereto which may hereafter be made, after deduction of the reasonable times while expenses of operation and maintenance of the 5yste,n. See "Security for Payment". t company, pun ose...Proceeds of the $1000000 Utility S sum Revenue Bonds will be used to construct ``perform ayi the improvements to the existing water ~systcm, including ng a new finished water pump, a raw water pump, to the sent ti over-sizes water lines and other miscell^neous improvements. notice shall Future Bcod Issues In late Spring, 1984, the City expects to complete a capital improvement plan for the Utility System which will be submitted to the electorate in mid-Summer. Assuming voter approval, the City would expect to sell additional bonds in late ]984. Sale and issuance of additional bonds is registration subject to certain specific conditions described herein. See "Additional Bonds" and "Further Requirements t expense jr for Additional Bonds", pages 10 and 11, herein. I be paid •.ith ignment form Annual Budget and Rate Covenant The City shall rior to the be innin of each fiscal ear, u of the Bond Y prepare, s P g 8 Y an arnval budget, in accordance with law, reflecting an estimate of cash receipts and disbursements for )tra . To the the ensuing fiscal year in sufficient detail to indicate the probable Gross Revenues and Pledged Revenues ivered to the for such fiscal year. The City shall fix, establish, maintain, and collect, such rates, charges, and fees for rceipt of the the use and availability of the System at all times as ar! necessary (1) to produce Gross Revenues n executed by sufficient, together with any other Pledged Revenues, to pay all current opertion and maintenance rnt/Registrar. expenses of the System, and (2) to pro, uce an amount of Pledged Revenues during each fiscal year at least iple of $3,000 equal to the greater of 1.25 times th, average arwwaI principal and interest requirements of all then lrendered for outstanding Parity Bonds and Additional Bonds or 1.25 times the s.ncceeding fiscal year's principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds. `red to issue. Administration of the City ...:"he City operates under a Nome Rule Charter which was approved by the Lord Date and electorate February 24, 1959. The Charter provides for the Council-Manager form of government for the any Bond or City. Policy-making and supervisory functions are the responsibility of, and vested in, the Mayor and City repayment or Council, consis'ing of seven members elected at large by a vote of a majority of the residents of the City for rotating two-year terms. Thee City Manager is appointed by and serves at the will of the City Council to execute the laws and administer the government of the city. yable on any -3- I SECURITY FOR PAYMENT These Bonds will constitute special obligations of the City, payable as to both principal and Interest and d A 1 equally secured by a first lien on and pledge of the revpAues of the Utility System (the "System"), after N N deduction of reasonable expenses of operation and maintenance, as provided by the General Laws of the State of Texas, particularly Articles 1111 et seq., Y.A.T.C S. O C r* ,71 N C CONDENSED STATEMENT OF UTILITY SYSTEM OPERATIONS 1cc r ( kin 0 ,o , M $ M N c w .r Offi-l Fiscal Years Ending September 30, --1-978 l 979 1480 l 981 _ 1982 S 983 m oWC M Gross Revenues: 376 21 Q Q g e Electric $18,610,721 $18,216,763 $210630,985 $25,9450169 $31,834,199 $35, , ,7i ,2S Water and Wastewater 3,475,387 3,722,497 3,949,317 4,2540318 5,532,046 5,851,07, Interest Income 390$95 916,692 1,332,481 1,596,228 1,383,374 829,061 N f e 202 670 149 o Other Income 35,620 19,763 ,1361907 48.277 Total 27 512,123 1,875,713 27 048 690 31 843 992 33:; 54 289 42 203 t M E xpetues: Fuel and Purchased Power $11,179,335 $11,089,549 $14,382,913 $18,053,846 $22,587,647 $26,956, Other Operatirv and Administrati.: Expenses 4,39.2,66-4, 4 777,392 X019.967 7,030366 8 l_ 4, 1,038 8 072 92 Total $15,571,999 13-11966, 941 $20!,402,880 25 084 412 3030 729 683685 33 069 S w a w a N I.- W ~ Net Revenue Available for ~ W Debt Service and Other Lawful Purposes $ 6,940,124 $ 7,008,774 $ 6,645,810 $ 6,759,580 $ 8,224,604 $ 7,135,1 W 2525~c None: Fiscal Year .983 - Excludes extraordinary gain of $3,189,508 on advance refunding.++ a I ° + Estimated Average Annual Debt Service, 1984/2008 $ 10863101 H Coverage Df Average Annual Debt Service by i,'i a t~ M u+ c 9-30-83 Net Revenue °.83 Time °,o Estimated,Naximum Annual Debt Service, 1985 $ 11,670,6 M en M M e~ Rr en Coverage of Maximum Annual Debt Service by M N P ryl 9-30-83 Net Revenue 1.94 Time Utility Systtxn Revenue Bonds to be Outstanding, Lh. W ~i u Including this $1,000,OOOIssue $26,280,0 n,o61 00 r, Utility System Fund Balances as of 12-31-83: Co '%D v+ Interest and Sinking Fund - $ 846,1 Reserve Fund $ 3,046, CA Emergency Fund 230, $ I cpo~+~pjpp O G O O P . . Oin 0 O~Le~pp, Ong,( b N H H M CC T O ~r in 00 P` Go -6. _._.._.,~c,yew...-....,.....n..............,..~..~,-..-....._..~,r..-...__ interest and a o ea ~e 6n N K tern"), after .°+cc F' V n n o° Laws of the K wxu. W FMi °o co a °o a J N Q I.- U10 MO U)OOm UY U1 U7 to Og of v1 N U1 U1 Mf M pp 00. to t, H Z '.lb tl'I NOO r, ,.N Nvl ~l1 F. F. f. N1~l~ Hy O.-~F. T F.bOMNOU1b OOOV1 MI`.NRbKbt,n b N 0,b O • w w W .-~ONON at N W K R L6 H O n NA Ntn b Oco W 0, b O K C n b< M b M b Ot N N M N b 0 Ct F. of N n n Qto aMMMcy C, O Moo tOMN 0 to Ln L6 et al qr a 10 of • w • • . • w w r34, E983 ~ MMMMMMMMNClNHN.-tHH tp . 0 i M w $35,376,217 0 0 0 0 0 0 0 0 0 0 0 0 0 g 0 0 0 0 0 0 o to 5,551,071 ototntntointnutv+tnv+u~tn 0 0 8231(M+ LA ~ N~ N PP, N r, NN rl N M. N t, N t!1 J 149 ~A a cn en C o o Ot 0 00 00 F. F. b b lfl,n N 921, 2_ 0_ s, in N O M N t~i7 N 87,647 $26,996,600 ao 0 0 0 0 0 0 0 0$ qU 0 0 0 0 0 0 0 0 0 0 0 O OC O 0 0 0 0 0 0 O O o 0 0 0 0 0 0 o O O H O U1 u7 U1 UIto U1 to to to N into v11n U1 U1 Ul U1 O 142,038 8 072 921 0 to to w . . w . . at x v 1, N1.Nt~Nt.NhNF Nl.Nt,NF NhN to n< 129 685 35 069 522 ti~ 0100001. f,b tpN In qt t7M MN N HH •N-. O N Z W r-~ oO _ M M S 24,604 $ 7,135,8)-; cc C. 0000 000 oooogooooo0 0 13 00o c~oagoo o °ooooo o to W coo8 00ooooQuooo0o000 0 0 W oic;i~C5igooo0oocooooo C 16 to In N N Ul 0 U1 U! W In 40 U1 U1 M O O Q $ 1,863,0 H M W + Q W LA4 M O to b Ln OLnc a U14. vlNUf Lnm 000 to 3.93 Time 0 1. nWLOC14 ,.F.NN1ntnNr..1`.N1~1~ cceHF. a o MbUr Op H U1b Uf000 N7, 01 ~t M HNNHN Oh w O W • • • • a• C N M C CC a M a N } $ 3,670,6 Oa~+O^O~NObn O~p efwl Op e~taf Ce-I h N J vtnM.+HNw•C1..O01 00r, LA(VNCo aVV'RaCatO It O . . . . M MMMM MMNNN.-, riH.-t.-t t-I v J a Q .s v 1.94 Time z W O 1npM O U1 Op co N U1 Ln top c o Lo %n N U)LnM ppO MLA b m $26,280,00 P, obU VQ0 M 1` n N NN to h n F. N,.,. Ha°g O.-t F. 0~ N M b tf) 07 r,to O H N U1 to o W N 1, O+ . • 0 . N N . + N 04 t0 O N d' • w • • w • • . . . • • • w • . • • • . . . • Q HC C+h Ot HC C1 •y HF. of ft O at of U)NM co at QO M HOB H S O M HHN N NObM ~ at NUI U/Uln 01 at 01nON 016n t\ at O 'b b ty MHO 010 hb 6A QM ClN N.-,HNH H N J r~- w w w• w. O - 3 846,7 O H H 1 H H H M H H o ,000, F M w [/f Ln OO pp 0 0 0 0 0 0 0 g 0 0 0o 0 0 0 0o 0 0 0 0 0 0 0 0 0 0 O Z CO 0 0 0 O O 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O U1 U1 O U1 o 69 Lo1 °otn° U1 o00o O ooo vi 16 O O h- tO malt t0 opOl. Nato b00 p at V 1.'1 vt N to bf,NM N N N 2 OF.N Ulb pO Wl, •-•H.-.000(100 U1NNNNNMMtC N ~ w • w w • • w Nr.-1 HH Hr-IHHHNHrMti N F 2 at to to r, tp of H N M c%n to r, cc Ct tz H N MV in torso ¢..M CO CO CO co 000t 01 o1 ON ON ON V, C1 M cn 00° 000000 O ololo MCI CMC+Oto1o101otrn01001000o 0000 Y Z C1 HHH HH HHH HHHHH HH H111N NNNN N NN W -7- I i UMMARY CF CERTAIN PROVISIONS OF THE ORDINANCE the System, and which are acquired' S - Special Facilities Bonds", wh'rh are fJ The Series 1984 Bonds will be issued under the authority of the ordinance adopted by the City are not payable from or sensed by+ liens on and pledges of any other red Council of the City of Denton (the "Ordinance"). The following summary of certain provisions of the contract and pledges or payments receive fie are for available upon rrequesttt from of thall e such ravcnues, sources, or payments in a]! r- terms and conditilonss e. forthethere therein. Copies referto the ence orinance System, unless and to the extent 01 Financial Advisor. issuance of such "Special Facilities Bc: DEFINITIONS CREATION AND FLOW OF FUNDS The following terms are defined in the Ordinance and shall have the meanings set forth below for ( The Ordinance W O creates th the purposes of this Official Statement unless otherwise provided. Extension and Improvement Fund and t "City" and "Issuer" shall mean the City of Denton, in Denton County, Texas. (b) All Grass Revenws shall "Ci y Council" or "Council" shall mean the governing body of the City. currant expenses shall be pa)d from sus "Bonds" shall mean collectively the Initial Bond as defined and aescribed in Section I of the (c) The City shall make trans, Ordinance and all substitute bonds exchanged therefor as provided in the Ordinance. G) To the Interest ~ "Parity Bonds" shall mean collectively (i) the City of Denton Utility System Revenue Refunding approximately equal monthly Ir Bonds, Series 1983, authorized by ordinance passed on March 10, 1983 (the "Series 1983 Bonds") and (ii) the On hand in the Inter Interest s~cherdi 'he principal and Bonds. Bor>ds on the next succeeding pr "Gross Revenues" shall meal all revenues, income, and receipts of every nature derived or received ' by the City from the operation and ownership of the System, including the interest income from the (ii) To the Reserve FL investment or deposit of money in any Fund created by the Ordinance. money and investments equal t interest requirements of the "Net Revenues" shali mean all Gross Revenues after deducting the current expenses of operation issuance of Additional Bonds, ti and maintenance of the System, including all salaries, labor, materials, repairs and extensions necessary principal and interest r^quirerr to render efficient service; provided, however, only such repairs end extensions as in the judgment of the provided, however, the Required City Council, reasonably and fairly exercised by the passage of the appropriate resolutions, are necessary annual principal and interest rt to keep the System in operation and render adequate service to the City and the inhabitants thereof, or exceeds $3,000,000. After the ~ such as might be necessary to meet some physical accident or condition which would otherwise impair the Fund to to Increased, if and to, Bonds or Additional Bonds. money and investments equal t Reserve Amount may be funs "Pledged Revenues" shall mean (a) Net Revenues, plus (b) any additional revenues, income, Additional Bonds, or any other receipts, or other resources which are expected to be available to the City on a regular periodic basis, Required Reserve Amount n including, without limitation, ary grants, donations, or income received or to be received from the United installment or issue of Addition States Government, or any other public or private source, whether pursuant to an agreement or otherwise, date of such delivery. When as which hereafter may be pledgee to the payment of the Parity Bonds or Additional Bonds. Required Reserve Amount no d~ specifically covenants that whet "Additional Bonds" shall mean the additional parity revenue bonds which the City reserves the right Amount, the City shall cause alli to issue in the future, as provided in the Ordinance. Reserve Fund to be deposited toe "System Fund" shall :neap the "City of Denton, Texas Utility System Fund" created by the (iii) To the Extension ar, making the required deposits tol Ordinance. the City shall be required to d "Interest and Sinking Fund" shall mean the "City of Denton, Texas Utility System Revenue Bonds Pledge:; Revenues in the System ID Interest and Sinking Fund" created by the Bond Ordinance. the System", which tem is here "Reserve Fund" shall mean the "City of Denton, Texas Utility System Bonds and Additional Bonds the Gross Revenues of the Reserve Fund" created by the. Ordinance. amount equal to the cum year which are directly at "Extension and Improvement Fund" shall mean the "City of Denton, Texas Utility System Extension energy by the City and/or and Improvement Fund" created by the Ordinance. Additional excess Pledged "Emergency Fund" shall mean the "City of Denton, Texas Utility System Emergency Fund" created the credit of the lroprovement interest income fr(wn tie Ext,r by the Ordinance, such Fund. "System" shall mean (1) the City's entire existing waterworks and sewer system and the City's (iv) For any lawful pus entire existing electric light and power system, together with all future extensions, improvements, required deposits the Inter enlargements, and additions thereto, and all replacements thereof, and (2) any other related facilities, all Improvement Fund. or any part of the revenues or income from which do, in the future, at the option of the City, and !n accordance with law, become "Pledged Revenues" as hereinafter defined; provided that, notwithstanding the foregoing, and to the extent now or hereafter authorized or permitted by law, the term System shall r. .rean any water, sewer, electric, or other facilities of any kind which are declared not to be a part of I i I I the System, and which are acquired or constructed by the City with the proceeds from the issuance of "Special Facilities Bonds", which are hereby defined as being special re%enue obligations of the City which ed by the City are riot payable from or secured by any Pledged Reven•jes but which are secured by and ' visions of the y payable from } liens on and pledges of any other revenues, sources, or payments, inducting, but not limited to, sFedal I cription of all contract revenues or payments received from any other legal entity in connection with such facilities; and jest from the such revenues, sources, or payments shall not be considered as or :lnnstitute Cross Revenues of the System, unless and to the extent otherwise provided in the ordinance or orJinances authorizing the issuance of such "Special Facilities Bonds". CREATION AND FLOW OF FUNDS lorth below for (a) The Ordinance creates the System Fund, the Interest and Sinking Fund, the Reserve Fund, the Extension and Improvement Fund and the Emergency Fund. (b) All Gross Revenues shall be credited to the System Fund immediately upon receipt. All current expenses shall be paid from such Gross Revenues as a first chcrge against the same. I ction l of the (c) The City shall make transfers from the System Fund as follows: (i) To the Interest and Sinking Fund on the twenty-fifth day of each month, in enue Refunding approximately equal monthly installments, amounts, which, together with other funds, if any, then s) and (ii) tFe on hand in the Interest and Sinking Fund and available for such purpose, will be sufficient to pay the principal and interest scheduled to accrue and come due on the Parity Bonds and any Additional Bonds on the next succeeding principal or interest payment date; ved or received . ,orne from the (ii) To the Reserve Fund. The City shall maintain in the Reserve Fund an amount of money and investments equal to the lesser of $3,000,000 or the maximum annual principal and interest requirements of the Parity Bonds (the "Required Reserve Amount"). Following the es of operation issuance of Additional Bonds, the Required Reserve Amcunt shall be equal to the average annual siorus necessary principal and interest requirements of all Parity Bonds and Additional Bonds then outstanding; udgment of the provided, however, the Required Reserve Amount shall not be less than $3,000,000 if the maximum s, are necessary annual principal and interest requirements on all Parity Bonds and Additional Bonds outstanding ,,,ts thereof, or exceeds $3,000,000. After the delivery of any Additional Bonds, the City shall cause the Reserve wise impair the Fund to be in(reased, if and to the extent necessary, so that such fund will contain an amount of money and investments equal to the Required Reserve Amount. Any increase in the Required Reserve Amount may be funded from Pledged Revenues, or from proceeds from the sale of enues, income, Additional Bonds, or any other available source or combination of sources. All or any part of the periodic basis, Required Reserve Amount not funded initially and immediately after the delivery of any rom the United installment or issue of Additional Bonds shall be funded, within not more than five years from the t or otherwise, date of such delivery. When and so long as the amount in the Reserve Fund is not less than the Required Reserve Amount no deposits shall be made to the credit of the Reserve Fund. The City specifically covenants that when and so gong as the Reserve Fund contains the Required Reserve serves the right Amount, the City shall cause all interest znd income derived from the deposit or investment of the Reserve Fund to x deposited to the credit of the Interest and Sinking Fund; :reated by the (iii) To the Extension and Improvement Fund. During each year, subject and 57ibordinate to making the required deposits to the credit of the Interest and Sinking Fund and the Reserve Fwd, the City shall be required to deposit to the credit of the Extension and Improvement Fund from Revenue Bonds Pledged Revenues in the System Fund n amount equal to 8% of the "Adjusted Gross Revenues of the System", which term is hereby defined to mean the following: .dditio,W Bonds the Gross Revenues of the System for such year after deducting from such Gross Revenues an amount equal to the current expenses of operation and maintenance r1 the System for scch year which are directly attributable to 0) all fuel costs related .o the production of electric ,stem Extension energy by the City and/or (ii) the purchase of electric energy by the City. ` Additional excess Pledged Revenues may, at the option of the City Council, be deposited to y t'und" created the credit of the Improvement Fund, but no such additional deposit is required. All investment interest income from the extension and Improvement Fund shall be retained in and remain a part of such Fund. and the City's fiv) For any lawful purpose not inconsistent with the City's Charter, after having made the improvements, required deposits to the Interest and Sinking Fund, the Reserve Fund, and the Extension and ted facilities, all Improvement Fund. the City, and in notwithstanding Fern System shall ft to be apa•tor E -9- i I V r I `l I ~e I SECURITY FOR FUNDS month period out of the 18-month izin the then Money in all Funds created by this ordinance, to the extent not invested, shall be secured In the authori) 1 2the ss anc amount equal least manner prescribed bylaw. 1.10 times an amount equal to the pr such requirements are scheduled to [NVESthtENTS scheduled to be outstanding after th Money in any Fund established pursuant to this Ordinance or any ordinance authorizing the issuance ovided, however, that In calculatin, if there has been any Increase i of Additional Bonds, may, at the option of the City, be placed in tim( deposits or certificates of deposit effect but which was not In effect secured by obligations of the type hereinafter described, or be invested in Government Obli3atlons or Revenues are being calculated effect obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney accountant or in lieu lc the ceherei General of the United States, are backed by its full faith and credit or represent Its general obligations, or arid certify amount of Pledrt e invested in obligations of instrumentalities of the United States of America, including, but not limited to, y the am qua R durpl r equal t( evidences of indebtedness issued, insured, or guaranteed by such governmental agencies as the Federal entire Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, the r re t in ('feset during the the enti ere fire peso d+od w Government National Mortgage .hssociation, United States Postal Service, Farmers Home Ad+nlnistration, Federal Horne Loan Mortgage Association, Small Business Administration, Federal Housing Association, or (c) Provision shall be made i Participation Certificates in the Federal ArsPts Financing Trust; provided that all such deposits and Fund to the Required Reserve Amount investments shall be made in such manner as will, in the opinion of the City, permit the money required to to expended from dr'y Fund to be available at the proper time or times as expected to be needed. Such (d) That all rdculations of a investments (except United States Treasury Obligations--State and Local Government Series Investments in correction with the issuance of an, held in book entry form, which shall at all times be valued at cost) shall be valued in terms of current Additional Bonds; and also In making market value as of the last day of each fiscal year. Unless otherwise set forth herein, al: Interest and 1 income derived from such deposits and investments immediately shall be credited to, and any losses Ordinance, principal amounts of any debited to, the Fund from which the deposit or investment ',vas made, and surpluses in any Fund shall or applicable mandatory redemption req may be disposed of as hereinafter provided. Such investments shall be sold promptly when necessary to suclr bonds. prevent any default in connection with the Parity Bonds or Additional Bonds consistent with the GENERAL COVENANTS ordinances, respectively, authorizing their issuance. - PAYMENT OF PARITY BONDS AND ADDITIONAL BONDS law: The City covenants and agrees On or before June 1, 1984, and semi-annually on or before each December 1 and June I thereafter (a) It will faithfully perform wile any of the Parity Bonds or Additional Bcnds are outstanding and unpaid, the City shall make y Pe awillable to the Paying Agent/Registrar therefor, out of the Interest and Sinking Fund, or It necessary, provisions contained in this Ordinari:e out of the Reserve Fund, money sufficient to pay, on each of such dates, the principal of and Interest on and in each and every Parity Bond a the ?arity Bonds and Additional Bonds as the same matures and comes due, or to redeem the Parity Bonds principal of ano interest on every Pat or Aot.'itional Bonds prior to maturity, either upon mandatory redemption or at the option of the City. At manner prescribed in such ordinances the direction of tht City :he Paying Agents shall either deliver paid Parity Bonds and Additional Bonds to the manner prescribed, deposit or can. 0e City or destroy all paid Parity Bonds and Additional Bonds, and furnish the City with an appropriate Interest and Sinking Fund and ti.e Rc! certificate of cancellation or destruction, may require the City, its officials ar obligations of this Ordinance, an, ADDITIONAL BONDS and equitable means, includi ci proceedings, in any court of co,. 111 (a) The City shall have the right and power at any time and from time to time, and In one or (b) It is a dui created and e more series or issues, to authorize, issue, and deliver additional parity revenue bonds (herein called y "Additional Bonds"), in accordance with law, in any amounts, for any lawful purpose, Including .h± under the laws of the State of Texas t refunding of any Parity Bonds or Additional Bonds, or other obligations. Such Additional Bonds, If and the creation and issuance of the Peri when authorized issued and delivered in accordance with this Ordinance, shall be payable from and Bonds in the hands of the owners there secured by an irrevocable first lien on and pledge of the P'edged Revenues, equally and ratcbly on a parity City in accordance. with their terms. in all respects with the Parity Bonds and any other outstanding Additimi-I Bonds. (c) It has or will obtain lawfi (b) The principal of all Additional Bonds must be scheduled to be paid or mature un December 1 the System, that it warrants that it w of the years in which such principal is scheduled to be paid or mature. and facilities, and every part thereof, Bonds, against the claims and demands FURTHER REQUIREMENTS FOR ADDITIONAL BONDS the Pledged Revenues to the payme exercised such rights. Additional Bonds shall be issued only in accordance with this Ordinance, and no in .allment, series or is:.ue of Additional Bonds shall be issued or delivered unless: (d) It will from time to time assessments and governmental charges; (a) The Mayor of the City and the City Secretary sign a written certificate to the effect that the will Pay all lawful claims for rents, ro City is not in default as to any covenant, condition, or obligation in connection with all then outstanding become a lien or charge thereon, the 1 Parity Bonds and Additional Bonds, and the ordinances authorizing s .me, and that the Interest and Sinking Ordinance, so that the priority of the Fund and the Reserve Fund each contains the amount t;1en required to be therein. create or suffer to be created any m might or could be prior to the liens th_ (b) An independent certified public accountant, or independent firm of certified public might or could be impaired; provided, e ~ claims which might be used as ine bast accountants, acting by and through a certified public accountant, signs a written certificate to the effect S shall s required to be paid so long as tl that, in his or its opinion, durir•g either the next preceding fiscal year, or any twelve consecut.ve calendar -10- . I e~ ~r--- month period out of the Ig-month period immediately prececling the month in which the ordinance c secured in the authorizing the issuance of the then proposed Additional Bonds is passed, the Pledged Revenues were at least (i) 1.25 times an amount equal to the average annual pnulcipal and interest requirements, and (ii) 1.10 times an amount equal to the principal and interest requirements during the fiscal year during which such requirements are scheduled to be the greatest, of all Parity Bonds and Additional Bonds which are scheduled to be outstanding after the delivery of the then proposed Additional Bond.. It is specifically zing the issuance provided, however, that in calculating the amount of Pledged Revenues for the purposes of this subsection 'cates of deposit (b), if there has been any increase in the rates or charges for services of toe System which is then in t Obligations or effect, but which was not in effect during all or any part of the entire period for which the Pledged of the Attorney Revenues are being calculated (hereinafter referred to as the "entire period") then the certified public I ral obligations, or accountant, or in lieu of the certified public accountant a firri of ccnsrdting engineers, shall determine t t not limited to, and certify the amount of Pledged Revenues as being the total cf (i) the actual Pledged Revenues for the as the rederal entire period, plus (ii) a sum equal to the aggregate amount be which the actual billings to customers of e Lean Banks, iha System during the entire period would have been increased if such increased rates or charges had been ie Adrr,Inlstration, effect during the entire period. '1; A Aoclation, or Eur.n deposits and (c) Provision shall be made in the ordinance authoriziig their issuance for increasing the Reserve 'ropey required to Fund to the Required Reserve Amount, g be needed, Such piles Investments (d) That all calculations of average annual principal and interest requirements of any bonds made f terms of Current in connection with the issuance of any then proposed Additioml Bonds shall be made as of the date of such R, all Interest and Additional Bonds; and also in making calculations for such purpose, and for any other purpose under this and any losses Ordinance, principal amounts of any bonds which must be redeemed prior to maturity ,:ursuant to any ,any Fund shaA or applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal of when necessary to such bonds. nsistent with the GENERAL COVENANTS The City covenants and agrees that in accordance with and to the extent required or permitted by ~ law: June 1 thereafter City shall make (a) It wit: faithfully perform at all times any and all covenants, undertakings, stipulations, and r, or If necessary, provisions contained in this Ordinance, and each ordinance authorizing the issuance of Additional Bond, of and interest on and in each and every Parity Bond and Additional Bond; it will promptly pay or cause to be paid ti.: n the Parity Bonds principal of and interest on every Parity Bond and Additional Bond, or, the dates and to the place', and 1n of the City. At manner prescribed in such ordinance; and Parity Bond or Additional Bond; and it will, at the time a d 1 dditiohe Bonds t the manner prescribed, deposit or cause to be deposited the amounts required to be deposited into th.! ith an appropriate Inter ;st and Sinking Fund end the Reserve Fund; and any owner of the Parity Bonds or Additional Bonds may require the City, its officials and employees to carry out, respect or enforce the covenants and ' obligations of this Ordinance, or any ordinance authorizing; the issuance of Additional Bonds, by all legal and equitable means, including specifically, but without limitation, the use and filing of mandamus proceedings, in any court of competent jurisdiction, against the City, its officials and employees. ime, and in one or (b) It is a duly created and existing home rule cif of the State of Texas and is duly authorized nds (herein called under the laws of the Statc of Texas to create and issue the Parity Bonds; that all action on its part for f ose, including the the creation and issuance of the Pa,lt Bonds has been Jul and effectively taken and that the Parity payable from and Bonds :n the hands of the owners thereof are and will be valid and enforceable special obligations of the ratably on a parity City in accordance with their terms. (c) It has or will obtain lawful title to the lands, buildings, structures and facilities constituting re on December I the System, that it warrants that it Alit defend the title to all the aforesaid lands, buildings, structures and facilities, and every part thereof, for the benefit of the owners of the Parity Bonds and Additional Bonds, against the claims and demands of all persons whomsoever, that it is lawfully qualified to pledge the Pledged Revenues to the payment of the Parity Bonds and Additional Bonds, and has lawfully exercised such rights. instal Iment, series (d) It will from time to time end before the sane become delinquent pay and discharge all taxes, assessments and governmental charge!., if any, which shall be lawfully imposed upon it, or the System; It will pay all lawful claims for rents, royalties, labor, materials and supplies which if unpaid might by law the effect that the become a lien or charge thereon, the lien of which would be prior to or interfere with the liens of the '1 then outstanding Ordinance, so that the priority of the liens griAnted tFereunder shall be fur, (reserved, and it will not nterest and Sinking create or suffer to be created any mechanic's, laborer's, materialman's or other :uen or charge which might or could be prior to the lierri thereof, or do or suffer any matter or thing whereby the liens thereof might or could be impaired; -rovided, however, that no such tax, assessment or charge, and that no such f certified public claims which might be uscC as the basis of a mechanic's, laborer's, materialman's or other lien or charge, Cate to the effect shall be required to be paid so long as rl a vaYdity of ihr same shall be contested in good faith by the City. >nsecutive calendar v XNV *Qg K44i f ilFt (e) It will, while the Parity Bonds or any Additional Bonds are outstanding and unpaid, continuously and efficiently operate the System, and shall maintain the System in good condition, repair (k) After the close of each f and working order, all at reaonable cost. No tree service of the System shall he allowed, and should the outstanding, an audit will be made d ~ Revenues by an independent eertifi City or any of its agencies or Instrumentalities make use of the services and facilities of the System, accountants. As soon as Independent eable payment of the reasonable value shall be made by the City out of funds from sources other than the ~ completed and made available Practi the revenues of the System, unless made from surplus or excess Pledged Revenues, the Mu-JCIW Advisory Council of T (f) It, while the Parity Bonds or any Additional Bonds are outstanding; and unpaid, will not Revenues, and to any Bondholders whr additionally encumber the Pledged Revenues in any manrer, except as permitted in the Ordinance in to the inspection of the Bondholders w connection with Additional Bonds, unless said encumbrance is made junior and subxdinate i,r all respects Q) it will comply with all o to the liens, pledges, covenants and agreements of the Crdinance; but the right of the City to issue authorizations applicable to necess; revenue bonds payable from a subordinate lien on the Pledged Revenues is specifically recognized and any governmental agency; and the Cit retzined, permits, authorizations, and otherregc (g) It, while the Parity Bonds or any Wditional Bonds are outstanding and unpaid, will not sell, } construction, equipment, operatlcw, an convey, mortgage, encumber, lease or in any m inner transfer title to, or otherwise dispose of the System, (m) It will not operate, 1 or a.-ty significant or substantial part thereof; provided further that whenever the City deems it necessary or to dispose of any other property, machinery, fixtures or equipment, it may sell or otherwise dispose of acquisition, construction, or operation such property, machinery, fixtures or equipment when it has made arrangements to replace the same or and to the extent that It legally may, t provide substitutes therefor, unless it is determined that no such replacement or sutstitute is necessary. (n) The City covenants to an, (h) It shall cause to be insured such parts of the System as would usually be Insured by that rt,) use will be made of the procee corporations operating like properties, with a responsible insurance company or conpanies, against risks, such bonds which, if such use had been accidents, or casualties against which and to the extent insurance is usually carried by corporations and payment therefor by the purchaser, operating like properties, including, to the extent re sonably obtainable, fire and extended coverage the meaning of Section 103(e) of the I insurance, insurance against damage jy floods, and use and occupancy insurance. Public liability and rulings pertaining thereto; and by this property damage insurance also shall be carried unless the City Attorney gives a written opinion to the the aforesaid Section 103(c) and all effect that the City is not liable for claims which would be protected by such insurance. All insurance relating to arbitrage bonds. The Cit; premiums shall be paid as an expense of operation of the System. At any time while any contractor otherwise be used directly or indirecl engaged in construction work shall be fully responsible therefor, the City shall not be required to carry arbitrage bonds within the meaning of t insurance on the work being constrv_ted if the contractor is required to carry appropriate insurance. Al! PAYING AGENT REGISTRAR FOR 7H such policies shall be open to the ropection of the Bondholders and their representatives at all reasonable times. Upon the happening of any loss or e'amage covered by insurance from one or more of said causes, During all times while the Bonc the City shall make due proof of loss and shall do all things necessary or desirable to cause the insuring valified bank trust eom comPanies to make payment in full directly to the City. The proceeds of Insurance covering such 4 pany, firmcia property, together with any other funds necessary and available [or such purpose, shall be used f nthwith Paying Agent/Registrar for the Bonds by the City for repairing the property damaged or replacing the property 6,estroyed; provided, however, one upon not entity. less 60 . The than City days reserves written the rig ri that if said insurance proceeds and other funds are tns~ficient for such purpose, then said insurance any time acting as Paying Agent/Reg nti proceeds pertaining to the System shall be deposited in a special and separate trust fund, at an official should resign or otherwise cease a depository of the City, to be designated the Insurance Acr)unt. The Insurance Account shall be held until and legally qualified cease vatic such time as other funds become available which, together with the Insurance Account, will be sufIicIent Competent and , . l i business the, to make the repairs or replacements originally required. organized order such la. , co exiness tau under t thehe The annual audit hereinafter required may contain a section commenting on whether or not the Authority, and whose qualifications sut City has ccr:tplied with the requirements of this section with respect to the maintenance of insurance, and act as Paying p,gent/Registrar under th previous s Paying Agent/Registrar pro prom; shall state whether or not all insurance premium, upon the insurance policies to which reference is made prethereof along with all other r pertinei l have been paid. Agent/Registrar designated and appoir.q W It shall prepare, prior to the beginraag of each fiscal year, an annual budget, in accordance the City promptly will cause a written each registered owner of the Bonds, by with law, reflecting an estimate of cash receipts and disbursements for the ensuing fiscal year in the address of the new Paying Agent/R sufficient detail to indirate the probable Gross Revenues and Pledged Revenues for such fiscal year. The t/Reg be deemed City shall fix, establish, maintain, and collect, such rates, charges, and fees for the use and availability of paying copy of the Agent/Reg; otce stray shalt shall be delivered the System at all times as are necessary (1) to produce Gross Revenues suffirent, together with any other Pledged Revenues, to pay all current operation and maintenance expenses of the System, and (2) to AMENDMENT OF ORDINANCE produce an amoaant of Pledged Revenues during each f fiscal year at least equal to the greater of 1.25 times u the average annual principal and interest requirements of all then outstanding Parity Bonds and Additional (a) The holders or owners of FI Bonds or 1.25 times the succeeding fiscal year's principal and interest requirements of all then outstanding y 51% of the aggregate principal amount j Parity bonds and Additional Bonds. the right from time to time to approve, or desirable by the City, provided, howel (j) It shall keep proper books of record and account in which full, true, proper, and correct permit the amendment of the terms an entries will be made of all dealings, activities, and transactions relating to the System, the Pledged so as to: Revenues, and the Fords created pursuant to this Ordinance, and all woks, documents, and vouchers relating eror eto ci shell at all reasonable times be made available for inspection upon request of any (I) Make any change in Bondholder or citizen of the City. To the extent consistent with the provisions of this Ordinance, the City shall keep its books and records in a manner conforming to standard accounting practices as usuaily would t (2) Reduce the rate of i be followed by private corporations owning and operating a similar System, with appropriate recognition , Tyonds; being given to essential differences between n unicipal and corporate accounting practices. _12_ 1 i a I i~ , i and unpaid, edition, repair (k) After the dose of each fiscal year while any of the Parity Bonds or any Additional Bonds are and should the outstanding, an audit will be made of the books ano accounts relating to the System and the Pledged of the System, Revenues by an independent certified public accvuntait or an independent firm of certified public other than the accountants. As soon as practicable after the dcse of each such year, and when said audit has been completed and made available to the City, a copy of such audit for the preceding year shall be mailed to the Municipal Advisory Council of Texas, to each paying agent for any bonds payable from Pledged paid, will not Revenue;, and to any Bondholders who shall so request in writing. The annual audit reports shall be open e Ordinance In to the inspection of the: Bondholders and their agents and representatives at all reasonable times. in all respects City to Issue U) It will amply with all of the terms and conditions of any and all franchises, permits, and recognized and authorizations applicable to or necessary with respect to the System, and which have been obtained from any governmental agency; and the City has or will obtain and keep in full force and effect all franchises, permits, authorizations, and other requirements applicable to or necessary with respect to the acquisition, d, will not sell, construction, equipment, operation, and maintenance of ti a System. of the System, •ms it necessary (m) It will not operate, or grant any franchise or, to the extent it legally may, permit the wise dispose. of acquisition, construction, or operation of, any facilities lvhich would be in competition with the System, ace the same or and to the extent that it legally may, the City will prohibit any such competing facilities. is necessary. (n) The City covenants to and with the purchasers of the Parity Bonds and any Additional Bonds be Insured by that no use will be made of the proceeds of any of such bone's at any time throughout the term of any of , against risks, such bonds which, if such use had been reasonably expected oin the date of delivery of any of such bonds to by corporations and payment therefor by the purchasers, would have caus,:d any of such bonds to be arbitrage bonds within ended coverage the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or lic liability and rulings pertaining thereto, and by this covenant the City is obligated to ccFnply with the requirements of opinion to the the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations All insurance relating to arbitrage bonds. The City further covenants that the proceeds of all such bonds will not any contractor otherwise be used directly or indirectly so as to cause all or any part of such bonds to be or become fgi*ed to carry arbitrage bords within the meaning of the aforesaid Section 103(c), or any regulations pertaining thereto. insurance. All PAYING AGENT/REGISTRAR FOR THE BONDS (SERIES 1984) at all reasonable of said causes, During all times while the Bonds are outstanding the City will provide a competent and legally use the insuring g Y e e covering such qualified bank, trust company, financial institution, or ether agene+ to act as and perform the services of e used forthwith Paying Agent/Registrar for *he Bonds under the Ordinance, and thtt the Paying Agent/Registrar will be vided, however, onz entity. The City reserves the right to, and may, at its option, change the Paying Agent/Registrar said insurance upon not less than 60 days written notice to the Paying Agent/Registrar. In the event that the entity at sai d a an official any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method) all be held until should resign or ctherwise cease to act as such, the City covenants that promptly it will appoint a ill be sell un it competent and legally qualified national or state banking institution which shall be a corporation organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers, subject ;o supervision or examination by federal or stare ether or not the Authority, and whose qualifications substantially are similar to the previous Paying Agent/Registrar to act as Paying Agent/Registrar under the Ordinance. Upon any change in the Paying Agent/Registrar, the f insurance, and previous Paying Agent/Registrar promptly shill transfer and deliver the Registration Books (or a copy Terence is made thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Registrar designated and appointed by the City. Upon any change in the Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the new Paying Agent/Registrar to ~t, in accordance each registered owner of the Bonds, by United States Mail, postage prepadd, wMch notice also shall give g fiscal year in the address of the new Paying Agent/Registrar. By accepting the position and performing as such, each y f isca! year. The Paying Agent/Registrar shall be deemed to have agre.~ed to the provisions of the Ordinarce, and a certified ind availability of copy of the Ordinance shall be delivered to each Paying Agent/Registrar. Per with any other 4tern, and (2) to AMENDMENT OF ORDINANCE 9ter of 1.25 times cs and Additional (a) The holders or owners of Parity Bond: and Additional Bonds ag;Sregating in principal amount l then outstanding 31% of the aggregate principal amount of then outstanding Parity Bonds and Additional Bonds shall have the right from time to time to approve any amendment to this Ordinance #.hich may be deemed necessary or desirable by the City, provided, however, that nothing herein contained shall permit or be construed to )per, and correct permit the amendment of the terms and conditions in this Ordinance or in the Bonds or Additional Bonds :em, the Pledged so as to. its, and vouchers i request of any (1) Slake any change in the maturity of the outstanding Parity bonds or Additional Bands; -finance, the City s as usually would (2) Reduce the rate of interest borne by any of the outstanding Parity Bonds or Additional Priate recognition Bonc.'si s. -13- t . i i~ (3) Reduce the amount of the principal payable on the outstanding Parity Bonds or Additional Bonds; (4) Modify the tenns of payment of principal of or interest on the outstanding Parity Fiscal Year Ended ' Bonds or Additional Bonds, or impose any conditions with respe:. to such payrnent; Land and Land Rights { (5) Affect the rights of the holders or owners of less than all of the Parity Bonds and Water Rights Additional Bonds then outstanding; Electric Plant and Equipment Water Plant and Equipment ' (6) Change the minimum percentage of the principal amount of Parity Br,nds and Sewer Plant and Equipment Additional Bonds necessary for consent to such amendment. Less: Allowance for Depreclatibh (b) Ii at any time the City shall desire to amend the Ordinance under this section, the City shall cause notice of t ;re proposed amendment to be published in a financial publication of general circulation in Net System Value the City of New York, New York, once during each calendar week for at least two successive calendar weeks. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the principal office of the Paying Agents for inspection by all holders or owners of Parity Bonds and Additicnal Bonds. Such publication is not required, however, if notice in writing is Fiscal Year Ended given to each holder or owner of Parity Bonds and Additional Bonds. Resources: (c) Whenever at any time not less than thirty (30) days, and within one year, from the date of the ~tl 1tY es plant (Net) first publication of said notice or other service of written notice the City shall receive an instrument or Construction In Progress instruments executed by the holders or owners of at least 51% in aggregate principal amount of all Parity Total Utility Plant 9onds and Additional Bonds then outstanding, which instrument or instruments shall refer to the proposed Cash, Investments and Recelvables1 amendment described :r said notice and which specifically consent to and approve such amendment In Prepaid Expenses and Deposits 11 substantially the form of the copy thereof on file with the Paying Agents, the City Council may pass the Inventory amendatory ordinance in substantially the same form. Total Resources (d) Upon the passage of any amendatory ordinance pursuant to the provisions of this section, this Ordinance shall be deemed to be amended in accordance with such amendatory ordinance, and the Ob!! atloru: respective rights, duties, and obligations under this Ordinance of the City, and all the holders or owners of of Revenue Bonds Outstandingx then outstanding Parity Bonds and Additional Bonds and all future Parity bonds and Additional Bonds shall Accrued Interest Payable thereafter be determined, exercised and enforced hereunder, subject in all respects to such amendments. Total Bonded Debt (e) Any consent given by the holder or owner of a Parity Bond or Additional Bond pursuant to the Less: Restricted Fund Assets Other Liabilities provisions of tfas section shall be irrevocable for a period of Cx months from the date of the first Net Fund Transfers Payable publication of the notice provided for in this section, and shall be conclusive and binding upon all future Meter Deposits holders or owners of the same Parity Bond or Additional Bond during such period. Such consent may be revoked at any time after six months from the date of the first publication of such notice by the holder or Total Obligations owner who gave such consent, or by a successor in title, by filing notice thereof with the Paying Agents and the City, but such revocation shall not be effective if the holders or owners of 51% in aggregate City's Equity in System principal amount of the then outstanding Parity Bonds and Additional Bonds as in this section defined have, prior to the attempted revocation, consented to, and approved the amendment. Percentage of liquity in System (f) For the purpose of this section, the fact of the holding of Parity Bonds or Additional Bonds Net of Unamortlzed Discount and Ex which are in bearer, coup)n form, by eny bondholder and the amount and numbers of such bearer parity Bonds or Additional Bonds and the date of their holding same, may be proved by the affidavit of the person claiming to be such holder or owner, or by a certificate executed by any trust company, bank, banker, or any other depository wherever situated showing that at the date therein mentioned such person had on deposit with such trust company, bank, banker, or other depository, tl•e Parity Bonds and In March of 1993, the City lssu Additional Bonds described in such certificate. The City may conclusively assume that such ownership and legally defense the eAstfng bonde continues until written notice to the contrary is served upon the City. The ownership of all registered the City and to combine the separate s Parity Bonds and Additional Bonds shall be determined from the registration books kept by the registrar therefor. The Public UtifaIes Board APPROVAL AND REGISTRATION OF INITIAL BOND By City Charter, there has bee members, appointed by the City Co The Mayor of the City is hereby authorized to have coatrol of the Initial Bond and all necessary serving as ex-officio members of the records and proceedings pertaining to the Initial Bond pending its delivery ser and its investigation, se Utilities as a consulting, advisory an examination, and approval by the Attorney General of toe State of Texas, and its registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Initial Bond, said i. The duties of the Board are sumn Comptroller of Public Accounts (or a deputy designated in writing to act for said :comptroller) shall manually sign the Comptroller's Registration Certificate printed and endorsed on the Initial Bond, and the 1. Review of the annual budge seal of said Comptroller shall be impressed, or placed in facsimile, on the Initial Bond. { {4 f l 1 fI I arity Bonds or utstanding parity 1'ALUE OF THE UT(LITY SYSTEAj Fiscal Year Ended 9-30-83 ''arity Bonds and Land and Land Rights Water Rights $ 1,697,550 Electric Plant and Equipment 250,064 Erity Bonds and Water Plant and Equipment 33,4970163 Sewer Plant and Equipment 31,213,599 12 133 079 on, the City shall Less: Allowance for Depreciation 98,173,433 al circulation In 38,474,043 cessive calendar Net System Value 560,299,412 shall etate that a holders or owners CITY'S EQUITY IN SYSTEM ica In writing is Fiscal Year Ended 9-30-83 the date of the Resources: Utility plant (Net) n instrument or Construction in t) $60,299,412 Progress 982,499 r to the ropos tped Total Utility plant Cash, Investments and Receivables 61,281,911 h amendment In Prepaid Expenses and Deposits 12,059,800 cil may pass the Inventory 180138 1,406,507 this section, this Total Resources $74,766 356 inance, and the Obligations: ders or owners of _-Total [revenue Bonds Outstanding* Tonal Bonds shall Accrued Interest Payable $230121,721 531 h amendments. Total Bonded Debt 24,193,252 Less: Restricted Fund Assets 11018 911 d pursuant to the Other Liabilities r $17,176,341 ate of the first 6,519,934 Net Fund Transfers Payable 1,543,000 g upon ail future Meter Deposits 257,553 consent may be _ by the holder or Total Obligations Paying Agents 525L4?8 ,828 I% in aggregate City's Equity In System section defined $49,267,528 Percentage of Equity in System 65.90% Additional Bonds Net of Unamortized Discount and Expenses (see "Utility System"). kh bearer Parity affidavit of the company, bank, UTILITY SYSTEM oned suxh person arity Bonds and In March of 1983, the City Issued $23,280,000 Utility System Revenue Refunding Bonds to refund t such ownership and legally defease the existing bonded debt of the Electric System and the Water and Sewer System of of all registered the City and to combine the separate systems into a single utility system. E by the registrar The Public Utilities Board i By City Charter, there has been created a Public Utilities Board (the "Board") composed of five members, appointed by the City Council with the City Manager and the Director of Public Utilities ind all necessary serving as ex-officio members of the Board without voting privileges. The Board serves the Department is investigation, of Utilities as a consulting, advisory and supervisory body. gistration by the itial Bond, said The duties of the Board are summarized as follows: omptroller) shall i31 bond and the 1. Review of the annual budget and the transmission thereof to the City ( ouncil. M -15- t _ { Customers 2, Review of recommendod: In 1993, the Electric Sy expansion of, additions to, betterment of, or extensions to the Utility Systems The following tabulation shows a, charge per kilowatt hour. b, incurring of debt; c, issuance of bonds, and d, fixing of rates and charges. ucted during the Average Number of Customn Submission annually to planning and Zoning Commission a list of recommended capital improvements which, in the opinion of tl~e Boardp should be constr Residential Commercial/lydustrial forthcoming five (S) Year period. Other Total Customers All actions of the Board are subject to f finalapproval of ne C sty Council. Average Charge Per kWh: Mani Rementofhe Utiity System Residential a Director of utilities who is responsible to the City Manager. All Other he The Utility System is managed Inluied within the Utility System is the Uglity Administration which consists of r various ads inistra iive The following tabulation staff and utility dispatchers, and the Budget and Rate Administration, %hose Fo largest customers In terms of t development and monitoring of utility budgets and annual rate studies. ~ represent 21.6% of the 1983 e!q The Utility System is organized into two major services, the Electric Department and the { Water/Wastewater Department, and consists of approximately 180 employees. Each of the two major departments is under the direction of ao Assistant Director of Utilities. The Electric Department is composed of three divisions: 1. Electric Production. Customer, 2. Electric Distribution, ort Texas State Un 3. Metering/Substation. Texas Womaf>'s Urdvei Peterbuilt Motors Ca Each division is headed by a Superintendent. There is also an Electrical Engineering group. Acme Brick Company Golden Triangle Mail The Water/Wastewater Department is composed of four divisions: Moore Business Form! Victor Equipment Cod 1. Water Production. State School Morris, S Milling C 2. Water/Wastewater F eld Services. Denton 3, Wastewater 'freatmeit. Signal Mints Dioe kvis q, Environmental5ervlcs' Total Each division is headed by a Superintendent or Envirorvnental Services Director. There is also a EnerRY Sales Civil Engineering Group The Utility System utilizes the services of the City Finance Department for meter reading, data The Electric System's s processing and billing, customer services, accounting, purchasing and warehousing. The Utility System were as follows utilizes the services of the Public Works Department for vehicle maintenance, design of mina water and sewer lines, easement and/or right-of-way acquisition and inspection of developer-instalIed water and sewer lines. THE ELECTRIC SYSTEM Residential - Commercial/Industrial General Other The City of Denton has owned and operated its Electric System (the "Electric System") for Total Sales approximately 79 years without interruption. During this time, the Electric System has experienced a steady growth in custa,ners and output, requiring periodic additions to plant and distribution facilities. Service Area ' The Electric System provides electric service to 20,027 customers located in the City. The City has covenanted in the Ordinance that it will not operate, and will not grant any franchise or, to the extent it legally may, permit the acquisition, construction, or operation of, any electric energy distribution facilities which would be in competition with the Electric System, and, to the extent that it legally may, the City will prohibit any such competing facilities. f d i i i 1 Customers System; In 1983, the Electric System sold 506,268,000 kWh of electric energy excluding off system sales. The following tabulation shows the average number of customers from 1979 through 1983 and the average charge per kilowatt hour. commended capital _ Year Ended September 30 tructed Burin 1974 1980 1981 1982 1983 g the Average Number of Customers: Residential 13,870 15,705 16,225 17,]32 17,398 Commercial/Industrial 2,608 2,420 21186 2,213 2,283 Other 312 137 143 220 346 Total Customers 16290 18.262 18,336 19,365 20,027 Average Charge Per kWh: o the City Manager, Residential 4.56G 4.54G 4.8% 6.390 6.95 rious administrative All Other 3.97 4.135 5.390 6.286 6.44 possibilities include The following tabulation provides information for calendar year 1983 for the Electric System's ten largest customers in terms of both peak demand and annual revenues. These customers taken together epartment and the represent 21.6% of the 1983 electric revenues on system sales. h of the two major Denton Electric S stem, Ten Largest Retail Customers 1983 1983 Annual Peak kW Customer kWh Revenues DemarrJ North Texas State University - 60,538,800 3,548,913 13,440 Texas Woman's University 21,251,400 1,2999700 40844 ering group. Peterbuilt Motors Company 9,161,600 637,987 4,480 Acme Brick Company 90148,890 638,484 1,890 Golden Triangle Mall 8,873,200 592,651 3,640 Moore Business Forms 8,8240272 529,822 1,907 Victor Equipment Company 7,946,853 536,228 2,399 ]Denton State School 6,020,956 408,267 2,244 Idorrison Milling Company 4,788,640 288,799 987 Signal Products Division 1,573,040 94,764 616 !or. There is also a Total 138,127,651 8 316 115 36,447 f Energy Sales :r meter reading, data The Electric System's sales of energy, in kWh, to principal customer classes for 1979 through 1953 The Utility System were as follows: ~gn of minor water and Er-installed water and kWh Sold (000's Omitted) Year Ended September 30 1979 1980 1981 1982 1983 Res.dential 132,534 167,286 173,460 175,313 1599948 Commercial/Industrial 276,199 301,982 308,348 299,040 325,581 Other _23,579 24,041 17,288 25,431 20,738 I'clectric System") for Total Sales 4)2,312 493,309 499,096 499,784 506,268 tern has experlenced a tritxwtion facilities. in the City. The City Ichise or, to the extent ric energy distribution 2nt that it leEally may, 17 I quantities. Penalty for not purchas) Existing Power Su .-I and lnterchan _e A reements of the weighted average of the month Present production facilities of the Electric System consist of five Qenerating units desc: ibed as delivery plus the average wellhead co 1983 with escalation based on an Infy i prices presently range from approxima follows: 1 Number Placed The City has the option of ppuurrcl of Name Plate Year with such as credited to Its minlmur TIM. Units capacity kw In Service 30C per MCF escalatable at tht same S into art agreement with Enserch for de Steam Turbe 12,650 1955 1955 Unit 1 120650 1462 Texas Municipal Power Agency Unit 2 22,000 Unit 3 61,120 1965 In July 1915, the Cities of Br Unit 4 65 500 1913 ordinances, created the Texas Munic, Unit 3 S 11 , 20 taxing power, as a separate municipal All five units utilize natural gas as their primary boiler fuel, The City has recently sold its five Article 1435a, Vernon's Texas Civil Directors made up of two repreunta diesel generator peaking units. construct, own, operate and maintain which also includes the cities sale to and exchange of electric ener The City is a member of the Texas Municipal Power Pool ("TMPP" _ with the Agency of an electric generat zos of Bh has Garo w, le and th trarumEsB on and de strib P onetacil t satiThe City Is all Tor. member of each the Each of the Cities has entered Electric Reliability Counsel of Texas ("ERGOT"), the regional Reliability Coordinating Organlzation for which obligates the Agency tc 8 Electric Power Systems in Texas. The City has access to the ERCOT intrastate network of six major Agency supply of power and enemy the f investor-owned and several public systems through the TMPP members transmission system, purchase from the Agency, If available The TMPP contract provides that each member city shall provide, through its own facilities or generated by the Cities' existing munic bud gets, ro ectin its Annual 5 stem through firm power contracts, a capability at least 15% greater than its projected system peak load for on gs bonds, and go submit the same t ystems, the cities Agency will adopt and fix the rates an each future year. The cost TMPP itthe reserve y capacity provide of their betweer the are shared by all participants. . By "pooling" P 1 for the ensuing year. The Cities are o5 can operate safely with considerably less installed reserve power supply, thereby effecting substantial The Contract further provides t investment and operating economies. Other advantages include an adequate and dependable source plus power during periods of individual emergency, during periods of scheduled unit maintenance, Bond Fund is less than the amount they interchange of economy energy between members. The TMPP members are engaged In an economic transfers made 1roh other than the A dispatch program wherein all generating units of the five members are operated such that the most unconditionally obligated to make e A efficient units are loaded first. Savings are distributed on a formula of splitting the savings between the maintain the Agency's Bond Fund, a pq actual cost of the suppliers and costs that would have been experienced by the less efficient generators that transf rrs may be made from thRes4 e 5 'i, owned by the p irchasers. calendar months without replenishment Share") shall be aal, sled annually base Shown below are the interchanges the City has access to: the aggregate system load of the four I each of the Cities for 1934 are as folio, TMPP, TMPA and TPht Interconnections Uh 60,000 kva TOP 138KV orth interchange 10,000 kva City Brazos 69KV Interchange City o TMPAITP&L Spencer Pant 138KV Interchange 100,000 kva City o TMPA 138KV North Interchange 100,00 kva City 0 210,000 kva (2) Toy (1) Texas Municipal Power Pool VTMPP"). Texas Municipal Power Agency ("ThIPA"), Each of the Cities unrnnditiona Texas Power do Light Company (TPdrL")• payments to the Agency's Bond Fund, H none of the Cities shall have the right q (2) TMPA has capacity to furnish 400 kva of power to a 133 kva transmission loop around the City of Denton from its 345 kv transmission line which is tied to the Texas Utility transmission grid. TMPA All amounts payable by the Cityl! furnishes power to Denton's 69 kv transmission system from the 138 kv transmission loop through two contractual guarantee described above 100,000 kva transformers. In the future Denton plans to also take delivery of power directly from TMPA's and superior lien on the gross revenues 138 kv lines which will provide additional capabilit} of approximately 200 kva. Under the Contract, the Cities Fuel Supply proceed with the financing, corutru.. approval by the Cities, the Agency ma In October, 1983, the City entered into a contract with Lone Star Gas Company (the "Seller"), make "System Development and Rel' wher.by the Seller agrees to supply natural gas to the City through December 31, 1988. The City may purposes when authorized by the Cities take delivery of the gas at its generating station or at any of the generating stations of the Cities of the Contract, may be made by the Age Garland, Bryan or Greenville. Take-or-pay provisions of the contract call for payment by the City of 4096 of estimated fuel requirements as projected 12 months in a:vance of each year. The Cities may also take j delivery of up to 10% of a prior year's gas requirement during the next year to meet minimum purchase I Ig_ quantities. Penalty for not purchasing the minimum gas quantities is payment of such deficiencies at 20% units described as of the weighted average of the monthly cost of gas. The price of the gas is the sum of a base price for delivery plus the average wellhead cost of gas to the Seiler. The base price ranges from 37G per MCF in 1983 with escalation based on an inflation index but not to exceed % per MCF per year. Wellhead gas prices presently range from approximately $3.60 per MCF to $3.90 per MCF. The City has the option of purchasing up to 30% of its gas requirements from other gas "producers" with such gas credited to its minimum contract volumes. Seller has agreed to transport gas for a fee of 30t per MCF escalatahle at the same percentage rate as the base price. The City has presently entered into an agreement with Enserch for delivery of such "producer" gas at a price of $3.13 per MCF. Texas Municipal Power Agent In July 1973, the Cities of Bryan, Garland, Denton and Greenville (the "Cities"), by concurrent ordinances, created the Texas Municipal Power Agency (the "Agency"), a joint power agency without taxing power, as a separate municipal corporation and political subdivision of the State in accordance with gently sold its five Article 1433a, Vemoh's Texas Civil Statutes, as amended. The Agency is governed by a Board of Directors made up of two representatives 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 includes the cities sale to and exchange of electric energy with the Cities and any private utilities which are joint owners co, Texas, with e1 with the Agency of an electric generatlog facility located within the State of Texas. o a member of the g organlzation for Each of the Cities has entered into an identical Power Sales Contract (the "Contract") with the twork of six maJor Agency which obligates the Agency to use reasonable diligence to provide a constant and uninterrupted tem. supply of power and energy to the Cities and, subject to certain exceptions, obligates the Cities to purchase from the Agency, it available, all of their electric energy requirements in excess of the amounts is own facilities or generated by the Cities' existing municipal systems. The Contract requires the Agency to prepare annual stem peak load fOr budgets, projecting its Annual System Costs for the succeeding year, including debt service requirements tween the members on its bonds, and to submit the same to the Cities. Based upon these budgetary facts and estimates, 4he systems, the cities Agency will adopt and fix the rates and charges for electric energy and services to be paid by the Cities f fecting substantial for the ensuing year. The Cities are obligated to make such payments on a monthly basis. pendable source of maintenance, plus The Contract further provides that if at any time the amount of money on deposit in the Agency's ed In an economic Bond Fund is less them the amount then required to be on deposit therein without giving consideration to such that the most transfers made from other than the Agency's Revenue Fund or from I:ond proceeds, each of the Cities is avings between the unconditionally obligated to make a payment, the aggregate of which shall be the amount necessary to efficient generators 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 caIendar 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 hears to the aggregate system load of the four Cities, subject to certain qualifications. The Percentage Shares for each of the Cities for 1984 are as follows; kva City of Bryan 20.28% va City of Denton 19.85 va City of Garland 49.57 va City of Greenville 10.30 kya (2) Total 100.00% Each of the Cities unconditionally covenants 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 requireJ, and none of the Cities shall have the right of set-off, recoupment or counterclaim against any such payments. p around the City of ission grid. TMPA All amounts payable by the City under the Contract, including any amounts payable pursuant to the on loop througgh two contractual guarantee described above, are expenses of the City's Utility System end constitute a first rectly from T1dPA's and superior lien on the gross revenues of such System prior to the pledge made on the Bonds. Under the Contract, the Cities must approve any "Project" before the Agency is authorized to proceed with the financing, construction, equipment procurement and development thereof. After approval by the Cities, the Agency may proceed as it deems appropriate. Additionally, the Agency may Irnpany (the "Seller"), make "System Development and Reliability Expenditures" as "Approved Projects" for facilities and V1988. The Citp maf purposes when authorized by the Cities. Certain expenditures for "Development Projects", as defined in hOnS of the Cities of the Contra _t, may be made by the Agency without the approval of the Cities. * by the City of 4' it Cities may also tak! et minimum purchase t r 19- f t Agency approved by the Cities Is the F1 A-proved Prdects The first generating P(Ol ct Of t County, Texas, and includes a net 390 Gibbaa Creek 51eam Electric Station, co mpl megawatt lignite-fueled steam electric plant, related reservoir, railroad spur and tr~nsmisslon 1 mel;a ins, an adjacent surface mine and associated properties and equipment. Gibbons Creek was placed Saes of kWlu into coma:erral operation in October, 1983. es entt 132,3' The second generating project of the Agency approved by the Cities is an Interest in the nuclear- Comm ercal/Industril 276.1 tai fueled Comanche Peak Steam Electric Station and certain associated transmission facilities. pa January Public Street and Highway 0q , 7 6 2, 1979, the Agency entered into a joint ownership agreement y arndt Tewith xas DUtil Utilities Generating Company, under Other 18,9 Electric Service Company, Texas Power do Light Company 032,3 which the Agency acquired a 6.2 6 ownership interest in the Comanche Peak station presently under stew teJ ~7 construction. the station will consist of two 1,130 MW nuclear-fueled pressurized water reactor steam S~Fotal Sales Resale generating units and related reservoir, makeup water facilities, railroad spur, nuclear fuel and other Loss and Unaccounted 28~! properties and equipment. Unit One is presently scheduled to be in commercial operation in late 1980 and Total kWh to System l Unit Two in mid 1986. oved as "System Development and Reliability Expenditures;" certain % Loss and Unaccounted The Cities have also appr , transmission facilities. Avers a Customers: es ent Future Power Su R rces Comm ercial/Industrlal Total 1 ppi Preliminary discussions have been underway with Brazos Electric Power Cooperative, Inc. of Waco regarding possible future partic,oation in a future lignite-fired power generation plant, to be either an peak Day Power Requirement l addition to the existing San Miguel lignite plant or a new plant in East Texas. Present Plant Capacity 1 The City is investigating the installation of three 1,000 KW hydroelectric turbines on nearly Analysis of Electric BiIIjRAt Lewisville Lake and Ray Roberts Lake, w' `ch is tow under construction, and has filed application with the All Customers: Federal Energy Regulatory Commission for construction licenses. The exact schedule for lnstallatlm of Average Month kWh/Custaner these units is uncertain at this time pending additional feasibility studies, n Bill per Customer $ Revenue per kWh 5 0 Residential Customers: Average Month customer Bill per Customer Revenue per kWh p Commercial/industrAt i Average Mmth cW Customer ? Bill per Customer Revenue per kWh 0.' Gross income*: esn ent $ 6,64 i Conmerciai/1,.d,;.rla1 lf,CL ' Other f-~ M ]7 9a A * Does not include off-system sales j material, etc, t ~ 1 t i -20- i i 5 T ~S I the Cities the udes a net t 399 HISTORICAL STATISTICAL DATA d and transmission Creek was placed Year Ended Septemter 30 Sales of kWh: - 1979 1980 1981 1982 _ 1983 es enti 132$33,865 167,283,852 173,460,115 175,313,10.1 159,948,444 est in the nuclear. Commercial/Industrial 276,199,288 301,982,186 308,347 623 299,039,686 325,581,187 lilies. On January 408,733,153 §69,268,038 481,807,733 474,352,788 983,529,631 ht Company, Texas Public Street and Highway 4,666,680 41702,073 4,750,623 5,1800806 4,905,108 ng Com panyounder Other 18,912,6"8 19:338,798 121537,317 20,250,247 15,833,034 an presently under 5ub-total 432,3121491 493,308,911 499,0950708 499,783,841 S16,267,773 ater reactor steam 5ales for Resale 1 416 000 7 450 000 849,000 4 X689,000 60,221,000 ar fuel and other Total Sales 4 8 k9I 50 8,91! 09'9441,4T SfFlo472,841 366,488,773 in late 1984 and Loss and Unaccounted _28,168,387 27,359,097 27471_6L)2) 31,901.096 371449,227 Total kWh to System 461,896,878 528,318,008 527,661,169 536,373,937 603,938,000 I ~fenditures,^ certrin % Loss and Unaccounted 6.1096 5.22% 5.26% 6.00% 6.20% Avery c Customers: Aes enL 13,870 15,705 16,225 17,132 17,398 Commercial/Industrial 2,733 2,551 2,331 ____?1433 2,629 ative,Inc. of Waco Total 16,663 18, 6-2 18,536 19,565 20,027 ~nt, to be either an Peak Day Power Requirement 109,000 131,000 133,000 133,000 140,000 ' Present Plant Capacity 173,920 173,920 173,920 173,920 173,920 ' turbines on nearby I application with the Analysis of Electric Billing le for installation of All Customers: Aver ageMonthkWh/ Customer 2,170 2,251 2,241 21129 2,106 all per Customer $ 90.06 $ 97.41 $ 116.08 $ 134.41 $ 140.89 Revenue per kWh $ 0.0415 S 0.0432 5 0.0518 $ 0.0632 $ 0.0669 Residential Custo,ers: Average Month kW Customer 796 888 891 853 766 Bill per Customer 36.30 $ 40.32 $ 42.77 $ 54.32 $ 53.21 Revenue per kWh 0.0455 $ $ 0.0695 ( $ 0.0454 $ O.1,y80 0.0639 Comme: cisi/Industrial: f Average Month kW Customer 8,998 10,472 11,472 11,261 10,320 Bill Per Customer $ 448.20 604.57 Revenue per kWh $ OS0400 $ 0.0428 0.0527 $ 090619 $ 060644 Gross Income*: Res: ent: 5 6,046,432 $ 7,599,678 $ 8,327,068 $11,208,331 $11,108,335 Commercial/Industrial 11,060,823 12,629,060 16,255,007 18,523,737 20,972,080 Other I 830 951 902 937 1.273.76 1 5 721 192829 517p9 30 206 206 21:13[,675 $23,857,840 31 571 789 F3-3,959, 464 " Does not include off-system sales, income derived from contribution-in-aid or sales of surplus material, etc. -21- Electric System -Capital Improvement Plan. Federal Re&ulatloa The Utllity Department is required by charter to annually prepare a Capital Improvement Plan Under current Federal ' Statutl (CIP) and submit it to the Planning and Zoning Commission for Inclusion in the City's overall Capital regulation in the establishment l of t, Improvement Plan. The CIP is required to be a five year projection of capital requirements with projects expansion of the electric System. o T listed In order of priority, The Utility Department Five Year Capital Improvement Plan for the Electric Commission ( the ele) and utilizes th System is as follows records. ELECTRIC THF. W From From General Bond Current Total Year oroeeeds Revenue Other The Water and Wastewater Sys 1984 j1,203,000 1,019,000 127,000 20331,000 located within the cityllmits, as well 1985 2,305,000 1,400,000 131,000 4,036,000 The water distribution system consist 1986 1,316,000 1,395,000 190 90,000 2,901,000 and 4.36 million gerons of elevated 1987 1,333,000 1,432,000 195,000 20962,000 Federal water quality requirements. 1988 1,283,000 1,583,000 176,000 3,0428000 Water Supply The major electric system capita! improvements are the construction of two new substations in 1983/86 and 1988, and the enlargement of two existing substations in 1986 and 1987, and the addition to The present munlc!pal s»pplle the City's Service Center. The remainder of the electric system CIP is for ar-,jal additions to the s,urces are available for emergency ar electrical distribution system sufficient to serve new customers and capita! improvements to existing storage rights In nearby Lewisville Re Reservoir contains a total ce 436,000 Facilities. 21,000 acre feet of storage, with the Projected Loads and Resources Texas Water Rights Commission has z - Lewisville Reservoir with the rl¢h: The projected loads and resources of the Electric System for the period 1984 through 1988 are presently uses av with t the rlu! presented in the following chart as determined by the City all amounts over 4.6 million ga!lcns p for retail and/or wholesale water that (In Megawatts) The City is presently purchasing vate. meets all Texas Department of Ho:alth Peak Net Reserve Year Loads Resources Margin Future Water Sv ppi 1984 146 252 l 71 1985 153 266(2) 74 In 1980, the City and Dallas r 1986 159 280(3) 76 development of Ray Roberts Reserv 1987 165 280 70 Lewisville Reservoir on the Elm For 1988 172 280 63 contracts with the Corps of Engineers, pay for 7496. Water obtained front the (1) ThtPA Gibbons Creek, Demon's 20% allocation (78MW) (see "Texas Municipal Power Agency"). share of total construction casts, The (2) Comanche Peak Unit I, Denton's 20% allocation (14MW). available from the Reservoir In appr (2) Comanche Peak Unit 2, Denton's 2D% allocation (14M W) and the Lewisville Project. Reservoir had been calculated at 76 mj' up to 19.8 million Sailors per day. Th Sales of Excess Capacity from the present water rights from estimated water needs through the yea The City, together with tour other members of the TMPP, has entered into a contract with West determine water requirements and alter Texas Utilities ("WTU") which provides for the sale to WTU of excess gas-fired generating capacity. The contract calls for sales of 150,000 kW in 1985 and 200,000 kW in 1986, at a price of $3.00 per kW per Water Treatment Plant month. The City Water Treatment Pla The contract require WTU to pay a monthly capacity charge, and if energy is taken, an additional ("MD") with a hydraulic design overlot char6e fcr fuel cosy, operating and maintenance charges, start-up costs and line losses. Revenues frcn Department recognizes the maximum the contract are expected to be $5.25 million in 1985 and $7 million in 1986, -.nd the revenue will be histo0cal peak cay was 18.8 million ga divided among the selling group in the proportion that each member's excess generating capacity bears to of the plant which will provide trey total generating excess capacity. The City expects that its share will approximate 1535 of such revenues. Department regulations. A suppltmental agreement among the selling group calls for the Brazos Electric Co-op to serve as agent for the group to administer, dispatch and account for revenues and for allocation of expenses of sales. Water Usage - (Gallons) T)e contract is contingent upon the ability of WTU to obtain transmission wheeling agreements to Average M allow capacity to reach its grid. Other such wheeling agreements are presently in existence and the City Year Day_ expects WTU will be successful in the timely completion of such agreements. 1973 60636,907 12, 1974 6,8220000 12, 1975 70216,282 13 1976 7,264,000 14, 1977 70923,000 14, 1978 8,394,000 16, _ 2.' _ It I r- i I t I Federal RcAUlation mprovement Plan Under current Federal Statutes and regulations, the Electric System is not subject to Federal overall Ca;Atal regulation in the establishment of rates, the Issuance of stcuritles or the operation, maintenance or •nts with projects expansion of the electric System. The City sr.t..,ius varlous reports to tlv Federal Energy Regulatory for the Electric Commission ("FERC") end utilizes the FERC System of Accounts In maintaining Its books of accounts and records. THE WATER AND WASTEWATER SYSTEM General The Water and Wastewater System provides retail water and wastewater service to all customers ,000 located within the city limits, as well as wholesale water and wastewater service to the City of Corinth. 1,000 The water distritution system consists of 325 miles of water mains, 3 million gallons of ground storage, ,000 and 4.36 million gallons of elevated storage. The City believes it Is in compliance with all State and ,004 Federal water quality requirements. ,000 vv substations in Water Supply d the addition to The present municipal supplies are obtained primarily from surface sources, but underground additions to the sources are available for emergency and back-up purposes. The City has previously acquired conservation ents to existing storage rights in nearby Lewisville Reservoir which was constructed by the U. S. Corps of Engineers. This Reservoir contains a total of 436,000 acre feet of conservation storage. The City holds the rights to 21,000 acre feet of storage, with the balance being held by the City of Dallas ("Dallas"). The State of Texas Water Rights Commission has awarded the City 4.6 million gallons per day in water rights from Lewisville Reservoir with the right to "perfect" an additional 3.3 million gallons per day. The City through 1988 are presently uses approximately 9 million gallons per day, as an annual average, end purchases from Dallas all amounts over 4.6 million gallons per day. The water contract with Dallas is similar to the contracts for retail and/or wholesale water that Dallas supplies to eighteen (18) other North Texas municipalities. The City Is presently purchasing water from Dallas at a rate of 37.30 per 1,000 gallons. Water quality meets all Texas Department of Health and other State standards. Future Water Supply In 1980, the City and Dallas contracted with the Corps of Engineers for the construction and deve!oprnem; 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 the City. In the contracts with the Corps of Engineers, the City will pay for 2o96 of the construction cost, and Dallas will pay for 74%. Water obtained from the reservoir will be pro-rated on the basis of each city's proportional Agency"). share of tote.! construction costs. The estimated completion date is approximately 1986 with water being available from the Reservoir in approximately 1990. The estimated safe yield of the Ray Roberts Reservoir had been calculated at 76 million gallons per day, of which the City would be entitled to receive up to 19.8 millior, gallons per day. This amount, plus a safe yield of 4.6 million gallons per day available from the present water rights from the Lewisville s!;.st•volr, will be sufficient to meet the City's estimated water needs through the year 2003. The City has conducted a long-range water supply study to ntract with West determine water requirements and alternatives af,er the year 2000. ng vapacity. The $3.00 per kW per Water Treatment Plant The C.1y Water Treatment Plant is designed to treat an average of 16 million gallons per day ken, an additional ("MGD") with a hydraulic design overload capability of 24 million gallons per day. The Texas State Health Revenues from Department recognizes the maximum capability of the plant to be 16 million gallons per day. The revenue will be historical peak day was 18.8 million gallons. The City is making improvements in the water filter media f capacity bears to of the plant which will provide treatment capability of 24 MG[) based on the Texas State Health of such revenues. Department regulations. ito serve as agent lases of sales. Water U.oge _ (Gallons) i-g agreements to Average Maximum Average Maximum once and the City Year Day_ Day Year Day Dater 1973 6,iZo7 12,1751000 1979 7,920,320 14,560,000 1974 6,822,000 12,620,070 1980 9,477,386 18,867,200 1973 7,216,282 13,330,000 1981 7,117,852 15,tL03,000 1976 7,264,000 14)080,000 1942 6,937,193 14,953,000 1977 7,923,000 14,119,000 1983 11355,000 17,371,000 ls78 81394,000 16,466,000 -23- I i .4 Y Wastewater Treatment The first y Ener Cost Ad'vstment , , ,Whet The City owns and operates an activated sludge type wastewater treatment facility. the City's Powe included in rcha t the power at rate. element of the plant, with a capacity of 2 MGD, was placed in operation in 1964. A 4 MGD addition was En Energuy Cos Adjust-, L 13 dWge4 into cot intto operation In Ma pe1932 ~The1City's 1971. MGD wDastewater treatment to the np ant bs deslgnedl tto serve twas End he Purchased City up to a population of 90,000. The wastewater system has been efficiently operated and maintained, C Pu Water and Wastewater . Capital Improvement Plan Net Monthly Rate: The Utility Department is required by charter to annually prepare a Capital improvement Plan overa (CIP) and submit it to the Planning and Zoning Commission inclusion capital the City's ents with projects Improvement Plan. The CIP is required to be a five year projection Primary 5ervlc ! (LP) listed in order of priority. The Utility Department Five Year Capital Improvement Plan for the Water Secondary Service (GS) System is as follows: General Service Primary (Gp) Trom From Bond Current Other Total Year Proceeds Revenue Primary Service (LP} 1984 $1,667,000 225,000 $167,000 2,059,000 Seconder Service (GS) 1933 4,780,000 407,000 237,000 5,424,000 General Service Primer (GP) 1986 3,822,000 419 000 349,000 4,590,000 y( 510,000 105,000 3,736,000 1987 3,121,000 1988 3,983,000 4I6,0f0 398,000 4,797,000 (2) Customer FacDity Charges, , Primary Service (Lp&GP) The major water system capital improver~ients are for major water line additions, a raw water Secondary Service (GS) pump station, a finished water pump and for Lnnusl additions to the system to serve new customers and Three Phase capital improvements to existing facilities, Single Phase UTILITY RATES Energy cat adjustments are the same as th General It is the City's policy to review electric, water and wastewater rates on an annual basis to assure Local governm~ adequacy and equity. Independent consultant-. and City Staff generally perform this review on an alternating year basis. Rate recommendations are submitted by the staff to the Utility Board for review j and approval, which then makes recommendation to the City Council for final approval. To date, the City Ji Council has approved all rate recommendations of the Utility Board. (I) Net Monthly Rats Ele_cteie Rates Electric rates were last changed effective October 30, 1983, at which time the rates were y Al! kWh at increased 7.6% and the rate structure was altered to more accurately reflect cost of service among } customer classes. Current rate structure is shown below. (2) Customer Facility Charge: (Effective October 30, 1983) Single Phase Three Phase Residential Energy cost adjustments are the same as t Facility Charge $ 6.50 Single Phase 11.00 Tivee Phase Water Rates Months of May though October Water rates will increase by 10.5% increased raw water costs, Increased capital U1 to 3,000 kWh $0.065 per kWh plus an energy cost adjustment (Effe Over 3,000 kWh $0.070 per kWh plus an energy cost adjustment Months of November through April _ Billing Months May- October Up to 1,000 kWh $0.060 per kWh plus an Facility Charge $4,25 energy cost adjustment 0 - 20.ri00 gallons 1.30/M gallons Over 1,000 kWh $0.055 per kWh plus an -i+ AP.,ve 20,000 gallons 1 JON gallons energy cost adjustment Min Note: When usages are less than 71'0 kWh per month during May through October, the monthly facility charge is $5.50 per month and the energy charge is S.SC per kWh, plus an energy cost adjustment. -24- .,..........~.u.caw.w...v~~nw,.v+r«.w.~r.wr+~.ww~.s.rw/'A1N,M`~JY.eR~ovleYYUiN.rsM,~s~Ywwr.,+~,~WW+r,YeM I I I i h E t l I cility, The first EM Cost Adjustment When fuel or purchased power costs are more than 4.30 per kWh, an 1GD addition was and Cost A lustment C Is charged. The ECA is calculated by using the total cost per kWh of fuel ompleted and was 'd purchased power at the City's Power Plant divided by total sales subtracting 4,30 which is already Egned to serve the included in the base rate. and maintained. Commercial and Industrial (l) Net Monthly Rate: Improvement Plan ^s overall Capital (Demand Charge) ents with projects Primary Service (LP) din for the Water $4.80 per month per kW of billing demand r Secondary Service (GS) $5.10 per month per kW of billing demand General Service Primary (GP) $4.90 per month per kW of billing demand (Energy Charge) tal t 000 Primary Service (LP) All kWh at $0.048/kWh plus ECA 4 ,000 Secondary Service (GS) All kWh at $0.051/kWh plus ECA 0,000 General Service Primary (GP) i"'h at $0.049/kWh plus ECA ~oOOG (2) Customer Facility Charge; r ioru, a raw water Primary Service (LP&GP) $49.30/month on customers and Secondary Service (GS) ,ew Three Phase $15.00/month Single Phase $10.00/month Energy cost adjustments are the same as those for residential customers. ;overn mental ual basis to assure , his review on an Local government - (City, County, School District) y Board for review To date, the City (Demand Charge) (1) Net Monthly Rate: $3.50/month/KW of billing demand (Energy Charge) e the rates were All kWh at of service among $0.031/kWh plus ECA r (2) Customer Facility Charge: Single Phase $10.00/month Three Phase $13.00/month Energy cost adjustments are the same as those for residential customers. Water Rates Water rates wili increase by 10.5% effective Febri.rry 24, 1984, reflecting, among other things, increased rav, water costs, increased capital improvements and inflation. (Effective February 24, 1984) Residential Users Billing Months May- October Billing Months November - April Facility Charge $4.25 Facility Charge $4.23 0 - 20,000 gallons I.30/M gallons Volume Charge 1.30/M gallons Ahove 20,000 gallons 1.60/M gallons Minimum Charge - $4.23 he monthly facility '.j ustment. 23- r I Commercial/lndusIrl`rI Water Consum tlon Forecast. to 3.5 per year rom a prey ous estir customer Facility Charge $~,23,PMlugallons Freese and Nir.hols, Consulting Engin Volume Charge estimates of effects of price elast Minimum Charge - $9.00 apartments which ust less water per c Wastewater Rates r Annual Consumption Wastewater rates will increase by 54% effective February 24, 1984, reflecting, among other things, Billions of Gallons increased debt service increased capital imp ovements funded by curet revenues, nd inflation, reatment and collection system, Average MGD (Effective February 24, 1984) Experse Assum~tlons Electr Commercial/industrial assuming that al TMPA energy is price Residential gas. For 1984 through 1988, the Elect Based on 98% of average usage of e.3sed o:: 80%of water consumption on the TMPA February, 1982 Official December - February but not to exceed load growth, as previously discussed. General Expenses for 1984 thro lgh 1 25,000 gallons) ' improvement plan and reflect an antic Facility Charge $3.00 plus Facility Charge $6.50 pplus other expense categories. Volume Charge 1.50/M gallons Volume Charge 1.60fm gallons Water/Wastewater Operations, t Note: All se•vice outside City Limits at 150% of above rates. to Increase at an annual rate of 8%for' costs of electric power were obtained Rate Regulation Water was estimated to Increase at an Within its boundaries, the City has exclrsive jurisdiction over 4 e electric, water and sewer system rates. Pro Forma Combined Projected Operations Shown below are projected financial operations for the Utility System. These projections are based upon many assumptions, certain of which are also described below. Population Forecasts Recent population forecasts completed by the North Texas Council of Governments projects Denton's population to grow at an annual 2.4% rate and to be as follows: 1984 1985 1986 1987 1988 53,600 54,900 560200 57,600 58,900 Per Capita Electric and Water Consumption... The following shows the City's projections of electrical energy and water use on a per capita basis. 1984 1985 1986 1987 1988 Energy Consumption per Capita (kWh/person/year) 10,000 10,150 10,300 10,450 10,600 Water Consumption per Capita (gallons/day/person) 143 143 144 145 146 Electric System Load Forecast 1984 1985 1986 1987 1988 Electric Energy (kWh) 536 557 57a 601 627 Peak Load (MIA,) 147 153 159 165 172 i The City has lowered its estimate of annual electrical load growth three times the last three years. Gilbert Associates, Consuiting Engineers, in their 1980 load forecast, estimated growth at an average annual rate of 153%. In December, 1981, the City reduced the estimate to 5%, and In May, 1982 to 4%. 1 -26- • ji t 1 f r f Water Co W tfon Forecast The City has lowered its eaimate of water consumption growth to 3.5% per year from a prev ous estimate of 3.3%, which was listed in a Water Supply Study completed by Freese and Nichols, Consulting Engineers, In 1982. The lowered growth forecasts are based on the City s 1 estimates of effects of price elasticity and to the large percentage of new dwelling units being f apartments which use less water per capita than do single family residences. 1 1984 1983 1986 1987 1988 ~mang other things, Annual Consumption 1 collection system, Billions of Gallons 2.79 2.87 2.96 3.05 3.14 Average MGD 7.6 7.9 8.1 8.4 8.6 r Expense Assumptions , Electric System projected expenses are based on 1984 budgeted expenses, Sndus;rill assuming that all TMPA energy is priced at the "avoided" cost of producing the same energy from natural consumption gas. For 1984 through 1988, the Electric System projected Fuel and Purchased Power expenses are based an the TMPA February, 1982 Official Statement, adjusted for reduced electric energy consumption and load growth, as previously discussed. The Electric System's Operations, Maintenance, Administrative and General Expenses for 1984 through 1988 are based on projections recently developed for the capital $6.50 pplus improvement plan and reflect an anticipated 8% increase in expenses for salaries and 6% increase in all ' 1.60!M gallory other expense categories. Water/Wastewater Operations, Maintenance, Administrative and General expenses are anticipated to increis- at an annual rate of 8% for salaries and 6% for all other expense categories. Increased annual costs of electric power were obtained from the Electric System's projected annual increases. Purchased Water was estimated to increase at an annual rate of 10%. >r and sewer system rojections are based h Texas Council of f ollowst 1988 M 38,900 ity's projections of 1988 10,600 146 1989 627 172 es in the last three sated growth at to t6, and in May, 1982 -27- r , ELECTRIC, WATER AND WASTEWATER SYSTEMS COMBINED REVENUE AND EXPENSE PROJECTIONS Dollars In Thousands. Fiscal Years Ending September 30, 1984 1983 1986 I9871____-- Revenues: Electric $36,428 $43,374 $49,477 $53,789 $6011 Water and Wastewater 7,011 8,793 9,161 100240 llC1 Other 1 000 1 000 1 000 1 000 It Total Revenues 4 4 36 149 1101:2118 64 Expenses: Electric Fuel and Purchased Power $26,432 $349433 $38,236 $40,628 $46,1 Other 5 609 6 018 6 438 ,669931 7 Sub-Total (Electric) -T3 ,L641 40,433 4 ' 49,920 Water/Wastewater 5 443 3 871 6 377 6 871 7 Total Expenses 36,972 46,324 3I,091 54,430 Net Revenue Available for Debt Service $ 8,676 $ 9,823 $ 9,147 $10,499 $l9,! Debt Service $ 3,740 $ 4,691 $ 5,083 $ 3,308 $ 611 Other Expenditures: Capital Improvements 1,627 20173 2,291 2,143 2,1 General Fun4 Transfers 2,367 2,474 2,630 2,816 219 Debt Service Coverage 2.32X 2.09X !.SOX 1.91X 1.81 Energy Sales (kWh) (1) 5.j6 532 379 603 6 Z!ectrical Revenue per kWh (mills/kWh) 68 79 83 89 (I) The projections above do not reflect any sales of TMPA energy or capacity to r a, ties other than the TM members. The variable costs for the Gibbons Creek and Comanche Peak plants are expected to be signifier less than the cost of even the most efficient natural gas-fired generating facilities. The chief reason that TMPA members have developed these resources Is to displace their natural gas fueled capacity. Therefore, ll Projects will be used as base load units and the TMPA members will use their full capacity from start-up. Although there will be no excess capacity for sale, on an hour-by-hour basis there is expected to be sury energy available from the units. Since the variable energy cost of Gibbons Creek and Comanche Peak are expel to be 23 mills per eWh and I I mills per kWh, respectively, in 1984 as opposed to 42 mills for natural gas, the pls are expected to Le operated at the maximum plant capacity factor possible. Because of the regional W dependence on natu, al gas, and the expected cost advantage of TMPA projects as compared to natural gas, the C believes it will be able to sell almost all such surplus energy. A forecast of sux h energy sales was prepared based on several assumptions including: (i) sales projected h TMPA computer analysis, (ii) the price of surplus energy on a split-savings basis, and ('iii) the natural gas variable TMPA cost assumptions included in the table above. On a net basis, profits to the City from such eft sales would reduce the electric revenue requirements on average by 6 mills per kWh for thi years 1983 to 19 respectively. The projections above do ;jot reflect ar,y sales by the City of excess generating capacity. However, the C has entered intn an agreement to sell excess gas-fired generating capacity to WTU. (See "Sales of Exe Capacity"). Su,:h sales of excess gas-fired generating capacity would reduce the electric revenue requirements average by app•oximately one mill per kWh in 1983 and 1986, respectively, - 28- ~-......,,.rte.-. ..o..,r.~.r:, ~ VAL UATIOPT AND DEBT INFORMATION 1983 Market Valuation $10150,2319819 Less Exemptions: Over 65 $29,161,532 Disabled or Deceased Veterans 27,368,710 Agricultural Productivity 467,821 19,320,610 76,318,693 11 1983 Taxable Assessed Valuation $19073,713,126 City Funded Debt Payable From Ad Valorem Taxes: General Obligation Bonds (as of 1-1-84) $ 16,692,000 Interest and Sinking Fund (as of 1-1-84) $ 988,512 I Ratio Funded Debt to Taxable Assessed Valuation 1.3396 1 I 1980 U. S. Census Population - 48,063 1983 Estimated Population - 31,7008 Per Capita Taxable Assessed Valuation - $20,768.15 Per Capita Funded Debt - $322.86 Area - 33.2 Square Miles 1 I • Source: North Central Texas Council of Governments. Note l: Pursuant to authority permitted by Section l-b, Article Vill of the State Constitution, which became effective January 1, 1973, the City has granted an exemption of up to $16,000 of Assessed Valuation to the residence homestead of property owners over 63 years of age, The City also allows a maximum of $5,000 for all declared homesteads in the City. The Taxable Assessed Valuation, as shown above, does not include $27,368,710 and $29,161,552 Assessed Valuation of properties exempted under these authorities. Note 2: The Legislature, pursuant to a o>nstitutional amendment and Article 7150h, VATCS, mandated an additional property tax exemption, beginning in 1976, for disabled veterans or the surviving spouse or children of a deceased veteran 'vho 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. Tte Taxable Assessed Valuation, as shown above, does not Include $467,821 Assessed Valuation of properties exempted under this authority. Note 3: Pursuant to the "Property Tax Code (Chapter 23?1, adopted in 1979, the City has exempted $19,520,610 et agricultural land value. The Taxable Assessed Valuation as shown above does not include this amount. Note 4: The ebove statement of irdebtedness does not include $26,280,000 outstanding Utility System Revenue Bonds, as these bonds are payable solely from the net revenues of the System, as defined in the i Bond Ordinance authorizing the bonds. AD VALOREM TAX LEGISLATION The City's General Obligation Bonds are payable from ad valore n taxes levied upon all taxable property within the City. The "Property Tax Code" (V.T.C.A., Tax Code), adopted in 1979, is a codification of Texas law as to ad valorem taxation and reference is hereby made 'here,:o for Identification of property subject to taxation; property exempt from taxation and other exemptions granted and allowed, if claimed; the appraisal of property for purposes of taxation and the procedures to be followed and limitations applicable to the levy and collection of ad valorem taxes. Among other features, the Property Tax Code provic'es for: 1. A single Appraisal District in each County of the State to apprais: w,;arty for purposes of taxation for all taxing units located wholly or partly w-- thin the County. 2. All property to be assessed at 100% of its appraised value and prohibits the assessment of property for taxation on the basis of a percentage of its appraised value. -29- I Unit to be limited to not more than 3% unless a 12. Changes In the procedures/ 3. An increase in the effective tax rate of taxing taxes for bonds or other contractual public hearing is held. In cal obligations are excluded. calculating the effective tax raft, A constitutional amendmentof 11 co~ Recent anendments (Chapter 13, Acts of the 67th Legislature First Called Session, 1981 tothe Pro rt A years, the up to esters of 30% of the Statemarket Vail Tax Code (designated to clarify and remedy technical flaws experienced in Imp'ementing various the there afte option r. of Minimum grantigranting homestead exemption provisions thereof) provide for: Ieafte against the value of sisal District's operations, on a iotal option basis, pledged for the payment of debt, 1, Postponement of full implementation an Appraisal which the debt was created. until 1983 or 1984. 2. Mandatory county participa.,on in the Appraisal District. Changes the provisions relating to an effective annual tax increase being subject to a referendum election by. The City has leased and leaze/p el heavy equipment such n street s in 1984 through 19E6. Annual cos a. Raising the amount of the annual tax increase necessary to trigger a referendum election to 8%; b. Reducing the number of qualified voters necessary to petition for a referendum election to 10%; The City has no other non-funded c. Extending the period avallaiie to collect signatures on a petition for a referendum election to non-funded VAL 90 days; d. Eliminating the requirement that a minimtrn of 25% of the qualified voters must vote in d referendum election to be valid. 4. The State Property Tax 'Hoard to conduct an annual ratio study in each Appraisal District to Fiscal determine the degree of uniformity of appraisals and the weighted average level of appraisals within each Period major kind of property (effective 1-1-84). 1973-76 5. An increase In penalties for delinquent taxes. The new penalties are: 1976-77 1977-78 a. 6% - First month 1978-79 I% - Additioral penalty each month through June 1979-79 IJ 80 12% - All d-- inquencies on July i regardless of delinquency period; 1980-81 1981-82 b. A taxing vrlt may add an additional penalty to a maximum of 15% of taxes, penal ty and Interest 1982-83 1 due in coder to defray costs of tax attorneys. 1983-E4 1 6. An increase In interest charged on delinquent taxes. The new interest charges are: (1) increased basis of asussme (2) Increased basis of assessme a. 1% -First month; and (3) Revaluation. (4) Projected. b. An additional l% increase each month thereafter. TAXAB 7. Property wit] ;n the Appraisal District to be reappraised at least once every 4 years (effective 1-1- R4? Property Assessment 8. The establishment and application of uniform discovery and appraisal procedures on all types o! As%ot busi.ness inventories without regard to the nature of the property comprising the inventory. Fiscal Appraised Peric~i _ Value 9. The statute purports to provide an increase for the first time in the appraised value of property 191'•74 00% 8 above its 1981 assessed value in any year from 1982 through 1985, which may be, at the option o, the local 197.-75 §0% 8 taxing unit, limited to l!5 times the percentage of increase in the value of all other property on the ut7t's 1975-76 40% 9 tax rolls. 1977-78 SO% 21 10. Changes in the composition and selection of board members, the allocation of 1976-77 40% 9 Appraisal District 1978-79 60% 22 costs, the size of the Appraisal Review Board and the financial accountability of Appraisal District. 197940 GO% 22 1980-81 6G% 24 11. Local taxing units to challenge the Appraisal Review Board's appraisals and judicial review of 1981-82 100% 45 challenges, and authorizes local taxing un is of an Appraisal District to overturn and veto actions of the 1982-93 100% E3 Board cf Directors of the Appraisal District, 1983-39 fOG% 82 30 - ---•.+A•.••,w,w~.ll~w~1~►AYiNiMMCgI0R3~W//l.~.RM"A~w~s~vaw.na-[A w.~a~sl~l~wans~r.coy,......vww.w.,..-.-r.++•~~••w...rw/ W -------+s•,••••T 1 j r 1 k ore than 3% unless a or other contractual 12. Changes in the procedures and requirements pertalning t,-, tax Increases by local taxing units. 1981) to the Property A constitutional amendment concerning homestead property exemptions was submitted to, and adopted by, the voters of the State of Texas on November 3, 1981. Such amendment provides local governments implementing variota the option of granting homestead exewptions of up to 40% of market value for the 1932 through 1984 tax years, up to 30% of market value for the 1983 thouo 1987 tax years, and ap to 2L% of market value ' thereafter. Minimum exemption Is $3,000. The amendment further provides that taxes may continue to n a local option basis, be levied against the valve of the homestead exempted where ad valorem taxes have been previously pledged for the payment of debt, if cessation of the levy would impair the obligation of the contract by which the debt was created. CAPrrAL LEASES ject to a referendum 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 referendum electron to in 1984 through 1986. Annual costs of the leases are as followst 1984 $375,993 1 referendum election to 1985 2691 5tA 1936 80,860 referendum election to The City has no other non-funded debt as of January 1, 1934. VALUATION AND FUNDED DEBT YISTORY voters must vote in a Ratio Funded I Funded Debt Debt to In Appraisal District to Taxable Outstanding Taxable f appraisals within each Fiscal Assessed at End Assessed Period Valuation of Year Valuation 1974-13 112,138,726 x,693,009 6.86% 1975-76 124,327,113 91585,000 7.71% 1976-77 1361540,625 1210240:00 8.81% 1977.78 2710339,229 (1) 11,533,934 4.25% 1978-79 288,902,702 15,215,101 3.27% 1979-80 304,943,680 15,364,485 5.04% 1980-81 337,948,941 15,053,000 4.45% e$, penalty and interest 1981-82 663,437,088(2) 12,933,000 1.95% 1982-93 1,0490946,549(3) 16,7021000 1.59% 1983-84 1,073,713,126 150490,000(4) 1.44% es are: (1) increased basis of assessment from 40% to 60%. (2) Increased basis of assessment from 60% to 100%. (3) Revaluation. (4) Projected. y 4 years (effective 1-1- TAXABLE ASSESSED VALUATIONS BY CATEGORY Property u Assessment Focedures on all types of As %of Real Pro pert Personal Property Taxable lik ` ventor). Fiscal Appraised o % of Assessed Period Value Amount Total Amount Total Valuation praised value of property 1973-74 40-ci 082,4090280 80.62% 19,813,560 19.38% 1021222,840 at the option of the local 1974-75 40% 89,883,677 80.14% 22,275,049 19.86% 1120138,726 ther property on the unit's 1975-76 40% 95,735,078 77.00% 22,5920083 23.00% 124,3270163 1976-77 40% 98,863,846 72.41% 370676,779 27.59% 1360540,625 1977-78 60% 2130133,760 78.55% 51.,203,469 21.45% 27103390229 Lion of Appraisal District 1978-79 60% 221,300,472 76.60% 671602,230 23.40% 288,902,702 Appraisal District. 1979-80 60% 229,022,620 75.10% 75,921,060 24.90% 304,9439680 1980-81 60% 246,205,248 72.85% 91,7430693 27.15% 3370948,941 Is and judicial review of 1981-82 100% 450,732,259 67.94% 212,704,829 32.06% 663,437,088 n and veto actions of the 1982-83 10096 831,397,479 79.14% 218,3490070 20.82% 11049,946,549 1983-84 10096 829,1330028 77.22% 244,580,098 22.78% 11073,713,126 { -31- Y' , " W ' 0,11 E f t +f 1 M TAXES MUNICIPAL SALES TAX E ective 4-1-68 d The City has adopted the provisions of Article 1066c, Vernon's Texas Civii Statutes, as amended, which Overlapping grants the City the power to impose and levy a 1% Local Safes and Use Tax within the City, the proceeds le Funded Debt being credited to the General Fund. Oillections and enforcements are effected through the offices of the 16,692,000 Comptroller of Public Accounts, State of Texas, who remits the proceeds of the tax, after deduction of z j 21,944952E 2% service fee, to the City monthly. Revenue from this source has been; 3,154,496 %of Equivalent of $41,7910024 Total Ad Valorem Ad Valorem Per Year Collected Tax Levy Tax Rate Capita ---3.89% 1473 87 ,j64 50.39% 0.8564 X9.68 1974 926,080 53.29% 0.9059 20.81 1973 1,000,932 52.68% 0.8924 21.33 1976 1,194,335 56.66% 0.9632 25.28 1977 19254,452 51.88% 0.9234 26.19 1978 1,629,832 48.44% 0.6007 31.62 1980 1979 1979 2,061,124 57.53% 0.7134 39.83 ' 1. 9 5L20 1980 20336,124 67.62% 0.8723 47.96 I 1.25 1.68 1981 3,017,806 69.22% 0.5358 39.00 0.17 0.67 11982 30293,302 66.82% 0.3409 64.17 983 3,171,3115 52.74% 0.2954 63.34 TOP TEN TAXPAYERS ion by the City of a icipai of and interest Taxab 1xabl %ot Total icle XI, Section 5, of e Taxable valorem tax rate to Assessed Assessed trader a Home Rule Name of Taxpayer Nature of Property Valuation Valuation Peterbuiit Motors Company Diesel Trucks 33,943,850 3.17% General Telephone Compan; Telephone Utility 33,793,891 3.15 Victor Equipment Company Welding Equipment 18,276,818 1.70 Andrew Corporation Radio Antenna Manufacturers 13,507,587 1.26 First State Bank Bank 13,425,719 1.25 Denton Mall Shopping Center 10, 521, 507 0.98 %Total Moore Business Forms, Inc. Business Form Manufacturer 9,279,9[0 0.86 First Denton National Bank Bank 8 570 911 0.80 M Collections , , 9 Westgate Medical Center Hospital and Professional Building 8,300,676 0.77 97.64% Acme Brick Company Brick Manufacturer 7 529 399 0.70 97.54% 157 ISO 26Y 14.64% 97.74% 94.33% AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS - NONE 96.37% 96.69% 95.64% 99.04% 98.04% if Coilection. ue October 1 of the split payments are )wed. -33- a kk~ + t S 4 ECONOMIC AND POPULATION GASJ_ GENERAL INFORhlAT10N REGARDING CITY AND ITS 5C0['OMY / Denton has noted a consistent LOCATION decades. I located at the apex of the Dallas-Fort Worth-Denton , / Historical population totals from U: / Denton is the County Seat of Denton County, industrial triangle. 19404 / The City covers an area of 33.2 square miles and is located only 38 miles Fran downtown Dallas, and 1930( 36 miles from Fort Worth. 1960 ( 1970 ECONOA4Y 1980 ( 0 The North Central Texas Council of 1 Dent )n is i In the e.iidst of a rich agricultural and livestock area. / The Citys ascension toward a top influences of governmental activity whi / The hub city of Texas' new "Land of Lakes" region, which provides Oerlon and neighboring cities with universities, and partly because it sucl abundant water for municipal, industrial and recreational purposes. some oil and gas production in the nor Worth Metroplex, its proximity to the / One of the three major university centers in Texas. Denton), its excellent highway and tr~ influential aspects of social, cultural, 1 The home )f diversified industrial interests. "white collars acts of to choose cultural Dentor / The site of the Nation's "first underground Control Center of the Office of Emergency Planning and INDUSTRY AND BUSINESS . Office of Civil and Defense Mobilization. 1 ]n excess of 75 diversified manufac / One of the key cities in the economically signif.cant Dallas Standard Metropolitan Area. follows: ECONOMIC RANKING Company Firms Emplo nj Over 500: / The following data was taken from Survey of Buying Power, Sales and Marketing Management, July 23, Moore Business Forms, Inc. 1983. Russell-Newman Manufacturing Corr 27.9 Victor Equipment Company Mediae Age of Population Firms Employing 250 to 500: % of population whose age is: 15.8% Acne Brick Can-party 18 - 24 22.0% Andrew Corporation, Texas Division 25 - 34 18.6% Jackson Concrete 35 - 49 15.8% Jostens, Inc. 50 -Over 1 Peterbailt Motors Company Households 58.1 Thousands Firms Employin100 to 250: Denton pu-L'shing Co, npany { 540 Net Effective Buying Income $1,834, Moore Business Systems Median Household EBI $ 28,1f... • ' The Morrison Milling Company Turbo Refrigeration Company %of Households b EBI Group 10,000 - 19,999% 18.8'' $20,OD0 - $34,999 30.7% Firms Employin50 to 100to t00 $35,000 - $49,999 22.8% Davis Concrete Company $50,DCJ - Over 13 5 Harley, Bag Division of Union Camp, Buying Power index - .0723 Harpool Seed, Inc. Kolmar Laboratories, Inc. Food Sales (0001s) $578,471 Lead Mailing Systems ~ 173,768 , Automotive 1 •,810 Oithane Division of Ohio Rubber Cory Eating and Drinking ~ J,877 Genera; Me chandise 69,273 Signal Pr ducts Division, Amerace Cl Furniture-Home Furnishings-Appliances 26,194 Transport Systems, Inc. Drug 17,610 Source: Denton Chamber of Commerce -34- ECONOMIC AND POPULATION GAINS Denton has noted a consistent population increase and a steady economic growth in the last four Fort Worth-Denton decades. I Historical population totals from U. S. Ceruus reooros are: wntown Dallas, ar>, 1440 Census 111192 1950 Census 21,372 1960 Census 25,844 1970 Census 39,874 1980 Census 48,063 I The North Central Texas Council of Governments estimates the 1983 population of the City at 51,700. 0 The City's ascersion toward a top rung on Texas' economic ladder is attributed partly to the stead:' ,hboring cities with influences of governmental activity which includes the ear-b -ear expansion y Y Y pansion of the two State supported universities, and partly because of such environmental factors at its location in a rich agricultural region, some oil and gas production in the northwest section of Denton County, its inclusion in the Dallas-Fort Worth Metroplex, its proximity to three of texas' largest reservoirs (Lake Texoma is only 40 miles from Denton), its excellent highway and transportation facilities, its mild climate, and the less tangible but influential aspects of sacial, cultural and educational advantages that have prompted professional or t "white collar" worke s to choose Denton as a place of residence. gency Planning and INDUSTRY AND BUSINESS Area. I In excess of 73 diversified manufacturing plants are located in the City. Some of the largest are as follows: _ Company Product anagement, Duly 23, Frrms Employing Over 500: Moore Business Fonns, Inc. Business forms and systems Russel!-Newman ManufacturingCompan.y Ladies lingerie Victor Equipment Crmpany Gas cutting and welding equipment t Firms Employing 250 to 500: i Acme Brick Company Bricks, clay potte-v Andrew Corporation, Texas Division Radio frequency ntennas Jackson Concrete Ready-mix concrete Jostens, Inc. High school and milita,y rings Peterbuilt Motors Company Diesel trucks Firms Employing 100 to 250: Denton Publishing Company Newspsper publisher Moore Business Systems Small business computer systems The Morrison Milling Company Consumer and food service mixes Turbo Refrigeration Cornpar,y Industrial ice makers, plate heat exchangers, heat exchanger tubing Firms Employing 50 to 100 Dares Cencrete Company Concrete, aggregates, equipment rental and building materials Harley, Bag Division of Union Camp Multi-wall paper, bags Harpool Seed, Inc. Seed - farm, turf, vegetables Kolmar Laboratories, Inc. Cosmetics Lead Mailing Systems Labeling and inserting of direct mail packages i Orthane Division of Ohio Rubber Company Polyurethane injection molded and cast products Signal Products Division, Amerace Corp. Custom molded plastic components Transport Systems, Inc. Semi-trailers Source: Denton Chamber of Commerce. f~ I I I - 33 - t l 1 1 s t 4 INDUSTRIAL FUTURE f The east and west sections of t), Canadian border on the north and trav+ I Denton is most favorably located within 38 is of two major cities (Dallas and Fort Worth and is, south. North from Denton the highwa officially, a part of the Dallas-Fort worth Metroplex. Ths 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 industrir' I Rail transportation is furnished by, complex. I I Texas Ns transportation by Cont. approximately r force in lines. A plentiful supply of skilled labor is available industry in thw with area. I presently 1 PP Denton County as of December 1, 1983 was approxi mately 86,4!3, EDUCATION... employed and 3,433 unemployed - for an unemployment percentage of only 4.0%. There are three principal industrial districts ...Denton Industrial Park, Rayzor Industrial Park and West Park Industrial i / Denton is the home of North Texa h Park ...all of which have access to more than adequate rail and highway facilities and necesvw ~ founded in 1901. utilities. Recent Development. Brik Pak Inc., a Texas corporation, is a member of the international Tetra Pak 1 The two colleges have a combined group of companies. The firm specializes in aseptic packaging which allows liquid foods such as milk and ! acui ty member. fruit juice to be stored, shipped and merchandised without refrigeration. Phase i of the plant consists of a 210,000 square foot warehouse at a cost of $40,000,000. Brik Pak plans to ~o n ninA pains with an initial 1 As of September 1, 1983, 20,23 t a University. This university hat a large employment of 60, and total employment expected to be 200. The company P c second phase in late 1985 or early 1986 -the same size and value as phase 1. Christian University in Fort worth, enrollment of 8,483. AGRICULTURE I North Texas State University tarn{ I Denton County is one of the more diversified agriculture counties in Texas. With soil types ranging buildings valued In excess of $62,000,01 , and from rich black to deep sandy loam, and good soft, artesian water, it is an ideal center for diversified l areinl4S area hers B chelor's degrees. farming and livestock raising. ( 1 Principal crops are cotton, corn, %heat, oats, hay, grain sorghums and peanuts. Dairy cattle, beef 1 Texas Woman's University, a State-! cattle, sheep, hogs, chickens and turkeys contribute a substantial and steady income every year to the building program College of ized by three portio of the Education. (op farmers and ranchers of the county. (completed in 1967), and a 24-story dory 1 Income from all agriculture and livestock prod-Acts averages in excess of $30,000,000 annually. Academic cornpo physic, nut both u chemi 1 The Texas Agricultural Experiment Station, Sub-Station No. 6, located about five miles northwest of 1 Ovst 400 Denton citizens hold earns 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 / Denton has an outstanding Public and plant disease. and Secondary Schools and Accreditati UNDERGROUND CONTROL CENTER the graduates of Denton High School programs in such courses as S.M.S.G. M! 1 Denton is the site of the first Undergroc i Control Center to be built by the Federal Gov-rnment in available in public schools are agricu the United States. This center was completed at a cost of $2,400,[00. mechanical drawing, woodwork, etc. 671 1 It consists of an above grand "frangibie" tkid Jing, for entrance and exit during normal operations, and 7 eachers and Professional Staff i a two-story underground fortress, 142 feet •x de and 172 feet long. The structure has its own water well, Administrative Staff an infirmary, first aid station, and communications headquarter Site for the structure is about three Para-Professional Staff miles east of Denton. Number of elementarysclools Number of junior high schools 1 The huge underground center serves Region 3 Headquarters for the Office of Civil and Defense Number of senior high schools Mobilization and is designed to resist nuclear blast and radiation. Region S consists of Texas, Oklahoma, Average students per classroom Arkansas, Louisiana and New Mexico. Average number of high sc!tool 8 raduates I In time of emergency the center will house the administrative personnel of 16,000 federal employees 1 $11,000,000 Denton State School . in Dallas and Fort Worth. In 'Lie event of a national emergency the center would serve as the coordinating School, with the first phase of the co, and directing point for the activities of some 235,000 civilian employees of the federal government. it group of students was admitted. The will house 200 persons on a day-to-day basis, or 500 on a 30-day, emergency, "buttoned-up" basis. modern and progressive educational his 1 The control center employs 83 full-time people with an annual payr~!h in excess of $750,000. I This State-supported educational in TRANSPORTATION acre site paid for by Denton eltizens. 1 Denton is located only 18 miles northeast of the Dallas-Fort Worth Regional Airport. This facility 1 Present facilities include 47 (incJ began operatioia in January, 1914. It is the lar est airport in the United States, second largest in the 1,188 students, S buildings for physical) world, and repres!nts an investment in excess of 700,000,000, hospital with supporting facilities such these buildings, there is a modem a 1 Denton is the focal point is the new Interstate Highway System (US 35-E and U. S. 35-W). U. S. 3S E maintenance shop and a warehouse. connects Der,;on will Dallas, ar~d U. 5. 35-W ties to Fort Worth, - 36- f W orth) and is, 1 The east and west sections of the l . S. interstate 35 form i is growing at a Canadian border on the north and traven:s the entire United States, to end at tht Mexican border on the n g industrial south. North from Denton the highway connects with Oklahoma City and thence through the Midwest. 1 i?aiI transportation is furnished by three railroads - Santa Fe, Texas and Pacific, and Missouri-Karsas- ,I labor lof t r in lex&s bu; transportation by Continental Trailways Bus System . • , motor freight by twelve truck >?,930 presently lines, here are three EDUCATION Park Industrial J all necessary 1 Denton is the home of North Texas State University, founded in 1890, and Texas Roman's University, founded in 1901. iorul Tetra Pak 1 The two colleges have a combined enrollment of approximately 26,755 students, and more than 1,000 uch as milk and faculty members. '.,rnt consists of a with an Initial 1 As of September 1, 1983, 20,234 students were enrolled in co-educational North Texas State is to construe: a University. This university has a larger enroilment than Southern Methodist University at Dallas, Texas Christian University in Fort Worth, or Rice Institute at Houston. Texas R'oman's University has an enrollment of 8,453. 1 North Texas State University campus comprises a land area of more than 350 acres and sixty-rune it types ranging buildings valued in excess of $62,000,000. The University embraces seven academic units of co!leges and r for diversified schools, and offers Bachelor'; degrees in 66 fields and Master's degrees in 113 areas, Doctoral programs are in 45 areas. a!ry cattle, beef 1 Texas R'oman's University, a State-supported institution of higher fearrung, has completed an extensive %ery year to the building program, emphasi ted by three higti-rise structures. These are a 14-story office and d.usroom portion of the College of Education (opened in 1968), a 21-story dormitory designed to house 640 students nnua11 (completed in 1967), and a 24-story dormitory designed to house 707 students (completed in the fall, 1969). Y• Academic components are embodied in eight schools. Science research programs are conducted in chemistry, biology, physics, nutrition, textiles, bone microradiology and other related fields. is northwest of tarmers all over i Over 400 Denton citizens hold earned Doctoral degrees. Jing, cxmtouring 1 Denton has an outstanding Public School S)stem, accredited by the Southern Association of Colleges and Secxmdary Schools and Accreditation Division of the Texas Education Agency. Approximately 69% of the graduates of Denton High School go on to college. The Denton school system offers accelerated programs in such courses as $-M.S.G. Math and PS.S.C. Ph%-s:n• A few of the vocational training courses Government in available in pudic schools are agriculture, homemaking, distributive education, industrial education, mechanical drawing, woodwork, etc. 67% of the faculty hold Master's degrees, operatioro, and Teachers and Professional Staff 516 Enrollrient in school for exceptional ,awn water well, kdmiiistraiiie Staff 30 chiicren 1,307 re is about there Para-Professional 5taff 95 Pupil to teacher ratio: Number of elementary schools 8 elementary 24:1 Number of junior high scNols 2 high sdoM N., rber of senior hi h schools 20 1 :NJ and Defense d I 1983 Fall Enrollment 8,6T' ~sas, Oklahoma, A~ erage students per classroom 25 A rerage number of !ugh school graduates 600 f. !oral employees 1 511,000,00 r 'x t\trd►;>,sting Denton State ScheN Construction began it 3938 on the ~}r},~r,7 Denton State ;e C% veer t. It Scl,`_~1, with the first phase of the constructirl being complet -e in July, 19V at :Inch time the first '-;psis. group of students' tudents was admitted. The second phase was complete1 in 1963. It n one of Arnerica's most FFFF n,,:~jern a,-rd pr%~-gressive educational iratitutloru. ' 1 T hs State-supported educatiecW ins ti tution for mentally retarded Texas res:et nts is located on a 2'A- a;re site ;vid fox by Denton cir.zers. Tttis [acility 1 Present faciliti-s include 47 (inrixing outreach dorms) dorni%xies which aceomrnodate more than J largest c the I,iSS students, 5 budding` for physically handicapped children •ith a ca?acity of 600, and a 52-bed acute jr, t~~spital with 5L.TNN_rLng .rciJit:es such as X-ray, I~_~,ratory, dental, and pharmaceutical. In addition to t,`ese bsulurgs, there is a modem administration btdEing, an academic building, a large lax-dry, a i 33E T3unter sr>t-e slop and a r areNN-tse- 37 I I I t 1 I 1 t Worth) and is, 1 The east and %es sections of the U. S. Interstate 35 form part of a vast network that begins at tl,e is growing at a Canadian border on the north and traverses the entire United States, to end at the Mexican corder on the vnamic industrial south. North from Denton the highway connects with Oklahoma City and thence through the Midwest. 1 Rail transportation is furnished by three railroads - Santa Fe, Texas and Pacific, and Missouri-Kansas- a labor force in Texas bus transportation by Continental Trailways Bus System motor freight by twelve truck 32,980 presently lines. There are three EDUCATION t Park Industrial id all necessary 1 Denton is the home of North Texas State University, founded in 1890, and Texas Woman's University, founded in 1901. ional Tetra Pak 1 The two colleges have a combined enrollment of approximately 26,755 students, and more than 1,000 such as milk ar.d faculty members. ;rnt consists of a 1, with an initial I As of September 1, 1983, 20,234 students were enrolled in co-educational North Texas State ns to construct a University. This university has a larger enrollment than Southern Methodist University at Dalias, Texas Christian University in Fort Worth, or Rice Institute at Houston. Texas Woman's University has an enrollment of 8,483. 1 North Texas State University campus comprises a land area of more than 350 acres and sixty-nine it types ranging buildings valued in excess of $62,000,000. The University embraces seven academic units of colleges and r for diversified stools, and offers Bachelor's degrees in 66 fields and Master's degrees in 113 areas. Doctoral programs are in 45 areas. airy cattle, beef I Texas Woman's University, a State-supported institution of higher learning, has completed an extensive very year to the building program, emphasized by three hig't-rise structures. These are a 14-stay office and classroom portion of the College of Ed ration (opened in 1968), a 21-story dormitory designed to house 640 students nnuall (completed in 1967), and a 24-story dormitory designed to house 707 students (completed in the fall, 1969). Y• Academic components are embodied in eight schools. Science research programs are conducted in les northwest of chemistry, biology, physics, nutrition, textiles, bone microradiology and other related fields. farmers all over 1 Over 400 Denton citizens hold earned Doctoral degrees. !!ding, contouring 1 Denton has an outstanding Public School System, accredited by the Southern Association of Colleges and Secondary Schools and Accreditation Division of the Texas Education Agency. Approximately 69% of the graduates of Denton High School go on to college. The Denton school system offers accelerated programs in such courses as S.M.S.G. Math and P.S.S.C. Physics. A few of the vocational training courses Government in available in public schools are agriculture, homemaking, distributive education, industrial education, mechanical drawing, woodwork, etc. 67% of the faculty hold Master's degrees. z1 operations, aid Teachers and Professional Staff 516 Enrollment in school for exceptional s own w•.ter well, Administrative Staff 30 children re is about three Para-Professional Staff 95 Pupil to teacher ratio-. 1,301 Number of elementary schools 8 elementar Number of junior high schools 2 y 24:1 evil and Defense Number of senior high schools high school 20 1 1 1483 Fall Enrollment 8,677 h exas, Oklahoma, Average students per classroom 25 Average number of high school graduates 600 ederal employees 1 $11,000,000 $11,000,00 the coordinating Denton State School ...Construction began in 1953 on the Denton State i government. It School, with the first phase of the construction being completed in July, 1960, at which time the first p' basis. group of students was admitted. The second phase was completed in 1963. It is one of America's most f modern and progressive educational institutions. i 0'000' I This Stare-supported educational institution for mentally retarded Texas residents is located on a 200- acre site pa;d for by Denton citizens. rt. This facility I Present faci ities include 47 (including outreach dorms) dormitories which accommodate more than I d larst in the 1,188 students, 5 buildings for physically handicapped children with a capacity of 600, and a 52-bed acute g 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 135-W). U. S. 35-E maintenance shop and a warehouse. I - 37- i i II I 1 II 1 I The School has a staff of 1,489, with an annual payroll in excess of $18,000,000. BANKING Applications for contract ratings on t Standard & Poor•s Corporation. An exl~ 1 There are live banks in the city First Denton National Bank, established 1892 First State the company furnishing the rating. The Bank, established 1912 U. S. Bank, established 1963 Western State Bank, established 1963 the City makes no representation as to Citizens National Bank, established 1976. ratings will continue for any given peril entirely by either a both of such rat Combined Bank Deposits circumstances so warrant. Any such do may have an adverse effect on the mark 1974 $131,018,000 1979 $207,085,011 1975 140,747,770 1980 228,813,123 1976 167,805,982 1981 254,567,591 1911 175,006,073 1982 289,978,804 The delivery of the Initial Bond is sub 1978 198,908,000 1983 383,519,291 Counsel to the city ("Bond Counsel"), exempt from all present Federal Incomt 1 Two savings and loan associations had combined year-end deposits as follows: and court decisions existing on the da administrative regulations and publish 1974 $ 66,202,425 1979 $127x299,490 opinion is based are subject to change 1 1973 69,310,598 1980 159,535,122 administrative decisions. 1976 84,238,471 1981 160,674,680 1977 94,168,257 1982 157,952,082 REGISTRATION A 1978 105,901,284 1983 214,607,935 The sale of the Bonds has not been regi RECREATION. reliance upon the exemption provided thi under the Securities Act of Texas In rt 1 Nearby Lake Lewisville, one of North Texas' largest lakes, is one of Texas' most pupular recreation Bonds been qualified under the securitie areas. Lake Lewisville has a shore line of 183 miles located entirely in Denton County, qualification of the Bonds under the se assigned, pledged, hypothecated or other 1 Lake Lewisville attracts over 3,000,000 visitors to its shores annually. The upper reaches of the Lake lion for sale or other disposition of the I are only about 3 miles east of the Denton City Limits, while the dam is 15 miles from downtown Denton, regard to the availability of any ezempti 1 Grapevine Reservoir, another large body of water created by the U. S. Army Corps of Engineers, is LEGAL INVESTMENTS AND located in Denton and Tarrant Counties. The dam is 2-1 miles from D 'on. Section 9 of the Bond Procedures Act 1 Parks and recreational areas abound on the shores of both Lake Lewisville and Grapevine reservoirs. negotiable instruments, and are investme Boating, fishing, hunting, swimming and all water sports are the favorite recreational pastimes at both Code, notwithstanding any provisions reservoirs, which, because of this area's favorable climate, are in use the year round, authorized investments for banks, saving and loan associations, insurance eompan Growth Indices towns, villages, school districts, and othe The Act further provides that the Bonds agencies and political subdivisions, and ai Calendar Building Gas Water Electric value. No review by the City has been r Year Permits Meters Meters Meters 1971 are legal investments for variousinstituti 2 5, 550 , 63 10,959 7l , 033 11,837 1973 24,037,860 11,174 11,251 12,227 LEGALOPINK)^ 1974 12,498,521 11,416 11,592 12,673 1975 18,306,334 11,755 11,755 13,061 The City will furnish a complete transcri 1976 12,142,334 11,745 12,077 14,117 of the Bonds, inducting the unqualified a 1977 22,244,075 12,294 12,490 15,650 Texas, to the effect that the Initial Bond 1979 1978 31,324,2740 12,661 12, 16,404 and legally binding obligation of the City 71,556,446 13,224 13,0094 94 17, 150 the unqualified approvin legal opinion c 1980 33,454,504 13,366 13,292 18,125 duly registered, authentfi ated, and deli 1981 40,537,746 13,680 13,506 18,545 binding obligations of the City, and to tl• 1982 38,061,425 13,950 13,889 19,563 exempt from federal income taxation u: 1983 61,181,947 decisions. The customary dosing papers Includes construction of Golden Triangle Mall and Peterbilt truck factory. nature has been filed or is then pending t< would affect the provision made for its p said Initial Bond will also be furnished. 8 part, in the preparation of the Notice a Official Statement, and s,.eh firm has not independently to verify any of the infon Counsel, such firm has reviewed the infor Statement to verify that such description to be paid Bond Counsel for services rend on the We and delivery of the Bonds. The -38- ~ J~ I I 1 1 y RATINGS r,,plications for contract ratings on this issue have been mode to Moody's Investors Service, Inc, and 92 First Standard & Pcoes Corporation. An explanation of the significance of such ratings may be ob wined from State the company furnishing the rating. The ratings reflect only the rcpective views of such organizations and tablished 1963... 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 nit be revised downward or withdrawn entirely by either or both of such rating companies, if in the judgr.nent of either or both companies, circumstances so warrant. Any such downward revision . r withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Bonds. TAX EXEMPTION The delivery of the Initial Bond is subject to an opinion of Messrs. McCall, Parkhurst Er Horton, Bond Counsel to the City ("Bond Counsel"), to the effect that interest on the Initial Bond and the Bonds is 4 exempt from all present Federal income taxes under the applicable statutr published rulings, regulations ` and court decisions existing on the date of such opinion. The laws, r.gulatio-z, court decisions and It administrative regulations and published pilings upon which the conclusion stated it 3ond Counsel's opinion is based are subject to change by the Congress, the Treasury Department and ..ter judicial and E administrative decisions, REGISTRATION AND QUALIFICATION OF BONDS FOR SALE The sale of the Bonds has not been registered under the Federal Securities Act cf 1933, as amended, in reliance upon the exemption provided thereunder by Section 3(a) (2}, and the Bonds have not been qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the ' popular recreation Bonds been qualified under the securities acts of any jurisdiction, The City assumes no responsibility for qualification of the Bonds under the securities laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypothecated or otherwise transferred, this disclaimer of responsibility for qualifica- reaches of the Lake tion for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with lowntown Denton. regard to the availability of any exemption from securities registration provisions. rps of Engineers, is LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS Section 9 of the Bond Procedures Act of 1981 states: "All bonds issued by an issuer shall constitute `apevine reservoirs , negotiable instruments, and are investment securities governed by Chapter 8, Texas Uniform Commercial 4i pastimes both Code, notwithstanding any provisions of law or court decision to the contrary, and are legal and authorized investments for banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities, towns, villages, school districts, and other political subdivisions or public agencies of the State of Texas". The Act further provides that the Bonds are eligible to secure deposits of any public funds of the state, its agencies and political subdivisions, and are legal security for those deposits to the extent of their market value, No review by the City has been made of the laws in other states to determine whether the Bonds are legal investments for various institutions in those states. LEGAL OPINIONS AND NO-LITrGATION 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 th.- Attorney General of the State of E Texas, to the effect that the Initial Bond (for which the Bonds will be exchanged and substituted) is a valid and legally binding obligation of the City, and based upon examination of such transcript of proceedings, the unqualified approving legal opinion of Bond Counsel to the effect that the Initial Bend, and all Bonds duly registered, authenticated, and delivered in accordance with the Ordinance, are valid and legally binding ebligatiors of the City, and to the effect that the interest on the Initial Bond and such Bonds is exempt Iran federal income taxation under existing statutes, regulations, published ruings 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 Initial Bond, or which would affect the provision made for its payment or security, or in any manner questioning the validity of { said Initial Bond will also be furnished. Bond Counsel was not requested to participate, and did not take part, in the preparation of the Notice of Sale and Bidring Instructions, the Official Bid Form and the Official `tatement, 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 its capacity as Bond Counsel, such firm has reviewed the information describing the Initial Bond and the Bo.-As it the Official Statement to verify that such description conforms to the provisions of the bond Ordinance. The legal fee to be paid Bond Counsel for services rendered in connection with the issuance of the Bonds is contingent on the sale and delivery of the Bonds. The legal opinion will be printed on the Bonds. E ~ -39- i n i AUTHENTICITY OF FINANCIAL DATA AND OTHER INFORMATION The financial data and ether information contained herein have been obtained from the Citys records, audited financial statements and other sources which are believed to be reliable. There is no guarantee t that any of the assumptions or estimates contained herein will be realized. All of the summaries of the statute:, documents and resolutions contained in this official Statement are made subject to all of the 1 provisias of such statutes, docurner's and resolutions. These summaries do not purport to be complete statements of such provisions anc reference is made to such documents for further information. Reference is made to orig4nal documents in all respects. FINANCIAL ADVISOR First Southwest Company is employed as Financial Advisor to the City in connection with the 155-aance of the Bonds. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is conticbent 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 syndicate organized to submit a bid for the Bonds. CERTIFICATION OF THE OFFICIAL STATEMENT At the time of payment for and delivery of the Initial Bond, the Purchaser will be furnished a certificate, { execited by proper officers, acting in their official capacity, to the effect that to the best of their l knowledge and belief: (a) the descriptions and statements of or pertaining to the City contained in its Official Statement, and any addenda, supplement or a.-nendment thereto, on the date of such official i Statement, on the date of sale of the Initial Bond 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 The Information eontai~ affairs, including its financial affairs, are concerned, such Official Statement did not and does not contain City of Denton, Texas an untrue statement of a material tact or omit to state a material fact required to be stated therein or Fiscal Year Ended Texas Septd only a part of sad necessary to make the statements therein, in the light of the circumstances under which they were made, Fiscal not misleading; (c) insofar as the descriptions and statements, including financial data, of or pertaining to stateme of the City's entities, other than the City, and their activities contained in such Official Statement are concerned, such complete Aof t Financ { 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 The City's widitors have i matarial adverse change in the financial condition of the City since the date of the last audited financial City's records and accou~ statements of the City. The Ordinance authorizing the issuance of the Initial Bond and the Bonds will also approve the form and content of this Official Statement, and any addenda, supplement or amendment thereto, and authorize its father use in the reoffering of the Bonds by the Purchaser. RICHARD O. STEWART Mayor ATTEST: CHARLOTTE ALLEN City Secretary - 40- tea'esan:r+crar..vm~,~.►.,.:a,~v...~.,~._~ T1ON from the City's records, e. There is no guarantee I of the summaries of the ade subject to all of the ,t purport to be corrpiete for further informati-m. ction with the issuance of the sale of the Bonds is rry may submit a bid for it a bid for the Bonds. r be furnished a certificate, that to the best of their the City contained in its APPENDIX the date of such official st bid therefor, and on the insofar as the City and its The information contained in this Appendix has been reproduced from the id not and does not contain City of Denton, Texas Comprehensive Annual Financial Report for the ed to be stated therein or Fiscal Year Endtd September 30, 1993. The information presented repre- der which they were made, sents only a part of such Report and does not purport to be a complete al data, of or pertaining to statement of the City's financial condition. Reference is made to the ement are concerned, such complete Annual Financial Report for further information. o be reliable and that the and (d) there has been no The City's auditors have not examined this Official Statement nor any of the f the last audited financial Citys records and accounts since the date of the report herein. also approve the form and thereto, and authorize its r STEWART J for f! k I r 1 I I~ I I I `~77y , i 1 r To the Honorable Mayor, City Council and City Manag City of Denton, Texas: We have examined th of Denton, Texas, as of and f, [THIS PAGE INTENTIONALLY LEFT BLANK] ' in the Table of Contents. ou, generally accepted auditing si of the accounting records and necessary in the circumstance; In our opinion, the abavt present fairly the finar September 30, 19831 and the re financial position of its prop for the year then ended, in cc principles applied on a basis Our examination was combined financial statements fund financial statements list purposes of additional analysi financial statements of the Cii subjected to the auditing proci financial statements and, in o, respects in relation to the cot The information inc It has been summarized from the Ci audit procedures that were app] statements. Accordingly, we er i Dallas, Texas, December 9, 1983. ARTIiuR ANDERSEN & CO. DALLAS. TEXAS f To the Honorable Mayor, City Council and City Manager, City of Denton, Texas: ' We have examined the combined financial statements of the City of Denton, Texas, as of and for the year ended September 30, 1983, as listed in the Table of Contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the combined financial statements referred to i above present fairly the financial position of the City of Denton, Texas, at September 30, 1983, and the results of its operations and the changes in financial position of its proprietary fund types and nonexpendable trust funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. I Our examination was made for the purpose of forming an opinion on the 1 combined financial statements taken as a whole. The combining and individual 1 fund financial statements listed in the table of contents are presented for purposes of additional analysis and are not a required part of the combined financial statements of the Ci'v of Denton, Texas. The information has been subjected to the auditing procedures applied in the examination of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. The information included it the statistical section of this report has been summarized from the City's records and was not subjected to the audit procedures that were applied in the examination of the basic financial statements. Accordingly, we express no opinion on such information. t i Dallas, Texas, I December 9, 1983. E I f t f r r]• c 1 i n owl ~ ~±,°„J'. °.rs - i I • • ~ i IZ N i - n J n _ rv - n i M+ I Y M _ _ 1 f 1 1 ~ ~ ri n T ~ M N 1 • ran - - r n N I N I 1 ~ I • 1 M ~ Ir I 1 1 I I I 1 1 r I I r ~ y, D, Q I ~ 1I L J r• 41 [ ~ ~ r 0 1 i Y 1 10 r C~• 1 11 r 1 I 1 1 1 I r I ^ I M1 1 I w I~ w< n n I ~ Yr I N 1 y P J 1 1 1 1^ 1 i I I 1 i r I •~•Q 1 ,•i J 1 } = L n r ♦ • I n J P 1 J• 3 1 C Y Y i • ~ • r ~ T 1 O T i Y I I I 1 I I n n I ^ r I y ~ I • 1 •u• ~ " R J I P• C 1 ~M ^ 1 C I n I N• Y' 1 N N n • T 1 yr r r OJ.1n P ± i . I i n 2 O n 0 I i I 4 q I \ I M1 n J O w !1! r v 1 1 ~ r ao i rte. ~ I w~ 1 I J ^I - I I I I I 1 < N I N I • I M i I n rr ~ 1 FYI I I I l O ry` r r r l I I l i} I ' • I • 1 J r r N N 1 O ~ I p C 1 1 \ 1 u u M1 n 1) 1 < 0. Ic a: 111111,1 III I Ia• - I at 1 . 1 n Y J C r I P• I aI I I n l l 1 I I . C „ 1 1 I n 1 y 1 1 I .•j CI 1 02 I Y ■ I Y_•4 N r N I • f < I 1 n 1 ~ u I r- •II io s n n n ~ i j~ 3 i I < i : o ! ! 1 A 1 N I Y e ! 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I 1 .JO r I p I r I O C I P I Ip I P; ' I y I I I I I ry M I I I I n l l n I l l n i e l J w I I -n. 1 h 1 .1 J t P 1 O • I V " I q is i n r I P I JP S; N 1 I W 1 N 1 v 1 J I J I n r I» 11: ~ I A I 1 1 I I 1 O I Y O 1 a 1 O u 1 I n 1 1 n N r 1 d 1 N 1 1 I n I ..P■■ : ■ 1 r' 1 ~ N 1 N 1 : g I n 1 n 1 I I n ~ 1 a O a V 'Y i Y ~ n 1 I 1 1 1 I I I i n i 1 1 1 1 1 1 ~ a i n i v~ 1 r I 1 1 i ~ ~f i f~ i ~ I i i ri 1 r i i » I I I I I I»: I M J i g sY 1 P.■ N C, j 1 n I N N a o q 1^ 1 N•1 y P n O I N` ~ I1` 2 p 1 • 9 ~O P ry.i N 1 r 1 x n J 1 P 1 r I N I N I P J I J r v 9 w I V Y Y I I I i-0 J f1 1 J l d l r P n r l ~ I I I-0 I 1 I I P I P I ~ d l ~ r N M i N •I~ N n i q i I N I ~ I .r I v I N I N! i G++ r I I I I I»: 1 u I P O n J P n N a I n 1 ..pp -0 n q P I ry l ~ n O l n l N I N r W U 1+ 1 J P n r N O n N l i O n d N I N I O I -0 A 1 P I P R I^ r • Q ~Y❑f1 I : n J P N N a O I J I 1 J n n P I J I O I N p p I N I N 0 I y w o I 4 g a a o o a I N I O I n Inv NYI J n I n 1 1 1^ 1 -0 I ' P O I' J ♦-0 I P 1 P y 'a I O MnnrrN J I M I r P J 1 q 1 a 1 Ou I P I N !1 I ~n ; C r ` ;Y I n I I J JNr I .N.. I n l Nv I ° i " I N: N &I p ' v ~ a y n gypp" 8 VH • w r ~ ' c ■ N < • H C V • Y'r~,, un v in.. : K •s` p pY C 'J • N O YI M W L C C• y• Y Y • v OY V V J i • i • v 1J pey • S< .i C Y■C r Y • Y Y qp S y\ \ 0Yj .l 1 v O h • C• r Y Y C 6 0 ■ y 1' p y Y 1 • y N Y Y • Y01 ~11 hM W ~ H~ N p • ~ y• Y i Y C M v i e>w o f M IL r r h ii ~ N y • Y1 L. C Y u 1 Y• K 1■ u V ♦ r Y M Y C t V O u O O ~ N v \ u ■ ti Y Y (O~7 C ~ Y~11 ryy Y yyY • S 1;1.. • O n M ~jl u Y O Y • O L r p Y• r Y• Y•] Y i Y Y • Y` L O > C 6 w VO Y Y oft U Y ~y■1 YtI M Y C Y V u• MpI s~ r uN.J ►uC. 1-ri r= > V E u Y 40 N H U ~ ► Y M Y el Ir~ >f Y. , CITY OF DENTON, TEXAS ~ in- COM31INED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE, DEBT SERVICE AND CAPITAL PROJECTS FUND TYPES (NOTE 1C) e YEAR ENDED SEPTEMBER 30 1983 06 i rX Special Revenue m General Fund (Federal Revenue and Recreation runde ii Variants- Variance- Variance ~ ! n° Favorable Favorable > Budget _ Actual (Unfavorable) Budget Actual (Unfab= 1 Q p REVENUES: II! - S - f Taxes S 6,670,474 S 7,080,749 S 410,215 $ - $ Licenses and permits 145,250 213,490 68,240 - - - Utility franchise fees 391,000 367,937 (23,06)) Fines and forfeitures 332,500 561,214 208,714 - Fees for services 225,900 180,159 (45,741) 106,500 25,766 (80,7)4), Intergovernmental 550,000 282,635 (267,365) 550,000 671,510 121,510 Interest revenue 120,000 105,207 (14,793) - 1,710 16710 u Miscellaneous ---.698,762 427,056 (271,706) - -----2_569 2,569 - Total Revenues 9,133,886 9,218,447 64,561 656,500 701,555 45,OSS EXPENDITURES: a Current- General government 4,376,868 4,159,406 217,482 - - - Public safety 5,023,686 4,923,416 100,470 - - - Public works 2,286,335 2,144,333 142,002 - - - Parks and recreation 1,138,022 1,175,368 (37,346) 86,500 bi,358 4,142 1 Other - - - - : i 1 Capital outlay 241,542 476,929 (235,)87) 20,000 10,549 9,451? a „ Debt service- Principal retirement - - - - - - - Interest and fiscal charges - - - - - - Total Expenditures 13,066,673 12,879,452 187,221 106,500 92,907 1S,S93. EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (,912,787) (3,661,005) 251,782 550,000 608,648 58,60;- 5 OTHER FINANCING SOURCES (USES): Operating transfers in 3,832,319 5,019,561 1,187,244 - - Operating transfers out - (109,266) (109,266) (350,000) (592,219) (42,219)-----^--° Total Other Financing two Sources (Uses) --3_832,319 4,910,297 1,077,,)78 (550,000) (592,219) (62,71!), EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDF0 EXPENDITURES AND OTHER USES (80,458) 1,249,292 1,329,760 - 16,429 16,42l" FUND FUND BPAALLANCESANCES, October September 1 r )O S 266,192 346 - - - - - - 346,850 $ 1, 346596,142 650 $1,329,760 S 221177-1 179 79 $ 217233 179 608 S 16-4294 t ~ urr. ca,.u• uuuuau u~~~~eoa •.u...... uv•u~~r r.uftuue; X N _P The accompanying notes to financial statements are an integral part of this statement. z rw to V N e J I 0 ^ tl P a ^ O n 1^ 1 AND 1'+ o ..n°o~°no 1 n1 1 ar:01oa 1N07E IC) i ■0 n :oaao 0 on°nv i o I I A tl a ^ n n n n O r N f n■ I A r N rn• ~ I n j 1 y 1 N 1 Special Revenue 1 VI 1 venue- mad-Recreatica rah, 1 • i O 1 y ^ n P ^ n y I tl 1 e'14etr• i n v"O N P r P N I a ow, 1 1 Acw tl Actual (Un(ev01144 w i o n Irv a tl ,N ^o oa m 1i n i 1 O, tl O O a N 1 _ 6 1 H v rr r r i n i 6 i ° N 10 i.oli 0 25,766 (60,11~) 0 671,510 111,511 1,710 1.710 2.569 2,561 0 ^ P n o I r 1 N ^ P I . ■ 0.•_701.555 45,055 1 I O l ni . l o i o 0 - ■ J I J ■ N 1 N 1 tlONO O n.. r 1 a ■ 00 82,758 i, 112 ~ ^ 'O o o tl P P , N 1 r u CO r CO 4 N D i0 tl r I v f .w ■ tl P tl a O r tl I tl 1 C J 10,549 l,4S1 ~ N n n o ^ o ~ o n; N J n r r r. r I r 1 N `O J tl ■ N 1 0 92,907 131511 E 0 608,648 y56,W ■ Y N d " c V w 90) (592.219) WINE r. Y J O ■ UP H r O ✓ „ q 00) (5921119) (41,111' e 00 1.UO K V A ti O O • Y Y 16,419 16,1!1 ~ N u Y W • •w w 1 ■ ■ 79 _-_217,179 0 ...r. < 0' 179 $ 233,606 6 16,411 Iyy i ' r e i u ...,.Sous. Nr■■.rl n Y W Y• V O C O ►1 tl C O w Y Y 1Y1 Y .w L i y y~ ~ M Y • Y Y this etatment. • C 7 C N E v C 3 Y v .w Y •w C• y Y■ u Y E u Y x• u H ° K .Yi ] 7 Y O. w Y r• it y QA O•+ L Y ffD u u • C• y Vy ACp y Vy L~11 O r Y E U4 1-' qr <`Y i D< O 'u fur y Q u Y V V 6.j U K GT dKA I I' ~ w I 467.)1 it 1 1 I I I n ~ ~ I n 1 IT I O 1 n 1 O. 1 m 1 aD 1 n I A 1 I$; m. Vl 1 1 1 N 1 1 L I P ~ ~ P r n=1 N O 1^; a N O a m n n 1 n O I ^ .n ^ , 1 1 C O n O~~ ~ 1 10 r IJ. n~ O n 1 0 1~ 1 n P i r r 2 ~ 1 y n 1 J^ N I I ^ 1 n, n P 1 f. 1 m 1 1 1 Y d N O n N 1 1 N N r n n P N ; .q 1 n 1 9 N 11 n! n n 1 P n 1 { I 1 O 1 ~O R I 1 Y n n M 1 n I 1 P r n r j 1 • 1 '1 m ; J; ti ! 1 1 n '1 1~! 1 1 1 I N 1 i r I n i N i I V I N n i 1 ! n 1 1 1 1~ 1 1 1 " ~ 1 I n i fJi I O 1 n 1 ~ o ~ y ' I I N i I N 1 1 • I • 1 I v i ~O 11 r1 11 • c I r~lf ~ • 1 ~ 1 nl I N 1 1 Y 1 m' 0 1 • 1 F; ; 1 J G P r~ I C I O O rv C N O i j I P I ^ 1 ; O N n n O ; N i O N N r O a n J 1^ 1~ 1 ~ 1 1 ^ ~ l° I n 1 qq 1 O 1 O I 1 1^ n r d n n ~ ,d" r i N . P.// ~ O N N O 1 p' : • P ; ,Y ; n m y P 1 0! 1 1• r:'~ O n N; N' N J N P N M O n 1~~ 0 1 N" J 1 N 1 y ~ M1 a 1 a I i ^ n N r j J i H J n N t a r ,d ~ O P N; n; n p I P ~ I r l ~ 1 n 1 i 1~ N 1 1 1 n I I v y i i J y n 1 n r ~ ~ 1 ~1 1 1 1 Y 1 1 1 I 1 1 N 1 N, 1 .T I I 1 • 1 1 ' J 1 ~O 1 n 1 J i v 1 It I 1 1 N 1 N O i; i O a a P 1 N 1 J1 I I I ^ 0 0 ~ i n n r n~ 1 j 1 n 1 d 1 d i n r 1 N P I N L' ~I N 1 I I 1 d 1 O 1 J N N M1 N 1 ' 1 n 1 n 1 1 0 J I ! ~ Yl O i l 1 1 1 a p^ ^ j C i n 1 1 1 n 1 n 1 J ti 1 1 r 1 ~ 1 1 I V I I rv l n l v I l y r l! CO N I ~d R Y N 1 1 I 1 1 1 I 1 ! Y r 1 N 1 N 1 i 1 1 I i I N O ~ n 1 80 1 N It 1 J~ N~ Z N O P a r a l O O rv n;^ P i' 1~ 1~ 1 ~ d J I J I ~ o n i ~n ~ i~ i u = A I n n n ^ I N I O~~ n • 3 1 u■ ~ i 1". ; O r N P N I a 1 I O I Y P 1^ 1 O N.. 1 2 1 O n J I P I N O ~ ~ Y, ^ O O 1 J i n 1 N J n n n^ O n 1 p I N 1 N r r I S 1 N N P 1 p N N 1 O 1 ° Z ~ O N' N n N r 1 r 1 N J n P O O; n ; O i O P N I n; n 00 rr I O C 1 P 1 L 1 I n I I N N i a 1 V 1+ I J v n f i i I C i M N 1 I I V I I N~ w Y r 1 s Y f ~ c O • V • i o c r O v r ^ R C `1 n' 8 • r ` r ~ y ~ 1 r Y i ~ :y ~ 'fit • Y O ] F r N ssy l ; : ^ Y u 4C~ R uyy 12 1` U ` Y Y V V ■ " V N N A W E Y u r V u I 1 j u Y Nl p N V • c ~ ~ ~ y ^ ~ O ~ c pw V V .°I ~ pQ Y Y i pO i ,..1 ..1 2 Y • 6 • N C Y A 0 w v V U • ~ l[ ~ Y Y Y U O ~ O 1 O p Y v w f I ~Z 31 ti{ i y ilYi a°` g c z rY.. o f ~ ~ g w L V y u v r 7 U Y a Yl a•° z • u ~ a A S ,U..Ni .J 1 Z s Y Y i t 1 a i • >yy c 4 Y■ Y k .Fi p „ O~ ~ y< ~ Y " •r V M ► S C Y Y 0 0 • F K Y G C • p• >t, Y' _ ~ C O .N ~ N Y M Y• O V U F u Y, 1°• 'fie °~.c'"~ ~ ~'`r" I"° ~ r I • • COI = U U r u 4 Y y Y L L Y Y u Y Y ~ s 1OU uO E O O lilrl n ..~JJ .Y. \ F r 4 r •u• O i Y Y Y sH eO L L V H N ~ `i UU]x6N ~C~r2N TL~aSf O C C O e( axlt( t ~i1 tt• V ~ • O O OrrV O Y i •L M i L l f f I~t V i i yt ~ ]f f CITY OF DENTON, TEXAS i COMBINING STATEMENT OF REVENUES, EXPENSES AND CNA5GES IN RETAINED EARNINGS BUDGET AND ACTUAL - ALL ENTERPRISE FUNDS FOR TNI FISCAL YEAR ENDED SEPTEMBER 30, 1983 _ Utility System Sanitation Variance - Favorable Variants - Budget Actual (Unfavorable) Favorable bud ee Actual (Unfavorable) OPERATING REVENUES: Electric service $42,614,665 $35,3'6,245 $(7,238,420) Water service 3,657,283 3,787,306 130,023 - $ f Sever service 2,693,993 2,063,769 (630,224) _ Charges for services - - - 11418,890 1,334,039 059 (71,088) Sundry ----800,000 ----149,036 ---(650=964) 1,47318, 000 73 7ota1 Operating Revenues 49,763,941 41,376,356 (8,389,585) (57 1,493,593 1,440,141 743) OPERATING EXPENSES: Purchase power 25,058,041 22,514,080 2,543,961 _ i Fuel 8,588,400 4,482,520 4,105,850 Purchase of water 281,680 549,332 (267,872) _ Salaries and wages 4,244,670 3,333,877 910,793 630,080 674,711 (4,631) Materials and supplies 371,624 395,242 176,382 234,510 195,380 34,651 Maintenance and repairs 1,291,693 930,134 361,559 222,208 302,326 (80,130 Depreciation 1,782,320 2,052,998 (300,678) _ 2,726 (2,728) Miscellaneous 1,235,106 1,031,26: 203-842 )20,37] 325,149 (2,776) Total Operating Expenses 43,053,334 33,319,667 7,733-861 ,407,151 1,460,492 (53,341) 6,712,407 6,056 689 (655,718) 86,739 (20 345) (107,064) Operrtirtg Income y; NONOPERATING REVENUES (EXPENSES): Interest revenue 1,400,000 829,064 (370,936) Interest expense ■nd fiscal charges (2,100,106) (1,912,761) 187,345 - COntibutions of vehicles to motor pool - (217,147) (217,147) ;,f... - 23,768) (23,768) ( Total Nonopera:ing Revenues (Expenses) (700,106) (1,700,844) (600 738) (23 768) (23,768) Income before Operating Transfers and Extraordinary Item 61012,301 4,755,645 (1,256,456) 66,739 (44,113) (130,852) OPERATING TRANSFERS OUT (5,823,826) (3,852,833) 1,970,973 (118,510) (118,510) - EXTRAORDINARY ITEM - Gain 00 Refunding - 3,189,506 3,189,508 ? - - Ne t Income 188,475 4,092,500 3.904,025 (31,771) (162,623) ---(1]0,852) RETAINED EARNINGS - October I 24,848,429 24,848,429 - (201,498) - (201,(88) RETAINED EARNINGS - September 30 f2S,036,904 $28,940,929 $ 3,904,025 (233,269) $ (364,121) $ (130,832) } The accompanying notes to financial statements are an integral part of this statement. r i h E 1.r Ite~ Sanitation Variance - Variance - Favorable Favorable Total (Cn[avoraDle) bud et Actual (Unfavorable) 8udtet Actual Variance .5 S{7,2)8,420) _ S - $ - '6 130,023 $42,614,665 $35,376,245 $(7,238,420) 19 1630,224) _ _ 3,657,283 3,787,306 130,023 2,693,993 2,063,769 ([30,224) 1,418,890 1,334,059 (34, 1,418,890 1,334,059 84,831) 76 (650,964) 75,000 106,088 31,088 088 875,000 255,124 ((19,876) 1,493,890 1,440,147 ----------31 51,259,831 42,816,503 (8,143,328) 70 2,543,951 :0 6,105,880 25,058,041 22,524,0e0 2,543,461 $2 (267,872) _ _ _ 8,588,400 4,462,520 4,105,680 281,680 549,552 (267,872) )7 910,793 630,060 634,711 (4,651) 4,874,730 3,968,588 906,142 :2 176,382 234,510 195,380 39,170 806,134 590,622 215,512 14 361,559 222,208 302,526 (80,318) 1,513,901 1,272,660 281,241 iB (300,678) - 2,726 (2,726) 1,182,320 2,085,724 (303,404) ;s 203,842 320,373 325,149 (4,776) 1,555,479 1,356,413 199,066 - 57 7,733,867 2,407,151 1,460,492 _--(53_341) 44,460,685 36,780,159 7 ,690,5,6 - _ ?9 (655,718) 86,739 _ __(20,345) (107,084) 6,799,146 6,036,344 (762,802) - E4 (570,936) - - 1,400,000 829,064 (570,936) `1) 187,345 - - - (2,100,006) (1,912,761) 187,345 0) (217,147) - (23,768) (23,768) - (240,915) (240,915) - _ t4) (600,738) - (23,768) _--(23,168) ---(700=106) (1,324,612) (624,506) - 6 (1,256,456) 86,739 (44,113) (130,852) 6,099,040 4,711,732 (1,387,3081 53) 1,970,973 (118,510) (118,510) - (5,942,336) (3,971,363) 1,970,973 )8 3,189,508 --3,189_508 3,189,508 - )0 3,904,025 (31,771) (162,623) (130,852) 156,704 3,929,877 3,773,173 29 - (201,498) (201,498) - 24,645,931 24,646,931 - 29 1`3,904,025 (233,269) $ (364,12l) S (130,652) $24,603,635 $28,576,808 $ 3,773,173 uuu... .:.etau.u .v. u.u u.. i statement. { 1 I No' CITY Of DENTON, TEXAS _ COMIINING STATEMENT Of CHANCES IN FINANCIAL POSTION - ALL ENTERPRISE ►LNDS FOR Till FISCAL YEAR ENDED SIFT WER 30, 1913 (1) SLMARY OF SIGNIFICANT Toter Year Ended The City of C Utility 1866. The Cit System Sanitation September )D, 1987 September City operate form of government and Operations- sopeof YDRR.NC w2TAt: its Charter: public sa Act income (10n) S 6,092.500 $ ;162,623) S 3,929,117 1 2,426,073 recreations electric, V Items not requiring writing capital- 8dmin4strative services Depreciation 2,082,996 21716 7,065, 721 11906,03) Amortiastlon of bond discount and expense 16,361 - 16,381 12,042 The financial ' Yo rk ing Capital 7rovldeQ by Operations 6,191,879 (159,897) 6,071,982 6,344,121 wh'cb the City exercises Proceeds it ma sale of revenue bonds 24,650,340 - 24,650,340 4, 500,D06 blllty includes the acc( Crntributians- Feder.l agencies 7,6;1,359 - 3,861,359 3,005,151 interdependency. The fc other funds - - (244,91 or are otherwise related In aid of construction 526,217 - 528,217 911,60 Sale of equipaant - _ _ 6,415 Enclu;ilOn: Net change in restricted assets and liabilities payable from restricted assets 7,955,013 - 7,955,013 (4,701,231 - Firemen's Relief Total sources of Working Capital 43, 166, Boa (159,197) 63,026,911 6,217,113 - Denton Independen Denton County USES Of WDRRINC CAPITAL: -Flow Memorial Rosl Acquisition of property, plant and equipment 9,176,771 400,69) 9,534,924 7, 461, µ1 - Texas Municipal r ID Reduction of long-term debt 32,211,192 - 32,211,192 580,DOf Total roar of Working Capital 41,345,427 400,693 4I,746,116 1,027,6x1 These entities are not 11 •--i-----' Net Increase (Decrease) in Working Capital 1 1,641,365 S (560,590) S 1,280,795 S 119,21) are separate legal entiti [CEMENTS OF NET I9CREA58 (DECREASE) IN YOWNG CMITAL: The accounting Increase Cash aet do current asaeta 362 1 ed accounting p Azede nd and investments 1 651,108 f - S 656,706 accept tine Accounts receivable 1,2x5,206 13,937 1,339,141 "2.333:1111 18 a of the more [nveotor, (736) (334) 2,summary Other current assets 594,296 (47,308) 546,986 (11, --------Dag 2,537,176 26,629 2,564,505 ---•263,7¢ A. Fund Accounting - - (increase) decrease in current IiaDilitias- Deficit position in pooled cash - Accounts Payable nd the' (69,245) (19,245) 1166, Ikirs deposits e e li,hii'.tin 211,174 9,671 291,705 231,m The accounts of Due o t (x7,1411 (671861) (6),l en por (2,132,299) (267,9911 (2,400,296) 155,2 $rOUpB Of accounts, each Currant portion of long -ten debt --1,741,733 _•(279,106) 961,967 (26,1 entity. The operations o - (496,491) (S17 7,,2 2119 9) (1,287,710) (16,' set of self-balancing ac c Re t increase (Decrease) in Yorkin3 Capitol - fund equity, revenues, ex S 1,141,365 f (560,590) S 1,210,795 S 1x groups of accounts are us The accompanying note, to financial statements are ■n integral pat of this ststemtnt. t- _ _....._'3.... CITY OF DENTON, TEXAS NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1983 {1} SUMARY OF SIGNIFICANT ACCOUNTING POLICIES Totals The City of Denton ("the City") was incorporated September 26, -Teal Eod+d 1866. The City operates as a Home Rule City, under a Council-Manager „T 30 1513 s. ta.ear so form of government and provides the following services as authorized by its Charter: public safety (police and fire), public works, parks and 929877 37,676,071 recreation, electric, water and sewer utilities, sanitation, and general administrative services. ,085,76 1,906,01 16,351 17,06; The financial statements of the City include all activities for 6031,967 6.346,17% which the City exercises oversight responsibility. Oversight responsi- .,650,360 6,500,00( bility includes the accountability for fiscal matters and financial interdependency. The following entities which have operations in the City 1,661,359 3.005.91, 5 749 9; or are otherwise related to the City's operations, were considered for 576,217 911,9;; inclusion: •,955,013 (6,301,7] - Firemen's Relief and Retirement Fund 3,076,915 8,7u,1e - Denton Independent School District - Denton County - Flow Memorial Hospital 9 536 976 %W .K - Texas Municipal Power Agency 3',211,192 Sb0,90 .1 ,766,116 ......r These entities are not included in these financial statements because they are separate legal entities with separate governing bodies. 1,60,795 f ..389, . The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. The following 656.706 5(2,162., is a summary of the more significant policies: 1,359,163 (16. 034) lll,~ 566,966 7,566,505 ---765, A. Fund Accounting (49,765) 1196, The accounts of the City are maintained on the basis of funds or 791,705 rl, groups of accounts, each of which is considered a separate accounting (67,161) 1)1, (7,600,796) (551, entity. The operations of each fund are summarized by providing a separate 961.967 css, set of self-balancing accounts which comprise its assets, liabilities, (1,283,710) (74 fund equity, revenues, expenses and expenditures. The following funds and s Ioso,795 s 189,: groups of accounts are used by the City: go ~W~ I 1 f I I Governmental Fund Types- Internal Service Funds- General Fund- The Internal Servil and services provided by one, The General Fund is the principal fund of the city. All general of the City on a cost-reimbur tax revenues and other receipts that are not allocated by law or contractual working capital fund (vehiclel agreement to some other fund are accounted for in this fund. From the and the motor pool operation. fund are paid the general operating expenses, the fixed charges and the capital improvement costs that are not paid through other funds. Fiduciary Fund Type- Special Revenue Funds- Trust and Agency Funds- The Special Revenue Funds are used to account for the proceeds Trust and Agency Fui of specific revenue sources (other than special assessments, expendable the City in a trustee capacitl ?rusts, or major capital projects) that are legally restricted to expendi- organizations, other governmeI tures for specified purposes. These funds include the federal revenue Expendable Trust (Employee in sharing funds, grants from the Department of Housing and Urban Development Arts Council), and Agency Fun (Community Development Block Grant) and from the,Texas Criminal Justice are accounted for in essentia Division, the recreation fund and miscellaneous other revenues. since capital maintenance is 9 accounted for in essentially 1 Debt Service Fund- Agency Funds are custodial in, involve measurement of resuli9 The Debt Service Fund accounts for the payment of principal and interest on general long-term debt paid primarily by taxes levied by General Fixed Assets Group n the City. The General Fixed As Capital Projects Funds- of the fixed assets of the Cid Funds. Capital outlays in fu The Capital Projects Funds account for the acquisition of as expenditures of those fund capital facilities being financed from bond proceeds, contributed capital, recorded for control purposes or transfers from other funds, other than those recorded in the Special Assessment Funds, the Froprietary Funds, the Internal Service Funds and General Long-Term Liabilitie the Trust Funds. The General Long-Tr Special Assessment Fund- summary of the long-term liabi MD levied by the City. This acco The Special Assessment Fund is used to account for the financing for in the Enterprise Fund. of public improvements or services deemed to benefit the properties against which special assessments are levied. B. Basis of Accounting Proprietar- Fund Types- The accrual basis-- Funds, Internal Service Funds Enterprise Funds- determination and cost of serv basis, whereby revenues and ex The Enterprise Funds arc used to account for operations that are period in which they are earne financed and operated in a manner similar to private business enterprises is utilized for these funds. where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general Modified accrual Las public on a continuing basis be financed or recovered primarily through all other funds. Modification, user charges. These funds include the Electric, Water and Sewer Utility include the following: Systems (Utility System) and the sanitation operations. . Internal Service Funds- The Internal Service Funds account for the financing of materials 11 eneral and services provided by one department of the City to other departments g of the City on a cost-reimbursement basis. These funds include the r contractual working capital fund (vehicle maintenance, warehouse and machine shop) rom the and the motor pool operation. and the Fiduciary Fund Type- Trust and Agency Funds- proceeds Trust and Agency Funds are used to account for assets hele by pendable the City in a trustee capacity or as an aF,~nt for individuals to expendi- private organizations, other governments, and/or other funds. These include revenue Expendable Trust (Employee Insurance Fund), Nonexpendable Trust (Denton Development Arts Council), and Agency Funds (Payroll Fund). Nonexpendable Trust Funds justice are accounted for in essentially the same manner as proprietary funds since capital maintenance is critical. Expendable Trust Funds are accounted for in essentially the same manner as governmental funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. cipal levied by General Fixed Assets Group of Accounts- The General Fixed Assets Group of Accounts represents a summary of the fixed assets of the City, other thar assets of the Proprietary Funds. Capital outlays in funds other than Proprietary Funds are recorded of as expenditures of those funds at the time of purchase and subsequently ed capital, recorded for control purposes in the General Fixed Assets Group of Accounts. Special unds and General Long-Term Liabilities Group of Accounts- The General Long-Term Liabilities Group of Accounts represents a summary of the long-term liabilities of the City paid principally by taxes levied by the City. This account group does not include debt accounted e financing for in the Enterprise Fund. . ties B. Basis of Accounting The accrual basis--The measurement focuses for the Enterprise Funds, Internal Service Funds and Nonexpendable Trust Fund are income determ-,.iation and cost of service, respectively. Accordingly, the accrual basis, whereby revenues and expenses are identified in the accounting ns that are period io which tFey are earned and incurred and net income is determined, nterprises is utilized for these funds. ses, i eneral Modified accrual basis--The modified accrual basis is used for through all other funds. Modifications in the accrual basis for these funds r Utility include the following: F. Inventories 1. Revenues are recognized when they become both measurable and available for use during the year. Those revenues Inventories are treated as being susceptible to accrual include taxes, Cost is determined using interest and intergovernmental revenues. Revenue sources from licenses, fines and forfeitures, service { charges and other miscellaneous revenues are recognized G. Fixed Assets as the cash is received. re ti 2. Expenditures are recognized when the related fund liability The City has re6 tion or acquisition of is incurred, except for interest ant, principal on general have not been maintained. long-term dnDt, which are recorded when due or otherwise additions and retirements t payable. Enterprise and Internal 9 3. Encumbrance accounting, under which purchase orders, contracts, anG other conmitmen:s for the expenditure Fixed assets are of monies are recorded in order to reserve that portion the construction period. of the applicable appropriation, is employed as an value at the date period. extension of formal budgetary integration. Encumbrances value of depreciable pro contri outstanding at yearend are reported as reservations of proper fund balances since they do not constitute expenditures estimated useful lives of t~ or liabilities. Estimated useful C. Budgets and Budgetary Accounting The City Council adopts an annual budget which covers the General Fixed Asset Fund, the Special Revenue Funds (Federal Revenue Sharing and Recreation Enterprise Funds- Projects only), the Debt Service bond, the Capital Projects Fund (General Projects Fund only), the Enterprise Funds, and the Internal Service Fund (Working Capital Fund only). All appropriations lapse at fiscal yearend Electric System except those of the General Projects Fund. The budgets for the General, General assets Special Revenue, Debt Service and Capital Projects Funds are prepared on the modified accrual basis of accounting, and budgets for the Enterprise Distribution ass and Internal Service Funds are prepared on the accrual basis of accounting. The City Manager is authorized to transfer budgeted amounts within Transmission ass. departments; however, any revisions that alter total expenditures of a Internal combusd Structures department must be approved by the City Council. Internal D. Investments - Equipment Steam power asset I In order to facilitate cash management, the operating cash of hater and Sever certain funds are pooled into a common bank account for the purpose of Structures increasing income through combined investment activities. Investments Water and sewer (certificates of deposit, U.S. Treasury Notes and U.S. Government and Equipment Agency securities) are carried at cost (which approximates market value). Furniture and fi Interest darned on investments is recorded in the funds in which the investments are recorded. Sanitation E. Unbilled Receivables Vehicles and equ The City accrues anounts t)r utility services provided in Internal Service F September, but not billed at September 30. Vehicles and equi Renewals and better whereas normal repairs and m .f r . •~••«..~avar~s:>:oieiuss.~toc,sx~+~taremr~atrspcs:~.10rt~zam~e~rs - F. Inventories e es Inventories are valued at cost or the lower of cost or market. Cost is determined using a moving average method. r zed G. Fixed Assets The City has retained the cost records supporting the construc- ility tion or acquisition of fixed assets; however, detailed fixed asset ledgers F'r!ral have not been maintained. In the opinion of City management, all significant ise additions and retirements have boen recorded. Enterprise and Internal Service Funds- Fixed assets are recorded at cost, including interest during ion the construction period. Contributed property is recorded at fair market value at the date of contribution. Depreciation is recorded on each antes class of depreciable property utilizing the straight-line method over the of estimated useful lives of the assets. Tres Estimated useful lives are as follows; Useful Life Fixed Asset (Years) s the General ecreation Enterprise Funds- (General rvice Fund Electric System al yearend General assets - Structures 50 e General, - Equipment 5 - 20 rrepared on Distribution assets - Structures 50 Enterprise - Equipment 20 - 33 ~f accounting. Transmission assets - Equipment 20 - 33 thin Internal combustion assets gyres of a - Structures 50 - Equipment 13 - 20 Steam power assets - Structures 50 - Equipment 20 - 35 ig cash of Water and Sewer System lrpose of Structures 50 iestments Water and sewer mains 20 - 33 Dent and Equipment 10 - :0 rket value)- Furniture and fixtures 10 ich the Sanitation Vehicles and equipment 10 ded in Internal S?rvice Funds- Vehicles and equipment 4 - 10 I Renewals and betterments of property and equipment are capitalized, whereas normal repairs and maintenance are charged to expense as incurred. I I i l changes in financial pos~ General Fixed Assets- accounting principles. in the expenditures Interfund eliminations had General fixedsQ~o e~[s rfunds ewhen acquired. Such assets arc data. Special Revenue or Capital the construction period, in capitalized at cost[ including " Accounts. Significant gifts or contri- the General Fixed Assets Group (2) FIXED ASSETS bu Accounts at tions of assetfairemrecorded in atethendate ofxacquiaitionrouPPublic domain oalongewith other General Fixed Assets- and doman (infrastriicture) general fixed s, are capitalized gutters and drainage systems, sidewalks, gut General fixed Be general fixed assets. No depreciation is provided on genera: fixed ende-' September 30, 1983, assets. H. Property Tax Revenue Property taxes attach as an enforceable lien on property as of { Land ngs January 1. Taxes are levied on October 1 and are due and payable at that w nd time. All unpaid taxes levied Octo'ter 1 become delinquent February 1 o street$ n■ehinery and equipment the following year and other leproven■nta Con■truction in a The City records revenue from current property taxes in the nsruc■a progre year in which bills are rendered and become due. A reserve is provided Total for delinquent taxes not expected to be collected in the future. At September 30, 1983, the City had a tax margin of $1.99 per investment in General fixed Assets. valuation based upon a maximum ad valorem tax of $2.50 per $100 valuation imposed by Texas Constitutional law. Additional revenues up to reFrods . bona bond is■ruea revenue cur $20,894,000 could be raised per year based on the current year's assessed value of $1,049,946,000 before the limit is reached. Frog contributions i I. Compensated Absences Total The City allows employees to accumulate unused vacation up to forty days. Upon termination, any accumulated vacation time will be Additions conais paid to the employees. Generally, sick leave is not paid upon termination Funds ($2,736,122), the Gel except for fire and policemen. Fire and policemen accumulate unused sick ($36,449), Construction in leave up to a maximum of 90 days. All other employees are paid only upon capitalized interest illness while in the employ of the City. Construction in ~ As of September 30, 1983, the liability for accrued vacation leave is approximately $549,895 and the liability for accrued sick leave is approximately $638,580. The amounts applicable to the Enterprise Funds ($205,705) and Internal Service Funds ($7,946) have been recorded in those funds, and the amount applicable to other funds ($974,824) has been ee elation prof ea tl recorded in the General Long-Term Liabilities Account Group. The amount central ral. police ralely-Mulkey drainala expected to be paid from current resources is not significant. sell-cnronrdo drateaae I Bell-Fallo drainala ponder dra[nala J. Comparative Data panhandle drainage Loop lee t-D-M project Certain amounts in the 1982 financial statements have been restated or reclassifed to conform to the 1983 presentation. Total columns on the combined statements are captioned as memorandum only to indicate that they are presented only to facilitate analysis. Data in these columns do not present financial position, results of operations or ~na,~.csF.t~:^.:x~:aunttrra:~+c4~:Aatvr;~~fosF>~7~I,.~wyortretak4,~.e+aatr~e'~' changes in financial position in conformity with generally accepted accounting principles. Nor is such data comparable to a consolidation. the General, Interfund eliminations have not been made in the aggregation of this assets are data. 1 period, in or contri- up of (2) FIXED ASSETS Public Was curbs, General Fixed Assets- with other fixed General fixed assets balances and transactions for the year ended September 30, 1983, are summarized below: Balance Balance September 70, September 30, 1982 Additions Deduction, 1983 erty as of Lam S 3,819,342 S 12,921 S (37,752) J 3,748,711 ble at that Buildings 5,496,865 11.0,134 - 5,631,599 ru ary 1 of Streets 19,752,016 1,723,080 - 21,475,096 Machinery and equipment and other improvements 7,224,880 471,507 - 3,696,367 Construction in S in the progress 245,797 1,767,547 (871,613) 1,141,731 s provided Total S 32,579,100 S 4,115,789 S (905,365) $35,749,524 re. .......a... $1.49 per investment in General Fixed Aaaets- er $100 From bond issues S 22,423,719 $ 2,881,053 $ (871,613) $24,931,159 venues up to From current revenue 3,196,879 370,421 - 3,567,300 is assessed - 26,120,598 3,251,474 (871,613) 28,500,459 From contribttions 6,418,502 864,315 (73,752) 7,249,065 Total S 32,539,100 S 4,115,789 $ (905,365) $35,749,524 tion up to will be Additions consist of expenditures from the Capital Projects on termination Funds ($2,736,122), the General Fund ($476,929)9 the Special Revenue Funds unused sick ($36,449), Construction in Progress reclassification ($871,613) and net aid only upon capitalized interest ($(5,324)). Construction in progress is composed of the following: d vacation d sick leave terprise Project Expended to en recorded in Appropriation September 30, 1963 Coeamitted ,824) has been Central police station $1,089,000 $1,063,331 $ 25,666 The amount Citywide sidevelk project 200,000 16,637 183,167 Paisley-?Mulkey drainage 122,000 17,593 104,497 nC. sell-Coronado drainge 280,358 17,220 263,136 bell-Eagle drainage 110,000 156 109,844 Ponder drainge 206,000 4,523 201,477 I Panhandle drainage 669,000 1,206 667,764 Loop 266 E-D-N project 250,000 16,864 211,136 have been 82,926,358 81,141,731 !1,786,627 Total dum only to is'. Data in f operations or V I r Enterprise and Internal Service Funds- (3) LANG-TERM DEBT I Fixed assets of these funds are as follows: General Obligation and September 30 of Obligation Bonds- 1983~- 1982 The general ob bonds collateralized by from property taxes, Th Utility System- 2003, and interest is pa land and land rights $ 1,697,550 $ 870,116 Water rights 250,064 250,064 Bond cransscti Electric plant and equipment 53,497,163 49,738,571 summarized as follows: Water plant and equipment 31,215,599 15,398,405 Sewer plant and equipment 120113,079 8,4400045 Bonds outstanding, Isauea 98,773,455 740697,201 Maturities Leas- Allowance for depreciation (38,4740043) (36$ 10 71 888) Maturities 60.299,412 38,5890313 Bonds outstanding, Construction in progress 982,499 16,257,410 General long-t the following a Io isuesl $ 61,281,911 $ 54,846,723 svaaaa>sv:acs avaaasaaaaaa Sanitation- Land and land rights $ 3709908 $ - Vehicles and equipment 42,150 12,366 central`igation Leas- Allowance for depreciation (5,768) (3,043) - - - - - - - - Street inproetaent 3 Street ivprovecene 7 $ 407, 240 $ 99323 central obligation 2 eacvaavazaar zzeaazsa a a ca Central os l f sat ion 3 Central obligation centeal obligation 4 Internal Service- Coastal obligation a central obligation S Vehicles and equipment $ 5, 169,087 $ 4, 751,G53 Genera ceproratio 5 Leas- Allowance for depreciation (2,714,100) (2,322,048) cc`entral obligation i - Central obligation a $ 2,454,987 $ 2,429,405 General obligation 3 Ctificates of a azv:aa:cave szzzzzazzz:v obligation Certificates of obligation Certificates of obligation Certificates of obligation 9 aotas payable General obligstlon 7 i i 'i!u'S~d.i.1. 1.'w.+. ..x.1..1 YF1Y ,21Yb M.v a.... ♦.r#~ _ _ 1 1 i (3) LANG-TEXX DEBT General Obligation and Certificate of Obligation Bonds- er 30 I The general obligation and street improvement bonds are aerial 1982 bonds collateraliaced by the full faith and credit of the City, and payable from property taxes. The bonds feature annually in varying amounts through 2003, and interest is payable semiannually, $ 870,116 2509064 Bond transactions for the year ended September 30, 1983, are 49,738,571 summarized as follows: 15,398,405 8,440,045 Bonds outstanding, O:tober 1, 1982 $13,123,250 Issues 74,697,201 Maturities 4,742,000 (36,1079888) 1,047,750 Bonds outstanding, September 30, 1983 $16 817,500 38$89,313 saassassssa 16,257,410 General long-term debt at September 30, 1983, is comprised of the following issues: S 54,846,723 zmssasaaasss I Amount $ - Percent Original outstanding at 12,366 Central Obligation Interest Issue Final Amount septerber 30, Debt Rates _Date Maturity of Issue 1963 (3,043) Street improvement 3.50 to 3.65 1960 1965 6 600,000 i 50,000 Street improvement 2.75 to 3.20 1962 1967 500,000 60,000 $ 9 , 3 2 3 ueneral obligation 2.00 to 3.25 1963 1996 500,000 100,000 ~aazaazasaaza General obligation 3,30 to 5.00 1966 1966 1,000,000 190,000 General obligation 4.25 1967 1949 600,000 160,0:0 General obligation 4.00 to 5.00 1969 19ss 1,000,000 275, Doti General obligation 4.60 to 6.50 1969 1999 1,265,000 420,000 General obligation 5.70 to 7.00 1970 1991 1,000,000 400,000 $ 4,751,453 sue at improvement 5.25 to 7.25 1974 1994 1,900,000 1,100,000 (2,322,048) General obligation 5.25 to 7.25 1974 1994 965,000 550,000 General obligation 4.50 to 6.50 1976 1996 2,500,000 1,750,000 Central obligation 4.00 to b.00 1977 1997 3,000,000 2,750,000 $ 2,429,405 General obligation 5.15 to 7.00 1979 2000 4,300,000 3,415,000 Certificates of =aszaess=sax obligation 5.50 1976 1997 123,000 93,000 Certificates of obi l got ion 6.75 1979 1997 170,000 170,000 Certifioatca of obligation 71675 1979 1991 273,000 275,000 certificates of obligation 9,90 to 10.00 1990 1995 230,000 25'1,000 Motes payable 10 1990 1995 300,000 125,500 General obligation 7.70 to 10.00 1993 2003 4,742,000 4,741,000 723,132,000 616,617,500 +R~.~+-.rwiT>.Y,GSS~.~' .__..........-,.-..---....-.~.-.,....s..av.c«,cmww.aaow.w..cwr>•uw-...rr.n.+..w .s.r.m:...,~...,,._-~_ Aggregate maturities of the general obligation bonds (principal Year and interest) for the years subsequent to September 30, 1983, are as j follows: 1984 ' 1985 Year Principal Interest Total 1986 1987 1984 S 19264,750 $102740268 $ 2,539,018 1988 1985 19272,750 980,156 212529906 Thereafter 1986 11210,000 9043025 2,1140025 1987 1,150,000 8333858 1,983,858 1988 10160,000 763,905 1,923,905 Thereafter 10,760,000 4,522,302 15,282,302 In addition, the C $16,817,500 $9,278,514 $26,096,014 portion of the bonds prior t r:aasaasass W==MZ a:sas Waasssssats The revenue bonds Proceeds of general obligation bonds are recorded in the Capital utility system and the vario Projects Funds and are restricted to the uses for which they were approved ordinance. The ordinance pr in the bond elections. The City Charter expressly prohibits the use of be used first to pay operati bond proceeds to fund operating expenses. second to establish and wain revenues may then be used fo Revenue Bonds- contains provisions which, a additional revenue bonds unl The City issued revenue bonds of $25,280,000 in 19R1 to refund required amounts and certain the existing debt of the Sewer System and Utility System Nater and compliance with all signific, Electric System Revenue bonds). The existing debt was legally defeased as ious restricted asset arc, a result of this refunding transaction, and the City recognized an extra- varSeptember 1983: 30, ordinary gain of $3,189,508. The revenue bonds are serial obligations payable annually in varying amounts through 2007. Interest rates range Interest and Sinks ng' from 4.75% to 9.63%. Reserve Fund Emergency Fund Revenue bond transactions for the year ended September 30, 19830 Extension and Inprov~ are summarized as follows: i Bonds outstanding, October 1, 1982 $ 32,2100000 Maturities and vefunded debt (32,210,000) Issuance of refunding bonds 25,280,000 Assets in these acc securities. Relatc3 liabilit 25,280,000 Less- Unamortized bond discount and Payable from restrict expense 613,279 Accrued interest Revenue bonds payab Net bonds outstanding, September 30, 1983 % 24,666,721 Retained earnings tes .L•sasasatxas bond retirement Aggregate maturities, including mandatory redemption requirements, of the revenue bonds (principal and interest) for the years subsequent to September 30, 1983, are as follows: Bonds Authorized and Unissu As of September 30,{ revenue bonds which were authl s (principal Year Principal Interest Total are as - 1984 $ 2,0609000 $ 1,431,375 $ 3,491,315 1985 117359000 1,810,650 39545,650 Fotal - 1986 1,595,000 19719,562 3,314,562 1987 11570,000 11621,850 30197,850 ,5399018 1488 1,665,000 1,5291725 3,194,725 ,2522906 Thereafter 16,655,000 119051,932 27,706,932 ,114,025 ii ,9839858 $25,280,000 $19,171,094 $449451,044 I saosasas ssa as sasses as ■sssssssass `923,905 x,282,302 In addition, the City has the option to retire at par all or a )046,014 portion of the bonds prior to maturity on or after December 1, 1993. ,i sssss:s The revenue bonds are collateralized by the revenue of the in the Capital utility system and the various special funds established by the bond y were approved ordinance. The ordinance provides that the revenue of the system is to s the use of be used first to pay operating and maintenance expenses of the system and second to establish and maintain the revenue bond funds. Any remaining revenues may then be used for any lawful purpose. The ordinance also contains provisions which, among other items, restrict the issuance of additional revenue bonds unless the special funds noted above contain the 1983 to refund required amounts and certain financial ratios are met. The City is in later and compliance with all significant requirements. Below is a summary of the illy defeased as various restricted asset accounts required by the bond ordinance as of ,ized an extra- September 30, 1983: obligations rates range Interest and Sinking Fund $2,6189531 Reserve Fund 3,000,000 Emergency Fund 250,000 tember 30, 1983, Extension and Improvement Fund 1,1501380 $7,018,911 210,000 sasssaaasa 210,000) 280,000 Assets in these accounts consisted of cash and U.S. government securities. Related 1: bilities and retained earnings are as follows: 280,000 Payable from restricted assets- 613,279 Accrued interest $1,0739531 Revenue bonds payable, current 1,5459000 666,721 Retained earnings reserved for saasa=. bond retirement 49400,380 tion requirements, $7,0189911 's subsequent to asasssssss Bonds Authorized and Unissued- As of September 30, 1483, there were no general obligation or revenue bonds which were authorized but unissued. __,.._.....__.._.._.........._._.-._-...,.:..~..,,.,..,r.w,na,~u.~..T..hT•~M.l'[Q.C"@4.?S.w'ix~[=-•...,G0.1, Ila~.,.ee.a----,____ e i As of August 31), 1 (4) LEASES ,'AYABLE: plan benefits was as folk Leases payable represent the remaining amounts payable under I lease purchase agreements for the acquisition of vehicles ($rd 09, Vested Xerox equipment ($42,083), computer hardware ($35,992), and wo processin,Nonvested equipment ($65,141). These leases are recorded as capital leases. The vehicles and Xerox equipment are recorded in the Internal Service Funds, and the computer hardware and word processing equipment are recorded in the General Fixed Assets and General Long-Term Liabilities Account Groups. Remaining requirements, including interest, under these leases are as The value of plan assets a follows: Pension expense General as follows: Internal Long-Term Year Service Liabilities TMRS • Firemen's Plan 1984 5273,645 $102,350 1985 205,640 640328 1986 73$89 70471 $552,674 $1740149 ' r~seaoas aee~aor (6) COMMITMENTS AND CONTINGENC (5) PENSION PLANS Agreement with TMPA- The City participates in a pension plan sponsored by the Texas In 1976, the Cit Municipal Retirement System (TMRS), an agency operated by the State of and Garland, Texas (the % Texas. The plan is a defined contribution plan covering all full-time with the Texas Municipal Pi employees except firemen. The plan is funded by contributions based on a concurrent ordinances of tl percentage of compensation paid to employees. Employees are currently Directors consisting of eil contributing an amount equal to 5% of gross pay with the City contributing body of each city. Under 3 construct or acquire elect, 4.11X of gross pay. power to the Cities for a I The City's policy is to fund pension costs accrued which in turn agreed to purchase include amortization of prior service costs over 20 years. in excess of the amounts ge intended to cover operatinf As of January 1, 1983, the actuarial present value of accrued that revenues are insuffici plan benefits was as follows: outstanding debt, each of t unpaid debt based, generall $5,946,421 delivered to consumers in t Vested Nonvested -__590=206 As of September 3 $6,536,627 approximately $1,336,655,00 approximately 19.852. In 5 material payment under Chid The value of plan assets as of January 1, 1983 was $4,884,423. operating profits and asset ' Firemen are covered by the Firemen's Relief and Retirement Plan! Present ly, TMPA q a defined contribution lan. The Cit 's plant and has interest i p y policy is to fund pension costs Plant and has Should accrued which include amortization of prior service costs over 30 years. undivided interest in the NNEWEV77 As of August 31, 1982, the actuarial present value of accrued plan benefits was as follows: ayable under ($3980091), Vested $1,218,812 d word processing Nonvested 75,751 leases. The Service Funds, e recorded in $1,294,563 Account Groups, ases are as The value of plan assets as of January 1, 1983 was $1,872,651. + Pension expense for the year ended September 30, 1983, was as follows: TMRS $ 417,240 Firemen's Plan 740471 $ 491,711 mammas===. 1 (6) COMMITMENTS AND CONTINGENCIES Agreement with TMPA- a by the Texas In 1976, the City, along with the cities of Bryan, Greenville the State of and Garland, Texas (the "Cities") entered into a Power Sales Contract all full-time with the Texas Municipal Power Agency (TMPA). TMPA was created thraugh loons based on a concurrent ordinances of the Cities and is governed by a Board of re currently Directors consisting of eight members, two appointed by the governing ity contributing body of each city. Under the terms of the agreement, TMPA agreed to construct or acquire electric generating plants to supply energy and power to the Cities for a period of not less than 35 years. The Cities bed which in turn agreed to purchase all future power and energy requirements in excess of the amounts generated by their systems from TMPA at prices intended to cover operating costs and retirement of debt. In the event kue of accrued that revenues are insufficient to cover all costs and retire the outstanding debt, each of the Cities has guaranteed a portion of the unpaid debt based, generally, upon its pro rata share of the energy delivered to consumers in the prior operating year As of September 30, 1983, total ?MPA debt outstanding was approximately $1,336,655,000, and the City's guaranteed percentage is approximately 19.85%. In the opinion of management, the possibility of a :aterial payment under this guarantee is remote in thAt TMPA is generating was $40884,423. operating profits and assets exceed liabilities. Retirement Plan, Presently, TMPA operates a 390 megawatt lignite-fueled generating i pension costs plant and has an interest in a nuclear-fueled generating plant under over 30 yeast, construction. Should TMPA be dissolved, each City would be entitled to an undivided interest in the property. f Agreement with Lone Star Gas Company- During 1983, the City entered into a natural gas sales contract (8) INDIVIDUAL FUND DISC with Lone Star Gas Company which provides for natural gas through 1988 Individual to be used as fuel for the City'estimateaitsefuturenuseaandtprovides September 30, 1983, eI contract requires that the City penalties if actual usage is less than 0% of edoealroteanticipatelanys were incurred during fiscal 1983, and management during fiscal 1984. Litigation- Fund Various claims and lawsuits are pending against the City. In the General Fund opinion of City management and legal counsel, the potential losses, after Special Revenue Funds: insurance coverage, on all claims will not have a material effect on the Criminal Justice City's financial position as of September 30, 1983. Emily Fowler Libriry Other grants (7) SEGMENT INFORMATION FOR ENTERPRISE FUNDS Debt Service Segment information for the year ended September 30, 1983, was Capital Projects: as follows: Street improvements Construction proiecLs Utility Sanitation System Fund ^ Total Special Assessment OPERATING REVENUES $41,316,356 $1,4409147 $42,816,503 i Enterprise Fund: Utility System DEPRECIATION 2,082,998 20126 200852724 Sanitation i OPERATING INCOME (LOSS) 60056,689 (200345) 6,036,344 Internal Service: Working capital i OPERATING TRANSFERS OUT 3,8520853 118,510 39911,363. Trust and Agency: ~ NET INCOME (LOSS) 4,092,500 (162,623) 3,929,877 ' Employee Insurance Fun Payroll Fund CURRENT CAPITAL CONTRIBUTIONS: 1i ~ Federal agencies 31861,359 - 3,861,354 Total In aid of construction 528,217 - 528,217 PROPERTY, PLANT AND EQUIPMENT: Additions 9,134,231 400,693 9,534,924 Deletions - - - NET WORKING CAPITAL (DEFICIT) 61706,958 (771,411) 5,935,547 BONDS PAYABLE 25,280,000 - 25,2809000 TOTAL EQUITY (DEFICIT) 49,2679528 (364,121) 48,9039407 IOMV h as sales contract (8) INDIVIDUAL FUND DISCLOSURES: j` s through 1988 cilities. The Individual fund disclosures as of and for the year ended and provides September 30, 1983, are as follows: te. No penalties t anticipate any Deficit Fund Expenditures Interfund Interfund Balances Over Budget Fund Receivables Payables (if any) (if any) t the City. In the General Fund $ 406719241 $ 314119650 $ tial losses, after $ 4 al effect on the Special Revenue Funds: Criminal Justice - 23,933 10,104 Emily Fowler Library - - 864 - Other grants - _ Debt Service 14,636 45,795 - fiber 30, 1983, was 1,00! Capital Projects: Street improvements 675,550 217,044 scion Construction projects - 159043 hd Total Special Assessment 1,435 676,481 D,147 $42,816,503 Enterprise Fund: Utility System 8659810 2,504,487 - _ 1,726 2,085,724 Sanitation 5,179 2671997 364,121 53,341 ,345) 61036,344 Internal Service: Working capital 23,279 146,486 _ 8,510 3,971,363 51,373 Trust and Agency: 2,623) 3,929,877 Employee Insurance Fund 18 21367 30,581 - Payroll Fund 5,438,373 4,3849238 31861,359 Total $11,6950521 $1196959521 528,217 saaaaaaaeaa aaa aaaazasa 0,693 9,5349924 1,411) 51935,547 - 25,280,000 4,121) 480903,407 I . ..__._.._.___,___.____-._...,.......r-o-ar•~-:a.;tvrowx:rraF+xw.C2~,'RAARUdM1AO+F7aR70r.M►'w" . ORDINANCE DIRECTING 711E PUBCERTIFICATE FOR OF NOTICE OF INPE?TPION TO ISSUE CITv OF DENTON UTILITY SYSTEM REvEN,7E BONDS, SERIES 1984; IN THE XIMA, PRINCIPAL AMCUpfP OF $110000000 7niE STATE OF TEXAS , l +.xJNI'Y OF DENTON E CITY OF DFNPON ; vb, the undersigned officers of said City, hereby oertify as follows: 1. The City Council of said City convened in REGULAR MEETING ON THE 20TH DAY OF DECEMBER, 19839 at the Municipal Building (City Hall), and the roll was called of the duly I constituted officers and mrnbers of said City Coumc.il, to-wit: f f Charlotte Allen, City Secretary Richard 0. Stewart, Mayor Mark (hew Jack Barton Charles Hopkins Dr. A. Fay Stephens Jim Riddlesperger Joe Alford and all of said persons were present, except the following absentees: - ?24-"~ , thus constituting a quorum. Vierekipon, amng other business, the q was transacted at said Meeting: a written ORDINANCE DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE CM OF D%n ON UTILITY SYSTEM R04E24UE BONDS, SERIES 1984? IN THE MAXIMM PRINCIPAL AMOM OF $1,000,000 was duly introduced for the consideration of said City Council and duly read. I It was then duly moved and seconded that said Ordinance be passed; and, after due discussion, said notion, carrying with it the passage of said Ordinance, prevailed and carried by the following vote: 1 AYES: All rranbers of said City Council shown present above voted "Aye". ' NOES: None. l 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 j and follows this Certificate; that said Ordinance has been duly recorded in i said City Council's minutes of said Meeting; that the above and foregoing paragraph is a true, full, and correct excerpt fran said City Council's minutes of said Meeting pertaining the passage of said Ordinance; that the persons named in the above and foregoing 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 sueficiently notified officially and Pexsa-ually, in advance, of the time, p'....e, and purpose of the aforesaid Meetirxr. -'41d tha, 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. Pa'kicle 6252-17. 3. That the Mayor of said City has approved, and hereby aWrOwes, the { aforesaid Ordinance; that the Mayor and the City Secretary of said City have t duly signed said Ordinance; and that the WW ;nd the City Secretary of said city hereby declare that their signing of tl'- eltificate shall constitute the signing of the attached and following copy of said Ordinance for all ~ _ purposes. SIGNED ANO SEALED the 20th •iay of December- 1983. ZCity Secretary r (SEAL) We, the undersigned., being respectively the City Attorney and the Bond Attorneys of the City of Denton, ?texas, hereby certify that we pr.Jpared and approved as to legality the attached and following Ordinance pr-.or to its passage as aforesaid. City AttoXtiey ttorneys I` ORDINANCE NO.83 ORDINANCE DIRECTING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE CITY OF DE14TON UTILITY SYSTEM REVENUE BONDS, SERIES 1984, IN THE MAXIMUM PRINCIPAL AMOUNT OF $2 000 000 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 hereinafter described be authorized, issued, sold, and delivered. THE COUNCIL OF THE CITY OF DENTON ORDAINS: That the following notice shall be published in the "Denton Record-Chronicle.", which is a newspaper published in, and having general circulation in, the City of Denton, on the same day of each of two consecutive weeks, with the date of the first publication to at least two weeks prior to the date upon which the City )uncil intends to pass the Ordinance described in the following notice: "NOTICE OF INTENTION TO ISSUE CITY OF DENTON UTILITY ; SYSTEM REVENUE BONDS, SERIES 1984, IN THE MAXIMUM PRINCIPAL AMOUNT OF $1,000,000 Notice is hereby given, in accordance with Article 2368a, Ver,;=n'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 February 21, 1984, at the City Hall, an Ordinance authorizing the issuance, sale, and delivery of an issue of bonds, to be evidenced initially by a f single fully registered bond payable in installments, but convertible into definitive bonds in multiples of $5,000, to be designated as "City of Denton Utility System Revenue Bonds, Series 1984, in the maximum principal amount of $1,000,000, to be secured by and payable from a first lien on and pledge of the "Pledged Revenues", which "Pledged Revenues" include initially the "Net Revenues" of the "System", with said "System" initially consisting of the City's entire existing combined waterworks, sanitary sewer, and 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 in installments 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 pro- v:,ded in the aforesaid Ordinance. Said bonds will be author- ized, 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 aforesaid "System". CITY OF DENTON, TEXAS" 11 I I AFFIDAVIT OF PUBLICATION THE STATE OF TEXAS COUNTY OF DENTON ; CITY OF DENTON ; BEFORE ME, a notary public in and for the above named County, on this day personally appeared the person whose name ` is subscribed below, who, having been duly sworn, says upon Ii l oath that he or she is a duly authorised officer or employee of { f the "Denton Record-Chronicle", which is a newspaper of general circulation published in the above named City; and tha* a true and correct copy of the NOTICE OF INTENTION TO ISSUE CITY OF CITY OF DENTON UTILITY SYSTEM REVENUE BONDS, SERIES 1984, IN t ~ THE MAXIMUM PRINCIPAL AMOUNT OF $1,000,000 a clipping of which t 7 is attached to this Affidavit, was published in said newspaper I on the following dates: JANUARY 15 X94 :0,111 rARTMER", TONSUTI (TY SY Telb / REVENUE SONS, SERIES l9fia,INIT149JANUARY 221 IMUMPRINCIPAL' 'AmouNTOf S1*0044 Nolke N I o -tit gNth, in aecordance'with 'Artlclill Aut 7e Or oyes t 2~dAa, Vernoei•L';Annolahed ' , xexas Ciril Sf4t4le9, that Itie G+ry Louncil _Iae.tity a D AND SWORN TO BEFORE ME on JANUARY 23 It 198 Qenlon, Texas,', Intends M pass, at a Regular Metlinq to be • held of 7:00 PM on C February 71,1%1, t the Cdy Hall; an Ordnance aulhoriitn9' fAe issuance, Notary Public sale, and delivery of an issue of bonds, lo; be evidenced initially' by if sirtgle fully my Commission expires ii-5x85_ registered bond payable in Installments, but convertible Inlo definitive bonds In SEAL) mvlriples of, 15,004, to be designated as "CRy or Deo- ton Utility System Revenut Bonds, Serf" ll"4, in the maximum principal amount of 51.000,000 to be secured by am payable from a first lien on and pledge of the "Pledged Revenues", which "Pledged Revenues" lncivde Initially the "Net Revenues" of IM "System". With said "System" Initially consisting of IN City's entire existing tbrritirled v alerworks, sanitary sewer, and electric light and power sys}em, all as will be defined and pro vlded in the aforesaid Ordi nahte. Said bonds will bear interest from their date 'al maximum rates note 110 exceed f4tEen percentum pe( annum, will be sttaduted to mature serially In' kislair meets within a maximum of not to exceed Mltfq YearS from their date, and will be sublett to redemption pr lot to tnaturity,,and will have sbch a( cr and further 'charr aclerislirs, as will be Pro. vlded In the atorasatd Ord! unce.'Said bonds will be authorized, listed, sold and delivfled'pur}want' So Articles 1111b,1112,1113. and :1114. Ver s A lafeu 'fetes°eWti Stalute0r~and other applkablc laws, for the purpose of providing.money for improvements and extensions of the aforesaid '.SY~lem:" CITY OFDENTON,tEkAS JANUARY 15, fret .................'YYelo AFFIDAVIT OF PUBLICATIO14 beta I:.9.P'Y041 pV tiNl~ k01 roeie wpie6 P4814014 4811A Wlde3opYol101011^604 XAS ► dol 1UH I N e of fe"W y 'i+eelf poew 111A.el %hm hd peaey i 1A11Une61 •ebplismaj ul Wolm 'i _ , a notary public in and for the above named t'Iwl~t~e Adieut'YepeMof f 3W,ef'et3eMJ03C'fyloq s day personally appeared the person whose name 'Dist An$ 190 Wlfeluaw ul O1Sn, M3N below, who, having been duly sworn, says upon n9c.1e111ueWe4Y.W'A0efp she is a ' duly authorized officer or employee of 1e4 6/'P WOpeq ! Wwe43 01031NOW ord-Chronicle", which is a newspaper of general :cria'nu-c Y tebte»o'6YI~YeYtliYelle~R lished in the above named City; and that a true Y fie411WW1 Ile 1031)(4' 4.9 1099•91n y of the NOTICE OF INTENTION TO ISSUE CITY OF 4 I AUI O f Vl 7110 001 4 sll0llr30 Sln01 UTILITY SYSTEM REVENUE BONDS, SERIES 1984, IN sacsAa sl aM u0Iwv OWIIeS OV y:VArs:lde In NCIPAL AMOUNT OF $1,000,000 a clipping of which lusaor "ART •14±1011 r 1 0 141 ippp11l'~ 'f'l this Affidavit, was published in said newspaper 'AC 'ANA, 10 400 1 e1 Si 3 NUM" to "Ism lot A dates: u0 eWO~ .1oA P UM ow N' g 1 M c 1 r Ail. JANUARY 15 198 4 { JANUARY 22 , 19 / t 7.1 Aut ze dD or ogee SUBSCRIBED AND SWORN TO BEFORE ME on JANUARY 23 , 198 Notary Pub is i My Commission expires 1j _5 A5 (NOTARY PUBLIC SEAL) i CERTIFICKfE FOR ORDINANCE AUTHORIZING TIIE ISSUANCE OF CITY OF DENT V UTILITY SYSTEM RESJMUE BONDS, SERIES 1984, AND APPRWING AND ALmjoR- IZING INSTRUMLSITS AND P~ RM -1irPING THEREI~p { THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON We, the undersigned officers of the City of Denton, Texas, hereby certify as follows: 1. The City Council of said City convened in REGULAR MEETING ON THE 21ST DAY OF FEBRum, 1984, at the Municipal Building (City Hall), and the roll was called of the duly constituted officers and members of said City Council, to-wit: Charlotte Allen, City Secretary Richard 0. Stewart, Mayor Mark Chew Jack Barton Charles Hopkins Dr. A. Ray Stephens Jim Riddlesperger Joe Alford and all of said persons were present, except the following absentees; N° Ne , thus constituting a quorum. Yfiereupon, among other sJ.ness► o owing was transacted at said Meeting; a written ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF DENIC)N UTILITY SYSTQ+S RFVENJE BONDS, SERIES 1984, AND APPRWING AND AUTHOR- IZING INSTEUgTII'S AND PROCEDL~RES RELATING THERETO j was duly introduced for the consideration of said City Council and duly read. It was then duly rvied and seconded that said Ordinance be passed; and, after due discussion, said motion, carrying with it the passage of said Ordinance, prevailed and care' 'ed by the following vote: AYES: All :naTbers of said City Council shrwn present above voted "Aye". NOES: Nome. 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 Certificate; that said Ordinance has been duly recorded in said City Council's minutes of said Meeting; that the al,.-ve 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 foregoirxl paragraph are the duly chosen, qualified, and acting officers and men hers of said City Council as indicated therein; and that each of the officers and members of said City Council w.^s 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. Tays. Civ. St. Fi-ticle 6252-17. 3. That the Mayor of said City has approved, and hereby approves, the aforesaid Ordinance; that the f1ayor and the City Secretary of said City have duly signed said Ordinance; and that the Mayor and the city secretary of said City hereby declare that their sig:Ling of this Certificate shall constitute the signing of the attached and following Copy of said Ordinance for all purposes. SIC3VIZl AND SEALFI) the 21st day of February, 1984. C ty Secretary Ma r (SEAL) - - We, the ~indersigned, 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 attached and following Ordinance prior to its 01 passage as aforesaid. l A i torneys AUTHORIZING THE ISSUANCEDOFACITY OF DENTON UTILITY SYSTEM REVENUE BONDS, SERIES 1984, AND APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES RELATING THERETO THE STATE OF TEXAS : COUNTY OF DENTON ; CITY OF DENTON ; .F WHEREAS, the City Council of the City of Denton, Texas, is authorized to issue the bonds of the City of Denton hereinafter authorized pursuant tc Vernon's Ann. Civ. St. Articles 2368a, 1113 through 1118, and other applicable laws. THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS THAT; Section 1. AMOUNT AND PURPOSE OF THE BONDS. The bond or bonds of the City of Denton, Texas (the "Issuer") are hereby authorized to be issued and delivered in the aggregate princi- pal amount of $3,000,0001 FOR THE PURPOSE OF PROVIDING FUNDS TO IMPROVE THE CITY'S UTILITY SYSTEM, WHICH CONSISTS OF THE CITY'S COMBINED WATERWORKS, SEWER, AND ELECTRI, LIGHT AND POWER # SYSTEM. Section 2. DESIGNATION OF THE BONDS. Each bond issued ' pursuant to this Ordinance shall be designated: "CITY OF DENTON UTILITY SYSTEM REVENUE BOND, SERIES 1984", and initially there shall be issued, sold, and delivered hereunder a single fully registered bond, without interest coupons, payable in installments of principal (the "Initial Bond"), but the Initial Bond may be assigned and transferred and/or converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, having serial maturities, and in the denomination or denominations of $5,000 or any integral multiple of $5,000, all in the manner herein- after provided. The term "Bonds" as used in this Ordinance shall mean and include collectively the Initial Bond and all substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Bond" shall mean any of the Bonds. Section 3. INITIAL DATE, DENOMINATION, NUMBER, MATURI- TIES, INITIAL REGISTERED OWNER, AND CHARACTERISTICS OF THE INITIAL BOND. (a) The Initial Bond is hereby authorized to be issued, sold, and delivered hereunder as a single fully registered Bond, without interest coupons, dated MARCH 1, 1984, in the denomination and aggregate principal amount of $1,000,000, numbered R-1, payable in annual installments of principal to the initial registered owner thereof, to-wit: ` ROTAN MOSLE INC. cr to the registered assignee or assignees of said Bond or any portion or portions thereof (in each case, the "registered owner"), with the annual installments of principal of the Initial Bond to be payable on the dates, respectively, rnd in the principal amounts, respectively, stated in the FORM OF INITIAL BOND set forth in this Ordinance. (b) The Initial Bond (i) may be prepaid or redeemed prior to the respective scheduled due dates of installments of i principal thereof, (ii) may be assigned a,,d transferred, (iii) may be converted and exchanged for other Bonds, (iv) shall have ! the characteristics, and (v) shall be signed and sealed, and the principal of and interest on the Initial Bond shall be j !i ii l i I payable, all as provided, and in the manner required or indi- cated, in the FORM OF INITIAL BOND set forth in this Ordinance. Section 4. INTEREST. The unpaid principal balance of the Initial Bond shall bear interest from the date of the Initial Bond to the respective scheduled due dates, or to the respec- tive dates of prepayment or redemption, of the installments of principal of the Initial Bond, and said interest shall be payable, all in the manner provided and at the rates and on the dates stated in the FORM OF INITIAI, BOND set forth in this Ordinance. r Section 5. FOR11 OF INITIAL BOND. The form of the Initial Bond, including the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be UI endorsed on the Initial Bond, shall be substantially as follows: FORM OF INITIAL BOND 'f NO. R-1 $1,0001000 UNITED STATES OF AMERICA p STATE OF TEXAS COUNTY OF DENTON r CITY OF DENTON UTILITY SYSTEM REVENUE BOND SERIES 1984 THE CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a political subdivision of the State of Texas, hereby promises to pay to ROTAN MOSLE INC.,. or to the registered assignee or assignees of this Bond or any portion or portions hereof (in each case, the "registered owner") the aggregate principal amount of $1,000,000 (ONE MILLION DOLLARS) I in annual installments of principal due and payable on DECEMBER ` 1 in each of the years, and in the respective principal amounts, as set forth in the following schedule: ` PRINCIPAL PRINCIPAL' YEAR AMOUNT YEAR AMOUNT 1985 $50,000 1995 $50,000 1986 50,000 1996 50,000 1987 50,000 1997 50,000 1988 501000 1998 50,000 i 1489 50,000 1999 50,000 19>0 500000 2000 500000 1991 50,000 2001 50,000 1992 50,000 2002 50,000 1993 50,000 2003 50,000 1994 50,000 2004 50,000 and to pay interest, from the date of this Bond hereinafter stated, on the balance of each such installment of principal, respectively, from time to time remaining unpaid, at the rates as follow: j r 1 it 1 1 1 I 2 11.00% per annum on the above installment of principal due and payable on DECEMBER 1, 1985; 11.00% per annum on the above installment of principal due and payable on DECEMBER It 1986; E 11.00% per annum on the above installment of principal due and payable on DECEMBER 11 1987; 11.00% per annum on the above installment of principal due and payable on DECEMBER 1, 1988; 11.00% per annum on the above installment of principal due and payable on DECEMBER 1, 1989; 11.0u% per annum on the above installment of f principal due and payable on DECEMBER 1, 1990; 11.00% per annum on the above installment of principal due and payable on DECEMBER It 1991; 11.00% per annum on the above installment of principal due and payable on DECEMBER 1, 1992; 10.00% per annum on the above installment of principal due and payable on DECEMBER 1, 1993; 8.85% per annum on the above installment of principal due and payable on DECEMBER 1, 1994; 9.00% per annum on the above installment of principal due and payable on DECEMBER 10 1995; 9.15% per annum on the above installment of principal due and payable on DECEMBER 1, 1996; 9.25% per annum on the above installment of principal due and payable on DECEMBER 11 1997; 9.40% per annum on the above installment of principal due and payable on DECEMBER 1, 1998; 9.50% per annum on the above installment of principal due and payable on DECEMBER 1, 1999; 9.60% per annum on the above installment of principal due and payable on DECEMBER If 2000; 8.00% per annum on the above installment of principal due and payable on DECEMBER 1, 2001; 8.00% per annum on the above installment of principal due and payable on DECEMBER It 2002; 8.00% per annum on the above installment of principal due and payable on DECEMBER 11 2003; 8.00% per annum on the above installment of principal due and payable on DECEMBER 11 2004, with said interest being payable on DECEMBER It 1984, and semi- annually on each JULIE 1 and DECEMBER 1 thereafter while this Bond or any portion hereof is outstanding and unpaid. I` THE INSTALLMENTS OF PRINCIPAL OF AND THE INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The install- ments of principal and the interest on this Bond are payable to the registered owner hereof through the services or TEXAS AMERICAN BANK/FORT WORTH, N.A., FORT WORTH, TEXAS, which is the "Paying Agent/Registrar" for this Bond. Payment of all princi- pal of and interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each princi- pal and/or interest payment date by check or draft, dated as of such date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the issuer required by the resolution authorizing the issuance of this Bond (the "Bond ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check or draft shall be sent by the Paying Agent/Registrar by United States Mail, first- class postage prepaid, on each such principal and/or interest payment date, to the registered owner hereof, at the address of ` the registered owner, as it appeared on the 15th day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/ Registrar, as hereinafter described. The issuer covenants with the regis- tered owner of this Bond that on or before each principal 3 4 and/or interest payment date for this Bond it will make avail- able to the Paying Agent/Registrar, from the "Interest aid :inking Fund" created by the Bond Ordinance, the amounts required to pr.)v:de for the payment, in immediately available funds, of all principal of and interest on this Bond, when due. IF THE DATE for the payment of the principal of or inter- est on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND has been authorized in accordance with the Constitution and laws of the State of Texas FOR THE PURPOSE OF P,POVIDING FUNDS TO IMPROVE THE CITY'S UTILITY SYSTEM, WHICH CONSISTS OF THE CITY'S COMBINED WATERWORKS, SEWER, AND ELECTRIC LIGHT AND POWER SYSTEMS. ON DECEMBER 1, 1994, or on any interest payment date thereafter, the unpaid installments of principal of this Bond may be prepaid or redeemed prior to their scheduled due dates, at the option of the Issuer, with funds derived from any available source, as a whole, or in part, and,.if in part, the particular portion of this Bond to be prepaid or redeemed shall be selected and designated by the issuer (provided that a portion of this Bond may be redeemed only in an integral multiple of $5,000?, at the prepayment or redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for prepayment or redemption. AT LEAST 30 days prior to the date fixed for any such prepayment or redemption a written notice of such prepayment or redemption shall be mailed by the Paying Agent/Registrar to the registered owner hereof. By the date fixed for any such prepayment or redemption due provision shall be made by the Issuer with the Paying Agent/Registrar for the payment of the required prepayment or redemption price for this Bond or the portion hereof which is to be so prepaid or redeemed, plus accrued interest thereon to the date fixed for prepayment or redemption, if such written notice of prepayment or redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so prepaid or redeemed, thereby automatically shall be treated as prepaid or redeemed prior to its scheduled due date, and shall not bear interest after the date fixed for its prepayment or redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the prepayment or redemption price plus accrued inter- est to the date fixed for prepayment or redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books ali such prepayments or redemptions of principal of this Bond or any portion hereof. THIS BOND, to the extent of the unpaid or unredeemed principal balance hereof, or any unpaid and unredeemed portion hereof in any integral multiple of $5,000, may be assigned by the initial registered owner hereof and shall be transferred only in the Registration Books of the issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other requirements for such transfer, this Bond must be presented and surrendered to the Paying f 4 and/or interest payment date for this Bond it will make avail- able to the Paying Agent /Registrar, from the "Interest and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for the payment, in :.mmediately available funds, of all principal of and interest on this Bond, when due. IF THE DATE for the payment of the principal of or inter- est on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND has been authorized in accordance with the Constitution and laws of the State of Texas FOR THE PURPOSE OF PROVIDING FUNDS TO IMPROVE THE CITY'S UTILITY SYSTEM, WHICH CONSISTS 01.7 THE CITY'S COMBINED Wi.TERWORKS, SEWER, AND ELECTRIC LIGHT AND POWER SYSTEMS. OF DECEMBER 1, 1994, or on any interest payment date i thereafter, the unpaid installments of principal of this Bond may be prepaid or redeemed prior to their scheduled due dates, k' at the option of the issuer, with funds derived from any available source, as a whole, or in part, and,.if in part, the particular portion of this Bond to be prepaid or redeemed shall be selected and designated by the Issuer (provided that a portion of this Bond may be redeemed only in an integral multiple of $5,000), at the prepayment or redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for prepayment or redemption, I AT LEAST 30 days prior to the date fixed for any such prepayment or redemption a written notice of such prepayment or redemption shall be mailed by the Paying Agent/Registrar to the registered owner hereof. By the date fixed for any such prepayment or redemption due provision shall be made by the issuer with the Paying Agent/Registrar for the payment of the required prepayment or redemption price for this Bond or the portion hereof which is to be so prepaid or redeemed, plus accrued interest thereon to the date fixed for prepayment or redemption. If such written notice of prepayment or redemption t is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so prepaid or redeemed, thereby automatically shall be treated as prepaid or redeemed prior to its scheduled due date, and shall tot bear interest after the date fixed for its prepayment or redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the prepayment or redemption price plus accrued inter- est to the date fixed for prepayment or redemption from the Paying Agent /Reaist.rar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such prepayments or redemptions of principol of this Bond or any portion hereof. THIS BOND, to the extent of the unpaid or unredeemed principal balance hereof, or any unpaid and unredeemed portion hereof in any integral multiple of $5000, may be assigned by the initial registered owner hereof and shall be transferred only in the Registration Books of the issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other requirements for such transfer, this Bond must be presented and surrendered to the Paying 4 i Agent/Registrar for cancellation,, together with proper instru- ments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment by the initial registered owner of this Bond, or any portion or portions hereon in any integral multiple of $5,000, to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be trans- ferred and registered. Any instrument or instruments of ' assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any such portion or portions hereof by the initial registered owner hereof. A new bond or bonds payable to such assignee or assignees (which then will be the new registered owner or owners of such new Bond or Bonds) or to the initial registered h owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, shall be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond or any portion or portions hereof, but solely in the form and manner as provided in the next paragraph hereof for the conversion and exchange of this Bond or any portion hereof. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. I AS PROVIDED above and in the Bond Ordinance, this Bond, the extent of the unpaid or unredeemed principal balance hereof, may be converted into and exchanged for a like aggre- gate principal amount of fully registered bonds, without interest coupons, payable to the assignee or assignees duly designated in writing by the initial registered owner hereof, or to the initial registered owner as to any portion of this Bond which is not being assigned and transferred by the initial ' registered owner, in any denomination or denominations in any integral multiple of $5400 (subject to the requirement here- inafter stated that each substitute bond issued in exchange for any portion of this Bond shall have a single stated principal maturity date), upon surrender of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond ordinance. if this + Bond or any portion hereof is assigned and transferred or converted each bond issued in exchange for any portion hereof shall have a single stated principal maturity date correspond- ing to the due date of the installment of principal of this Bond or portion hereof for which the substitute bond is being exchanged, and shall bear interest at the rate applicable to and borne by such installment of principal or portion thereof. Such bonds, respectively, shall be subject to redemption prior to maturity or the same dates and for the same prices as the corresponding installment of principal of this Bond or portion hereof for which they are being exchanged. No such bond shall be payable in installments, but shall have only one stated principal maturity date. AS PROVIDED IN THE BOND ORDINANCE, THIS BOND IN ITS PPESENT FORM MAY BE ASSIGNED AND TRANSFERRED OR CONVERTED ONCE ONLY, and to one or more assignees, but the bonds issued and delivered in exchange for this Bond or any portion hereof may be assigned and transferred, and converted, subsequently, as provided in the Bond Ordinance. The Issuer shall pay the Paying Agent/Registrar s standard or customary fees and charges for transferring, converting, and exchanging this Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make any such assignment, conversion, or exchange (i) during the period commencing with the close of business on any Record Date and 5 !Ni ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for prepayment or redemption prior to maturity, within 45 days prior to its prepayment or redemption date. IN THE EVENT any Paying Agent/Registrar for this Bond is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in tha bond ordinance that it promptly will appoint a competent and legally qualified sub- stitute therefor, and promptly will cause written notice thereof to be mailed to the registered owner of this Bond. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, sold, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a special obligation of the Issuer, secured by and payable, together with other bonds, from a first lien on and pledge of the "Pledged Revenues", which include initially the "Net Revenues of the System" as such terms are defined in the Bond Ordinance, with the System consisting of the City's entire combined waterworks, sewer, and electric light and power j system. THE ISSUER has reserved the right, subject to the restric- tion stated in the Bond Ordinance, to issue Additional Bonds payable from and secured by a first lien on and pledge of the "Pledged Revenues" on a parity with this Bond, THE REGISTERED OWNER hereof shall never have the right to demand payment of this Bond or the interest hereon out of any funds raised or to be raised by taxation or from any source whatsoever other than specified in the Bond Ordinance. BY BECOMING the registered owner of this Bond, the regis- tered owner thereby acknowledges all of the terms and provi- sions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the issuer, and agrees that the terms and provisions of this Bond and the Bond Ordi- nance constitute a contract between the registered owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual signature of the Mayor of the issuer and countersigned with the manual signature of the City Secretary of the Iss-,er, h-s caused the official seal of the Issuer to be duly impressed oz, this Bond, and has caused this Bond to be dated MARCH 1, 1984. City Secretary, Mayor, City of Denton, Texas City of ,Der,`_on, Texas (CITY SEAL) 6 FORM OF REGISTRATION CERTIF'tCATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS; f COMPTROLLER'S REGISTRATION CERTIFICATEt REGISTER NO. 1 i hereby certify that this Bond has been examined, certi- fied as to validity, and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the comptroller of Public Accounts of the State of Texas. Witness my signature and seal this r f Comptroller of Public Accounts of the State of Texas (COMPTROLLER'S SEAL) Section 6. ADDITIONAL CHARACTERISTICS OF THE BONDS. Registration and Transfer. (a) The Issuer shall keep or cause to be epic t at t eprincipal corporate trust office of TEXAS AMERICAN BANK/FORT WORTH, N.A., FORT WORTH, TEXAS (the "Paying Agent/Registrar") books or records of the registration and transfer of the Bonds (the "Registration Rooks"), and the issuer hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such transfers and registrations undE.r such reasonable regulations as the Issuer and Paying Agent/Registrar may f prescribe; and the Paying Agent/Registrar shall make such f transfers and registrations as herein provided. The Paying Agent/Registrar shall obtain and record in the Registration Books the address of the registered owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each registered owner to notify the Paying Ar_.c;it/Registrar in writing of the address to which payments shall be mailed, and such intere,at payments shall not be mailed unless such notice has been given. The Issuer shall have the right. to inspect the Registration Books during regular business hours of the Pay'ag Agent /Registrar, but otherwise the Paying Agent/Registrar shall keep the Regis- tration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. Registration of each Bond may be transferred in the Registra- tion Books only upon presentation and surrender of such Bond to the Paying Agent/Registrar for transfer of registration and cancellation, together with proper written instruments of assignment, in form and with guarantee of signatures satis- factory to the Paying Agent /Registrar, (i) evidencing the assignmel t of the Bond, or any portion thereof in any integral multiple of $5,000, to the assignee or assignees thereof, and (ii) the right of such assignee or assignees to have the Bond or any such portion thereof registered in the name of such assignee or assignees. Upon the assignment and transfer of any Bond or any portion thereof, a new substitute Bond or Bonds shall be issued in conversion and exchange therefor in the manner herein provided. The Initial Bond, to the extent of the unpaid or unredeemed principal balance thereof, may be assigned and transferred by the initial registered owner thereof once only, and to one or more assignees designated in writing by the initial registered owner thereof. All Bonds issued and de- livered in conversion of and exchange, for the Initial Bond shall be in any denomination or denominations of any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Bond shall have a single stated principal maturity date), shall be in the form prescribed in the FORM OF SUBS-I UTE BOND set forth in this Ordinance, and shall have the cnaracteristics , and may be assigned, 7 +I+ f'. f r transferred, and converted as hereinafter provided, If the Ir-''.ial Bond or any portion thereof is assigned and transferred or converted the Initial Bond must be surrendered to the Paying Agent/Registrar for cancellation, and each Bond issued in exchange for any portion of the Initial Bond shall have a single stated principal matuet*y date, and shall not be payable in installments; and each such Bond shall have a principal maturity date corresponding to the due date of the installment of principal or portion thereof for which the substitute Bond is being exchanged; and each such Bond shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged, if only a portion of the Initial Bond is assigned and transferred, there shall be delivered to and registered in the name of the :.nitial registered owner substitute Bonds in exchange for Che unassigned balance of the Initial Bond in the same runner a: if the initial registered owne were the as- signee: thereof. If any Bond or portion thereof other than the initial Bond is assigned and transferred or converted each Bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the Bond for which it is exchanged. A form of assignment shall be printed or endorsed on each Bond, excepting the Initial Bond, which shall be executed by the registered owner or its duly f authorized attorney or representative to evidence an assignment I thereof, Upon surrender of any Bonds or any portion or por- tions thereof for transfer of registration, an authorized representative of the Paying Agent/Registrar shall make such 1 transfer in the Registration Books, and shall'deliver a new `r fully registered substitute Bond or Bonds, having the charac- teristics herein described, payable to such assignee or assign- ees (which then will be the registered owner or owners of such new Bond or Bonds)► or to the previous registered owner in case i only a portion of a Bond is being assigned and transferred, all ` in conversion of and exchange for said assigned Bond or Bonds or any portion or portions thereof, in the same form and manner, and with the same effect, as provided in Section 6(d), ` below, for the conversion and exchange of Bonds by any regis- tered owner of a Bond. The issuer shall pay the Paying Agent/ Registrar's standard or customary fees and charges for making such transfer and delivery of a substitute Bond or Bonds, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to n•ake transferc of registration of any Bond or any portion thereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to ally Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. (b) ownershi of Bonds. The er.*.ity in whose name any Bond shall be registered in the Registration Books at any time shall be deemed and treated as the absolute owner thereof for all purposes of this ordinance, whether or not such Bond shall be overdue, and the issuer ind the Paying Agent/Registrar shall not be affected by any notice to the contrary; and payment of, or on account of, the principal of, premium, if any, and interest on any such Bond shall be made only to such registered owner. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (c) Pa ment of Bonds and Interest. The Issuer hereby further appo nts t e Paying Agent Reg stray to act as the to a convert n and interest exh nge the Bonds, and agent to o act paying its h agent principal 8 I replace Bonds, all as provided in this Ordinance. The Paying Agent/Registrar shall keep proper records of all payments made by the Issuer and the Paying Agent/Registrar with respect to i the Bonds, and of all conversions and exchanges of Bonds, and IF all replacements of Bonds, as provided in this Ordinance. (d) ConverVion and Exchange or Re lacement Authenti- cation. Eac Bon issued an a were pursuant to this p-rTnance, to the extent of the unpaid or unredeemed principal ± balance or principal amount thereof, may, upon surrender of r such Bond at the principal corporate trust office of the Paying Agent/Registrar, together with a written request therefor duly executed by the registered owner or the assignee or assignees thereof, or its or thfA r duly authorized attorneys or representatives, with guarantee of signatures satisfactory to the Paying Agent/Registrar, may, at the option of the regis- tered owner or such assignee or assignees, as appropriate, be converted into and exchanged for fully registered bonds, without interest coupons, in the form prescribed in the FORM OF SUBSTITUTE BOND set forth in this Ordinance, in the denomina- tion of $5,000, or any integral multiple of $5,000 tsubject to the requirement hereinafter stated that each substitute Bond shall have a single stated maturity date), as requested in writing by such registered owner or such assignee or assignees, in an aggregate principal amount equal to the unpaid or unre- deemed principal balance or principal amount of any Bond or Bonds so surrendered, and payable to the appropriate registered owner, assignee, or assignees, as the case may be. If the Initial Bond is assigned and transferred or converted each substitute Bond issued in exchange for any portion of the ` initial Bond shall have a single stated principal maturity date, and shall not be payable in installments; and each such Bond shall have a principal maturity date corresponding to the due date of the installment of principal or portion thereof for which the substitute Bond is being exchanged; and each such Bond shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged. If a portion of any Bond (other than the Initial Bond) shall be redeemed prior to its scheduled maturity as provided herein, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in the denomination or denominations of any integral multiple of $5,000 at the request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon surrender thereof for cancellation. If any Bond or portion thereof (other than the Initial Bond) is assigned and transferred or converted, each Bond issued in exchange therefor s',all have the same principal maturity date and bear interest at the same rate as the Bond for which it is being exchanged. Each substitute Bond shah bear a letter and/or number to distinguish it from each other Bond. The Paying Agent/Registrar shall convert and exchange or replace Bonds as provided herein, and each fully registered bond delivered in conversion of and exchange for or replacement of any Bond or portion thereof as permitted or required by any provision of this Ordinance shb.ll constitute one of the Bonds for all purposes of this Ordinances, and may again be converted and exchanged or replaced. It is specifically provided that any Bond authenticated in conversion of and exchange for or replacement of another Bond on or prior to the first scheduled Record Date for the Initial Bond shall bear interest from the date of the Initial Bond, but each substitute Bond so authenti- cated after such first scheduled Record Date shall bear inter- est from the interest payment date next preceding the date on which such substitute Bond was so authenticated, unless such Bond is authenticated after any Record Date but on or before the next following interest payment date, in which case it shall bear interest from such next following interest payment 9 .1 i date; provided, however, that if at the time of delivery of any ` substitute Bond the interest on the Bond for which it is being exchanged is due but has not been paid, then such Bond shall bear interest from the date to which such interest has been paid in full. THE INITIAL BOND issued and delivered pursuant to this ordinance is not required to be, and shall not be, authenticated by the Paying Agent/Registrar, but on each substitute Bond issued in conversion of and exchange for or replacement of any Bond or Bonds issued under this Ordinance f there shall be printed a certificate, in the form substantially as follows: "PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described on the face of this Bond; and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. TEXAS AMERICAN BANK/FORT WORTH, N.A., FORT WORTH, TEXAS Paying Agent/Registrar Dated By Authorized Representative" An authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Bond, date and manually sign the above Certificate, and no such Bond shall be deemed to be issued or outstanding unless such Certificate is so ex- ecuted. The Paying Agent/Registrar promptly shall cancel all Bonds surrendered for conversion and exchange or replacement. No additional ordinances, orders, or resolutions need be passed or adopted by the governing body of the issuer or any other body or person so as to accomplish the foregoing conversion and exchange or replacement of any Bond or portion thereon, and the Paying Agent/Registrar shall provide for the printing, execu- tion, and delivery of the substitute Bonds in the manner prescribed herein, and said Bonds shall be of type composition printed on paper with lithographed or steel engraved borders of customary weight and strength. Pursuant to Vernon's Ann. Tex. Civ. St. Art.. 717k-6, and particularly Section 6 thereof, the duty of conversion and exchange or replacement of Bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of the above Paying Agent/Registrar's Authentication Certificate, the converted and exchanged or replaced Bond shall be valid, incontestab]e, and enforceable in the same manner and with the same effect as the Initial Bond which originally was issued pursuant to this Ordinance, ap- proved by the Attorney General, and registered by the comptroller of Public Accounts. The issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging any Bond or any portion thereof, but the one requesting any such transfer+ conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition precedent to the exercise of such privilege of conversion and exchange. The paying Agent/Registrar shall not be required to make any such conversion and exchange or replacement of Bonds or any portion thereof (i) during the period commencing with the close of business on any Record Date and ending or with t interest opening of business on the next following principal payment date, or, (ii) with respect to any Bond or portion E 10 i1 thereof called for redemption prior to maturity, within 45 days prior to its redemption date. (e) In General. All Bonds issued in conversion and exchange or rep acement of any other Bond or portion thereof, (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be redeemed prior to their scheduled maturities, (iii) may be `.ransferred and assigned, (iv) may be converted and exchanged for other Bonds, (v) shall have the characteristics, (vi) shall be signed and sealed, and (vii) the principal of and interest on the Bonds shall be payable, all as provided, and in the manner required or indicated, in the FORM OF SUBSTITUTE BOND ' set forth in this Ordinance. (f) Patent of Fees and Charges. The issuer hereby covenants with the registered owners o the Bonds that it will (i) pay the standard or customary fees and charges of the Paying Agent/Registrar for its services with respect to the payment of the principal of and interest on the Bonds, when due, and (ii) pay the fees and charges of the Paying Agent/Registrar for services with respect to the transfer of registration of Bonds, and with respect to the conversion and exchange of Bonds solely to the extent above provided in this Ordinance. (g) Substitute Paying Agent /Reistrar. The Issuer f covenants w th the registered owners o the Bonds that at all times while the Bonds are outstanding the issuer will provide a competent and legally qualified bank, trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Bonds under this Ordinance, and that the Paying Agent/Registrar will be one entity. The r issuer reserves the right to, and mav, at its option, change the Paying Agent/Registrar upon not less than 120 days written notice to the Paying Agent /Registrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method) should resign or other- wise cease to act as such, the issuer covenants that promptly it will appoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying Age-.,t/Regis- trar promptly shall transfer and deliver the Regist•ation Books (or a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Regis- trar designated and appointed by the issuer. Upon any change in the Paying Agent/Registrar, the issuer promptly will cause a written notice thereof to be sent by the new Paying Agent/Regi- strar to each registered owner of the Bonds, by United States Mail, first-class postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Regis- trar shall he deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar. Section 7. FORM OF SUBSTITUTE BONDS. The form of all Bonds issued in conversion and exchange or replacement of any other Bond or portion thereof, including the form of Paying Agent/Registrar's Certificate to be printed on each of such Bonds, and the Fo-m of Assignment substantially as follows, with Bonds, shall be, respectively, such appropriate variations, omissions, or insertions as are permitted or required by this Ordinance. I 11 r. FORM OF SUBSTITUTE BOND NO. UNITED STATES OF AMERICA PRINCIPAL AMOUNT STATE OF TEXAS $ COUNTY OF DENTON CITY OF DENTON UTILITY SYSTEM REVENUE BOND SERIES 1984 INTEREST RATE MATURITY DATE CUSIP NO. 8 ON THE MATURITY DATE specified above the CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a a political subdivision of the State of Texas, hereby promises to pay to or to the registered assignee hereof (either a ng ereina ter called the "registered owner") the principal asnaount of and to pay interest thereon from MARCH 1, 1984, to the maturity date specified above, or the date of redemption prior to maturity, at the interest rate per annum specified above; with interest being payable on DECEMBER It 1984, and semiannually on each JUNE 1 and DECEMBER 1 thereafter, except that if the date of authentication of this Bond is later than NOVEMBER 15, 1984, such principal amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date (herein- after defined) but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date. THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity. at the principal corporate trust office of TEXAS AMERICAN HANK/FORT WORTH, N.A., FORT WORTH, TEXAS, which is the "Paying Agent /Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent /Registra: to the registered owner hereof on each interest payment date by check or draft, dated as of such interest payment date, drawn by the Payirg Agent/Registrar on, and payable solely from, funds of the issuer required by the resolution authorizing the issuance of the Bonds (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check or draft shall be sent by the Paying Agent/Registrar by United States Mail, first-class postage prepaid, on each such interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared on the 15th of the month 4 next preceding each such date (the Record Date") on the ` Registration Books kept by the Paying Agent/Registrar, as hereinafter described. Any accrued interest due upon the redemption of this Bond prior to maturity as provided herein shall be paid to the registered owner at the principal corpor- ate trust office of the Paying Agent/Registrar upon presen- tation and surrender of this Bond for redemption and payment at ` the principal corporate trust office of the Paying Agent/Regis- ownr of registered The Issuer covenants with the meet dater ri t re St Bond that on or before each principal s Bond payment date, and accrued interest pameat payment date te fo for r, from the it will make available to the Paying g immedi tely the amountssrequiredn ton prav de cforreatedthebypaymentthe i Or 12 available funds, of all principal of and interest on the Bonds, when due. IF THE DATE for the payment of the principal of or inter- est on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent/Registrar is located are authorized by ls.w or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was flue. THIS BOND is one of an issue of Bonds initially dated MARCH It 1984, authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $10000,000, FOR THE PURPOSE OF PROVIDING FUNDS TO IMPROVE THE CITY'S UTILITY SYSTEM, WHICH CONSISTS OF THE CITY'S COMBINED WATERWORKS, SEWER, AND ELECTRIC LIGHT AND POWER SYSTEM. ON DECEMBER If 1994, or on any interest payment date thereafter, the Bonds of this Series may be redeemed prior to their scheduled maturities, at the option of the Issuer, with funds derived from any available and lawful source, as a whole, or in part, and, if in part, the particular Bonds, or portions thereof, to be redeemed shall be selected and designated by the Issuer (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000), at the redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for redemption. i 'r AT LEAST 30 days prior to the date fixed for any redemp- tion of Bonds or portions thereof prior to maturity a written ! notice of such redemption shall be published once in a finan- cial publication, journal, or reporter of general circulation among securities dealers in The City of New York, New York (including, but not limited to, The Bond Buyer and The Wall Street Journal), or in the state of Texas (including, but not limited to, The Texas Bond Reporter). Such notice also shall be sent by the Paying Agent/Registrar by United States Mail, first-class postage prepaid, not less than 30 days prior to the date fixed for any such redemption, to the registered owner of each Bond to be redeemed at its address as it appeareO on the 45th day prior to such redemption date; provided, however, that the failure to send, mail, or receive such notice, or any dofect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness cf the proceedings for the redemption of any Bond, and it is hereby specifically provided that the publication of such notice as required above shall be the only notice actually required in connection with or as a prerequisite to the redemption of any Bonds or portions there- of. By the date fixed for any such redemption duo provision shall be made with the Paying Agent/Registrar for the payment of the required redemption price for the Bonds or portions thereof which are to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such written notice of redemption is published and if due provision for such payment is made, all as provided above, the Bonds or portions thereof which are to be so redeemed thereby automatically shall be treated as redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemp- tion, and they shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest from the Paying Agent/- Registrar out of the funds provided for such payment. If a portion of any Bond shall be redeemed a sibstitute Bond or Bonds having the same maturity date, bearing interest at the 13 r f same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered I owner, and in aggregate principal amount equal to the unre- deemed portion thereof, will be issued to the registered owner I upon the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the Bond Ordinance. THIS BOND OR ANY PORTION OR PORTIONS HEREOF IN ANY INTE- GRAL MULTIPLE OF $5,000 may be assigned and shall be trans- ferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance. Among other requirements for such assignment and trangier, this Bond must be presented and surren~ered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfac- tory to the Paying Agent /Registrar, evidencing assignment of this Bond or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered. The form of Assignment printed or endorsed on this Bond shall be executed by the registered owner or its duly authorized attorney or representa- tive,to evidence the assignment hereof. A new Bond or Bonds payable to such assignee or assignees (which then will he the new registered owner or owners of such new Bond or Bonds), or to the previous registered owner in the case of the assignment and transfer of only a portion of this Bond, may be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond, all in the form and manner as provided in the next paragraph hereof for the conversion and exchange of other Bonds, The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for making such trans- fer, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of this Bond or any portion hereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, Iii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary. ALL BONDS OF THIS SERIES are issuable solely as fully registered bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Bond Ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the registered owner or the assignee or as- signees hereof, be converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the care may be, having the same maturity date, and bearing interes. at the same rate, in any denomination or denominations in any integral multiple of $50000 as requested in writing by the appropriate registered owner, assignee, or assignees, as the case may be, upon sur- render of this Bond to the Paying Agent/Registrar for cancella- tion, a)]. in ~Iccordance with the form and procedures set forth in the Bond Ordinance. The Issuer shall pad the Paying Agent /Registrar's standard or customary fees and charges any transferring, converting, and exchanging any d o y 14 portion thereof, but the one requesting such transfer, conver- sion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition prece- dent to the exercise of such privilege of conversion and exchange. The Paying Agent/Registrar shall not be required to make any such conversion and exchange. (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following F principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns, or otherwise ceases to act as such, the issuer has covenanted in the Bond ordinance that it promptly will appoint a competent and legally qualified substi- tute therefor, and promptly will cause written notice thereof to be mailed to the registered owners of the Bonds. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly authorized, issued, sold,and de- livered; that all acts, conditions, and things required or proper to be performed, exist, and be done prececent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Pond is a special obligation of the Issuer, secured by and payable, together with other bonds, from a first lien on and pledge of the "Pledged Revenues", which include initially the "Net Revenues of the System", as such terms are defined in the Bond Ordinance, with the System consisting of the City's entire combined waterworks, sewer, and electric light and power system. THE ISSUER has reserved the right, subject to the restric- tion stated in the Bond Ordinance, to issue Additional Bonds payable from and secured by a first lien on and pledge of the "Pledged Revenues" on a parity with this Bond and series of which it is a part. THE REGISTERED OWNER hereof shall never have the right to demand payment of this Bond or the interest hereon out of any funds raised or to be raised by taxation or from any source whatsoever other than specified in the Bond Ordinance. BY BECOMING v.he registered owner of this Bond, the regis- tered owner thereby acknowledges all of the terms and provi- sions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the issuer* and agrees that the terms and provisions of this Bond and the Bond ordi- nance constitute a contract between each registered owner hereof and the issuer. IN WITNESS WHEREOF, the issuer has caused this Bond to be signed with the facsimile signature of the Mayor of the issuer and countersigned with the facsimile signature of the City secretary of the Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile, on this Bond. (facsimile signature) ) _ _ (facsimile signature} City Secretary, City ofaDenton# Texas City of Denton, Texas (CITY SEAL) 15 f ~I FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described on the face of this Bond; and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. TEXAS AMERICAN BANK/FORT WORTH, N.A., FORT WORTH, TEXAS Paying Agent/Registrar Dated By Aut or.ze Representat ve FORM OF ASSIGNMENT: ASSIGNMENT For value received, the undersigned registered owner of this Fonr1, or duly authorized representative or attorney thereof, hereby assigns this Bond to j (print or type the name and address of the assignee and any other relevant information) and authorizes the Paying Agent/Registrar to transfer the registration of this Bond in the Registration Books. I Dated Registers Owner The signature above is hereby verified as true and genuina. Section 8. DEFINITIONS. As used in this Ordinance the following terms shall have the meanings set forth below, unless the text hereof specifically indicates otherwise: (a) The terms "City" and "Issuer" shall meat the City of Denton, in Denton County, Texas, (b) The term "City council" or "Council" shall mean the governing body of the City. (c) The term "Bonds" shall mean collectively the Initial Bond as defined and described in Section 1 of this Ordinance and all substitute bonds exchanged therefor as provided in this Ordinance. (d) The term "Parity Bonds" shall mean collectively (i) the City of Denton Utility System Revenua Refunding Revenue Bonds, Series 1983, authorized by ordinance passed on march 10, ' 1983 (the Series 1983 Bonds) and (ii) the Bonds. !I M 16 rf (e) The term "Additional Bonds" shall mean the additional parity revenue bonds which the City reserves the right to issue in the future, in accordance with Section 25 of this Ordinance. (f) The term "System" shall mean (1) the City's entire existing waterworks and sewer system and the City's entire existing electric light and power system, together with all future extensions, improvements, enlargements, and additions thereto, and all replacements thereof, and (2) any other related facilities, all or any part of the revenues or income from which do, in the future, at the option of the City, and in accordance with law, become "Pledged Revenues" as hereinafter defined; provided that, notwithstanding the foregoing, and to the extent now or hereafter authorized or permitted by law, the term system shall not inean any water, sewer, electric, or other facilities of any kind which are declared not to be a part of the System, and which are acquired or constructed by the City with the proceeds from the issuance of "Special Facilities Bonds", which are hereby defined as being special revenue obligations of the City which are not payable from or secured I by any Pledged Revenues, but which are secured by and payable from liens on and pledges of any other revenues, sources, or payments, including, but not limited to, special contract revenues or payments received from any other legal entity in connection with such facilities; and such revenues, sources, or payments shall not be considered as or constitute Gross Rev- enues of the System, unless and to the extent otherwise pro- vided in the ordinance or ordinances authorizing the issuance of such "Special Facilities Bonds". (g) The terms "Gross Revenues of the System" and "Gross Revenues" shall mean all revenues and income of every nature derived or received by the city from the operation and owner- ship of the System, including the interest income from the investment or deposit of money in any Fund created by this 0 ordinance. (h) The terms "Net Revenues of the System", and "Net Revenues" shall mean all Gross Revenues after deducting there- from an amount equal to the current expenses of operation and maintenance of the system, including all salaries, labor, materials, repairs, and extensions necessary to render effi•- cient service, provided, however, that only such repairs and extensions, as in the judgment of the City council, reasonably and fairly exercised by the adoption of appropriate resolu- tions, are necessary to keep the system in operation and render adequate service to said city and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair the Bonds or Additional Bonds, shall be deducted in determining "Net Revenues". Payments required to be made by the City for water supply or water facilities, sewer services or sewer facilities, fuel supply, and for the purchase of electric power, which payments under law constitute operation and maintenance expenses of any part of the System, shall constitute and be regarded as ex- penses of operation and maintenance of the system under this ordinance. Depreciation and amortization shall not constitute or be regarded as expenses of operation and maintenance of the System. M The term ,pl,,dged Revenues" shall mean (1) the Net Revenues, plus (2) any additional revenues, income, or other resources which are expected to be available to the without City on a regular'periodic basis# donations,iorlincome received limitation, any grants, 17 rl or to be received from the United States Government, or any other public or private source, whether pursuant to an agreement or otherwise, which in the future may, at the option of the City, be pledged to the payment of the Parity Bonds or Additional Bonds. (j) The term "year" or "fiscal year" shall mean the fiscal year used by the City in connection with the operation of the System. (k) The term "Government Obligations" shall mean direct obligations of the United States of America, including obliga- tions the principal of and interest on which are uncondition- ally guaranteed by the United States of America, which may be United States Treasury obligations such as its State and Local Government Series, and which may be in book-entry form. Section 9. PLEDGE. (a) The Bonds are "Additional Bonds" as permitted by Sections 29 and 25 of the ordinance passed on March 10, 1903, authorizing the Series 1983 Bonds; and it is hereby determined, declared, and resolved that the Bonds an3 the Series 1983 Bonds (collectively the "Parity Bonds") are j secured and payable equally and ratably on a parity, and that Sections 8 through28; of this ordinance are supplemental to and cumulative of Sections 7 through 27 of the aforesaid ordinance passed on March 10, 1983, with Sections 8 through 28 of this Ordinance being applicable to all of the Parity Bonds. (b) The Parity Bonds and any Additional Bonds, and the interest thereon, including any interest coupons appertaining thereto, are and shall be secured by and payable from a first lien on and pledge of the Pledged Revenues, and the Pledged Revenues are further pledged to the establishment and mainte- nance of the Funds created by this Ordinance, and any Funds created by any ordinance authorizing the issuance of any Additional Bonds. The Parity Bonds and any Additional Bonds are not and will not be secured by or payable from a mortgage or deed of trust on any real, personal, or mixed properties constituting the System. Section 10. SYSTEM FUND. There heretofore has been and is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart from all other funds of the City, a special fund to be entitled the "City of Denton Utility System Fund" (the "System Fund"). All Gross Revenues shall be credited to the System Fund immedi- ately upon receipt, unless otherwise provided in this ordi- nance. All current expenses of operation and maintenance of the System shall be paid from such Gross Revenues credited to the system Fund as a first charge against same. Before making any deposits hereinafter required to be made from the System Fund, the City shall retain in the System Fund at all times an amount at least equal to one-sixth of the amount budgeted for the then current fiscal year for the current operation any' maintenance expenses of the System. 'I Section 11. INTEREST AND SINKING FUND. For the sole purpose of paying the principal of and interest on all Parity Bonds and Additional Bonds, there heretofore has been and is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and apart ` from all othar funds of the City, a separate fund to be en- titled the "City of Denton Utility System Revenue Bonds Inter- est and Sinkinc Fund" (the "Interest and Sinking Fund"). Section 12. RESERVE FUND. There heretofore has been and is hereby created and there shall be established and maintained initially at Texas American Bank/Fort Worth, N.A., Fort Worth, 18 r Texas, and thereafter, at the option of the City, established and maintained at any time at any national bank having a capital and surplus in excess of $25,000,000, a separate fund to be entitled the "City of Dencon Utility System Bonds and Additional Bonds Reserve Fund" (the "Reserve Fund"). The Reserve Fund shall be used to pay the principal of and interest on any Parity Bonds or Additional Bonds when and to the extent the amounts in the Interest and Sinking Fund available for such payment are insufficient for such purpose, and may be used for the purpose of finally retiring the last of any Parity Bonds or Additional Bonds. Section 13. EXTENSION AND IMPROVEME14T FUND. There heretofore has been and is hereby created and there shall be f' established and maintained on the books of the City, and accounted for separate and apart from all other funds of the j City, a separate fund to be entitled the "City of Denton Utilitv Svstem Extension and Improvement Fund" (the "Extension and Improvement Fund"). The Extension and Improvement Fund shall be used for the purpose of paying the costs of improve- ments, enlargements, extensions, additions, replacements, or other capital expenditures related to the System, or for paying the costs of unexpected or extraordinary repairs or replace- ments of the System for which System funds are not available, or for paying unexpected or extraordinary expenses of operation and maintenance of the System for which System funds are not otherwise available, or for any other lawful purpose. t Section 14. EMERGENCY FUND. There is hereby creit.d and there shall be established and maintained on the books of the r City, and accounted for separate and apart from all other funds of the City, a separate fund to be entitled the "City of Denton Utility System Emergency Fund" (the "Emergency Fund"). The Emer-ency Fund shall be used for the purpose of paying unex- pected or extraordinary expenses of repair, replacement, operation, and maintenance of the System for which neither System funds nor the moneys in the Extension and Improvement Fund are available. There was deposited in the Emergency Fund simultaneously with the delivery of the Series 1983 Bonds to the initial purchasers thereof from lawfully available funds of ! the City the amount of $250,000. All investment interest income from the Emergency Fund shall be transferred to the ? System Fund as received. f I Section 15. DEPOSITS OF PLEDGED REVENUES. Pledged Revenues shall be credited to or deposited in the Interest and h Sinking Fund, the Reserve Fund, the Extension and Improvement Fund, and other funds when and as required by this Ordinance and any ordinance authorizing the issuance of Additional Bonds. Section 16. INVESTMENTS. Money in any Fund established pursuant to this Ordinance or any ordinance authorizing the issuance of Additional Bonds, may, at the option of the City, E be placed in time deposits or certificates of deposit secured by obligations of the type hereinafter described, or be in- vested in Government Obligations (as defined in Section 8 hereof) or obligations guaranteed or insured by the United E States of America, which, in the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in obligations of instrumentalities of the United States of America, including, but not limited to, evidences of indebted- ness issued, insured, or guaranteed by such governmental ! agencies as the Federal Land Banks, Federal Intermediate Credit i 1 Banks, Banks for Cooperatives, Federal Home Loan Banks, Govern- ment National Mortgage Association, United States Postal Service, Farmers Home Administration, Federal Home Loan Mort- gage Association, Small Business Administration, Federal ! f' 19 Housing Association, or Participation Certificates in the Federal Assets Financing Trust; provided that all such deposits and investments shall be made in such manner as will, in the opinion of the City, permit the money required to be expended from any Fund to be available at the proper time or times as expected to be needed. Such investments (except United States Treasury Obligations--State and Local Government Series investments held in book Entry form, which shall at all times F be valued at cost) shall be valued in terms of current market value as of the last day of each fiscal year. Unless otherwise set forth herein, all interest and income derived from such deposits and investments immediately shall be credited to, and any losses debited to, the Fund from which the deposit or p investment was made, and surpluses in any Fund shall or may be disposed of as hereinafter provided. Such investments shall be sold promptly when necessary to prevent any default in connection with the Parity Bonds or Additional Bonds consistent with the ordinances, respectively, authorizing their issuance. Section 17. FUNDS SECURED. That money in all Funds created by this Ordinance, to the extent not invested, shall be secured in the manner prescribed by law. Section 18. PRIORITY OF DEPOSITS AND PAYMENTS FROM SYSTEM FUND. That the City shall make the deposits and payments from Pledged Revenues in the System Fund when and as required by this Ordinance and any ordinance authorizing any Additional Bonds, and such deposits shall be made in the following manner and with the following irrevocable priorities, respectively: First, to the Interest and Sinking Fund, when and in the amounts required by this Ordinance and any ordinance authorizing any Additional Bonds; Second, to the Reserve Fund, when and in the amounts required by this ordinance and any ordinance authorizing any Additional Bonds; and Third, to the Extension and Improvement Fund, when and as required by Section 21 of this ordinance. Section 19. INTEREST AND SINKING FUND REQUIREMENTS. The City shall cause to be deposited to the credit of the Interest and Sinking Fund the accrued interest and any premix-n received from the sale of the Initial Bond, and on or before the 25th day of each month the City shall cause to be deposited to the credit of the Interest and Sinking Fund, in approximately equal monthly payments, amounts sufficient, together with any other funds on hand therein, to pay all of the interest or principal and interest coming due, including the principal amount of any Parity Bonds required to be redeemed prior to maturity pursuant to any mandatory redemption requirements, on the Parity Bonds and any Additional Bonds on the next succeeding interest payment date. Any moneys so deposited in the Interest and Sinking Fund with respect to a mandatory redemption require- ment, together with other lawfully available funds of the City, may be used by the City, to purchase, in advance of a mandatory redemption date and at a price not exceeding the principal amount thereof plus accrued interest thereon to the date of purchase, Parity Bonds which would be subject to being chosen { for mandatory redemption on such mandatory redemption date. The Paying Agent shall cancel any Parity Bonds so purchased. , Section 20. RESERVE FUND REQUIREMENTS. There is now on i hand in the Reserve Fund an amount of money and Government Obligations equal to $3,000,000. The City shall maintain in the Reserve Fund an amount of money and investments equal to the lesser of $3,000,000 or the maximum annual principal and i. 20 rv ard, awn.. F x' interest requirements of the Parity Bonds (the "Required Reserve Amount"). Following the issuance of Additional Bonds, the Required Reserve Amount shall be equal to the average annual principal and interest requirements of all Parity Bonds and Additional Bonds then outstanding; provided, however, the Required reserve Amount shall not be less than $3,000,000, if the maximum annual principal and interest requirements on all Parity Bonds and Additional Bonds outstanding exceeds $3,000,000. After the delivery of any Additional Bonds the City shall cause the Reserve Fund to be increased, if and to the extent necessary, so that such fund will contain an amount of money and investments equal to the Required Reserve Amount. Any increase in the Required Reserve Amount may be funded from Pledged Revenues, or from proceeds from the sale of any Addi- tional Bonds, or any other available source or combination of ' sources. All. or any part of the Required Reserve Amount not funded initially and immediately after the delivery of any installment or issue of Additional Bonds shall be funded, within not more than five years from the date of such delivery, by deposits of Pledged Revenues in approximately equal monthly installments on or before the 25th day of each month. Princi- pal amounts of the Parity Bonds and any Additional Bonds which must be redeemed pursuant to any applicable mandatory redemp- tion requirements shall be deemed to be maturing amounts of principal for the purpose of calculating principal and interest requirements on such bonds. When and so long as the amount in the Reserve Fund is not less than the Required Reserve Amount no deposits shall be made to the credit of the Reserve Fund; but when and if the Reserve Fund at any time contains less than the Required Reserve Amount, then the City shall transfer from Pledged Revenues in the System Fund, and deposit to the credit of the Reserve Fund, monthly on or before the 25th day of each month, a sum equal to 1/60th of the Required Reserve Amount, until the Reserve Fund is restored to the Required Reserve Amount. The City specifically covenants that when and so long as the Reserve Fund contains the Required Reserve Amount, the City shall cause all interest and income derived from the deposit or investment of the Reserve Fund to be deposited to the credit of the Interest and Sinking Fund. Section 21. EXTENSION AND IMPROVEMENT FUND REQUIREMENTS. During each year, subject and subordinate to making the re- quired deposits to the credit of the Interest and Sinking Fund and the Reserve Fund, the City shall be required to deposit to the credit of the Extension and Improvement Fund, from Pledged Revenues in the System Fund, an amount equal to 8% of the "Adjusted Gross Revenues of the System", which term is hereby defined to mean the following: the Gross Revenues of the System for such year after deducting from such Gross Revenues an amount equal to the current expenses of operation and maintenance of the System for such year which are directly attribut- able to (i) all fuel costs related to the production of electric energy by the city and/or (ii) the pur- chase of electric energy by the City. Additional excess Pledged Revenues may, at the option of the City Council, be deposited to the credit of the Improvement Fund as permitted by Section 22 (b) hereof, but no such addi- tional deposit is required. All investment interest income from the Extension and Improvement Fund shall be retained in and remai a part of such Fund. Sec..ir-n 22. DEFICIENCIES; L'i'ESS PLEDGED REVENUES. (a) If on any occasion there shall not be sufficient Pledged Revenues Zo make the required deposits into the Interest and Sinking Fund or the Reserve Fund, such deficiency shall be made i 21 arr~ - ~ up as soon as possikle from the next available Pledged Rev- enues. (b) Subject to making the required deposits to the credit of the various Funds when and as required by this Ordinance or any ordinance authorizing the issuance of Additional Bonds, any surplus Pledged Revenues may be used by the city for any lawful purpose. Section 23. PAYMENT OF PARITY BONDS AND ADDITIONAL BONDS. On or before June 1, 1984, and semiannually on or before each December 1 and June 1 thereafter while any of the Parity Bonds or Additional Bonds are outstanding and unpaid the City shall make available to the Paying Agents therefor, out of the interest and Sinking Fund, or if necessary, out of the Reserve Fund, money sufficient to pay, on each of such dates, the principal of and interest on the Parity Bonds and Additional Bonds as the same matures and comes due, or to redeem the Parity Bonds or Additional Bonds prior to maturity, either upon mandatory redemption or at the option of the City. At the direction of the City the Paying Agents shall either deliver paid Parity Bonds and Additional Bonds, and any interest coupons appertaining thereto, to the City or destroy all paid ' Parity Bonds and Additional Bonds, and any coupons appertaining thereto, and furnish the City with an appropriate certificate of cancellation or destruction. Section 24. FIVAL DEPOSITS. (a) Any Parity Bond or Additional Bond shall be cdaemed to be paid, retired, and no longer outstanding within the meaning of this Ordinance when payment of the principal of, redemption premium, if any, on such Parity Bond or Additional Bond, plus interest thereon to the due date thereof (whether such due date be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (including the giving of any required notice of redemp- tion or prevision for the proper giving of such notice having been madc), or (ii) shall have been provided by irrevocably depcbiting with or making available to a Paying Agent therefor, in trust and irrevocably set aside exclusively for such pay- ment, (1) money sufficient to make such payment or (2) Govern- ment obligations which mature as to principal and interest in such amounts and at such times as will insure the availability, i without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation, and expenses of such Paying Agent pertaining to the Parity Bonds and Addi- tional Bonds with respect to which such deposit is made shall have been paid or the payment thereof provided for to the satisfaction of such paying agent. At such time as a Bond or Additional Bond shall be deemed to be pad hereunder, as aforesaid, it shall no longer be secured by or entitled to the benefits of this Ordinance or a lien on and pledge of the Pledged Revenues, and shall be entitled to payment solely from such money or Government Obligations. h (b) Any moneys so deposited with a paying agent may at the direction of the city also be invested in Government Obligations, maturing in the amounts any] times as hereinbefore set forth, and all income from all Government Obligations in the hands of the paying agent pursuant to this Section which is not required for the payment of the Parity Bonds "-nd Additional Bonds, the redemption, premium, if any, and interest thereon, with respect to which such money has been so deposited, shall be turned over to the city or deposited as directed by the City. Section 25. ADDITIONAL BONDS. (a) The City shall have ( the right and power at any time and from time to time, and in i 22 l jj E one or more series or issues, to authorize, issue, and deliver additional parity revenue bonds (herein called "Additional Bonds"), in accordance with law, in any amounts, for any lawful purpose, including the refunding of any Parity Bonds or Addi- tional Bonds, or other obligations. Such Additional Bonds, if and when authorized, issued, and delivered in accordance with this Ordinance, shall be payable from and secured by an irrev- ocable first lien on and pledge of the Pledged Revenues, equally and ratably on a parity in all respects with the Parity Bonds and any other outstanding Additional Bonds. (b) The principal of all Additional Bonds must be scheduled to be paid or mature on Dece,uber 1 of the years in which such principal is scheduled to be paid or mature. Section 26. FURTHER REQUIREMENTS FOR ADDITIONAL BOND. Additional Bonds shall be issued only in accordance with this Ordinance, and no installment, Series, or issue of Additional Bonds shall be issued or delivered unless: (a) The Mayor of the City and the City Secretary sign a written certificate to the effect that the City is not in default as to any covenant, condition, or obligation in connec- tion with all then outstanding Parity Bonds ar:-? Additional Bonds, and the ordinances authorizing same, and that the Interest and Sinking Fund and the Reserve Fund each contains the amount then required to be therein. (b) An independent certified public accountant, or in- dependent firm of certified public accountants, acting by and through a certified public accountant, signs a written certifi- cate to the effect that, in his or its opinion, during either the next preceding fiscal year, or any twelve consecutive calendar month period out of the 18-month period immediately preceding the month in which the ordinance authorizing the issuance o'' the then proposed Additional Bonds is passed, the Pledged Revenues were at least (i) 1.25 times an amount equal to the average annual principal and interest requirements, and (ii) 1.10 times an amount equal to the principal and interest requirements during the fiscal year during which such require- ments are scheduled to be the greatest, of all Parity Bonds and ` Additional Bonds which are scheduled to be outstanding after the delivery of the then proposed Additional Bonds. It is specifically provided, however, that in calculating the amount of Pledged Revenues for the purposes of this subsection (b), if there has been any increase in the rates or charges for ser- vices of the System which is then in effect, but which was not in effect during all or any part of the entire period for which the Pledged Revenues are being calculated (hereinafter referred to as the "entire period") then the certified public account- ant, or in lieu of the certified public accountant a firm of consulting engineers, shall determine and certify the amount of Pledged Revenues as being the total of (i) the actual Pledged Revenues for the entire period, plus (ii) a sum equal to the aggregate amount by which the actual billings to customers of the System during the entire period would have been increased if such increased rates or charges had been in effect during the entire period. (c) Provision shall be made in the ordinance authorizing their issuance for increasing the Reserve Fund to the Required Reserve Amount as required by Section 20 hereof. (e) All calculations of average annual principal and interest requirements of any bonds made in connection with the issuance of any then proposed Additional Bonds shall be made ar of the date of such Additional Bonds; and also in making calculations for such purpose, and for any other purpose under f 23 c this Ordinance, principal amounts of any bonds which must be E redeemed prior to maturity pursuant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal of such bonds. Section 27. GENERAL COVENANTS. The City further cove- nants and agrees that in accordance with and t-, the extent t required or p3rmitted by law: r (a) Performance. It will faithfully perform at all times any and all covenants, undertakings, stipulations, and provi- sions contained in this Ordinance, and each ordinance authoriz- ing the issuance of Additional Bonds, and in each and every Parity Bond and Additional Bond; that it will promptly pay or cause to be paid the principal of and interest on every Parity Bond and Additional Bond, on the dates and in the places and manner prescrihed in such ordinances and Parity Bonds or Additional Bonds; and that it will, at the times and in the manner prescribed, deposit or cause to be deposited the amounts required to be deposited into the Interest and Sinking Fund and the Reserve Fund; and any holder of the Parity Bonds or Addi- tional Bonds may require the City, its officials, and em- ployees, to carry out, respect, or enforce the covenants and obligations of this Ordinance, or any ordinance authorizing the issuance of Additional Bonds, by all legal and equitable means, including specifically, but without limitation, the use and filing of mandamus proceedings, in any court of competent jurisdiction, against the City, its officials, and employees. (b) Cit 'y s Legal Authority. The City is a duly created and existing home rule city of the State of Texas, and is duly authorized under the laws of the State of Texas to create and issue the Parity Bonds and Additional Bonds; that all action on its part for the creation and issuance of the said obligations has been or will be duly and effectively taken, and that said obligations in the hands of the holders and owners thereof are and will be valid and enforceable special obligations of the City in accordance with their terms. (c) Title. The City,has or will obtain lawful title to the lands, buildings, structures, ane. facilities constituting the System, that it warrants that it will defend the title to all the aforesaid ?.ands, buildings, structures, and facilities, and every part thereof, for the benefit of the holders and owners of the Parity Bonds and Additional Bonds, against the claim:; and demands of all persons whomsoever, that it is lawfully qualified to pledge the Pledged Revenues to the payment of the Parity Bonds and Additional Bonds in the manner prescribed herein, and has lawfully exercised such rights. (d) Liens. The City will from time to time and before the same become delinquent pay and discharge all taxes, assess- ments, and governmental charges, if any, which shall be law- fully imposed upon it, or the system, that it will pay all lawful. claims for rents, royalties, labor, materials, and supplies which if unpaid might by law become a lien or charge thereon, the lien of which would be prior to or interfere with the liens hereof, so that the priority of the liens granted hereunder shall be fully preserved in the manner provided herein, and that it will not create or suffer to be created any mechanic's, laborer's, materialman's, or other lien or charge which might or could be prior to the liens hereof, or do or suffer any matter or thing whereby the liens hereof might or could be impaired; provided, however, that no such tax, assess- ment, or charge, and that no such claims which might be used as the basis of a mechanic's, laborer's, materialman's, or other lien or charge, shall be required to be paid so among as the 24 i i validity of the same shall be contested in good faith by the City. (e) Operation of System; No Free Service. While the Parity Bonds or any Additional Bonds are outstanding and unpaid the City shall continuously and efficiently operate the System, j and shall maintain the System in good condition, repair, and working order, all at reasonable cost. No free service of the System shall be allowed, and should the City or any of its agencies, instrumentalities, lessors, or concessionaires make use of the services and facilities of the System, payment monthly of the standard retail price of the services provided ► shall be made by the City or any of its agencies, instrumen- talities, lessors, or concessionaires out of funds from sources ` other than the revenues of the System, unless made from surplus Pledged Revenues as permitted by Section 22(b) hereof. (f) Further Encumbrance. While the Parity Bonds or any Additional Bonds are outstan tng and unpaid, the City shall not additionally encumber the Pledged Revenues in any manner, except as permitted in this Ordinance in connection with Additional Bonds, unless said encumbrance is made junior and subordinate in all respects to the liens, pledges, covenants, and agreements of this Ordinance and any ordinance authorizing the issuance of Additional Bonds; but the right of the City to issue revenue bonds payable from a subordinate lien on surplus Pledged Revenues is specifically recognized and retained, as i permitted under Section 22(b) hereof). (g) Sale or Disposal of Property. While the Parity Bonds or any Additional Bonds are outstanding and unpaid, the City shall not sell, convey, mortgage, encumber, lease, or in any manner transfer title to, or dedicate to other use, or other- wise dispose of, the System, or any significant or substantial part thereof; provided that whenever the City deems it neces- sary to dispose of any property, machinery, fixtures, or equipment, or dedicate such property to other use, :t may do so either when it has made arrangements to replace the same or provide substitutes therefor, or it is determined by resolution of the City Council that no such replacement or substitute is necessary. (h) Insurance. (1) The City shall cause to be insured such parts of the System as would usually be insured by corpor- ations operating like properties, with a responsible insurance company or companies, against risks, accidents, or casualties against which and to the extent insurance is usually carried by corporations operating like properties, including, to the extent reasonably obtainable, fire and extended coverage insurance, insurance agair~t damage by floods, and use and occupancy insurance. Public liability and property damage insurance also shall be carried unless the City Attorney gives a written opinion to the effect that the city is not liable for claims which would be protected by such insurance. All insur- ance premiur,'s shall be paid as an expense of operation of the System. At any time while any contractor engaged in cvnstruc•- tion work shall be fully responsible therefor, the City shall not be required to carry insurance on the work being con- structed if the contractor is required to carry appropriate insurance. All such policies shall be open to the inspection of the Bondholders and their representatives at all reasonable times. Upon the happening of any loss or damage covered by insurance from one or more of said causes, the City shall make due proof of loss and shall do all things necessary or desir- able to cause the insuring companies to make payment in full directly to the City. 'rhe proceeds of insurance covering such property, together with any other funds necessary and available for such purpose, shall be used forthwith by the City for 25 f repairing the property damaged or replacing the property destroyed; provided, however, teat if said insurance proceeds and other funds are insufficient for such purpose, then said insurance proceeds pertaining to the System shall be deposited F in a special and separate trust fund, at an official depository of the City, to be designated the Insurance Account. The Insurance Account shall be held until such time as other funds become available which, together with the Insurance Account, i will be sufficient to make the repairs or replacements .irigs.n- r ally required. (2) The annual audit hereinafter required may contain a section commenting on whether or not the City has complied with the requirements of this Section with respect to the mainte- nance of insurance, and shall state whether or not all insur- ance premiums upon the insurance policies to which reference is made have been paid. (i) Annual Bud et and Rate Covenant. The city shall prepare, prior to the beginning o each fiscal year, an annual budget, in accordance with law, reflecting an estimate of cash receipts and disbursements for the ensuing fiscal year in sufficient detail. to indicate the probable Gross Revenues and Pledged Revenues for such fiscal year. The City shall fix, establish, maintp'n, and collect, such rates, charges, and fees for the use and • .'ability of the System at all times as are necessary (1) to E.,aduce Gross Revenues sufficient, together with any other Pledged Revenues, to pay all current operation and maintenance expenses of the System, and (21 to produce an t amount of Pledged Revenues during each fiscal year at least equal to the greater of 1.25 times the average annual principal and interest requirements of all then outs•:anding Parity Bonds and Additional Bonds or 1.25 times the succeeding fiscal year's principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds. (j) Records. The City shall keep proper books of record and accoant in which full, true, proper, and correct entries will b~=, made of all dealings, activities, and transactions relating to the System, the Pledged Revenues, and the Funds created pursuant to this Ordinance, and all books, documents, and vouchers relating thereto shall at all reasonable times be made available inspection upon request of any Bondholder or citizen of the To the extent consistent with the provi- sions of this Ordinance, the City shall keep its books and records in a manner conforming to standard accounting practices as usually would be followed by private corporations jwning and operating a similar System, with appropriate recog:,ition being given to essential differences between municipal and corporate accounting practices. (k) Audits. After the close of each fiscal year while any of the Parity Bonds or any Additional Bonds are outstand- ing, an audit will be made of the books and accounts relating to the System and the Pledged Revenues by an independent certified public accountant or an independent firm of certified public accountants. As soon as practicable after the close of each such year, and when said audit has been completed and made available to the City, a copy of such audit for the preceding year shall be mailed to the Municipal Advisory Council of Texas, to each paying agent for any bonds payable from Pledged Revenues, and to any Bondholders who shall so request in writing. The annual audit reports shall be open to the inspec- tion of the Bondholders and their agents and representatives at all reasonable times. (1) Governmental A encies. It will comply with all of the terms and conditions of any and all franchises, permits, i 26 and authorizations applicable to or necessary with respect to the System, and which have been obtained from any governmental agency; and the City has or will obtain and keep in full force and effect all franchises, permits, authorization, and other requirements applicable to or necessary with respect to the acquisition, construction, equipment, operation, and mainte- nance of the System. (m) No Competition. It will not operate, or grant any franchise or, to t e -extent it legally may, permit the acquisition, construction, or operation of, any facilities which would be in competition with the System, and to the extent that it legally may, the City will prohibit any such competing facilities. (n) No Arbitrage. The City covenants to and with the purchasers of t e Parity Bonds and any Additional Bonds that no use will be made of the proceeds of any of such bonds at any time throughout the term of any of such bonds which, if such use had been reasonably expected on the date of delivery of any of such bonds to and payment therefor by the purchasers, would have caused any of such bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, f I~ 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 regulations relating to arbitrage bonds. The City further covenants that the proceeds of all such bonds will not otherwise be used directly or indirectly so as to cause all or any part of such bonds to be or become arbitrage bonds within the meaning of the afore- said Section 103(c), or any regulations pertaining thereto. Section 28. AMENDMENT OF ORDINANCE. (a) The holders or owners of Parity Bonds and Additional Bonds aggregating in f principal amount 51% of the aggregate principal amount of then outstanding Parity Bonds and Additional Bonds shall have the right from time to time to approve any amendment to this Ordinance which may be deemed necessary or desirable by the City, provided, however, that nothing herein contained shall permit or be construed to permit the amendment of the terms and conditions in this Ordinance or in the Parity Bonds or Addi- tional Bonds so as to: (1) Make any change in the maturity of the out- standing Parity Bonds or Additional Bonds; (2) Reduce the rate of interest borne by any of the outstanding Parity Bonds or Additional Bonds; (3) Reduce the amount of the principal payable on the outstanding Parity Bonds or Additional Bonds; I (4) Modify the terms of payment of principal of or interest on the outstanding Parity Bonds or Addi- tional Bonds, or impose any conditions with respect to such payment; (5) Affect the rights of the holders or owners of less than all of the Parity Bonds and Additional Bonds then outstanding; (6) Change the minimum percentage of the prin- cipal amount of Parity Bonds and Additional Bonds neces- sary for consent to such amendment. (b) If at any time the City shall desire to amend the Ordinance under this Section, the City shall cause notice of r 27 i f t the proposed amendment to be published in a financial h publication of general circulation in The City of New York, New York, once during each calendar week for at least two succe- ssive calendar weeks. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the principal office of the Paying Agents for inspection by all holders or owners of Parity Bonds and Additional Bonds. Such publication is not required, however, ` if notice in writing is given to each holder or owner of Parity r Bonds and Additional Bonds. (c) Whenever at any time not less than thirty days, and ' within one }-ear, from the date of the first publication of said notice or other service of written notice the City shall receive an instrument or instruments executed by the holders or i owners of at least 518 in aggregate principal amount of all Parity Bonds and Additional Bonds then outstanding, which instrument or instruments shall refer to the proposed amendment described in said notice anR which specifically consent to and approve such amendment in substantially the form of the copy thereof on file with the Paying Agents, the City Council may pass the amendatory ordinance in substantially the same form. (d) Upon the passage of any amendatory ordinance pursuant to the provisions of this Section, this Ordinance shall be deemed to be amended in accordance with such amendatory ordi- ,iance, and the respective rights, duties, and obligations under this Ordinance of the City, and all the holders or owners of then outstanding Parity Bonds and Additional `8onds and all future Parity Bonds and Additional Bonds shall thereafter be determined, exercised, and enforced hereunder, subject in all respects to such amendments. (e) Any consent given by the holder or owner of a Parity Bond or Additional Bond pursuant to the provisions of this Section shall be irrevocable for a period of six months from the date of the first publication of the notice provided for in this Section, and shall be conclusive and binding lpon all future holders or owners of the same Parity Bone or Additional Bond during such period. Such consent may be revoked at any time after six months from the date of the first publication of such notice by the holder or owner who gave such consent, or by a successor in title, by filing notice thereof with the paying agents and the City, but such revocation shall not be effective if the holders or owners of 518 in aggregate principal amount of the then outstanding Parity Bonds and Additional Bonds as in this Section defined have, prior to the attempted revocation, consented to, and approved the amendment. (f) For the purpose of this Section, the fact of the holding of Parity Bonds or Additional Bonds which are in bearer, coupon form, by any bondholder and the amount and numbers of such bearer Party Bonds or Additional Bonds and the date of their holding same, may be proved by the affidavit of the person claiming to be such holder or owner, or by a certi- ficate executed by any trust company, bank, banker, or any other depository wherever situated showing that at the date therein mentioned such person had on deposit with such trust company, bank, banker, or other depository, the Parity Bonds and Additional Bonds described in such certificate. The City may conclusively assume that such ownership continues until written notice to the contrary is served upon the City. The ownership of all registered Parity Bonds and Additional Bonds shall be determined from the registration books kept by the registrar therefor. Section 29. DAMAGED, MUTILATED, LOST, STOLEN, OR DE- STROYED BONDS. (a) Replacement Bonds. In the event any i 28 outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent; Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the manner hereinafter provided. (b) A lication for Replacement Bonds. Application for replacement o amaged, mutilated, ost, stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying Agent /Registrar. In every case of loss, theft, or destruction of a Bond, the registered owner applying for a replacement bond shall furnish to the Issuer and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a Bond, the registered owner shall furnish to the Issuer and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the registered owner shall surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or muti- lated. (c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event any such Bond shall have matured, and no default has occurred which is then con- tinuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the Issuer may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished as above provided in this Section. i (d) Charge for Issuing Replacement Bonds. Prior to the f issuance of any replacement the Payinrl Agent/Registrar shall charge the registered owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the Issuer whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance. (e) Issuer for Issuing Replacement Bonds. In accordance with Section 6 of Vernon's Ann. Tex. div. St. Art. 717k-b, this Section of this Ordinance shall constitute authority for the issuance of any such replacement bond without necessity of further action by she governing body of the Issuer or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent/Regis- trar, and the Paying Agent/Registrar shall authenticate and deliver such Bonds in the form and manner and with the effect, as provided in Section 6(d) of this Ordinance for Bonds issued in conversion and exchange for other Bonds. Section 30. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND COUNSEL'S OPINION, AND CUSIP NUMBERS. The Mayor of the Issuer is hereby authorized to have control of the Initial Bond issued hereunder and all necessary records and proceedings pertaining to the initial Bond pending its delivery and its ' investigation, examination, and approval by the Attorney General of the State of Texas, and its registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Initial Bond said Comptroller of Public 29 4 Accounts (or a deputy designated in writing to act for said comptroller) shall manually sign the Comptroller's Registration Certificate on the Initial Bond, and the seal of said Comptroller shall be impressed, or placed in facsimile, on the Initial Bond, The approving legal opinion of the Issuer's Bond Counsel and the assigned CUSIP numbers may, at the option of the issuer, be printed on the Initial Bond or on any Parity Boras issued and delivered in conversion of and exchange or repl"cement of any Bond, but neither shall have any legal effect, and shall be solely for the convenience and information f of the registered owners of the Bonds. Section 31. SALE OF INITIAL BOND, The Initial Bond is hereby sold and shall be delivered to Rotan mosle Inc., for cash for the par value thereof and accrued interest thereon to date of delivery. It is hereby officially found, determined, and declared that the Initial Bond has been sold at public sale to the bidder offering the lowest interest cost, after receiv- ing sealed bids pursuant to an Official Notice of Sale and Bidding Instructions and Official Statement dated January 31, 1984, prepared and distributed in connection with the sale of the Initial Bond. Said Official Notice of Sale and Bidding In- structions and Official Statement, and any addenda, Supplement, or amendment thereto have been and are hereby approved by the Issuer, and their use in the offer and sale of the Bonds is hereby approved. It is further officially found, dc!t:rmined, and declared that the statements and rep;:esentations contained in said official. Notice of Sale and Official Statement are true and correct in all mate•-ial respects, to the best knowledge and belief of the City Council and the Issuer. Section 32. FURTHER PROCEDURES. The Mayor of the Issuer, the City Secretary Secretary of the issuer, and all other officers, employees, and agents o* the Issuer, and each of them, shall be and they are hereby expressly authorized, empowered, and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowl- edge, and deliver in the name and under the corporate seal and on behalf of the issuer all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Bond Ordinance, the Bonds, the sale of the Bonds, and the Notice of Sale and Official Statement. In case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. 30 GENERAL CERTIFICATE THE STATE OF TEXAS COURN OF DENTON CITY OF DENTON S° , the undersigned, hereby officially certify ghat we are the Mayor and City Secretary, respectively, of the City of Denton, Te:cas, 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 rP_xas and the duly adopted Hone Rile Charter of said city, which Charter has not been changed or amended since the passage of the ordinance authorizing the issuance of the City of Denton Utility Systen; Revenue Refunding Bonds, Series 1983, dated March 1, 1983. 2. That no litigation of any nature has ever been filed pertaining to, affecting, or contesting: (a) the ordinance (the °1984 fond Ordi- nance") which authorized the proposed City of Denton Utility Sys,:em Revenue Bond, Series 1984, dated March 1, 1984, in the principal amount of $1,000,000 (the "Series 1984 Bcrn"), (b) the issuance, delivery, payment, security, or validity of said proposed Bend, (c) the title of the present members and officers of the City Council of said City to their respective offices, or (d) the validity of the corporate existence or the Charter of said City. 3. That none of the Pledged Revenues, as defined in the Series 1984 Bond ordinance have been pledged or encurbered t0 the payment of any debt or obligation whatsoever, except in connection with the aforesaid proposed Bond, and the outstanding bonds of the following issue: City of Denton Utility System Revenue Refunding Bonds, Series 1983 (the "Series 1983 Bonds"), authorized by Ordinance passed on March 10, 1983 (the 11983 Bond Ordinance"). 4. That the city is not in default as to any covenant, condition, or obligation in connection with the above described outstanding Series 1983 Ponds and the 1983 Bond ordinance authorizing same; and that the Interest and Sinking Funri and the Reserve Fund created by said 1983 Bond Ordinance for the benefit of the above described outstanding Serie.3 1983 Bonds and all Additional Bonds issued pursuant to the 1983 Bond ordinance each con- tains the amount now required to be therein, 5. That the statements and information set forth in the official Statement dated January 31, 1984, pertaining to the aforesaid proposed Series 1984 Bond and the City, and particularly the utility System operat- ing statement, debt service recTlirements, and coverage factors set forth therein are true and correct, and the water, Sewer, and Electric Rates fet forth therein are currently in effect and were authorized by ordinances duly passed by the City Council, SIGNED `ND SEALED this 21st day of February, 1984. Zity seer terry, Ci ty of Denton r, ci o Den i (CITY i SF11L) I j THE STATE OF TEXAS COUNTY OF DALLAS Arthur Andersen S Co., an independent firm of Certified Public Accountants, acting by and through the undersigned Certified Public Accountant, hereby certifies as follows: 1. That this certificate is executed with refetenc, to the proposed City of Denton Utility System Revenue Bond, Series 1984, dated March 1, 1984, in the principal amo•int of $1t000,000' (the "Series 1984 Bond"), authorized by ordinance passed by the City Council of the City of Denton, Texas, on February 21, 1984. 2. That the term "Pledged Revenues" as used in this certificate has the same meaning as used and defined for such tom in the Ordinance passed by the City Council of the City of Denton on March 10, 1983 (the "Series of 1983 Bond Ordinance"), authorizing the issuance of the City of Denton Utility System Revenue Refunding Bonds, Series 1983 (the "Series 1983 Bonds"). 3. That, in our opinion, during the next preceding fiscal year of the City (which fiscal year ended September 3), 1983) the Pledged Revenues were at least: (i) 1.25 times an amount equal to the average annual principal and interest requirements of the Series 1983 Bonds and the Series 1984 Bond, and i (ii) 1.10 times an amount equal to the principal and interest requirements of the Series 1983 Bonds and the Series 1984 Bond during the fiscal year during which such requirements are scheduled to be the greatest. EXECUTED this the CX/ 6t day of 1984. V ARTHUR ANDERSEN 6 CO. by w, Certified Public Accountant THE STATE OF TEXAS COUNTY OF DALLAS B FJ1R' ME,_.t11e and rsi ned authority, on th13 day personally appeared a Certified Public Account- ant, known to r-_ to be the person whose name is subscribed to the fore- going certificate, and acknowledged to me that he executed said certifi- cate on the date stated therein. GIVEN UNDER MY HAND and seal of office, this the o'2 'day of , 1984. Notary Public in ind for Dallas County, Texas My Commission expires (NOTARY PUBLIC SEAL) a. 1 ^aY cf , . A The Attorney General of Texas March 12, 1984 MA TOX orney General THIS 1S TO CERTIFY that the City of Denton, Texas (the issuer), has submitted to me City emeCourtBuilding the n t System Revenue Bond, Series i984 p. Box 12546 , in the aggregate principal amount of Iim,TX.7a711.254a $1,000,000 for approval. The Bond is dated 4752501 March 1, 1984, numbered R-1 and was authorized by an Ordinance of the Issuer adopted on February 21, 1984 (the Ordinance). I have examined the law and such certified proceedings and r other papers as I deem necessary to render this opinion. As to questions of fact material to my opinion, I have relied upon representations of the Issuer contained in the certified proceedings and other certifications of public offi- cials furnished to me without undertaking to verify the same by independent investigation. I express no opinion relating to the Official Statement or other offering material relating to the Bond. Based on my examination, I am of the opinion, as of the date hereof and under existing law, as follows: (1) The Bond has been issued in accordance with law and is a valid and binding special obligation of the Issuer; (2) The Bond is secured by and payable, together with other bonds, from a first lien on and pledge of the "Pledged Revenues", which include initially the "Net Revenuss of the System" as such terms are defined in the Ordinance, with the System consisting of the Issuer's entire :omb5^.ed waterworks, sewer, and electric light and power system; (3) The registered owner of the Bond shall never have the right to demand payment jr the Bond or the interest thereon out of any funds raised or to be raised by taxation or from any source whatsoever other than specified in the Ordinance. THEREFORE, the Bond is approved. I A orney General of the State of Texas 1 No. 19370 Book No. 75 sa A,' h. r j k ~;e I OFFICE OF COMPTROLLER [ OF THE STATE OF TEXAS [ I, Bob Bullock, Comptroller of Public Accounts of the State of Texc , do hereby certify that the attachment is a true and correct copy of the opinion of the Attorney General approving the City of Denton Utility System P,ev,_nue °ond, Series 198'• numbered WsU6Ziti6V-1ebkA R-1 txx of the denomination of S 1,OD0,000 >etck,dated March 1 39 84 due See foregoing in?crest Various percent, under and by authority of which said bonds were registered 12th March 84 in this office, on the day of 1 . , as the sane appears of record on page _224 Bond Register of the Comptroller's C Vol. 85 Register Number 47744 l Given under my hand and seal of office, at Austin, Texas, the 12th day of March 79 84 BOB BULLOCK Comptroller of Public Accounts State of Texas i ~ I »3rs O•w ~Fe.. 567) l ' I i I i. i y Yr: lr : " ip. m. 07 tpf-- 11.77) OFFICE OF COMPTROLLER ] I OF THE STATE OF TEXAS ] j f _ Betty l,elher _ ❑ Bond Clerk X Assistant Bond Clerk in the office of the Comptroller of the State of Texas, do hereby certify that, acting under the direction and f au thori-y of said Co nptrollar on the- 12th day of Ma rch _ 19 84 I signed the name of said Comptrolle( to the certificate of registration indorsed upon aacv.of the City ol Denton Utility Systerl Revenue Bond, Series 1984 ti numbered from __k-1 _A6 , kittt~i~'2c dated March 1, 1984 and that in signing said certificate of registration I used the following signature: IN WITNESS WHERECF I have executed this certificate this 12th day of larch 19 84 - i~ I, Bob Bullock, Comptroller of Public Accounts of the State of Texas, do hereby certify that ;he person wno has signed the above certifica.es 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. Stat. Ann. art. 4362 {19691), with authority to sign my , name ;o all certificates of registration, and;or cancellation of bonds required by la-.v 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 d..scribed it said certificate have been duly registered in the office of said Co;nptroilar, as appears of record on page -224 of volume 85 under Re_istretion Number _ 47.144 in the pond Resister kept in the office of the said Comptroller. GIVEN under my hand and pal of office at Austin, Texas, this -12th - day of F'arch19 S4 BOS BULLOCK t. ComptroRLr of PuL-Gc.Ac;.cunls o! ;htf i State of Texas i i I , NO-ARBITRAGE CERTIFICATE THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON The undersigned, being the duly chosen and qualified Mayor and City Secretary, respectively, of the City of Denton, Texas (-Ile "City"), hereby certify with respect to that issue of City of Denton Utility System Revenue Bonds, Series 1984, dated March 1, 1984, in the principal amount of $1,000,000, initially issued as a single fully registered bond payable in install- ments to the registered owner but convertible into fully registered bonds in any multiple of $5,000 (the "bonds"): 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 income Tax Regulations (the "Regulations") of the Internal Revenue Service with respect to arbitrage bonds descr+.bed in Sectir.i 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 will 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 funds to improve the City's Utility System, which consists of the city's combined Waterworks, Sewer, and Electric Light and Power System (the "Sys- tem"); (b) that the City will incur, within six months after the date of issue of the bonds, binding obliga- tions to commence each of the projects, respectively, to be fii anced by the bonds, by entering into con- tracts for architectural or engineering services for such projects, with the amount to be paid under each such contract 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, i 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 of the money recei%ad from the sale and delivery of the bonds); i 1 (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 received from the sale of the bonds, including all investment income: de- rived the will be expended for the purposes the. bonds by the end of the three-year Per beginning iod on the date of issue of the bonds; (e) that none of the mreceiveord of the bonds will be placed ~ ~ - - . - --lam wwrm~ fund, and, except as provided in (g), below, none of the amounts received from the sale of the bonds and none of the proceeds of the bonds of any kind will either M 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; (f) that a separates and special "Interest and Sink- ing Fund" previously has been created and established to pay the principal of and in~erest 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 money 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 and pledge of the Net Revenues of the City's combined Waterworks, Sewer, and Electric Lig}.t and Power System and are payable from the above "Interest and S.nking Fund"; and said bonds and other first lien parity bonds also are secured by a separate and special reasonably required debt service "Reserve Fund" created and established for the purpose of paying the principal of and interest on the bonds and other first lien parity bonds, in case the amounts avail- able from the "Interest and Sinking Fund" should be insufficient for such purpose, and to be used finally to retire the last of the outstanding bonds and other first lien parity bonds; and there is now lield in the "Reserve Fund" the amount of $3,000,0001 which is less than the maximum principal and interest requirements on the bonds and other first lien parity bonds; and the aggregate araount to be on deposit in said "Reserve Fund" from any source will not exceed $3,000,000 until and unless additional first lien parity bonds are hereafter issued; and such aggregate amount at all times will be less than 12% of the origir:al. face amount of the bonds and other first lien parity bonds (all of which were sold at not less than 99% of par), and the amount to be held in the ` "Reserve Fund" will not be subject to yield restrictions; I (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 ` bends, including all investment income derived therefrom, will not exceed the amounts necessary for the governmental purposes of the bonds; 1 (j) that. the City has not been notified of any listing 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 Code and the Regulations prescribed under that Section, and it is further specifically covenanted 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 foregoing conclusions or statements. EXECUTED this 2 ; 1984 7oz y r, ity of D , Texas City Secretary, City of Denton, Texas (CITY 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 facts, estimates, and circum- stances are sufficiently set forth in the certification to satisfy the criteria which are necessary under Section 103(c) of the Internal Revenue Code of 19541 as amended, 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. f/ `l MCCALL, PARKHURST 6 ;)ORTON ATTORNEYS AT LAW 900 DIAMOND SHAMROCK TOWS DALLAS, TEXAS 75201 t I i I SIGNATURE IDENTIFICATION AND NO-LITIGATION CEWIFICATE ThE STATE OF TEXAS ccLv iy OF DEMON CITY OF DENTON we, the undersigned officers of the City of Denton, Texas (the "Issuer") hereby certify as follows: ~ I (a) That this certificate is executed and delivered with refexence to City of Denton Utility System Revenue Bond, Series 1984, dated March 1, 1984, in the principal amount of $1,000,000, being a single fully registered bond pay- able in installments to the registered owner thereof p (the "Initial Bond") and the bonds (the "Definitive Bonds") initially made available by the Issuer for corpletion and exchange for the Initial Bond, (b) That each of us manually signed the Initial Bond. (c) That each of us signed the Definitive Bonds by causing facsimiles of our manual signatures to be printed or lithographed on each of the Definitive Bonds, and we hereby adopt said facsimile signatures as our own, respectively, and declare that said facsimile signatures constitute our signatures the same as if we had manually signed each of the Definitive Bonds. (d) That the Initial Bond is, and the Definitive Bonds are, substan- tially in the form, and each of them has been duly executed and signed in the manner, prescribed in the ordinance authorizing the issuance thereof. F (e) That at the time we so executed and signed the initial Bond and the Definitive Bonds (collectively the 'Bonds") we were, and at the tine of executing this certificate we are, the duly chosen, qualified, and acting officers indicated therein, and authorized to execute and sign the same, (f) That no litigation of any nature has been filed or is now pending to restrain or enjoin the issuance or delivery of any of the Bonds, or which would affect the provision mad- for their paynent or security, or in any manner questioning the proceedings or authority concerning the issuance of the Bonds, and that so far as we know and believe no such litigation is threatened. (g) That neither the corporate existence nor boundaries of the Issuer is being contested, that no litigation has been filed or is now pending which would affect the authority of the officers of the issuer to issue, execute, sign, and deliver any of the Bonds, a,-ti ti-at no authority or proceedings for E; tine scindissuance of any of the Bonds have been repealed, :revoked, or re ed. (h) That we have caused the official seal of the Issuer to be inpressed, or printed, or lithographed on each of the Bonds; and said seal on each of the Bonds has been duly adopted as, and is hereby declared to be, the official seal of the Issuer. E}07LVPED and delivered this MAZkt1AL SI OFFICIAL TITLES Mayor City Secretary The signatures of the officers subscribed above are hereby certified to be true and genuine. First State Bank of Denton Bank By_\.L Au rizea- officer (BAM SEAL) 1Aw OFFICES MOCALL, PARMWOT & HORMN 900 DIAMOND SHAN~ BUILDING DALU%S, TEXAS 75201 t 1 1 1 CLOSING CERTIFICATE THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON 4 we, the undersigned officers Of the City of Denton, Texas (the "Issuer"), hereby certify as follows: t 1. That this certificate is executed for and on behalf of said city with reference to the issuance of City of Denton Utility System Revenue Bond, Series 1984, dated March 1, 1984, r in the principal amount of $1,000,000. 2. That, to our best knowledge and belief: (a) the descriptions and statements of or per- taining to the City contained in its Official Statement dated January 31, 1984, and any addenda, supplement, or amendment thereto, for its $1,000,000 Utility Syste7 Revenue Bond, Series 1984, on the date of such Official Statement, on the date of sale of said Bond, and the acceptance of the best bid therefor, and on the date of the delivery, were and are true and correct in all ma- terial 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 omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions and statements, including financial data contained in such official Statement, of or pertaining to entities other than the city and their activities 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. SIGNED AND SEALED this MAR 2 719 n a or, i of nton Ci y secretary? City or Denton (CITY SEAL) !I u TREASURER'S RECEIPT THE STATE OF TEXLS COUNTY OF DENTON CITY OF DENTON The undersigned hereby certifies as follows: (a) That this certificate is exer•ited and delivered with reference to City of Denton Utility System Revenue Bond, Series 1984, dated March 1, 1984, in the de- nomination and principal amount of $1,000,000, being a single fully registered bond payable in installments to the registered owner thereof. (b) That the undersigned is the duly chosen, qualified, 4 and acting Tieasurer of the issuer of said Bond. (c) That said Bond has been duly delivered to the pur- chaser thereof, namely: ROTAN MOSLE INC. I (d) That said Bond has been paid for in full by said purchaser concurrently with the delivery of this certificate, and the issuer of said Bond has received, and hereby acknowl- edges receipt of, the agreed purchase price for said Bond, being the par or principal amount thereof and accrued interest to the date of delivery, plus a premium of $ -n - - EXECUTED and delivered this hAR 2 7 1984 f Tre surer Assistant to the Finance Director i i ' i i LAW OFFICES ' MCCALL, PARKHURST & HORTON 900 OIAMONO SHAMROCK TOWER DALLAS, TEXAS 75201-6537 AA[A C0~11 2i4 7180501 Tr~fcOw(A, 214 760.1019 AAR 2 71534 CITY Of' DENTON UTILITY SYSTEM REVENUE BOND, SERIES 1984? DATED MARCH 11 19841, IN THE PRINCIPAL AMOUNT OF $1,000,000 AS BOND COUNSEL for the City of Derton, Texas (the "Issuer"), we have examined into the legality and validity of the bond issue initially evidenced by the bond described above (the "Initial Bond"), which Initial Bond originally has been issued and delivered as a single fully registered bond, without interest coupons, with the principal amount thereof payable in installments due on DECEMBER 1 in each of the years 1985 through 2004, and with the unpaid balance of each installment of principal, respectively, bearing interest from the date of the Initial Bond to the scheduled due date ("maturity"), or to the date of prepayment or redemption, of each installment of principal, at the following rates per annum for each maturity, respectively: maturity 1985, 11.00% maturity 1995, 9.008 maturity 1986, 11.00% maturity 1996, 9.15% maturity 19B7, 11.00% maturity 1997, 9.25% maturity 1988, 11.00€ maturity 1993, 9.40% maturity 1989, 11.00% maturity 1999, 9.508 maturity 1990, 11.00% maturity 2000, 9.60% maturity 1991, 11.00% maturity 2001, 8.00% maturity 1992, 11.00% maturity 2002, 8.008 maturity 1993, 10.008 maturity 2003, 8.008 maturity 1994• 8.858 maturity 2004, 8.00% with interest payable on DECEMBER 1, 1984, and semiannually on ` each JUNE 1 and DECEMBER 1 thereafter, and with the then r outstanding principal of the Initial Bond being subject to prepayment or redemption, as a whole, or in part, prior to ` scheduled maturity, at the option of the Issuer, on DECEMBER 1, 1994, or on any interest payment date thereafter, in accordance with the terms and conditions stated on the face of the Initial Bond. The Initial Bond may, at the request of the registered owner, be transferred and converted into, and/or exchanged for, fully registered bonds, without interest coupons, in the denomination of $5,000 or any integral multiple of $51000, and ' such bonds again may be transferred and/or exchanged, all subject to the conditions stated and in the manner provided in the Ordinance authorizing the issuance of the Initial Bond (the "Bond Ordinance"), with any such bonds which are registered, authenticated, and delivered in accordance with the Bond Ordinance being hereinafter called "Definitive Bonds". h WE HAVE EXAMINED the applicable and pertinent provisions 1 of the Constitution and laws of the State of Texas, and have examined and relied upon a transcript of c,~rtified proceedings of the Issuer and other pertinent instruments furnished by the Issuer relating to the authorization of the Initial Bond and Definitive Bonds and the issuance and delivery of the Initial Bond, including the executed Initial Bond and a printed speci- men of the form for Definitive Bonds initially made available ` by the Issuer for completion and exchange for the4initial Bond. i M BASED ON SAID EXAMINATION, IT IS OUR OPINION that the Initial Bond and Definitive Bonds have been duly authorized, and that the Initial Bond has been duly issued and delivered, all in accordance with law, and that, except as may be limited by laws relating to bankruptcy, reorganization, and other similar matters affecting creditors' rights, the covenants and agreements in the Bond Ordinance constitute valid and binding obligations of the Issuer, and the Initial Bond constitutes and Definitive Bonds will constitute valid and legally binding special obligations of the Issuer, secured by and payable, together with other bonds, from a first lien on and pledge of the "Pledged Revenues", which include initially the "Net Revenues of the S.,;stem" as such terms are defined in the Bond Ordinance, with the System consisting of the City's entire combined waterworks, sewer, and electric light and power system, and IT IS FURTHER OUR OPINION that the interest on the Initial Bond and Definitive Bonds is exempt from federal income taxes under the applicable statutes, regulations, published rulings, and court decisions existing on the date of this opinion. THE ISSUER has reserved the right, subject to the restric- tions stated in the Bond Ordinance, to issue additional parity revenue bonds which also may be secured by and made payable from a first lien on and pledge of the Pledged Revenues. THE ISSUER also has reserved the right, subject to the restrictions stated in the Bond Ordinance, to amend the Bond Ordinance with the approval of the holders or owners of fifty-one percent in principal amount of all outstanding bonds which are secured by and payable from a first lien on and pledge of the Pledged Revenues. THE REGISTERED OWNERS of the Initial Bond and the Defini- tive Bonds shall %ever have the right to demand payment of the principal thereof or interest thereon out of any funds raised or to be raised by taxation, or from any source whatsoever ether than specified in the Bond Ordinance. WE HAVE ACTED AS BOND COUNSEL for the Issuer for the sole purpose of rendering an opinion with respect to the legality and validity of the bonds described above under the Constitu- tion and laws of the State of Texas, and with respect to the exemption of the interest on such bonds from federal income taxes, and for no other reason or purpose. We have not been requested to investigate or verify, and have not 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 certificates furnished by the Issuer with respect to the adequacy of the "Pledged Revenues". Respectfully, i i I I1 F { e M ~r ',`r~ t s'N ra tF'1 4+'hi r ! tFf dti t Ey1'tg~b T * bead ® + ~ ~ ' t F ~ ~F"`~; ~ • `fit ~ 3 ~ 3:~~ "9/~ r .s 4 o 'T R-I ~B- .r a at . `r6 Ps~+.4 I .fin 9r' ty,+, ~c 1o-,'Ry ~ ni A.vt• d.. 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III I I II C ~iI v .°c co3 0 2 0 0 s~o • IIII II N v ~~11`IiI, j 3 ° • goO~ a$ O-ao3 II II ~'.I'i ] I= IIj1 II~jh~ lU L Y n m P N] J O r■] S• 1 O IIII III h P 8 C 4~,;8 II II II PI IIIIIIII IiI rv 3 3 w0p m ~ O is ' • O 3 j i^ ? G O Z Ili l VIII F. s8 „ pm ~ c C~ uOm~ II IIIIII IIII] s op c Z! a O 2 ro;$ II. II'I! r I' IIII IIII i11 d c n° , v mho o N em, f~l I IIIIII o o ~p a m p Du i D S~ o III III III ~I, I. d 3 c _ n ~v g m s IIIIII II11.,~ Y I, • m o o O $ 3 r_. m ~~.pp. II IIII l rill I ~ S3 ~ > °n3 < erR 1y) I I < 0 N 'C m S -Jaw TIT r w r r s r♦ i F t ~4::t4s~a_ L Er■ 1 ADDITIONAL PRD61SONS THE PBINZIPAL Of AND INTEREST ON Me Bold are DlraE-e m '•I.4A 11 d M Ubdad woe and at'onr rN 3.N. of Prrtmne the'" el ere or tor ad wdderry01NI.1y avbma,4p Slalra d AmN[e, alnOgt f4Mrpr be [o'NCbwr to, rf TM MinmD, W the sold also be paid b M beer[4 11 IMwll•d prior to IMrr KMOWrd mRWdl.a, I" Ill*) All rid bowl WI r l /lyre, M aNnd et' v Nlfir Y ooallrl ~ ~no ^CHION, d Inn Bond of MAMI N w fool M date Carr fI r" nq re w on anon, and Myy 0611 rot br ngnad al Carol dulllf,d O.c/pl lot 1N rgl M lewd br Aa v fx]n h G Cwpooke 14<t ort d TEXAS AMERICAN M 'n "Ned C.", 10 mcPN IM "dam Ion Price Ill 6c[ruad old,w II DM Nor '^AQky BANCINORT W0r1rH NA, FORT WORTH. TEIAS. roll to M 'Ii Agent Pre r' Nn M" RrOralrlt oar of M Fred, 1111-0" IV F1" lormal " a pO Of any Bwl! IMR W Yryppa, a i Bert Try wymad of altarwl on WI" Bond OAII M met!' by M Paying Ali FFM ll 10 Mr a loldYlr el Or 30r4l ha1orE Me gam4 MrSixity data MSra.q forM1 Of ft Yrt1" t rMn1Ie0 obonl Mod I oldh minor Climb 1.r Oa!r on ca w don. treed n d slrb -n1em1 derom-nal4n w dfnorrll,IDnl •n any WYp10I froo r d 15000, al IN ovidi rte' IA It' 1 141,m1.l alto. d"y1 DY 1N Portion Ag.,Llo nl•ey Od, And pryab4 or,lo r Irom tunrN d IN Iwul rIp'llll" O.ner. and M Mgar wlnop4 1-1 or b for WI"rom" VI "Md. .4 ~ 1..a'" by " sot" r rdnwr[rn{ IY nsulnCP d IT, BDndr line 31"d Ofolifi 1 10 M On n+ued to " regla'/r" can., Ypon M a✓Iand11 Thrr to, gxeflost 6 it M .Pon, pl J dpal'l IM Me P/prrri AranLPygnl for such I olpO:r n were nadir ,lodM and loco her or Iwbn alt AN 01ollded in We Bond OMPRIFIC, Bra d-11 Den N fool Or "IS pa" A FegnPn by Unde0 $111" air In11;Ia" poaygl prep ,d. on THIS BONG OR ANY PORTION OR PORTIONS MLREOA IN ANY INT rKn loth RWrr pgyri del. yl~~rr IMnernd doo r Not I Me A10ra"a Of In. rep,. or E5000 may be H.pored and loan M tn Bol EMd M ooke, PEE M 1 cor " A eplen" Or re 1511 IN or M Fri ...I Dra~N,ny noon foot, 1.11 line Po r Me PaY'^p A 1nrV RM. 4ligghI lcbnQ M IN mp caFrr" Mdy mlr d rM Mr RagNnNron ond" , d N kYyba me agnl•h Iw M Bin u^on M Mrr4 eM O nreeon 111.1 Alto, by car erig Or t 1.r. ar:CiTAJ neT 010 mMh 9, "4 n OF 1....... Me, F.Cnb" Al -d 10 rn ON uMn Ina mn of r We R,na Color to me n Od M no ynell of pan o. so., food b.plireid and loonnd/r" M the left , IuGr aY,/nmary and e i p-1 b M ,n" Oyn It In* n/ Vor bury C^'BnOnI g, rIr Mold of do. M M At t the • aeg film, YNn fir (n q pnigh, IOq. arm I"ynbnMg I' ill end wnrndo d e-1. pond d IV ago and p• pw nun proper Rr Fllnn nII,fF ON m•L. 101. 0 ' Hd,l g^ 'hill +ey mr .4 Old Brood Of by, on o, 1 "1-" "Ia Y b ny ~ on Paprq . Agin. Peq'ar TM Nfu^l [n *,In n IN fMnfrr" OAor Nr d Mo. ol Mn Be" ar er r uTl g. Mt e rr by M IAy ng V Of Ifo a N n r m npN d 100) 10 IM 'Forgoer, m mlpnrol 'n annw "All rN w 1.a mat t P l13 Bilk Oil I DNM ..IN l pA Ill w Mn Bono re born Ilk, oci r 4 me l0 nl M data mrar r`r;m9 l. . r4pDanl 4 Ylo bnm n Oet. Ford :crv" HI .,J Silting lCold d Motion w Damona M'r d 0 01 pr fd " 110.101-1100 and rp-/and. rM form of A p RR 1 Ch611" o "r ado-C Drmneo on. V4 pro Iry Pa•lm 'Ilo osnl n in n fro mrd.l!n[y ejlel<nlal Vided l piny 1.. III at I'll, 11 For P 10 b hill PL tw FI IWIOI1e O ran 4l.1111 BondwnC/ mr 111 1. I]lgnmr "1.l u Mrby"IM A rM M. r r" DO'nur ON NO dury w~~ M ~'wI V OF d~QFBM p , - m.n inn slim ON Bwrde jorat, 611 b 9 THE O C4 NI HIS r at and rnlrreR r, IM Pon". worn door F "Facto B q by Y 'Ire Ir ME GATE 1w IN ON, O 0 d M pnnC-pal NO or nuoe 11 1 my D'4 till a I Age, Y, Me , la ...min it me My CO. Registered 1 that nn Of "W IS 0groblif 11 Nr Bono by BVI FFN p b re Ofo A Irgar brolor for A l O and 6 a 1 We O w 1110,11 ii 1. e ID b"/ M1 City bond. :d of., I Paying pa'Fr Mr Me, P ng.4red Da1 nn m MI .w 01 tlFQnme N5ngn of .of and d Dray 1 pw]rpy d eB Mgnnu n b:aVe s dl g 0 tM by We II wdar Iu . Men Ina fir oa•r Io of., I'll Bond, mq drhvewFe Dy by Paying Mq"ntrR nhn of I eDllNM and loon OQr 1, B 'R BVI Y MM - 014 M Me nn a+.crodrng q For cn IS n011 No 1n A • Saontay Sunny 1111. Far 11. Or dp do anon r1. M loam aM mmrn OF Dru+4ld r M N" pnMrAph hN"d V 11 Can TOO Id "cfo d .1. dale I"nl- M the uric I,,,. I o'nrr sond> The Ilnuer mall pay I na FaIM IN Ngnbary 111111 0 Elibog n ho r Fry Ni Inluho a9 a"re, re la tlaM , also prr"nonl c+ a.[ AN "ry I'V mg ro 1l" ater I Shop 11r A" any illy d MM n -1 made o I1 f 1t' nfrong 1.l aY dew Cnrrg"1 1P• andrg auto Ignd1. Door and VIA THIS BOND on D n O" of .n Hn 11 1Itior , $1 m I 1 r9µ ror.red in g1 1 r Ill, r1. tar clops( a0u^" IP M Paid or rnpeCl MI•eb TM eang Agort"Rialral, 1.d by FOA THE , R POSE Co n old are, M me Ra'r RI o1 T Jr. T mpunl 1.1 11 dIc '0 M 4'" ID W thR610M1 161411IFIRNI o1 inn Bono w .ny podmn Mr", wf If dunnq M 1.109! CO THE P, POSE Of Ir C PNFO DNNN M iVNCS TO :M l'PDYe 1.a 1 THE CITV no 5 N, Un Car LITI S+NEW Ct ARCH i Cc thelan nln me lot. of OuHre+a 11 on - fly accord DIII and 1 .1g a1n the .,,in g p1 CO y ynyIcidor y " NSISTS G" frf Cl CTS CJMBNE O MATCPWORAS SC MER. ANn E5 I, I EC IRm] LIGHT AND 0 P~]'AEFl on the 1.r t or r, Mrm non Ili 1payment' data li. Or, Uq all IaDprtl 10 any d Of My 51'iIEM pit toelf Callao I p p 10 m/rur'lr, Ni 4' day" Poor 10 Me r"rmptwl data TN y ON DECEArPER 1, 1 o any 1. e 1 p•rmem n . ",l r. Il 11 d m1. Sane" , "t d.Ca of 110. Bond m1. be /rom" end need by IM rylun 614 M Paying KWN 1 may be r"ro 1 poor 11 I M_ dull • t 1 Ar. 1'. p. r al Ile a or A, too le"d1 do, ad Cal a the .1frr color ",,If For .It PLROl". ,dud .g "Imam 410 diIMrq d nedbq .rye Iny rl .EV old lr I 1 , .a a nolr. o o and, d in 1a 1, I r D6N[u4r S,pr Or 9o In. Don't 10 me 1I I OI W[1. Parlor .11 11, rigs anA the Paying Agrnl'G4t,"o, lnfA 1.d Dnl.on" Ihi 1 No of I 'do 1 li to wnarrl Ind Valor bI 11" ofill Iporld Inn e M Alec led l•+Iny roof C. M t, [Or l•a F Por'•ron d a Bold my to Io-1 C only r, an mrey'.1 ii of {50(101 OF Ira reJtmp,oa pate o1 ALL BONDS OF THIS SEBIES .11 .",able Al aI ban •d'1m•" Donna yfydrN1 { tN p1. w fill" i Nor Me rut plug Itarxl ~nlernr lO Ill die 1'.M fur rnemplion COlOol -n Ile dole- r; ll,, or 11y te rr Ybglr" 500x1 A. p VN, Omtrr"t ] AT LEAST 90 it prim to Me dare I IPd tw Iny 1 "JM1dn of ere^d1 1.r polio^a In Feo1 Cnor h, 811d or an pOrb urred"em" on Ma.'ao meY el M/ r<0 r4 ti Mok IT M.weMBad onn 'OF IO~ON IN 10 "I'L lY A FIT' nonce of Or" mY•n6M lot M , ,ep M COn1er1" 1,,, m[ .tnmg" for • ISO wlb - nn kup6l i ON By ' Co p D~olk,.1 once 1 rna r't of C YEn+ Yin , ON 1 go O ',.III ga9'ale•" told, -]a rall p mood { or rim ,1 1,1,111 1,1,111 111 to 1o ci-cuI. BoLO.'1 among .<C 11. 1511 So,ror JOT9"ma II Gtr 01 1 I her Re St., N , To.,, a]r . A a, CIII . e, M oll l 'long "Ni . I . "INS l l dark M IM M< an nMr ngghr" DyM11 re u ! -rMl bul n1f Bold Beyer ld Tv '1 SnU l I t ,g,. a w "F, NJMI No In lif. e man m I, "or m 4000 Ac yN M V1~ +a•41.g pal not led !R. IN Tfl Bond PvP-Flail coca nonce also Pb M Nor, DI rM 1.q-1.g .He 104. -n 6n de on nniDn of drrmmin00nl m 6nJMVI mu UM. d {S.Opp w " m Ag gnl Reg Ni by UmUO $'61N Mad Lq1 [law DCglagr D'eCa'd not' lea Mat JO 3[W poor rp Mf .nnng DY IM .Jp'0Pro. 'r ragnlrred aw Mr "HQnM. Or Ifbpnrr. ea M Caw myY , Mill 1 dale loo ed Iw All i (coon D'mn to the reentered Cwnrr of dean fund to M Iedeemrl It dd Sole, door OF IMF a0nd to tnr Payroll; Alif Fri 'w calpi Dn, [II M I.Cardar boom nor, Idq 1 A@Ilew be IN apPoV" an Irv 45" Oq prof 10 64CN bdvrpbon date Mont'". 1-1.e r1. 11.1 "r And y1ace011le let lo•In rI Pr Rend OlC1an,,. Tnr 11-1-1 atoll Lill 1o Hold, mair, Or relie WCn notice, rd any Dereil ""'I or in "I 1Pnd i~g Cr -nil."1.g loy":lr, Vendor 11,1101.1 !me and Cr6r PSI Me Pfying Agin DFW,,, . P-41 Rd -IN'- M II w ,IM-Anew of IM Y gag ALAN, V.n,en N mg. Gwv.rllg. and ncN a ' I I it ArnE 1 D'uCMdnga IDs for warm Coon III •ry fiord and It Furman for put M ono x110 autn, o, u1 all Slid 01 pant ^9-~ any ~I seY y peat pronded Inn to. DuM~,a-.nn oI lucn 1.C ri r a rM 1.o•] •Ee:r" Nor no me only , entsl [nn 'M to ba 10 N x'101 pay 6ny rN, w rVlrGr I hilly 1.g urart m 11nr1IOR .nn ar " A M.Yo Undo to 1". rell"f on 'I try eord+ or of I An Cr'r'IMe . o1 r rMulred and b IdG,nenMq ngr IN rrll, PAprq it as r C AgwnCRdndO Cn pq[rd , No M "rrCrOt froo . M.rnif P 0. data h1" la anI C L1n'"e'n non Dee D'Cr~ ran"-eion M-y1. YH rI 1.d M I non pall to rem lnr a any wen Ber Ind lien( VI QLII Me P Me 1 IM ley rang q boa ray iii Paring Agent Rr. yr Iw Ton 11,1111 dl m. r pin Pi,r Or , 0 d If. Ill Ilin[n y tw IM B d. e^y Record Datn a In Omg III t1. M6 1,I, l g ON N BuIb,1.d , OR M M 11.1 RNIO1rm p-Mrpd y 1Mh . rmtn r. 1. to M w adremee Dlu' l[Cru4 4:"V Inr to he l dale red tar ra l on it o role aft Connell d .n, d 5 or Lre or mlpecl NO any Band or plman IN4o1 'OI" Of .1. IN NO 11 la maw1. I+drmpl p1. Moor aA. orlon ngbc< 01 rNV+. pt u1. . puhn Ill 107 J Ode 10, ' vnr•' 11 n ad. rr, No In. n a5 Car' Prior ID -h Ie0lmpben day i I roc, w 1 . 101 1 ] Ire lo"MA"i 1dn rare and IMt. li " may M limited by 4u'a wlating 10 LA MrL M[a 100 m¢elpn, McCALL. PARKHURST A NORTON and alna Nor McMall .ltrClmg CIrdR,4 ngn1-. M Cort•n0N and et' Fro *anN In pt' BOM 1 f Ir I I. .1.D YJgeJrr I lw n n-lnanCe "ooldu4 1.1.0 and bl'i r R G., k W IN o r, lM Me looter BwW CIrbM" end 1..r ' 'I's a,- 1' rod or I .A Be"n r ut IOINI on rnrd old I.,WN Cirri 1p.0y! obeg.eona or mr Naoe' aacur"d to I CITY OF OErl UTZrT15r'vTEM PE rE N'J! BC'ND, SERIES 1.d rayab4. IoMil will i bolo, from 4 Iner Ian on and by r d IN 'Pe d Nnndea 1pµ, OAICD MARCH 1, 1904 IN THE NO NC, CAL AM 0,NI Or III nrClude - oyl'1 the front Pesnu" M M• Slot Al, arc, brml 01 bnm" In ft 8.4 11 OW JUg 0-1,"Fill..1n Me Syl1Pm COna11g M Ina C4r'l am.. Cwlhred bo,new.e. Warr, eM e4 , AS BOND COUNSEL Ill He City Or Lyman T1." lino-~-_- Fil l and PC.., .prem. and lh1 xr"] AN na.e e'.Irl ~nm II-e R 15 FURTNCR 0119 OPINION Ind "I Ithr I Mr Intel Bond old 1Tenm1- Mg r s•1d "body d Ina bond 1.+.n if h't' nifibil PI 1N Fri drltlArd abav< 11M III',, A Oande g i r BDMr'I. ynKh InIN1 Bond "o," Ir nal Per I"'-,rd i bel'.erW q 6 Lnglr 1911, In 'b-fir D[nt c0In urml Nom to]r'/1 m[Jmr Lz" older mr 10011.14 lYlYrra, rdgularDM. D HN lYbnga an I oil lif M4v1t Courrwla, win " pnnt'1, • 0 m hi Illy.t4 n nlra lr •n or. on CECEMBER Ora e.A1 ng m Inf GI' OI Me no...... " 1 n "Fen or rnr YOq '15 h b,gr e0µ and IF V. 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No He o Ore e ail' OF me Inter flood Or;rn , .otn r^y it bon de .I'll owm CA an 111 r'v lne 1.g 1.-ne^lp'M o1 ae'rr no d ir, n l[cu'Tr~ce boon To In" Bond L~"^ ,a Mn9 II CATE Nra 1.11.1 1111.1 D"nn n1r Ill OEPT WE HA'vl EAAMAErI tN cable r1. w1 1.r pr,:rn W he CYr.I{I•' J and SRI 01 11. y1. 1 THE 1, A]EPS,If 0 Cny Sao nary Cl Mr Door M Olnloo Ill tw eb, .11fe 441 The Son CA Tern and pr el. IC old r., d [ Pa to of CFI d pa 10 x. d l gor°0 a I Ii hJL I d mrnr cc Jr W IN opnon 01 all p,,,,,fl a rlV,V 14 OM OF nanl moron.. J e 1 v N.. Ile r ra 11 0 . Ww .11 It' OF I" 1 Ch 1 to ITS I 1 a 01110 I'd Dr n 1.r. Bondy drKnbn] Me1Nn MKn and 0..nliva Bar d+ I'd Mr a r^e n y I 1 1 I B_ ] .d of r e 411 vi op,r on Yl Marro I'd de raid o r 1 0 •nlY A Is Mr OrNrna old,very of Ford effort aLM he " i'eJ I^ L, Poll and A Cnn ed +D<C min f I, r 0 C' nr'M1ill` Ind 1-11. 1 to. 1 r 1 H.^1 e; nM1 1. y FA la DI 1. ♦ hill Ir4 BASED JN SAID ErAV w f r IS rJP CI ".N VIN 1e.1 lne 1. Puna a I DrCr" 19 n Mre MIM F -III 1uMD. "e a n Inn 1•v 110 " Clod 110 bro., d r "Fled a a C e M O I in ~Iea~+'p't'•'r'R^•~ Dole socatiory, -_--_---ASSIGNMENT T-~-_- ' For value received, the undersigned registered owner DI this Bo d. Of Cooly euthonzed representative or attorney thereof, hereby assigns this Bone to ,I iI r, l (print on type the Carne, and Address of the ase+)nee end any other relevant information) { + and authorizes -he Paying Agr-ntiReptstiar 10 trensler the registration of this Bond in the Registration Books. :f ' Dared _ Registered Cwner l The sigRat-,re above Is hereby berthed as true and genuine. 1 I 1 t CITY OF DENTON, TEXAS (Denton county) $1,000,000 Utility System Revenue Bonds, Series 1984 Selling Tuesday, February 21, 01984, at 7:00 PM, CST NOTICE OF SALE AND BIDDING INSTRUCTIONS ON $1,000,000 CITY OF DENTON, TEXAS (Denton County) UTILITY SYSTEM REVENUE BONDS, SERIES 1984 Selling Tuesday, February 21, 1984, at 7:00 PM, CST THE SALE Bond Offered for Sale at Competitive Bidding The City of Denton, in Denton County, Texas (the "city"), is offering for safe its 1,000,000 Utility System Revenue Bonds, Series 1984, to be issued initially as a single fully registered bond, without interest coupons, payable in installments to the initial r _gistered owner thereof, to be named by the successful bidder (the "Initial Bond"), with the Initial Bond being exchangeable for fully registered bonds, without interest coupons, in any integral multiple of $5,000. It is expected that im nediately after delivery of the Initial Bond at the corporate trust office of the paying/agent registrar (hereinafter ?.scribed), the Initial Bond will be converted into and exchanges by the paying agent/registrar for multiple fwly registered bonds, each having a single maturity date (the "Bonds"), in accordance with the Ordinance authorizing the issuance of the Initial Bord and the Bonds (the "Ordinance") and instructions from the successiul bidder, all as hereinafter provided. Address of Bids Sealed bids, plainly marked "3id for Bonds", shou:o be addressed to "Mayor and City Council, City of Denton, Texas", and delivered to the City Manager, City Council Chamber, City Hall, 215 E. McKinney Street, Denton, Texas, prior 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 interlineation. Place and Time of 3.d Open, The City Council will open and publicly read the bids for the purchase of the Bonds at the City Council Chamber, City flail, 215 E. McKinney Street, Denton, Texas, at 7:0) PM, CST, February 21, 1984. Award of the bonds The City Council will take action to award the Initial Bond (or reject all bids) promptly after the opening of bids, and adopt the Ordinance authorizing the lrut;al Bond and the Bords and approving the Official Stater ient. THE INITIAL BOND ANJ THE BONDS Description The Initial Bond will be dated March 1, 1984, and interest will ')e due on December 1, 1984, and each June 1 and December l thereafter until the earlier of maturity or prior redemption. The Bonds issued in exchange and substitution for the Initial Bond will be issued in fully registered fo m in an integral multipie of $5,000, each having a single maturity date corresponding to the due data of the installment of principal or portion thereof, and bearing interest at the rate applicable to such installment of principal or portion thereof, for which the substitute Bond is being exchanged. Principal and semi- annual interest will be raid by Texas American Bank/Fort Worth N,A., Fort Worth, Texas, the paying agent/registrar (the "Pa) ing Agent/Registrar'% Principal o! the Bonds will be payable to the registered owner at maturity or redemption upon presentation to the Paying Agent/Registrar. Interest on the Bonds will to payable by check, dated as of the interest payment date, and mailed or, each interest payment date by the Paying Agent/Registrar to each registered owner as shown on the records of the Paying Agent/Registrar on the Record Date (see "Record Date" herein). The principal of the Initial Bond will come cue and mature on Decern ber I in each year, with installments of principal payable and maturing as follows: Principal Principe.] Principal Year Amount Year Amount Year Amount 1985 $ 50,000 192 5-SO,OCr0 1999 50,000 1986 50,000 1993 ;0,000 2000 50,000 1?87 50,000 1994 59,000 2001 50,000 15'88 50,000 1995 50,000 2002 50,000 1989 50,000 199E 50,000 2003 50,000 19,310 50,000 1997 50,090 2004 50,000 1991 50,000 1998 50,000 0 tional Redemption: The City reserves the right, at its option, to redeem the Initial Fond and the Bonds maturing December 1, 1995 through December 1, 2004, both inclusive, as a whose or in part, at the option of the City on Dac:cmber 1, 1994, or on any interest paymer t date thereafter at par and accrued interest. ~r•ovi Successor Paying P,gent/Registrar Provision is made in the Ordinance for replacement of the Paying Agent Registrar, if the Paying Agent/Registrar is replaced by the City, the new Paying Agent/Registrar shall accept the pre.ious Paying Agent/Registrar's records and act in the same capacity as the previous Paying Agent/Reggistrar. Any Paying Agent/Registrar selected by the City shall be a competent and legally qualified tank, trust company, financial institution or other agency. Each Successor Paying Agent/Registrar, if any, sha!I be determined by the City. Source of Payment The Initial Bond and the Bonds are secured by and payable solely frorr and secured by a first lien on and pledge of the Pledged Revenues as defined in the Official Statement, which presently cois:st of the Net Revenues of the City's Utility System (Waterworks, Sewer, and Electric Systems). CONDITIONS OF THE SALE types of Bids and Interest Rates The Initial Bond will be sold in one block on an "All or None" basis, and at a prier of not less than its par value plus accrued interest to the date of delivery cd the Initial Bond. Bidcers are invited to narn a the rate(s) of interest to be borne by each installment of principal of the Initial bond, provided that each rate bid must to in a multiple of 118 of 1% or 1120 of 1% and the net effective interest cost must not exceed 15%. The highest rate bid may not exceed the lowest rate bid by more than 3% in rate. No limitation is imposcd upon bidders as to the number of rates or changes which may be used. Each installment of principal (maturity) must bear one and the same rate. No bids involving supplemcn:al interest rates will be considered. Each bidder shad state in cis bid the total interest cost in dollars and the net effective interest rate determined thereby (calculated in the manner prescribed by Article 71 Ik-2, VATCS), 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 Initial Bond, the interest cost of each bid will be cornpited by determining, at the rate or rates specified therein, the total dollar cost of all interest cn all installments of principal (maturities) of the Initial Bond from the date thereof to their respective maturities, using the table of Bond Years herein, and deducting therefrom the premium bid, if any. Subject to the Citys right to reject any or all bids and to waive any irregularities except time of filing, the Initial Bond will be awarded to the bidder or syndicate account whose name first appears on the Official Bid Form (the "Initial Purchaser" or "Purchaser') whose bid based on the above computation produces the lowest net effective interest cost to the City. Good Faith Deposit A Good Faith Deposit, payable to the "City o` Denton, Texas", in the amount of 20,000.00, is required. Such Good Faith Deposit shall be in the form of a Cashier's Check, or its equivalent, which is to be retained uncashed by the City pending the Purchaser's compliance with the terms of his bid and the Notice of 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 accornpanied by instructions from the bark on which drawn which authorize its use as a Good Faith Deposit by the Purchaser who shall be named in such instructions, The Good FaPh Deposit of the Purchaser will be applied on the purchase price on the date of delivery of the Initial Bond. No interest will be allowed on the Good Faith Deposit. In the event the Purchaser should fail or refuse 0 take up and pay for the Initial Bond 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 bias other than the winning bid will be returned imriediatei,y after the bids are opened, and an award of the Initial Bond ha, been made. DELIVERY OF THE INITIAL BOND AND ACCOMPANYING DOCUMENTS CUSIP Numbers . , . It is anticipated thut CUSIP identification numbers will appear on the Bonds (but not on the Initial Bond), but neither the failure to print or type such number on any of the Bonds exchanged for the Initial 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 Initial Bond 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 or typing of CUSIP numbers on the Bonds shall i,e paid by the City; provided, however, that the CUSIP Service Bureau charge for the assignment o! the numbers shall be the responsibility of and shall be paid for by the Purchaser. Delivery of Initial Bond Delivery will be accomplished by the issuance and delivery of the Initial Bond, either in typed or printed form, in the ab,gregale principal amount of $1,000,OGO, payable in stated installments to the Purchaser, signed by the Mayor and City Secretary, either manually or by facsimil-'!, approved by the Attorney General, and registered and manually signed by the Comptroller of Public Accounts. Delivery will beat the principal corporate office of the. Paying Agent/Registrar. Payment for the Initial Bond 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 tirne fixed for delivery of the Bonds. It is anticipated that Delivery of the Initial Bond can be made on or about March 27, 1984, and it is understood ana agreed that the Purchaser will accept delivery and make payment for the initial Bond by 10:00 AM, CST, on March 27, 1984, or thereafter On the date the Initial Bond is tendered for delivery, up to and including .kpril 10, 1984. If for any reason the City is unable to make -ii- i i® delivery on or tefore April 10, 1984, then the City shall immediately contact the Purchaser and offer to alloy the Purchaser to extend his offer for an additional thirty days. If the Purchaser does not elect to extend his offer wit tin 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 to deliver the Bonds, provided such failure is due to circumstances beyond the City's reasonable control. Deliver of Definitive Bondi Upon payment for the Initial Bond at the time of its delivery, the Paying Agent Registrar shall cancel the Initial Bond, provided registration instructio ; have been received by the Paying Agent/Registrar, and shall register, authenticate, and deliver the registered definitive Bonds, in any integral multiple of $5,000 for any one maturity, in accordance with instructions received from the Purchaser and/or members of the Purchaser's syndicate account. It shall be tLe duty of the Purchaser to furnish to the Paying Agent/Registrar, at least five business days prior to the delivery of the Initial Bond, written instructions on forms which the Purchaser must requert and obtain from, and which shall be provided by, the Paying Agent/Registrar designating the names which tti• Bonds are to be registered, the addresses of the registered owners, the maturities, interest rates and denoa-+inatiors, If such forms are not available, written instructions by letter shall be furnished to Paying Agent/Registrar. The Paying Agent/Registrar will not be required to accept registration instructions after the fifth business day prior to Initial Delivery. If such written instructions are not received within the specified time period, the cancellation of the Initial Bond and delivery of registered definitive Bonds will be delayed until such written instructions are received. Conditiortt to Delivery The obligation of the Purchaser to take up and pay for the Initial Bond is subject to the Purchaser's receipt of (a) the legal opinion of Messrs. McCall, Parkhurst bt Horton, Dallas, Texas, Bond Counsel for the City, (b) the no-litigition certificate, and (c) the certification as to the Official Statement, all as further described in the Official Statemer!. Legal Opinions The Initial Bond is offered when, as and if issued, subject to the unqualified legal opinion of the Attorney General of the State of Texas, and Messrs. McCall, Parkhust do Horton (see Legal opinions in Official Statement); the opinion of Bond Counsel will be printed on the definitive Bonds. Certification of Official Statement At the time of payment for, and delivery of the Initial Pond, the City will execute and deliver to the Purchaser a certificate in the form set forth in the official Statement. Change in Tax Exempt Status At any time before the Initial Bond is tendered for delivery, the Purchaser may withdraw his bid if the nterest received by private holders from bonds of the same type and character shall be declared to be taxable income under present Federal income tay 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 imputing any Federal income taxes, by the terns of any Federal income tax law enacted subsequent to the date of this Notice of Sale and Bidding Instructions. GENERAL Financial Advisor's Right to Bid First Southwest Company, the City's Financial Advisor, reserves the ngTFt to i on the Bonds. Blue Sky Laws By submission of his bid, the Purchaser represents that the sale of the Bonds in states other than Texas will be made only pursuant to exemptions from registration or, where necessary, the Purchaser will register the Bends in accordance with the securities law of the states in vhich the Bonds are offered or sold. The City agrees to cooperate with the Purchaser, at the Purchaser's written regtiest and expense, in registering tie Bonds or obtaining an exemption from registration in any slate where such action is necessary. Not an Offer to Sell This Notice of Sale does not alone constitute an offer to sell the Initial Bond or the Bonds, but is merely notice of the sale of the initial Mond. The offer to sell the Initial bond 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 Initial Bond and the Bonds. issuance of Additional. Bonds After the issuance of the Bonds, the City will have no authorized but unissued Utility System Revenue Bond. In late Spring, 1984, the City expects to complete a capital improvement plan for the Utility S,5' rI which will be submitted to the electorate in mid-Sun.mer. Assuming voter approval, the City would expect to sell additional bonds in late 1984. Ratings The outstanding Utility System Revenue Bonds of the City are rated "A" by Moody's Investors Service, Inc. and "A+" by Standard be Poor's Corporation. Applications for contract ratings on this issue have been made to both Moody's and Standard do Poor's. The results of their determinations will be provided as scan as possible. ~ -iii- _ ~s~~~-tom l-'~1• Municipal Bond Insurance In the event these Bonds are qualified for municipal bond insurance, and the Purchaser 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 p 50 copies of the Official Statement a 50 copies of any addenda, supplement or amendment thereto), complete 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 50 copies, and may also arrange, at his total expense a)d responsibility, 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 obligation for the distribution or delivery of any of these copies to any one other than the Purchaser. Additional Copies o[ Notice, Bid For, and Statement A limited number of additional copies of this Notice of Sale and Bidding Instructions, the Official 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 Dallas Building, Dallas, Texas 75201, Financial Advisor to the City. The City reserves the right to reject any and aF bids and to waive irregularities, except time of filing. On -the date of the sale, the City Council will, in the Ordinance authorizing the issuance of the Initial Bord and the Bonds, approve the form and content of the Official Statement, and any adderda, supplement or amendment th.!reto, and authorize its use in the reoffering of the Bonds by the Purchaser. RICHARD O. STEWART Mayor City of Denton, Texas ATTEST: CHARLOTTE ALLEN City Secretary City of Denton, Texas January 31, 1984 _iv_ BOND YEARS Accumulated Year T Amount _ Bond Years Bond Years Year 1985 S 50,000 87.50 87.50 1985 1986 50,000 137.50 225.00 1986 1987 50,000 187.50 412.50 1987 1988 50,000 237.50 650.00 1988 1989 50,000 287.50 937.50 1989 1990 50,000 337.50 1,275.00 1990 1991 MOO 387.50 1,662.50 1991 1992 50,000 437.50 2,100.00 1992 1993 50,000 487.50 2,587.50 1993 1994 50,000 $37.50 3,125.00 1994 1995 50,000 537.50 3,712.50 1995 1996 50,000 631.50 4,350.00 1996 1997 50,000 687.50 5,037.50 1997 1998 50,000 737.50 5,775.u0 1998 1999 50.000 187.50 6,562.50 1999 2000 50,000 837.50 7,400.00 20()0 2001 50,000 887.50 8,287.50 2001 2002 50,000 937.50 9,225.00 2002 2003 50,000 987.50 10,212.50 2003 2004 50,000 1,037.50 11,250.00 2004 Average Maturity ---------------------------------11.250 Years I OFFICIAL BID FORM Honorable Mayor and City Council February 21, 1984 City of Denton Denton, Texas Gentlemen: Reference is made to your Official Statement and Notice of Sale and Bidding Instru( tions, dated January 31, 1984, of $1,000,000 CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE &)NDS, SERIES 1984, boti of which constitute a pat t hereof. For your legally issued Initial Bond, as described in said Notice of Sale and Bidding Irstruc:iors and Official Statement, we will pay you par and accrued interest from date of issue to date of dehv~!ry to is, p1m a cash premiurn of $ for the installments of principal of the Initial Bond coming due, maturing and bearing interest as oilo-a s: Interest Interest Interest Maturity Rate Maturity -Rate Mat+uity Race 12-1-1983 % 12.1-1992 % 12.1-1998 % 12-1-1986 12-1-1933 % 12.1-1999 % 12-1-1987 % 12-1-1994 % 12-1-2000 % 12-1-1938 % 12-1-1993 % 12-1-2001 % 12-1-19 0 % 12-1-1996 % 12-12002 % 12-1-1990 2-1-1997 % 12-1-2003 % 12-1-1991 % I2-1-2004 % Our calculaticn (which is not a part of this aid) of the interest cost from the above is: Total Interest Cost $ Less Premium NET INTEREST COST $ EFFECTIVE INTEREST RATE % We are having the Bonds insured by The Initial Bond shall be ,,,,istered in the name of (syndicate manager). We will advise the Corporate Trust Division, Texas American Bank/ Fort P. O, Box 2050, Fort Worth, Texas 76113, the Payinj Agent/Registrar, on forms to be provided by the Paying Agent'Registrar, our registration instructions fo• the definitive Bonds at least five busiress days prior to the Bate set for Initial Delivery. %e will not asV the Paying Agent!Registrar to accept any registration instrxtions after the five day period. Check of the Bank, in the amount of 70,000.65, which represents our Good Faith beposit is attache0 hheTeto or ha:.,-en made available to you prior to the opening of this bid), and is submitted in accordance with the terms as set forth in the Offidaf Statement and Notice o1 Sale and Bidding Instructions. We agree to accept delivery of and make payment for the Initial Bond in immediately available funds in the Corporate Trust Division, Texas American Bank/Fort Worth N.A., Fort Worth, Texas, not later than 10:00 AM, CST, on March 27, 1984, or thereafter on the date the Bends are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions. Respectfully submitted, Authorized Representative ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all things accepted by the City of Denton, Texas, this the 21st day of February, 1984. ATTEST: Mayor tty ecaetary **"No Return of Good Faith Deposit is hereby acknowledged: By OFFICIAL SID FORM Nonorcble Mayor and City Council February 21, 1984 Citvof Denton Denton, i exas G entl enient Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated January 31, 1984, of $I,ris'9,000 CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE BONDS, SERIES 1984, both of which constitute a part hereof. For your leis dy issued Initial Bond, as described in said Notice of Sale and Bidding Instructions and Official Statement, wr will pay you par and accrued interest from date of issue to date of delivery to us, plus a cash p. emium of $ for the installments of principal of the Initial Bond coming due, maturing and bearing interest as follnw-s: Interest Interest Interest .M Urity_ Rate_ _Iaturij _ Rate Maturity Rate 12-1-1985 12-1-1992 12-1.1998 12-1-1986 12-1-1993 12.1-1399 % 12-1-1987 111-1.1994 - % 12-1-2000 % 12-1-1988 12-1-1995 % 12-1-2001 % 12-1-1989 % 12-1-1996 % 12.1-2002 % 12-1-1990 96 12-1-1997 % 12-1-200! % 12-1-1991 % 12-1-2004 % 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 $ EFFECTIVE INTEREST RATE % We are having the Bonds insured by The Initial Bond shall be registered in the name of (syndicate ma.^,ager). We will advise the Corporate Trust Division, Texas American Bank Fott Worth N.A., P. 0. Box 2050, Fort Worth, Texas 76113, the Paying Agent/Registrar, on forms to be provided by the Paying Agent/Registrar, our regiztration instructions for the definitive Bonds at least five business days prior to the date set for Initial Delivery. We will not ask the Paying Agent/Regstrar to accept any registration instructions after the five day period. Check of the Bank, _ _ , in the amount of 20,000.00, which represents our Good raid Deposit~Ts attached hereto} or as been made available to you prior to the opening of this bid), and is submitted in accordance with the terms as set forth in the Official Statement and Notice of Safe and Bidding Instructions. We agree to accept delivery of and make payment for the Initial Bond in immediately available funds in the Corporate Trust Division, Texas American Bank/Fort Worth N.A., Fort Worth, Texas, not later than 10:00 AM, CST, on March 27, 1984, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions. Respectfully submitted, By Authorized Representative ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all things accepted by the City of Denton, Texas, this the 21st day of February, 1984. ATTEST: Mayor Z`lty~ectetary Return of Good Faith Deposit is hereby acknowledged: By This Official Statement does not constitute an offer to sell Bonds in any jurisdiction to any person to whom it is urdawful 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 mutt riot 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 January 31, 1984 INTEREST EXEMPT, IN THE. OPINION OF BOND COUNSEL, :'ROM PRESENT FEDERAL INCOME TAXES $1,000,000 CITY OF DENTON, TEXAS (Denton County) UTILITY SYSTEM REVENUE BONDS, .SERIES' 1984 Dated: March 1, 1984 Due: December 1, as shown below Interest on the Bonds will be payable June 1 and December 1 of each year commencing December 1, 1984. The Bonds will be issued only in fully registered form in any integral multiple of $5,000 for any one maturity. Principal of the Bonds will be payable to the registered owners at maturity or redemption upon presentation at the principal corporate office of Texas Arrerican Bank/Fort Worth N.A., Fort Worth, Texas, the paying agent/registrar (the "Paying Agent/Registrar"). Interest on the Bs.. Is will be payable by check, dated as of the interest payment date, and mailed by the Paying Agent/[registrar to registered owners as shown on the records of the Paying Agent/Registrar on the Record Date (see "Record Date for Interest Payment"). The Utility System Revenue Bonds, Series 1984 (the "Bonds" or "Bond", which shall include for purposes of definition, the "Initial Bcno"l, are special obligations of the City of Denton, payable, both as to principal and interest, sorely from are secured by a first lien on and pledge of the revenues of the City's Utility System, after deduction of reasonable expenses of operation arvi maintenance. These Bonds are authorized pursuant to Articles 2368A and 1111 et seq., Vernon's Annotated Texas Civil St,tutes, and will constitute special obligations of the City. See "Security for Payment". MATURITY SCHEDULE Amount Maturitv Rote Yield Amount Matority Rate Yield 59,000 12-1-1950,000 12-1-1995• 50,000 12-1-1986 50,000 12-1-19964 50,000 12-1-1987 50,000 12-1-1997* 50,000 12-1-1988 50,000 12-1-19980 50,000 12-1-1989 50,000 12-1-1999* 50,000 12-1-1990 50,000 12-1-2000* 50,000 12-1-1991 50,000 12-1-2001* 50,000 12-1-1992 50,000 12-1-2002* 30,000 12-1-1993 50,000 12-1-2003* 50,000 12-1-1994 50,000 12-1-2004* * The City reserves the right, at its option, to redeem Bonds maturing on and after December 1, 1995, in whole or part, on December 1, 1994, or any interest payment date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. Not less than 3) days prior to a redemption date for the Bonds, the City shall cause a notice of redemption to be published as required by the Ordinance, and the Paying Agent/Registrar will be obligated to send a notice of redemption by United States mail, first class, postage prepaid, to each registered owner of a Bond to be redeemed, in whole or in part, at the address of the o•vner appearing on the registration books of the Paying Agent/Registrar as of the 45th day prior to such redemption date. payment Record: The City has never defaulted. Legality: The Attorney General of Texas, and Messrs, McCall Parkhurst be Horton, Attorneys, Dallas, Texas. Opinion Printed on the Bonds; See Legal Opin!oru~}- Delivery: Anticipated on or about March 27, 1984. i TABLE OF CONTENTS _PaRe _ 1 Official Statement: Description of the Bonds I Elected Officials, Appointed Officials, Consu'rants and Advisors 3 Registration 4 Introductory Statement S Security for Payment---------- 6 Condensed Statement of Utility System operations 6 Debt Service Requirements 7 Summary of Certain Provisions of the Ordinance 8 Value of the Utility System IS 1 City's Equity in System 13 Utility System 15 The Electric System 16 Historical Statistical Data 21 The Water and Wastewaters stem 23 Utility Rates 24 Electric, Water and Wastewater Systems Combined Revenue and Expense Projections 28 Valuation and Debt information 29 Ad Valorem Tax Legislation 29 Capital Leases 31 Valuation and Funded Debt History 31 Taxable Assessed Valuations by Category 91 Estimated Overlapping Fund^c Oebt Payable From Ad Valorem Taxes 32 Tax Rates of Overlapping Subdivisions 32 Tax Rate Iimitation 32 Tax Data '2 MunicipalSafes Tax 33 Top Ten Taxpayers Authorized But Unissued General Obligation Bonds 33 Bond Counsel General Information Regarding City ane Its Economy 34 Ratings Tax Exemption Registration and Qualification of Bonds for Sale 39 Financial Advisor - Legal Investments and Eligibility to Secure Public Funds in Texas 39 Legal Opinions and No.-Litigation Certificate 39 Authenticity of Financial Data and Other Information 40 Financial Advisor 40 Certification of the Official Statement 40 Financial Statements, September 30, 1983 Appendix The cover page hereof, vos page, the appendix included h?rein and any addenda, supplement or amendment hereto, are part of the Official Statement. -2- TABLE OF CONTENTS Page Official Statement: Descriptio- of the Bonds I Elected Officials, Appointed Officials, Consultants and Advisors 3 Registration 4 Introductory Statement 5 Security for Payment 6 Condensed Statement of Utility System Operations 6 Debt Service Requirements 7 Suromary of Certain Provisions of the Ordinance 8 Value of the Utility System 15 City's Equity in System 15 Utility Systcm 15 The Electric System 16 Historical Statistical Data 21 The 9 ater and Wastewater System 23 Utility Rates 24 Electric, Witer and Wastewater Systems Combined Revenue and Expense Projections 28 Valuation and DrbtInformation 29 Ad Valorem Tax Legislation 29 Capital Leaser- 31 Valuation and Funded Debt History 31 Taxable Assessed Valuations by Category 31 Esti nat~d Overlapping Funded Debt Payable From Ad Valorem Taxes 32 Tax Rates of Overlapping Subdivisions 32 Tax Rate Limitation 32 Tax Data 37 Municipal Sales Tax 33 Top Ten Taxpayers 33 Authorized But Unissued General Obligation Bonds 33 General Information Regarding City and Its Economy 34 Ratings 39 Tax Exemption 39 Registration and Qualification of Bonds for Sale 39 Legal Investments and Eligibility to Secure Public Funds in Texas 39 Legal Oil nions and No-Litigation Certificate 39 Authenticity of Financial Data and Other Information 40 Financial Advisor 40 Certification of the Official Statement 40 Financial Statements, September 30,1983------------------------------------------ Appendix The cover page hereof, this page, the appendix included herein and any addenda, supplement or amendment hereto, are part of the Official Statement. 2- ELECTED OFFICIALS Term City Council Expires Richard O. Stewart April, 1984 Mayor Ray Stephens April, 1985 Mayor Pro-Tem Joe G. Alford April, 1985 Councilmem ber Mark R. Chew April, 1985 Councilmember Jack Barton April, 198', Councilmember Jim Riddlesperger April, 1985 Councilmem ber Charles Hopkins April, 1984 Councilmember APPOINTED OFFICIALS Name Pos i t: on Chrin ~iartung City ManeRei Rick SveNa Assistant City Manager Betty McKean Assistant City Manager R. E. Na;on Director of Utilities William J. Anderson ASSBtdnt to the Director of Finance Charlotte Allen --ity Secretary C. J. Taylor, Jr. City Attorney CONSULTAN rS AND ADVISORS Bond Counsel McCall, Parkhurst & Harton Dallas, Texa, Auditors Arthur Andersen & Co. Dallas, Texas Financial Advisor First louthwest Company Dallas, Texas -3- REGISTRATION Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") TEFRA, as ascended, mandates, among other things, that all new issues of municipal bonds delivered after June 30, 1983, (excepting those with a one year maturity or less) must be registered in the owner's name. Pa in Agent/ egistrar The bonds wM t e issued only in fully registered form in any integral multiple of 3,000 for any one maturity. Principd of the Bonds will be payable to the registered owners at maturity or redemption upon presentation „t the principal corporate office of Texas Americ:.n Bank/Fort Worth N.A., Fort Worth, Texas, the Payirg Agent/Registrar. Interest on the Bonds will be payable by check, dated as of the interest payment late, and mailed by the Paying Agent/Registrar to registered owners as shown on ti•e records of the Pa/ing Agent/Registrar on the Record Date (see "Record Date for Interest Payment"), Successor Paying Arent/Re iistrar... Provision is rna~:e in the Ordinance for replacement of the Paying Agent/Registrar * The City covenants to maintain and provide a Paying Agent/Registrar at all times while the Bonds are outstanding and any successor Paying Agent/Registrar shall be a bank, trust company, financial institution, or other entity duly qualified and legally authorized to serve as and perform the duties and services of Paying P gent/Registrar for the Bonds. Upon any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice thereof to be sent to each r !gistered owner of the Bonds by United States mail, first class, postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Future Re istration , . , The Bonds may be transferred, exchanged and registered only on the registration ooks o t e Paying Agent/R e-, trar, and such registration and transfer shall be without expense or service charge to the owner, except for any tax or other governmental charges required to bt paid with respect to such registration and transfer. A Bond may be assigned by the execution of an assignment form on the Bond. A new Bond or Bonds will be delivered by the Paying Agent/Registrar, in lieu of the Bond being transferred or exchanged, at the principal corporate office of the Paying Agent/Registr, , To the extent practicable, new Bonds issued in an exchange or transfer of 9onds will be delivered to the registered owner or assignee of the owner in not more than three business days after the receipt of the Bonds to be cancelled, and the written instrument of transfer or request for exchange duly executed by the registered owner or his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. New Bonds registered and delivered in an exchange or transfer shall be in any integral multiple of $5,000 for any one maturity and for a like aggregate principal amount as the Bond or Bonds surrendered for exchange or transfer. Limitation on Transfer cr Exchange of Bonds The Paying Agent/Registrar shall be required to issue, transfer, or exchange any Bondi during the Fie cod between the dose of business on any Record Date and the opening of business on the next followi r interest payment date, or (ii) with respect to any Bond or portion thereof called for redemption prior to maturity, within 45 days prior to its prepayment or redemption date. Record Date for Interest Payment The record date C'Record Date") for the interest payable on any interest payment date means the -15th day of the preceding month. -4- } INTRODUCTORY STATEMENT This Official Statement of the City of Denton, Texas, a political subdivision located !n Denton County (the "City"), is provided to furnish information in connection with the sale of the City's $1,000,00 Utility Syst^m Revenue Bonds, Series 1984 (the "Bends" cr "Bond"). ' The Official Statement was prepared to present for the purchaser of the Bonds information concerning the Bonds, the revenues pledged to the Bonds, the dcrcription of the revenue bse, factors that may affect pledged revenues, and other pertinent data, all a, more fudly described herein. See "Table of Contents". Source of payment The Bonds are and shall be payable as to principal and interest solely from the Pledged Revenues, which presently consist of the revenues derived from the operation of the City's Utility System (vhich includes the combined Water, Sew?r and Electri-. Systems), including all additions, extensions and improvements thereto which may hereafter be made, after deduction of the reasonable expenses of operation and maintenance of the System. See "Security for Payment". ` Purpose Proceeds of the $1,000,000 Utility System Revenue Bonds will be used to construct j improvements to the existing water system, including a new finished water pump, a raw water pump, over-sized water lines and other miscellaneous improvers ents. Future. Bond Issues In late Spring, 1984, the City expects to complete a capital improvement plan for the Utility System which will be submitted to the electorate in mid-Summer. Assuming voter approval, the City would expect to sell additional bonds in late 984. Sale and issuance of additional bonds is subject to certain specific conditions described herein. See "Additional Bonds" and "Further Requirements for Additional Bonds", pages 10 and 11, herein. Annual Budget and Rate Covenant The City shall prepEre, prior to the beginning of each fiscal year, an annual b sdget, in accordance with law, reflecting an est'mate of cash receipts and disbursements for the ensuing fiscal year in sufficient detail to indicate the probable Gras Revenues and Pledged Revenues for such fiscal year. The City shall fix, establish, maintain, end collect, such rates, charges, and fees for t'ne use and availability of the System at all times as am necessary (U to produce Gross Revenues sufficient, together with any other Pledged Revenues, to pay all current operation and maintenance expenses of the System, and (2) to produce an atlount of Pledged Revenues during each fiscal year at least equal to the greater of 1.25 times the average annual principal and interest requirements of Pit then outstanding Parity Bonds and Additional Bonds or 1.23 times the succeeding fiscal year's principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds. Administration of the C~t The City operetes under a Home Rule Charter which was approved by the electorate February 24, 1959. The Charter provides for the Council-Manager form of government for the City. Policy-making and supervisory functions are the responsibility of, and vested in, the Mayor and City Council, consisting of seven members elected at large by a vote of a majority of the residents of the City for rotating two-year terms. The City Manaf,er is appointed by and serves at the will of the City Concil to execute the laws and administer the government of the City. - 5- SECURITY FOR PAYMENT These Bonds will constitute special obligations of the City, payable as to both principal and interest and equally secured by a first lien on and pledge of the revenues of the Utility System (the "System"), after deduction of reasonable expenses of operation and maintenance, as provided by the General Laws of the State of Texas, particularly Articles I l l l et seq., V.A.T.C.S. CONDENSED STATEMENT OF UTILITY SYSTEM OPERATIONS Fiscal Years Ending September 30, 1978 1979 1980 1981 1932 1913 Gross Revenues: Electric $18,610,721 $18,216,763 $21,630,985 $25,945,169 $31,834,199 $33,376,243 Water and Wastewater 3,473,387 3,722,497 3,949,317 4,234,318 5,332,046 3,831,075 Interest Income 390,393 916,692 1,332,441 1,596,228 1,383,374 829,064 Other income 35 620 19 763 135 907 48 277 202,670 147 036 Total ?2 5121123 22 873 715 12-7:j 48 690 31,843,992 38 934,289 42 205 24 Expenses: Fuel and Purchased Power $11,179,333 $11,089,349 $14,382,913 $18,033,846 $22,587,647 $260996,600 Other Operating and A dm.inistrative Expenses 4 392 664 4 777 392 6,019, 967 7 030 566 8 142 038 8 07:2 922 Total 15,571,999 l5 866,941 20 402 880 25 084 412 30 729 683 33 06) 2 Net Revenue Available for Debt Service and Other Lawful Purposes $ 6,940,124 $ 7,008,?74 $ 6,643,810 $ 6,739,380 $ 8,224,604 $ 7,135,8°8 Note: Fiscal Year 1983 - Excludes extraordinary gain of $3,189,508 on advance refunding, Estimated Average Annual Debt Service, 1984/2008 $ 1,8o .044 Coverage of Average Annual Debt Service by 9-30-83 Net Revenue 3.83 Times Estimated Maximum Annual Debt Service, 1985 $ 3,670,630 Coverage of Maximum Annual Debt Service by 9-30-83 Net Revenue 1.94 Times Utility System Revenue Bonds to be Outstanding, Including this $1,000,000 Issue $26,280,000 Utility System Fund Balances as of 12-31-83: Interest and Sinking Fund 846 750 Reserve Fund 3,000,000 Emergency Fund 250 000 -6- I J a w pN~ ~ ~ M p W oc O n n O ou.. 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W • w . . w n • • • . . • • C N •a .-r •a ti ti r .y .-r rn .r .s .r N W N r Z M N C7 KZ O ON10n W O+O ti N M.} N ~O n Q O+O.~Nf`!er NrO n<0 w p O!O` M M M Q, 0,000000000 M WWW 0 WM W O, + Ch O+ O) O, O% M a, O~ M Or 0N M T M O, O, 0 0 0 0 0 0 0 0 0 Y z O~ •r r-•.-r w+•r r+er rr r-, r+r•~i ~ NN N N NNNNN W 7 SUMMARY OF CERTAIN PROVISIONS OF THE. ORDINANCE The Series 1984 Bonds will be issued under the authority of the Ordinance adopted by the City Council of the City of Denton (the "Ordinance"). The following summary of certain provisions of the Ordinance is qualified in all respects by reference to the Ordim,nce for a complete description of all terms at,d conditions set forth therein. Copies of the Ordinanr. are available upon request from the Financial Advisor. DEFINITIONS The following terms are defined in the Ordinance and shall have the meanings set forth below for the purposes of this Official Statement unless otherwise provided: "City" and "Issuer" shall mean the City of Denton, in Denton County, Texas. "City Council" or "Council" shall mean the governing body of the City. "Bonds" shall mean collectively the Initial Bond as defined and described in Section 1 of the Ordinance and all substitute bonds exchanged therefor as provided in the Ordinance. "Parity Bonds" shall mean collectively (i) the City of Denton Utility System Revenue Refunding Bonds, Series 1983, authorized by ordinance passed on March 10, 1983 (the "Series 1983 Bonds") and (ii) the Bonds. "Gross Revenues" shall mean all revenues, income, and receipts of every nature derived or received by the City from the operation and ownership of the System, including the interest income from the investment or deposit of money in any Fund created by the Ordinance. "Net Revenues" shall mean all Gross Revenues after deducting the current expenses of operation and maintenance of the System, includi g all salaries, labor, materials, repairs and extensions necessary to render efficient service; provided, ho,. ever, only such repairs and extensions as in the judgment of the City Council, reasonably and fairly exercised by the passage of the appropriate resolutions, 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 or Additional Bonds. "Pledged Revenues" shall mean (a) Net Revenues, plus (b) any additional revenues, income, receipts, or other resources which are expected to be available to the City on a regular periodic basis, including, without limitation, any grants, donations, or income received or to be received from the United States Government, or any other public or private source, whether pursuant to an agreement or otherwise, which hereafter may be pledged to the payment of the Parity Bonds or Additional Bonds. "Additional Bonds" shall mean the additional parity revenue bonds which the City reserves the right to issue in the future, as provided in the Ordinance. "System Fund" shall mean the "City of Denton, Texas Utility System Fund" created by the Ordinance. "Interest and Sinking Fund" shall mean the "City of Denton, Texas Utility System Revenue Bonds Interest and Sinking Fund" created by the Bond Ordinance. "Reserve Fund" shall mean the "City of Denton, Texas Utility System Bonds and Additional Bonds Reserve Fund" created by the Ordinance. "Extension and Improvement Fund" shall mean the "City of Denton, Texas Utility System Extensic n and Improvement Fund" created by the Ordinance. "Emergency Fund" shall mean the "City of Denton, Texas Utility System Emergency Fund" created by the Ordinance. "System" shall mean (1) the City's entire existing waterworks and sewer system and the City's entire existing electric light any power system, together with all future extensions, improvements, enlargements, and additions thereto, and all replacements thereof, and (2) any other related facilities, all or any part of the revenues or income from which do, in the future, at the option of the City, and in accordance with law, become "Pledged Revenues" as hereinafter defined; provided th.-, notwithstanding the foregoing, and u, the extent now or hereafter authorized or permitted bylaw, the Lerm System shall not n can any water, sewer, electric, or other facilities of any kind which are declared not to be apart of -8- the System, and which are acquired or constructed by the City with the proceeds from the issuance of "Special Facilities Bonds", which are hereby defined as being special revenue obligations of the City which are not payable from or secured by any Pledged Revenues, but which are secured by and payable from liens on and pledges of any other revenues, sources, or payments, including, but not limited to, special contract revenues or payments received from any other legal entity in connection with such facilities; and such revenues, sources, or payments shall not be considered as or constitute Gross Revenues of the System, unless and to the extent otherwise provided in the ordinance or ordinances authorizing the issuance o` such "Special Facilities Bonds". CREATION AND FLOW OF FUNDS (a) The Ordinance creates the System Fund, the Interest and Sinking Fund, the Reserve Fund, the Extension and Improvement Fund and the Emergency Fund. (b) All Gross Revenues shall be credited to the System Find immediately upon receipt. All current expenses shall be paid from such Gross Revenues as a first charge against the same. (c) the City shall make transfers from the System Fund as follows: 6) To the Interest and Sinking Fund on the twenty-fifth day of each month, in approximately equal monthly installments, amounts, which, together with other funds, if any, then on hand in the Interest and Sinking Fund and available for such purpose, will be sufficient to pay the principal and interest scheduled to accrue and come due on the Parity Bonds and any Additional Bonds on the next succeeding principal or interest payment date; GO To the Reserve Fund. The City shall maintain in the Reserve Fund an amount of money and investments equal to the lesser of $3,000,000 or the maximum annual principal and interest requirements of the Parity Bonds (the "Required Reserve Amount"). Following the issuance of Additional Bonds, the Required Reserve Amount shall be equal to the average annual principal and interest requirements of all Parity Bonds and Additional Bonds then outstanding; provided, however, the Required Reserve Amount shall not be less than $3,000,000 if the maximum annual principal and interest requirements on all Parity Bonds and Additional Bonds outstanding exceeds $3,000,000. After the delivery of any Additional Bonds, the City shall cause the Reserve Fred to be Increased, if and to the extent necessary, so that such fund will contain an amount of money and investments equal to the Required Reserve Amount. Any increase in the Required Reserve Amount may be funded from Pledged Revenues, or from proceeds from the sale of Additional Bonds, or any other available source or combination of sources. All or any part of the Required Reserve Amount not funded initially and immediately after the delivery of any installment or issue of Additional Bonds shall be funded, within not more than fivr years from the date of such delivery. When and so long as the amount in the Reserve Fund is not less than the Required Reserve Amount no deposits shall be made to the credit of the Reserve Fund. The City specifically covenants that when and so long as the Reserve Fund contain, the Required Reserve Amount, the City shall cause all interest and income derived from the deposit or investment of the Reserve Fund to be deposited to the credit of the Interest and Sinking Fund; (iii) To the Extension and Improvement Fund. During each year, subject and subordinate to making the required deposits to the credit of the Interest and Sinking Fund and the Reserve Fund, the City shall be required to deposit to the credit of the Extension and Improvement Fund from Pledged Revenues in the System Fund an amount equal to 9% of the "Adjusted Gross Revenues of the System", which term is hereby defined to mean the following: the Gross Revenues of the System for such year after deducting frorn such Gross Revenues an amount equal to the current expenses of operation and maintenance of the System for such year which are directly attributable to 0) all fuel costs related to the production of electric I energy by the City and/or (ii) the purchase of electric energy by the City. Additional excess Pledged Revenues may, at the option of the City Council, be deposited to the credit of the Improvement Fund, but no such additional deposit is required. All investment interest income from the Extension and Improvement Fund shall be retained in and remain a part of such Fund. (iv) For any iawful purpose not inconsistent with the City's Charter, after having made the required deposits to the Interest and Sinking Fund, the Reserve Fund, and the Extension and Improvement Fund. -9- SECURITY FOR FUNDS Money in all Funds created by this Ordinance, to the extent not Invested, shall be secured in the manner prescribed by law. INVESTMENTS Money in any Fund established pursuant to this Ordinance or any ordinance authorizing the issuance of Additional Bonds, may, at the option of the City, be placed in time deposits or certifirates of deposit secured by obligations of the type hereinafter described, or be invested in Government r)bligations or obligations guaranteed or insured by the United States of America, which, In the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in obligations of instrumentalities of the United States of America, Including, but not limited to, evidences of indebtedness issued, insured, or guaranteed by such governmental agencies as the federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan flanks, Government National Mortgage Association, United States Postal Service, Farn•ers Hwne Administration, Federal Home Loan Mortgage Association, Small Business Administration, Federal Housing Association, or Participation Certificates in the Federal Assets Financing Trust; provided that all such deposits and investments shall be made in such manner as will, in the opinion of the City, permit the money required to be expended from any Fund to be available at the proper time or times as expected to be needed. Such investments (except United States Treasury Oh;';ations--State and Local Government Series investments held in book entry form, which shall at all liars be valued at cost) shall be valued In terms of current market value as of the last day of each fiscal year. Unless otherwise set forth herein, all Interest and income derived from such deposits and investments immediately shall be credited to, and any losses debited to, the Fund from which the deposit or investment was made, and surpluses In any Fund shall or may be disposed of as hereinafter provided. Such investments shall be sold promptly when necessary to prevent any default in connection with the Parity Bonds or Additional Bonds consistent with the ordinances, respectively, authorizing their issuanc:. PAYMENT OF PARITY BONDS AND ADDITIONAL BONDS On or before June 1, 1984, and semi-annual!y on or before each December I and June I thereafter while any of the Parity Bonds or Additional Bonds are outstanding and unpaid, the City shall make available to the Paying Agent/Registrar therefor, out of the Interest and Sinking Fund, or If necessary, out of the Reserve Fund, money sufficient to pay, on each of such dates, the principal of and interest on the Parity Bonds and Additional Bonds as the same matures and comes due, or to redeem the Parity Bonds or Additional Bonds prior to maturity, either upon mandatory redemption or at the option of the Clty. At the direction of the City the Paying Agents shall either deliver paid Parity Bonds and Additional Bonds to the City or destroy' all paid Parity Bonds and Aduitional Bonds, and furnish the City with an appropriate certificate of cancellation or destruction. ADDITIONAL BOI.DS (a) The City shall have the right and power at any time and from time to time, and in one or more series or issues, to authorize, issue, anti deliver additional parity revenue bonds (herein called "Additional Bonds"), in accordance with law, in any amounts, for any lawful purpose, including the refunding of any Parity Bonds or Additional Bonds, or other obligations. Such Additional Bonds, if and when authorized, issued, and delivered in accordance with this Ordinance, shall be payable from and secured by an irrevocable first lien on and pledge of the Pledged Revenues, equally and ratably on a parity in all respects with the Parity Bonds and any other outstanding Additional Bonds. (b) The principal of all Additional Bonds must be scheduled to be paid or mature on December 1 of the years in which such principal is schedule0 to be paid or mature. FURTHER REQUIREMENTS FOR ADDITIONAL BONDS Additional Bonds shall be issued only in accordance with this Ordinance, and no instrJlment, series or issue of Additional Bonds shall be issued or delivered unless: (a) The Mayor of the City and the City Secretary sign a written certificate to the effect that the City is not in default as to any covenant, condition, or obligation in connection with all then outstanding Parity Bonds and Additional Bonds, and the ordinances authorizing same, and that the Interest and Sinking Fund and the Reserve Fund each contains the amount then required to be therein. (b) An independent certified public accountant, or independent firm of certified publir accountants, acting by and through a certified public accountant, signs a written certificate to the effect that, in his or its opinion, during either the next preceding fiscal year, or ary twelve consecutive calendar - 10- month period out of the IS-month period immediately preceding the month in which the ordinance authorizing the issuance of the then proposed Additional Bonds is passed, the Pledged Revenues were at least Q 1.25 times an amount equal to the average annual principal and interest requirements, and (ii) 1.10 times an amount equal to the principal and interest requirements during the fiscal year during which such requirements are scheduled to be the greatest, of all Parity Bonds and Additional Bonds which are scheduled to be outstanding after the delivery of the then proposed Addtional Bonds. It is specifically provided, however, that in calculating the amount of Pledged Revenues for the purposes of this subsection (b), if there has been any increase in the rates or charges for services of the System which is their in effect, but which was not in effect during all or any part of the entire period for which the Pledged Revenues are being calculated (hereinafter referred to as the "entire period") then the certified public accountant, or in lieu of the certified public accountant a fired of consulting engineers, shall determine and certify the amount of Pledged Revenues as being the total of W the actual Pledged Revenues for the entire period, plus (ii) a sum equal to the aggregate amount by which the actual billings to customers of the System during the entire period would have been increased if such increased rates or charges had been in effect during the entire period. (c) Provision shall be made in the ordinance authorizing their issuance for increasing the Reserve Fund to the Required Reserve Amount. (d) That all calculations of average annual principal and interest requirements of any bonds made in connection with the issuance of any then proposed Additional Bonds shall be made as of the date of such Additional Bonds; and also in making calculations for such purpose, and for any other purpose under this Ordinance, principal amounts of any bonds which must be redeemed prior to maturity pursuant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal of such bonds. GENERAL COVENANTS The City covenants and agrees that in accordance with and to the extent required or permitted by law: (a) It will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained in th',s Ordinance, and each ordinance authorizing the issuance of Additional Bonds, and in each and every Parity Bond and Additional Bond; it will promptly pay or cause to be paid the principal of and interest on every Parity Bond and Additional Bond, on the dates and in the places and manner prescribed in such ordinances and Parity Bond or Additional Bond; and it will, at the time and in the manner prescribed, deposit or cause to be deposited the amounts required to be deposited into the Interest and Sinking Fund and the Reserve Fund; and any owner of the Parity Bonds or Additional Bonds may reg0re the City, its officials and employees to carry out, respect or enforce the covenants and obligations of this Ordinance, or any ordinance authorizing the issuance of Additional Bonds, by all legal and equitable means, including specifically, but without limitation, the use and filing of mandamus proceedings, in any court of competent jurisdiction, again.' the City, its officials and employees. (b) It is a duly created and existing home rule city of the State of Texas, and is duly authorizers under the laws of the State of Texas to create and issue the Parity Bonds; that all action on its part for the creation and issuance of the Parity Bonds has been duly and effectively taken, and that the Parity Bonds in the hards of the owners thereof are and will be valid and enforceable special obligations of the City in accordance with their terms. (c) It has or will obtain lawful title to the lands, buildings, structures and facilities constituting the System, that it warrants that it will defend the title to all the aforesaid lands, buildings, structures and facilities, and every part thereof, for the benefit of the owners of the Parity Bonds and Additional Bonds, against the claims and demands of all persons whomsoever, that it is lawfully qualified to pledge the Pledged Revenues to the payment of the Parity Bonds and Additional bonds, and has lawfully exercised such rights. (d) It will from time to time and before the same become delinquent pay and discharge all texes, assessments and governmental charges, if any, which shall be lawfully imposed upon it, or the System; it will pay all lawful claims for rents, royalties, labor, materials and supplies which if unpaid might by law become a lien or charge thereon, the lien of which would be prior to or interfere with the liens of the Ordinance, so that the priority of the liens granted thereunder shalt be fully preserved, and it will not create or suffer to be created any mechanic's, laborer's, materialman's or other lien or charge which might or could be prior to the tiers thereof, or do or suffer any matter or thing whereby the liens thereof might or could be impaired; provided, however, that ro such tax, asesessment or charge, and tnat no such claims which might be used as the basis of a mechanic's, laborer's, rr aterialman's or other lien or charge, shall be required to be paid so long as the validity of the same shall be contested in good faith by the City. - ll- (e) It will, while the Parity Bonds or any Additional Bon.:s are outstanding and unpaid, continuausly and efficiently operate the System, and shall maintain the System in good condition, repair and working order, all at reasonable cost. 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 shall be made by the City out of funds from sources other than the revenues of the System, unless made from surplus or excess Pledged Revenues. (f) It, while the Parity Bonds or any Additional Bonds are outstanding and unpaid, will not additionally encumber the Pledged Revenues in any manner, except as permitted in the Ordinance in connection with Additional Bonds, unless said encumbrance is made junior and subordinate in all respects to the liens, pledges, covenants and agreements of the Ordinance; but the right of the City to issue revenue bonds payable from a subordinate lien on the Pledged Revenues is specifically recognized and retained. (g) It, while the Parity Bonds or any Additional Bonds are outstanding and unpaid, will rot sell, convey, mortgage, encumber, lease or in any manner transfer title to, or otherwise dispose of the System, or any significant or substantial part thereof; provided further that whenever the City deems it necessary to dispose of any other property, machinery, fixtures or equipment, it may sell or otherwise dispose of such property, machinery, fixtures or equipment when it has made arrangements to replace the same or provide substitutes therefor, unless it is determined that no such replacement or sui stitute is necessary. (h) It shall cause to be insured such parts of the System as would usually be insured by corporations operating like propertis, vith a responsible insurance company or companies, agai,.st risks, accidents, or casualties against which and to the extent insurance is usually carried by corporations operating like properties, including, to the extent reasonably obtainable, fire and extended coverage insurance, insurance against damage by floods, and use and occupancy insurance. Public liability and property damage insurance also shall be carried unless the City Attorney gives a written opinion to the effect that the City is not liable for claims which would be 'protected by such insurance. All insuran.e premiums shall be paid as an expense of operation of the System. At any time while any contractor engaged in construction work shall be fully nesporeible therefor, the City shall not be required to carry insurance on the work being constructed if the contr actor is required to carry appropriate insurance. All 1 su_h policies shall be open to the inspection of tine Bondholders and their representatives at all reasonable tines. Upon the happenir.g of any loss or damave covered by insurance from one or more of said causes, the City shall hake due proof of lus~ and shall do all chings necessary or desirable to cause the insuring companies to make payment in full directly to the City. The proceeds of insurance covering such property, together wi+h any other funds necessary and available for such purpose, shall be used forthwith by the City for repairing the property drma;ed or r^p!aeirg the property c estroyed; provided, however, that if said irt-urance proceeds and ot;uer fungi ere insu:ficient for suds purpose, then said insurance proceeds pertaining to the System shall be dcpnsib:d in i special and separate trust fund, at an official depository cf the City, to be designa•td the !tit anrc Arvrint. The Insurance Account shall be held until such t;me as other funds became available w i`n, togetht * with the Insurance Account, will be sufficient :o make the rep+.irs or replacements origin,.lly require' The Lnnual au ht hereinafter required may cor,ain a section commenting on whether or not the City has complied with the requirements of this section with respect to the maintenance of insurance, and shail state whether or not all insurance premiums upon the insurance policies to which reference is made have been >aid. (i) It shall prepare, prior to t',e beginning of each fiscal year, an annual budget, in accordance with law, reflecting an estimate of cash receipts and disbursements for the ensuing fiscal year in sufficient detail to indicate the probable Gross Revenues and Pledged Revenues for such fiscal year. The City shall fix, establish, maintain, and collect, such rates, charges, and fees for the use and availability of the System at all times as are necessary (I) to produce Gross Revenues sufficient, together with any other Pledged Revenues, to pay all current operation and malp*enance expenses of the System, and (2) to produce an amount of Pledged Revenues during each fiscal year at least equal to the greater of 1.25 times the average annual principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds or 1.25 times the succeeding fiscal year's principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds. (i) It shall keep proper book. of record and account in which full, true, proper, and correct entries will be made of all dealings, activities, and transactions relating to the System, the Pledged Revenues, and the Funds created pursuant to this Ordinance, and all books, documents, and vouchers relating thereto shall at all reasonable times be made available for inspection upon request of any Bondholder or citizen of the City. To the extent consistent with the provisions of this Ordinance, the City shall keep its books and records in a manner conforming to standard accounting practices as usually would be followed by private corporations owning and operating a similar System, with appropriate recognition being given to essential differences between municipal and corporate accounting practices. - 12- W After the close of each fiscal year while any of the Parity Bonds or any Additional Bonds are outstanding, an audit will be made of the books and accounts relating to the System and the Pledged Revenues by an independent certified public aceounttnt or an independent firm of certified public accountants. As sort as practicable after the dose of each such dear, and when said audit has been completed and made available to the City, a copy of su-:h audit for the preceding year shall be mailed to the Municipal P.dvisxy Council of Texas, to each paying agent for any bonds payable from Pledged Revenues, and to any Bondholders who shall so request in writing. The annual audit reports shall be open to the inspection of ne Bondholders and their agents and reprc!cntatives at all reasonable times. (1) It will c mpJy with all of the terms and conditions of any and all franchises, permits, and authorizations applici ble to or necessary with respect to the System, and which have been obtained from any governmental agency; and the City has or will obtain and keep in full force and effect all franchises, permits, authorizatiors, and other requirements applicable to or necessary with respect to the acquisition, construction, equipment, operation, and maintenance of the System. (m) It will not operate, or grant any franchise or, to the extent it legally may, permit the acquisition, construction, or operation of, any facilities which would be in c xnpetition with the System, and to the extent that it legally may, the City will prohibit any such competing facilities. (n) The City covenants to and with the purchasers of the Parity Bonds and any Additional Bonds that no use will be made of the proceeds of any of such bonds at any time throughout the term el any of such bonds which, if such use had been reasonably expected on the date of delivery of any of such bonds to and payment therefor by the purchasers, would have caused any c f such bonds to be arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto; and by this covenant the City is obiigated to comply with the requirements of the aforesaid Section 103(c) and all applicable and pertinent Department of the Treasury regulations relating tz arbitrage bands. The City further covenants that the proceeds of all such bonds will not otherwise be used dire,:tly or indirectly so as to cause all or any part of such bonds to be or become arbitrage bonds within the meaning of the aforesaid Section 103(c), or any regulations pertaining thereto. PAYING AGENT/REGISTRAR FOR THE BONDS (SERiZS 1984) During all times while the Bcnds are outstanding the City will provide a competent and legally gialiffed bank, trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Bond, under the Ordinance, and tha' the Paying Agent/Registrar will be one entity. The City reserves the right to, and may, at its option, change the Paying A rent/Registrar upon not less than 60 days written notice to the Paying Agent/Registrar. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the City covenants that promptly it will appoint a competent and legally qualified national or state banking institution which shall be a corporation or~3 zed and doing business under the !.aws of the United States of America or of any state, authorized under such laws to e.,:rcise trust powers, subject to supervision or examination by federal or state Authority, and whose qualifications substantially are similar to the previous Paying Agent/Registrar to act as Paying Agent/Registrar under the Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Regi!trar prenptly shall transfer and deliver the Registration Books (r a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Registrar designated and appointed by the City. Upon any change in the Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each registered owner of the Bonds, by United States Mail, postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By accepting the position -.4)d performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of to Ordinance, and a certified copy of the Ordinance shall be delivered to each Faying Agent/Registrar. AMENDMENT OF ORDINANCE (a) The holde-s or owners of Parity Bonds and Additional Bonds aggregating in principal amount 51% of the aggregate principal amount of then outstanding Parity Bonds and Additional Bonds shall have the right from time br time to approve any amendment to this Ordinance which may be deemed necessary or desirable by the City, provided, however, that nothing herein contained shall permit or be construed to permit the amendnent of the terms and conditions in this Ordinance or in the Bonds or Additional Bonds so as to: (1) Make any change in the maturity of the outstanding Parity Bonds or Additional Bonds; (2) reduce the rate of interest borne by any of the outstanding Parity Bonds or Additional Bonds; _ p3_ (3) Reduce the amount of the principal payable on the outstanding Parity Bonds or Additional Bonds; (4) Modify the terms of payment of principal of or interest on the outstandin6 Parity Bonds or Additional Bonds, or impose any conditions w,th respect to such payment; (S) Affect the rights of the holders or owners of less than all of the Parity Bonds and Additional Bonds then outstandir.g; (6) Change the minimum percentage of the principal amount of Parity Bonds and Additional Bonds necessary for consent to such amendment. (b) If at any time the City shall desire to amend the Ordina ice under this section, the City shall cause notice of the proposed amendment to be published in a financial publication of general circulation in the City of New York, New York, once during each calendar week for at least two successive calendar weeks. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the principal office of the Payirg Agents for inspection by all holders or owners of Parity Bonds and Additional Bonds. Such publication is not required, however, if notice in writing I- given to each holder or owner of Parity Bonds and Additional bon,'-. (c) Whenever at any time not less than thirty (30) days, and within one year, from the date of the first publication of said notice or other service of written notice the City shall receive an instrument or instruments executed by the holders or owners of at least 31`o in aggregate principal amount of all Parity Bonds and Additional Bonds then outstanding, which instrument or instruments shall refer to the proposed amendment described in said notice and which specifically consent to and approve such amendment in substantially the form of the copy thereof on file with the Pay ng Agents, the City Council may pass the amendatory ordinance in substantially the same form. (d) Upon the passage of any amendatory ordinance pursuant to the provisions of this section, this Ordinance shall be deemed to be amended in accordance with such amendatory ordinance, and the respective rights, duties, and obligations under this Ordinance of the City, and all the holders or owners of then outstanding Parity B;xnds and ,'Additional Bonds and all future Parity Bonds and Additional Bonds shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such amendments. (e) Any consent given by the holder or owner of a Parity Bond or Additional Bond pursuant to the provisions of this section shall be irrevocable for a period of six months from the date of the first publication of the notice provided for in this section, and shall be conclusive and binding upon all future holders or owners of the same Parity Bond or Additional Bond during such period. Such consent may be revoked at any time after six months from the date of the first publication of such notice by the holder or owner who gave such consent, or by a successor in title, by filing notice thereof with the Paying Agents and the City, Vt such revocation shall not be effective if the holders or owners of 51% in aggregate principal amount of the then outstanding Parity Bonds and Additional Bonds as in this section defined have, prior to the attempted revocation, consented to, and approved the amendment. (f) For the purpose of this section, the fact of the holding of Parity Bonds or Additional Bonds which are in bearer, coupon form, by any bondholder and the amount and numbers of such bearer Parity Bonds or Additional Bonds and the date of their holding same, may be proved by the affidavit of the person claiming to be such holder or owner, or by a certificate executed by any trust company, bank, banker, or any other depository wherever situated showing that at the date therein mentioned such person had on deposit with such trust company, bank, banker, or other depository, the Parity Bonds and Additional Bonds described in sc h certificate. The City may r;onclusively assume that such ownership continues until written notice to 'he contrary is served upon the City. The ownership of all registered Parity Bonds and Additional Bonds shall be determined from the registration books kept by the registrar therefor. APPROVAL AND REG15TRATION OF INITIAL BOND The !Mayor of the City is hereby authorized to have control of the Initial Bond and all necessary records and proceedings pertaining to the Initial Bond pending its delivery and its investigation, examination, and approval by the Attorney General of the State of Texas, and its registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Initial Bond, said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate printed and endorsed on the Initial Bond, and the seal of said Comptroller shall be impressed, or placed in facsimile, on the Initial Bond. - 14- I , i e VALUE OF THE UTILI'."SYSTEM Fiscal %,.,r Ended 9-30-83 Land and Land Rights $ 1,697 550 Water Rights 250,064 Electric Plant and Equipment 53,497,163 Water Plant and Equipment 3I,215,599 Sewer Plant and Equipment 12,133,079 98,773,455 Less: Allowance for Depreciation 38,474,043 Net System Value 60 299,412 CiTY':i EQUITY IN SYSTEM Fiscal Year Ended 9-30-83 Resources: UtiTrt-y-Plant (Net) $60,299,412 Construction in Progress 982,499 Total Utility Flant ,61,281 ,911 Cash, Investments and Receivables 12,059,800 Prepaid Expenses and Deposits 18,138 Inventory 1,406,507 Total Resources 74 766 356 Obligations: Total Revenue Bonds Outstanding* $23,121,72.1 Accrued Interest Payable 1,073,531 Total Bonded Debt 24,195,252 Less: Restricted Fund Asset:, _ 7,018,911 $17,176,341 Other Liabilities 6,519,934 Net Fund Transfers Payable 1,545,000 Meter Deposits 237,553 Total Obligations 525, 498 , 828 City's Equity In Systern $49,267,528 Percentage of Equity in System 65.90% M Net of Unamortized Dlsce tnt and :expenses (see "Utility System"). UTILITY SYSTEM In March of 1983, the City issued $25,2F0,000 Utility System Revenue Refunding Bonds to refund and legally defease the existirg bonded debt ref the Electric System and the Water and Sewer System of the City and to combine the separate system: into a single utility system. The Public Utilities Hoard By City Charter, there has been created a Public Utilities Board (the "L'oard") composed of five members, appointed by the City Council with the City Manager and the Director of Public Utilities serving as ex-officio members of the Board without voting privileges. The Board serves the Department of Utilities as a consulting, advisory and supervisory body, The duties of the Board an a summarized as follows: I. Review of the annual budget and the transmission thereof to the City Council. - 15- rr~ - 2. Review of recommended: a. expansion of, additions to, betterment of, or extensions to the Utility System; b. incurring of debt; C. issuance of bonds, and d. fixing of rates and charges. 3. Submission annually to Planning and Zoning Commission a list of recommended capital improvements which, in the opinion of the Board, should be constructed during the forthcoming five (S) year period. All artions of the Board are subject to final approval of the City Council. Management of the Utility System The Utility System is managed by a Director of Utilities who is responsible to the City Manager. Included within the Utility System is the Utility Administration which consists of various administrative staff and utility dispatchers, and the Budget and Rate Administration, whose responsibilities include development and monitoring of utility budgets and annual rate studies. The Utility System is organized into two major services, the Electric Department and the Water/Wastewater Department, and consists of approximately 180 employees. Each of the two major departments is under the direction of an Assistant Director of Utilities. The Electric Department is composed of three divisions: 1. Electric Production. 2. Electric Distribution. 3. Metering/Substation. Each division is headed by a Superintendent. There is also an Electrical Engineering group. The Water/Wastewater Department is composed of four divisions: 1. Water Production. 2. 'Rater/Wastewater Field Services. 3. Wastewater Treatment. i. Environmental Services. Earh division is headed by a Superintendent or Environmental Services Director. There is also a Civil Engineering Group The Utility System utilizes the services of the City Finance Department for meter reading, data processing and billing, cus, . -r services, accounting, purchasing and warehousing. The Utility System utilizes the services of the . ' c Works Department for vehicle maintenance, design of minor water and sewer lines, easement and/u, r.ght-of-way acquisition and inspection of deve:oper-installed water and sewer lines. THE ELECTRIC SYSTEM General The City of Denton has owned and operated its Electric System (the "Electric System") for approxim,~tely 79 years without interruption. During this time, the Electric System has experienced a steady growth in customers and output, requiring periodic additions to plant and distribution facilities. Service Area The Electric System provides electric service to 20,027 customers located in the City. The City has covenanted in the Ordinance that it will not operate, and will not grant any franchise or, to the extent it legally may, permit the acquisition, construction, or operation of, any electric energy distribution facilities which would be in competition with the Electric System, and, to the extent that it legally may, the City will prohibit any such competing facilities. -16- Customers In 1983, the Electric System sold 506,268,000 kWh of electric energy exc.'uding off system sales. The following tabulation shows the average number of customers from 1979 through 1983 and tike average charge per kilowatt hour. Year Ended September 30 Average Number of Customers; 1979 1980 1981 1982 1983 Residential 13,870 15,705 16,225 17,132 17,398 Commercial/industrial 2,608 2,420 2,186 2,213 2,283 Other 312 137 145 220 346 Total Customers 16,790 18,262 18,336 19,363 20,027 Average Cha ge Per kWh: Residential 4.360 4.54G 4.80 6.390 6.93 All Other 3.97G 4.1% 5.39 6.28 6.4'(~ The following tabulation provides information for caJe7dar year 1983 for the Electric System's ten largest customers in terms of both peak demand and annua revenues. These customers taken together represent 21.6% of the 1983 electric revenues on system sales. Denton Electric System Ten Largest Retail Customers 1983 1983 Annual Peak kW Customer kWh Revenues Demand North Texas State University 60,538,800 3,548,913 13,440 Texas Woman's University 21,251,4)0 1,299,700 4,844 Peterbuilt Motors Company 9,161,6CO 637,987 4,480 Acme Brick Company 9,148,890 638,984 1,890 Golden Triangle Mall 8,873,200 592,631 3,640 Moore Business Forms 8,824,272 529,822 1,907 Victor Equipment Company 7,946,833 536,228 2,399 Denton State School 6,020,956 408,267 2,244 Morrison Milling Company 4,788,640 288,799 987 Signal Products Division _ 1,573,040 94,764 _ 616 Total 138,127,65J 8 316 115 36.447 F-nerA~Sales The Electric System's sales of energy, in kWh, to principal customer classes for 1979 through 1983 were as follows: kWh Sold (000's Omitted) Year Ended September 30 1979 1980 1981 1982 1983 Residential 132,534 167,286 173,460 175,313 139,948 Commercial /industrial 276,199 301,982 308,348 299,040 325,381 Other 23,579 24,041 17,288 25,431 20,738 Total Sales 432,312 493,309 499,096 499,784 506,268 17_ rsrrrs~ Existing P~wer_Supply and Interchange Agreements Present production facilities of the Electric System consist of five generating units described as f oil ow:: Number of Name Plate Year Placed Type Units CaracitykW _In SerOze Steam Turbine 5 Unit 1 12,650 1955 Knit 2 12,650 1935 Unit 3 '121000 1962 Unit 4 61,120 1966 Unt 5 65 500 1973 5 17 92 All five units utilize natural gas as their primary boiler fuel. The City has recently sold its five diesel generator peaking units. The City is a member of the Texas Municipal Power Pool ('TMPP"), which also includes the cities of Bryan, Garland, Greenville and the Brazos Electric Powr, Cooperative, Inc. of Waco, Texas, each of which has its own production, transmission and distributl~ . iacilities. The City is also a member of the Electric Reliability Counsel of Texai ("ERCOV the : , onal Reliability Coordinating Organization for Electric Power Systems in Texas. The City has acr as to the ERCOT intrastate network of six major investor-owned and several public systems through the TMPP members transmission system. The TMPP contract provides that each member city shall provide, through Iis own facilities or through firm power contracts, a capability at least 15% greater than its projected system peal, !:,ad for each future year. The cost of TMPP 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 advantages include an adequate and dependable source of power during periods of individual emergency, during periods of scheduled unit malnten.:ce, plus interchange of economy energy between members. The TMPP members are engaged In an economic dispatch program wherein al! generating units of the five members are operated such that the most efficient units are loaded first. Savings are distributed on a formula of splitting the savings between the actual cost of the suppliers and costs that would have been experienced by the less efficient generators owned by the purchasers. Shown below are the interchanges the City has access tot TMPP, TMPA and TP&L Interconnections (!k T M P P 138KV North Inters ange 6D,ODO kva Brazos 69KV Interchange 10,000 kva TMPA/TP&L Spencer Plant I38KV Interch-.nge 100,000 kva TMPA 138KV North Interchange 100,000 kva iii O,000 kva (2) (1) 1'exas Municipal Power Pool ("TMPP"). Texas Municipal Power Agency ("TMPA"). Texas Power dr Light Company C'TP&L"). (2) TMPA has capacity to furnish 4DO kva of power to a 138 kva transmission loop around the City of Denton from its 343 kv transmission line which is tie! to the Texas U0ity transmission grid. TMPA furnishes power to Denton's 69 kv transmission system from the 138 kv transmission loop through two 100,000 kva transformers. In the future Dentm plans to also take delivery of power directly from TMPA's 138 kv lines which will provide additional capability of approximately 200 K. t. Fuel Suppi In October, 1983, the City entered into a contract with Lone Star Gas Company (the "Seller"), whereby the Seller agrees to supply natural gas to the City through December 31, 1988. The City may take deliver; of the gas at its generating station or at any of the generating stations of the Cities Garland, Bryan or Greenville. Take-or-pay provisiuns of the contract call !or payment by the City of 40% of estimated fuel requirements as projected 12 months in advance of each year. The Cities may also take delivery of up to 16% of a prior year's gas requirement during the next year to meet minimum purchase lg_ J i quantities. Penalty for not purchasing the minimum gas quantities is payment of such deficiencies at 20% of the weighted average of the monthly cost of gas. The price of the gas is the sum of a base price for i', livery plus the average wellhead cost of gas to the Seller. The base price ranges from 37C per MCF in 1983 with escalation based on an inflation i ~dex but not to exceed % per MCF per year. Wellhead gas prices presently range from approximately $3.60 per MCF to $3.90 per MCF. The City has the option of purchasing up to 30% of its gas requirements from other gas "producers" with such gas credited to its minimum contract volumes. Seller has agreed to transport gas for a fee of 30C per MCF escalatable at the same percentage rate as the base price. The City has presently entered into an agreement with Enserch for delivery of such "producer" gas at a price of $3.13 per MCF. Texas Municipal Power Agency In July 1975, th- Cities of Bryan, Garland, Denton dnd Greenville (the "Cities"), by concurrent ordinances, created the Texas Municipal Power Agency (the "Agency"), a joint power agency without taxing power, as a separate municipal corporation and political subdivision of the State in accordance with Article 1435a, Vernon's Texas Civil Statutes, as amended. The Agency is governed by a Board of Directors made up of two representatives 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. Each of the Cities has entered into an identical Power Sales Contract (the "Contract") with tl c 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 ; rom 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 rnergy 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 Pmount 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 proceeds, 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 inay 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 Percentage Shares for each of the Cities for 1984 are as follows: City of Bryan 20.289( City of Denton 19.85 City of Garland 49.57 City of Greenville 10.30 Total 100.00% Each of the Cities unconditionally covenants 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 required, and none of the Cities shall have the right of set-off, recoupment 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 superior lien on the gross revenues of such System prior to the pledge made on the Bonds. Under the Contract, the Cities must approve any "Project" before the Agency is authorized to proceed with the 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. -19- A Movedcts , . , The first generating project of the Agency approved by the Cities Is the Gibbons Creek Steam Electric Station, completed In Grimes County, Texas, and Inclines a net 390 megawatt CN*") lignite-fueled steam electric plant, related reservoir, railroad spur and transmission facilities, an adjacent surface mine and associated properties and equipment. Gibbons Creek was placed into commercial operation in October, 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 facilities. On January 2, 1979, the Agency entered into a joint ownership agreement with Dallas Power & Light Company, Texas Electric Service Company, Texas Power & Light Company and Texas Utilities Generating Company, under which the Agc 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 late 1980 and Unit Two in mid 1986. The Cities have also approved, as "System Development and Reliability Expenditures," certain transmission facilities. Future Power Supply Resources Freliminrary discussions have been underway with Brazo; Electric Power Cooperative, Inc. of Waco regarding possible future participation in a future lignite-fired power generation plant, to be either an addition to the existing San Miguel lignite plant or a new plant in East Texas. The City is investigating the installation of three 1,000 KW hydroelectric turbines on nearby Lewisville Lake and Ray Roberts Lakr, wiiich is new under construction, and has filed application with the Federal Energy Regulatory Commission for construction licenses. T ,e exact schedule for Installation of these units is uncertain at this time pending additional feasibility stun es. - 2D- HISTORICAL STATISTICAL DATA Year Ended September 30 Sales of kWh: 1979 1980 1981 1982 1983 ~te_ST3e-n`!Ta 132,533,863 167,283,852 173,460,113 173,313,102 159,948,444 Comm erclal/Industrial 276 199,188 301,982,186 308,347,623 199 039 686 323,581,187 008,7233 469,268,038 481,807,738 474-,32;788 485,;29,631 Public Street and Highway 4,666,680 4,7020073 4,750,623 3,180,806 4,905,108 Other 18,912,656 19,338,798 12,537,387 20,250,247 13.833,034 Sub-total 432,312,491 493,308,911 499,093,798 499,783,841 506,267,773 Sales for Resale l 416 000 7 450 000 845 OnO 4,659,000 60 221 ODO Total Sales 4 ,72 ,49 500:758:911 493,94417'1 504,472,841 366,488,17 Loss and Unaccounted 28,168,387 27,159,097 27,716,421 31,9 1,096 37,449,227 Total kWh to System 461,896,878 528,318,008 527,661,169 536,3%3,937 603,938,000 % Loss and Unaccounted 6.10% 5.22% 3.26% 6.00% 6.20% AveragCu: stomers: s ntZ 13,810 13,705 16,225 17,132 17,398 Commercial/Industrial 2,733 2,557 2.331 2.433 2,629 Total 16,603 18,262 18,336 19,565 20,027 Peak Day Power Requirement 109,000 131,000 133,000 133,000 140,000 Present Plant Capacity 173,920 173,920 173,920 173,920 173,920 Anal is o2 Electric Billing: A 1 Customers: AveragaSionthkWh/Customer 2,170 2,251 21241 2,129 29106 Bill per Customer $ 90.06 $ 97.41 $ 116.08 $ 134.47 $ 140.89 Revenue per kWh S 0.0413 5 0.0432 $ 0.0518 $ 0.0632 $ 0.0669 Residential Customers: Average Month WI7Custom er 796 888 891 85? :66 Bill per Customer $ 36.30 $ 40.32 j 42.77 $ 54.52 $ 53.21 Revenue per kWh $ 0.0456 S 0.0454 5 0.0480 $ 0.0639 5 0.0695 Commercial Industrial: Average onth W1Custom er 8,998 10,472 11,472 11,261 10,320 Bill Per Customer $ 359.92 $ 448.20 $ 604.57 $ 697.61 $ 664.77 Revenue per kWh $ 0.0400 $ 0.0428 $ 0.0527 $ 0.0619 $ 0.0644 Gross Income: es ent: $ 6,046,432 S 7,599,678 $ 8,327,068 $11,208,331 $11,108,553 Commercial/1ndustrial 11,060,823 12,629,060 16,255,007 18,523,737 20,972,080 Other 830 951 902.937 1 273 763 E 837 721 1,923,829 17 938 206 21 131,675 23 837 840 31 371 784 F33,959,464 + Does not include off-system sales, income derived from contribution-in-aid or sales of surplus material, etc. 21- Electric System - Capital Improvement Plan The Utility Department is required by charter to annually prepare a Capital Improvement Plan (CIP) and submit it to the Planning Pnd Zoning Commission for inclusion in the City's overall Capital Improvement Plan. 'r~, CIP is requ' d to be a five year projection of capital requirements with projects listed in order cf pn cy. The Utrmty Department Five Year Capital Improvement Plan for the Electric System is as follows: ELECTRIC From From Bord Current Year Proceeds Revenue Other Total 1984 1,203000 $1,019,000 127,000 2,331,004 1985 2,503,000 1,400,000 131,000 4,036,000 1986 1,316,000 1,393,000 190,000 2,901,000 1987 1 '95,000 1,432,000 195,000 21962,000 1988 1,283,000 1,383,000 176,000 3,042,000 The major electric system capital improvements are the construction of two new substations in 1985186 and 1988, and the enlargement of two existing substations in 1986 and 1987, and the addition to the City's Service Center. The remainder of the electric system CIP is for annual additions to the electrical distribution system sufficient to serve new customers and capital improvements to existing fac lities. Projected Loads aid Resources The projected loads and resources of the Electric System fir the period 1984 through 1968 are presented in the following chart as determined by the City, (In Megawatts) Peak Net Reserve Year Loads Resources Margin 1984 146 152 1 71 1983 133 266(2) 74 1986 159 280(3) 76 1987 163 280 70 1988 172 280 63 (1) TMPA Gibbons Creek, Denton's 20% allocation (78MW) (see "Texas Municipal Power Agenc)"). (2) Comanche Peak Unit 1, Denton's 109G allocation (14MW). (2) Comanche Peak Unit 2, Denton's 20% allocation (14MW) and the Lewisville Project, Sales of Excess Capacity The City, togeth.r with four other members of the TMPP, has entered into a contract with We,t Texas Utilities ("WTU") which provides for the sale to WTU of excess gas-fired generating capacity. The contract calls for sales of 150,000 k8' in 1985 and 200,000 kW in 1986, at a price of $3.00 Fer kW per month. The contract requires WTU to pay a monthly capacity ch-~rge, and if energy Is tak-n, an additional charge for fuel cost, operating and maintenance charges, start-up costs and line losses. Revenues from the contract are expected to be $5.23 million in 1983 and $7 million in 1986, and the revenue will be divided among the selling grouis in the proportion that each member's excess generating capacity bears to total generating excess capacity. The City expects that its share will approximate 15% of such revenues. A supplemental agreement among the selling group calls for the Brazes Electric Co-op to serve as agent for the group to administer, dispatch and account for revenues and for allocation of expenses of sales. The contract is contingent upon the ability of WTU to obtain transmission wheeling agreements to allow capacity -o reach its grid. Other such wheeling agreements are presently in existence and the City expects WTU w ll be successful in the timely completion of such agreements. - 22- Federal Regulation Undcr current Federal Statutes and regulations, the Electric System is not subject to Federal regulation in the establishment of rates, the Issuance of securities or the operation, maintenance or expansion of the electric System. The City submits various reports to the Federal Energy Regulatory Commission ("FERC") and utilizes the FE RC System of Accounts in maintaining its books of accounts and records. THE WATER AND WASTEWATER SYSTEM General The Water and Wastewater System provides retail water and wastewater service to all customers located within the city limits, as well as wholesale water and wastewater service to the City of Corinth. The water distribution system consists of 325 miles of water malns, 5 million gallons of ground storage, and 4.36 million gallons of elevated storage. The City believes It is in compliance with all State and Federal water quality requirements. Water Supply The present municipal supplies are obtained primarily from surface sources, but underground sources are available for emergency and back-up purposes. The City has previously acquired conservation storage rights in nearby Lewisv:lle Reservoir which was constructed by the U. S. Corps of Engineers. This Reservoir contains a total of 436,000 acre feet of conservation storage. The City holds the rights to 21,000 acre feet of storage, with the balance being held by the City of Dallas ("Dallas"). The State of Texas Water Rights Commission has awarded the City 4.6 million gallons per day in water rights from Lewisville Reservoir with the right to "perfect" an additional 5.3 million gallons per day. The City presently uses approximately 9 million gallons per day, as an annual average, and purchases from Dallas all amounts over 4.6 million gallons per day. The water contract with Dallas is similar to the contracts for retail and/or wholesale water that Dallas supplies to eighteen (18) other North Texas municipalities. The City is presently purchasing water from Dallas at a rate of 37.3% per 1,000 gallons. Water quality meets all Texas Department of Health and other State standards. Future Water S,.T In 191J, the City and Dallas contracted with the Corps of Engineers for the construction and development o! 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 the City. in the contracts with the Corps of Engineers, the City will pay for 26% of the construction cost, and Dallas will pay for 74%. Water obtained from the reservoir will be pro-rated on the basis of each city's proportional share of total construction costs. Tht estimated completion date is approximately 1986 with water being available from the. Reservoir in approximately 1990. The estimated safe yield of the Ray Roberts Reservoir had been calculated at 76 million gallons per day, of which the City would be entitled to receive up to 19.8 million gallons per day. This amount, plus a safe yield of 4.6 million gallons per day available from the present water rights from the Lewisville Reservoir, will be sufficient to meet the Citys estimated water needs through the year 2005. The City has conducted a long-range water s.opply study to determine water requirements and alternatives after the year 2000. Water Treatment Plant The City Water Treatment Plant is designed to treat an average of 16 million gallons per dad ("MGD") with a hydraulic design overload capability of 24 million gallons per day. The Texas State Health Department recognizes the maximum capability of the plant to be 16 million gallons per day. The historical peak day was 18.8 million gallons. The City is making improvements in the water filter media of the p.'ant which will provide treatment capability of 24 MGD based on the Texas State Health bcr t--nt regulations. Water Usage - (Galbxs) Average Maximum Average Maximum Year Da Day Yerr D a y Day 1973 6,636 907 12,175,000 1979 71920,820 14,:60,000 1974 6,822,010 12,620,070 1980 9,477,386 18,867,200 1975 7,216,282 13,350,000 1981 7,117,852 15,403,000 1976 7,264,000 14,080,000 1982 6,957,193 14,953,000 1977 7,923,000 14,119,000 1983 7,355,000 17,371,000 1978 8,394,000 16,466,000 23 - Wastewater Treatment The City owns and operates an activated sludge type wastewater treatment f. !ity. The fist 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 b MGD addition to the plant has been completed and was put into operation in May, 1982. The City's 12 MGD wastewater treatment plant is designed to serve the City up to a population of 90,000. The wastewater system has been efficiently operated and maintained. Water and Wastewater - Capital Improvement Plan The Utility Department is required by charter to annuaiiy prepare a Capital improvement Plan (CIP) and submit it to the Planning and Zoning Commission for inclusion in the City's overall Capital Improvement Plan. The CIP is required to be a five year projection of capital requirements with projects listed in order of priority. The Utility Department Five Year Capital Improvement Plan for the Water System is as follows: From From Bond Current Year Proceeds Rcvenue Other Total 1984 1,667,000 225,000 167,000 2,059,000 1983 4,780,000 407,000 237,000 5,424,000 1986 3,822,000 419,000 349,000 4,590,000 1987 3,121,000 510,000 103,000 3,736,000 1988 3,983,000 416,000 398,000 4,797,000 The major water system capital improvements are for major water line additions, a raw water pump station, a finished water pump and for annual additions to the system to serve new customers and capital improvements to existing facilities. UTILITY RATES General It is the City's policy to review electric, water and wastewater rates on an annual basis to assure adequacy and equity. Independent consultants and City Staff generally perform this review on an alternating year basis. Rate recommendations are submitted by the staff to the Utility Board for review and approval, which then makes recommendation to the City Council for final approval. To date, the City Council has approved all rate recomme. Jatioru of the Utility Board. Electric Rates Electric rates were last changed effective October 30, 1983, at which time the rates were increased 7.6% and the rate structure was altered to more accurately reflect cost of service among customer lasses. Current rate structure is shown below. (Effective October 30, 1983) Residential Facdity Charge $ 6.50 Single Phase 11.00 Three Phase Months of May through October Up to 3,000 kWh $0.065 pet kWh plus an energy cost adjustment Over 3,000 kWh $0.070 per kWh plus an energy cost adjustment Months of November through April Up to 1,000 kWh $0.060 per kWh plus an energy cost adjustment Over 1,000 kWh $0.055 per kWh plus a, energy cost adjustment Note: When usages are less than 700 kWh per month during May through October, the monthly facility charge is $5.50 per month and the energy charge is 5.5G per kWh, plus an energy cost adjustment. _24_ Ener Cast Ad'ustment When fael c: Purchased power costs are more than 4.50 per kWh, an Energy Cost Adjustrr,ent ECA is charged. The ECA is calculated b:r using the total cost per kWh of fuel and purchased power at the City's Power Plant divided by total sales subtracting 4.% which is already included in the base rate. Commercial and Industrial (1) Net Monthly Rate: (Demand Charge Primary Service (LP) $4.80 1,. [',onth per kW of billing demand Secondary Service (GS) $5.10 per month per kW of billing demand General ;-rvice Primary (GP) $4.90 per month per kW of billing demand (Energy Charge) Primary Service (LP) All k'Ah at $0.048/kWh plus ECA Secondary Service (GS) All kWh at $0.051/kWh plus ECA General Service Primary (GP) All kWh at $0.049;,cWh plus ECA (2) Customer Facility Charge: Prin.,ry Service (LP&GP) $49.50/month Secondary Service (GS) Three Phase $15.00/month Single Phase $10.00/month Energy cost adjustments are the same as those for residential customers. Governmental Local governrnert - (City, County, School District) (Demand Charge) (1) Net Monthly Rate: $3.50/month/KW of billing demand (Energy Charge) All kWh at $0.0511kWh plus ECA (2) Customer Facility Charge. `ingle Phase $10.00/month T~cae Phase $15 00/month Energy cost adjustments are the same as those for residential customers. Water Rates Water rates will increase by 10.5% effective February 24, 1984, reflecting, among other things, increased raw water costs, increased capital improvements aid inflation. (Effective February 24, 1984) Residential Users Billing 6lonths May -October Billing Months November • April Facility Charge $4.25 Facility Charge $4.25 0 - 20,000 gallons 1.30/M gallons Volume Charge 1 .30/M gallons Above 20,000 gallorss 1.60/M gallons Minimum Charge - $4.25 -23- Commercial/industrial Users Customer Facility Charge 51.25 yylus Volume Charge 1.25/81 gallons Minimum Charge - $9.00 Wastewater Rates Wastewater rates will increase by 54% effective February 24, 1984, reflecting, among other things, increased debt service on the City's share of a major expansion on the treatment end collection system, increased capital improvements funded by current revenues, and inflation. (Effective February 24, 1984) Residential Commercial/Industrial Based on 98% of average 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 pplus Vo!urne Charge 1.501M gallons Volume Charge f.60/M gallons Mote: All service outside City Limits at 150% of above rates. Rate Regulation Within its boundaries, the City has exclusive jurisdiction over the electric, water and sewer system rates. Pro Forma Combined Projected Operations Shown below are projected financial operations for the U.I.'ty System. These projections are based upon many assumptions, certain of which are also described below. Population Forecasts Recent population forecasts completed by the North Texas Council of Governments projects Denton's population to grow at an annual 2.4% rate and to be as follows: 1984 1985 1956 1987 1988 53,600 54,900 56,200 57,600 38,900 Per Capita Electric and Water Consumption The following shows the City's Frojections of electrical energy and water use on a per capita basis. 1984 1985 1986 1987 IM Energy Consumption p, r Capita (k% h/person/year) 10,000 10,150 10,300 10,450 10,600 Water Consumption pc : Capita (gallons/day/person) 143 143 144 145 146 Electric System Load Forccst 1984 1935 1986 1987 1988 Electric Energy (kWh) 536 557 579 601 627 Peak Load (MW) 147 153 159 165 172 The City has lowered its estimate of annual electrical load growth throe times in the last three years. GEbert Associates, Consulting Engineers, in their 1980 load forecast, estimated at an average annual rate of 6.3%. In December, 1981, the City reduced the estimate to 5%, and : h,ay, 1982 to 4%. - 26 - Water Cortsurn tion Forecast The City has lowered its estimate of water consumption growth to 3.5% per year rom a previous estimate of 5.3%, which was listed in a Water Supply Study co-..pleted by Freese and Nichols, Consulting Engineers, in 1982. The lowered growth f(drecasts are bawd on the City's estimates of effects of price elasticity and to the large percentage of new dweltin„ units being apartments which use less water per capita than do single family residences. 1984 1935 1986 1987 148S Annual Consumption Billions of Gallons 2.79 2.87 2.96 3.05 3.'.4 Average A1GD 7.6 7.9 8.1 8.4 8.6 Expense Assumptions Electric System projected expenses are based on 1984 budgeted expenses, assuming that all TMPA energy is priced at the "avoided" cost of producing the same c ^ergy from natural gas. For 1984 through 1988, the Electric System projected Fuel and Purchased Power expenses are based on the TMPA February, 1982 Official Statement, adjusted for reduced electric energy consumption and load growth, as previously discir rd. The Electric System's Operations, Maintenance, Administrative and General Expenses for 1984 through 1988 are based on projections recently developed for the capital improvement plan and reflec: an anticipated 8% increase in expenses for salaries and 6% increase in all other expense categories. Water/ Wastewater Operations, Maintenance, Administrative and General expenses are anticipated to increase at an annual rate of 8% for salaries and 6% for all other expense categories. Increased annual costs of electric power were obtained from the Electric System's projected annual increases. Purchased Water was estimated to increase dt an annual rate of 10%. _27_ ELECTRIC, WATER AND WASTEWATER SYSTEMS COMBINED REVENUE AND EXPENSE PROJECTIONS ollarsin 7ho~sands Fiscal Years Endin Se tember 30 1984 1985 1986 1987 1988 Revenues: Electric $36,428 $43,374 $49,477 Water and Wastewater 7,011 8,743 9,761 1$53, x1.0 1149 $11,,711 0 1 !60 Other 1 00 1.00 0 1 000 l Iota! Revenues ply 1000 45 648 556,149 60. 64 929 72 871 Expenses: Electric Fuel and Purchased Power $26,432 $34,435 $38,256 Other 5 609 6,018 $40,628 $46,448 Sub Total (Electric) 31,691 40,453 456 458 6 931 ,853 49920 7.439 Water/Wastewater 5,443 5 871 , 33,937 6 871 7 006 Total Expenses 6,972 J ,-96 24 6 37 ,3 51,0091 91 54,430 6!,343 Ne: Revenue Available for Debt Service $ 8,676 $ 9,825 Debt Service $ 3,740 $ 9 147 $10,449 $11,328 $ 4,691 $ 5 5:,083 083 S 5 ,308 5 6,140 Other Expenditures: Capital Improvements 1,627 2,175 2,291 General Fund Transfers 2,367 2,474 2,630 2, 143 2,434 2,816 2,304 Debt Service Coveragge 2.32X 2.04X Energy Sales (kg h) (1) 1.SOX 1.91X [.887 Electrical Revenue per kWh (mills/kWh) 336 572 579 6 627 68 79 85 89 89 97 (1) The projections above do not reflect any sales of TMP,q energy or capacity to parties other than the TMPA members. The variable costs for the Gibbons Creek and Comanche Peak plants are expected to be significantly less than the cost of even the most efficient natural gas-fired generating facilities. The chief reason that the TMPA members have developed these resources is to displace their natural gas fueled capacity. Therefore, both projects will be used as base Iead units and the TMPA members will use their full capacity from start-up. Although there will be no excess capacity for sale, on an hour-by-Four basis there is expected to be surplus energy available from the units. Since the variable energy cost of Gibbons Creek and Comanche Peak are expected to be 23 mills per kWh and I I mills per kWh, respectively, in 1984 as opposed to 42 mills for natural gas, the plants are expected to bp operated at the maximum p?ant capacity factor possib;e. Because of the regional utility dependence on natural gas, and the expected cost advantage of TMPA projects as compared to natural gas, the City believes it will be able to sell almost all such surplus energy. A forecast of such erergy sales was prepared based o, :ral assumptions including: 6) sales projected by a TMPA computer analysis, (ii) the price of surplus energy Mi a split-savings basis, and (iii) the natural gas and variable TMPA cost assumptions included in the table above. On a net basis, profits to the City from such energy sales would reduce the electric revenue requirements on average by 6 mills per kWh for the years 1983 to 1988, respectively. The projections above do not reflect any sales by the City of excess generating capacity. However, the City has entered into an agreement to sell excess gas-fired generating capacity to WTU. (See "Sales of Excess Capacity"). Such sales of excess gas-fired generating capacity would reduce the electric revenue rec-drements on average by approximately one mill per kWh in 1985 and 1986, respectively. - 28- VALUA'tON AND DEBT INFORMATION 1983 Market Valuation $1,150,231,819 Less Exemp'ions: Homestead $29,161,552 Over 65 27,368,710 Disabled or Deceased Veter--s 467,821 Agricultural Productivity 19,5 0,610 76,518,693 1983 Taxable Assessed Valuation $1,073,713,126 City Funded Debt Payable From Ad Valorem Taxes: General Obligation Bonds (as of 1- 1-84) $ 16,692,000 Interest and Sinking Fund (as of 1-1-84) $ 988,512 Ratio Funded Debt to Taxable Assessed Valuation 1.55% 1980 U. S. Census Population - 48,063 1983 Estimated Population- 51,700• Per Capita Taxable Assessed Valuation- $20,768.15 Per Capita Funded Debt - $322.86 Area - 33.2 Square Miles Source: Not thl entrtl Texas Council of Governments. Note 1: Pursuant to authority permitted by Section 1-b, Article VIII of the State Censtitution, which became eflective January 1, 1973, the City has granted an exemption of up to $16,000 of Assessed Valuation to t!ic resi-Jeoce homestead of property owners over 65 years of age. The City also allows a maximum of $5,000 for ail declared homesteads in the City. The Taxable Assessed Valuation, as shown above, does not include $27,368,710 and $29,161,552 Assessed Valuation of properties exempted un:'er these authorities. Note 2: The Legislature, pursuant to a constitutional amendment and Article 7150h, VATC5, 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 amo•.mt 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 $467,821 Assessed Valuation of properties exempted under this autfority. Note 3: Pursuant to the "Property Tax Code (Chapter 23)1, adopted in 1979, the City has exempted $19,520,610 of agricultural land value. The Taxable Assessed Valuation as shown above does not include this amount. Note 4: The above statement of indebtedr ess does not include $26,280,000 outstanding Utility System Revenue Bonds, as these bonds are payable solely from the net revenues of the System, as defined in the Bond Ordinance authorizing the bonds. AD VALOREM TAX LEGISLATION The City's General Obligation Bonds are payable from ad ve!orrm taxes la-,ied upon all taxable property within the City. The "Property Tax Code" (V.T.C.A., Tax Code), adopted in 1979, is a codification of Texas law as to ad valorem taxation and reference is hereby made thereto for identification of property subject to taxation; property exempt from taxation and other exemptions granted and allowed, if claimed; the appraisal of property for purposes of taxation and the procedures to be followed and limitations applicable to the levy and collection of ad valorem taxes. Among other features, the Property Tax Cede provides for: I. A single Appraisal District in each Canty of the State to appraise property for purposes of taxation for all taxing units located wholly or partly withi t the County. 2. All property to be assessed at 100% of its appraised value and prohibits the assessment of property for taxation on the basis of a percentage of its appraised value. -29- 3. An increase in the effe tivc :ax rate of a taxing knit to be iirrited to not more than 3% unless a public 'tearing is hele. In ca,aditing the effective tax rate, taxes for bonds or other contractual obligatixs are excluded. Recent amendments (Cha?ter 13, Acts of the 67th Legislature, First Called Session, 1981►to the Property Tax Code (designated to clarify and remedy technical flaws experienced in implementing various provisions therfof) provide for: I. Postponement of full implementation of an Appraisal Dstrict's o?erations, on a local option basis, until 1983 or 1984. 2. Mandatory county participation in the Appraisal District. 3. Changes the provisions relating to an effective annual tax increase being subject to a referendum election by. a. Raising the amount of the annual tax increase necessary to trigger ,a referendum election to 8%; b. keducing she number of qualified voters necessary to petition for a referendum election to 10%; c. Extending the period available to collect signatures on a petition for a referendum election to 90 days; d. Eliminating the requirement that a minimum of 25% of the qualified voters must vote in a referendum election to be valid. 4. The State Property Tax Board to conduct an annual ratio study in each Appraisal District to determine the d.gree of uniformity of appraisals and the weighted average level of appraisals within each major kind of property (effective 1-1-84). 5. An increase in penalties for delinquent taxes. The new penalties are: a. 6% - First month 1% - Additional penalty each month through June 12% - All delinquencies on July l regarr<less of delinquency period; b. A taxing unit may add an additional penalty to a maximum of 13% of tams, penalty and interest due in order to def ray costs of tax attorneys. 6. An increase in interest charged on delinquent tares. The new interest charges are: a. M - First month; and b. An additional 1% increase each month thereafter. 7. Property within the Appraisal District to be reappraised at least once every 4 years (effective 1-1- 84). 8. The establishment and application of uniform discovery and appraisal procedures on all types of business inventories without regard to the nature of the property comprising the inventory. 5. The statute purports to provide an increase for the first time in the appraised value of property above it; 1981 assessed value in any year from 1982 through 1985, which may be, at the option of the local taxing unit, limited to 1K times the percentage of increase in the value of all other property on the unit's tax rolls. !0. Changes in the composition and selection of board members, the allocation of Appraisal District costs, the size of the Appraisal Review Board and the financial accountability of Appraisal District. It. Local taxing units to challenge the Appraisal deview Board's appraisals and judicial review o; challenges, and authorizes local taxing units of an Appraisal District to overturn and veto actions of the Board of Director; of the Appraisal District. -30- C 12. Changes in the procedures and requirements pe, 'aining to tax increases by local taxing units. A constitutional amendment concerning homestead property exemptions was submitted to, and adopted by, the voters of the State of Texas on November 3, 1981. Such amendment provides local governments the option of granting homestead exemptions of up to 40% of market value for the 1982 through 1984 tax years, up to 30% of market value for the 1985 through 1987 tax years, and up to 20% of market value thereafter. Minimurn exemption is $3,000. The amendment further provides that taxes may continue to be levied against the value of the homestead exempted where ad valorem taxes have been previ xaly pledged for the payment of debt, if cessation of the levy would impair the obligation of the contract by which the debt was created. CAPITAL LEASES 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: 1984 $373,995 1985 269,968 1986 80,36D The City has no other non-funded debt as of 3anuary 1, 1984. VALUATION AND FUNDED DEBT HISTORY Ratio Funded Funded Debt Debt to Taxable Outstanding Taxable Fiscal Assessed at End Assessed Period Valuation of Year Valuation 1974-73 112,158,726 71695,000 6.86% 1975-76 124,327,113 9,585,000 7.71% 1976-77 136,540,625 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% 1979-80 304,943,680 15,364,488 5.04% 1980-81 337,948,941 15,053,000 4.45% 1981-82 663,437,088(2) 12,933,000 1.95% 1982-83 1,049,946x349(3) 16,702,000 1.59% 1983-84 1,073,713,]26 13,490,000(4) 1.44% (1) Increased basis of assessment from 40% to 60%. (2) Increased basis of assessment from 60% to 100%. (3) Revaluation. (4) Projected. TAXABLE ASSESSED VALUATIONS BY CATEGORY Property Assessment As % of Real Pro pert Personal Property Taxable Fiscal Appraised o 9601 Assessed Period Value Amount Total Amount Total Valuation 1973-74 40% 82,409,280 80.62% 19,813,560 19.33x5 102,222,840 1974-75 40% 89,883,677 80.14% 22,273,049 19.86% 112,158,726 1975-76 40% 95,735,078 77.00% 28,592,085 23.00% 124,327,163 1976-77 4D% 98,863,846 72.41% 37,676,779 27.59% 136,54D,625 1977-78 60% 213,135,760 78.53% 58,203,40 21.45% 271,339,229 1978-79 60% 221,300,472 76.60% 67,602,230 23.40% 288,902,702 1979-80 60% 229,022,620 75.10% 75,921,060 24.90% 304,943,650 1980-81 60% 246,205,248 71.85% 76-,693 27.15% 337,948,941 1981-82 100% 450,732,259 67.94% 212,),4,829 32.06% 663,437,088 1982-83 100% 831,397,479 79.1896 218,549,070 20.82% 1,049,946,549 1983-84 100% 829,533,028 77.22% 244,580,098 2?.78% 1,073,713,126 _31_ ESTIMATLJ OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES s o 1-1-84 Estimated Total % Overlapping Taxi Jurisdiction Funded Debt Applicable Funded Debt City o Denton 16,692,000 1OC.00% 16,692,000 Denton Independent School District 23,405,000 93.76% 21,944,528 Denton County I0,715,D00 29.44% 3,154,496 Total Overlapping Funded D, bt $41,791,024 Ratio Overlapping Funded Debt to Taxable Assessed Valuation 3,84% Per Capita Overlapping Funded Debt - $808.34 'rAX RATES OF OVERLAPPING SUBDIVISIONS Taxing Jurisdiction 1983 1982 1981 1980 1979 City of Denton 0.560 50.5100 0.774 1.29 1.24 Denton Independent School District 0.810 0.7300 1.220 1.25 1.68 Denton County 0.212 0.1665 0.237 0.77 0.67 TAX RATE LIMITATION All taxable property within the 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 obligatior* 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 $100 Assessed Valuation for all City purposes. The City operates under a Home Rule Charter which adopts the Constitutional provisions. TAX DATA (Year E d nin g 9 30) Distribution Tax Tax General !merest and % Current % Total Year Rate Fund Sinlcin Fund Tax Lev Collections Collections 1973-74 1. 000 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% 97.34% 1976-77 1.780 1.0938 0.6862 2,430,423 94.74% 97.74% 1977-78 1.240 0.7728 0.4672 3,364,606 93.04% 94.35% 1978-79 1.240 0.7280 0.5120 3,582,433 94.05% 96.3?% 1979-80 1.240 0.7286 0.5114 3,780,389 93.67% 96.69% 1980-81 1.290 0.6700 0.6200 4,359,541 93.17% 95.64% 1981-82 0.774 0.4650 0.3090 4,930,971 96.26% 99.04% 1982-83 0.510 0.3375 0.1725 3,376,210 95.27% 98.04% 1983-84 0.560 0.3499 0.2101 6,0!2,794 In Process of Collection. Property within the City is assessed as of January I 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. . 32- MUNICIPAL SALES TAX Effective 4-1-68 The City has adopted the provisions of Article 1066c, VernoWs Texas Civil Statutes, as amended, which grants the City the power to impose and levy a 1`G 1. oval Sales and Use Tax within the City, the proceeds being credited to the General Fund. Collections and enforcements are effected through the offices of the Comptroller of Public 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 Tots! Ad Valorem Ad Valorem Per Year Collected Tax Levy Tax Rata _ Ca "ta 1973 875,564 50.38% 0.8564 19.68 1974 926,080 53.29% 0.9039 20.81 5973 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 1978, 1,629,832 48.44% 0.6007 31.62 1979 2,061,124 57.53% 0.7134 39.83 1980 2,556,124 67.62% 0.8723 47.96 1981 3,017,806 69.22% 0.5358 59.00 1982 3,295,302 6E.82% 0.3408 64.17 1i`3 3,171,315 52.74% 0.2954 63.34 TOP TEN TAXPAYERS 1983 % of Total Tara*;e Taxable Assessed Assessed Name of Taxpayer Nature of Property Valuation Valuation Peterbuilt "Rotors Company Diesel Trucks 33,943,830 3.17% General Telephone Company Telephone Utility 33,793,891 3.15 Victor Equipme,t Company Welding Equipment 18,276,818 1.70 Andrew Corporation Radio Antenna M anufacturers 13,507,587 1.26 First State Bank Bank 13,425,719 1.25 Denton Mali Shopping Center 10,521,507 0.98 Moore Business Forms, Inc. Business t orm Manufacturer 9,279,910 0.86 First Denton National Bank Bank 8,570,911 0.80 Westgate Medical Center Hospital and Professional Building ",300,676 0.77 Acme Brick Company Brick Manufacturer 7 529 399 0.70 $157,150,268 14.64% AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BCNDS - NONE 33 GENERAL INFORMATION REGARDING C11 ! AND ITS ECONOMY LOCATION. 4 Denton is the County Seat of Den!. r, County, located at the apex of the Dallas-Fort Worth-Denton industrial triangle. 1 The City covers an area of 33.2 square miles and is located only 38 miles from downtown Dallas, and 36 miles from Fort Worth. ECONOMY... 1 Denton is 0 In the midst of a rich agricultural and livestock area. 0 The hub city of Texas' new "Land of Lakes" region, which provides Denton and neighboring cities with abundant water for municipal, industrial and rec, eational purposes. 1 One of the three major university centers in Texas. 1 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. 1 One of the key cities in the economically significant Dallas Standard Metropolitan Area. ECONOMIC RANKING 1 The following data was taken from Survey of Buying Power, Sales and Mark:-ting Management, July 23, 1983. Median Age of Population 27.9 % of population whose age is: !8_ 24 15.8% 25 - 34 22.0% 35 - 49 18.6% 50 - Over 15.8% Households 58.1 Thousands Net Effective Buying Income $1,934,548 Median Household EBI $ 28,856 % of Households b EBI Grou 10,000 - 19,999% 18.8% $20,000 - $34,999 30.7% $35,000 - $49,999 22.8% $30,000 - Over 13.7% Buying Power Index - .0723 Retail Sales (0001s) $378,471 Food 173,768 Automotive 115,810 Eating and Drinking 60,877 General Merchandise 69,273 Furniture-Home Furnishings-Appliances 26,194 Drug 17,610 - 34 - ECONOMIC AND POPU! ATION GAINS 0 Denton has noted a consistent population increase and a steady economic growth in the last four decades. Historical population totals from U. S. Census records are: 1940 Census 11,192 1950 Census-------------------- 21,372 1960 Crrsus 26,844 1970 Census 39,874 1980 Census 48,0E3 4 The North Central Texas Council of Governments estimates the 1983 population of the City at 51,700. 1 The City's ascmion toward a top rung on Texas' economic ladder is attributed partly to the steady influences of governmental ac.ivity which includes the year-by-year expansion of the two State-supported universities, and partly because of such environmental factors at its location in a rich agricuitur~d region, some oil and gas production in the northwest section of Denton County, its inclusion in the Dallas-Fort Worth Metroplex, its proximity to three of Texas' largest reservoirs (Lake Texoma is on!y 40 milts from Denton), itf excellent highway and transportation facilities, its mild climate, and the less tangible but influential aspects of social, cultural and educational advantages that have prcm pted professional or "white collar" workers to choose Denton as a place of residence. INDUSTRY AND BUSINESS. In excess of 73 diversified manufacturing plants are located in the City. Some of the largest are as f oil ows: Company Product Firms Employing Over 500: gore Business Forms, Inc. Business forms and systems Russell-Neuman Manufacturing Company Ladies lingerie Victor Equipment Company Gas cutting and welding equipment Firms Employing 250 to 500: Acme Brick Compa-v Bricks, clay pottery Andrew Corporation, i exas Division Radio frequency antennas Jackson Concrete Ready-mix concrete Josten's, Inc. High school and military rings Peterbuilt Motors Company Diesel trucks Firms Employing 100 to 250: Denton Publishing Company Newspaper publisher Moore Business Systems Small business computer systems The Merrison Miliing Company Consumer and food service mixes Turbo Refrigeration Company Industrial ice makers, plate heat exchangers, heat exchanger tubing Firms Employing 50 to 100: Davis Concrete Company Concrete, aggregates, equipment rental and building materials Harley, Bag Division of Union Camp Slulti-wall paper, bags Harpool Seed, Ins. Seed - farm, turf, vegetables Koimar Laboratories, Inc. Cosmetics Lead Mailing Systems Labeling and inserting of direct mail packages Orthane Division of Ohio Rubber Company Polyurethane injection molded and cast products Signal Products Division, Amerace Corp. Custom molded plastic components Transport Systems, Inc. Semi-trailers Source: Denton Chamber of Commerce. -35- iNDUSTRIAL FUTURE 1 Denton is most favorably located within 38 miles of two major cities (Dallas and Fort Worth) and is, officially, a part of the Dallas-Fort A orth Metroplex. This area comprises a market which is growing at a rate three times the national average. Dentor is fasi becoming an integral part of this dynamic industrial complex. 1 A plentiful supply of skilleo labor is available to industry in the Demon area. iotal labor force in Denton County as of December 1, 1983 was appr-ximately 86,413, with approximately 82,980 presently employed and 3,433 unemployed - for an unemployment percentage of only 4.0%. There are three principal industrial districts Denton Industrial Park, Rayzor Industrial Park and West Park Industrial Park all of which have access to more than adequate rail and highway facilities, and all necessary utilities. Recent Development. Srik Pak Inc., a Texas corporation, is a member of the international Tetra Pak group of companies. The firm specializes in aseptic packaging which allows liquid foods such as milk and fret j lice to be stored, shipped and merchandised without refrigeration. Phase I of the plant consists of a 210,000 square font warehouse at a cost of $40,000,000. Brik Pak plans to open in April, with an initial employment of 60, and total employment expected to be 200. The company also has plans to corstruct a second phase in late 1985 or early 1986 - the same size and value as phase 1. AGRICULTURE 1 Denton County is one of the more diversified agriculture counties in Texas. With soil types ranging from rich black to deep sandy loam, and good soft, artesian water, it is an ideal center for diversified farming and livestock raising. 1 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 income every year to the farmers and ranchers of the county. 1 income from all agriculture and livestock products averages in excess of $30,000,000 annually. 1 The Texas Agricultural Experiment Station, Sub-Station No. 6, located about five miles northwest of Denton, is contributing to the prosperity of not only the fanners in Denton County, but to farmers all over Texas, through experiments in small grain research work, crop rotation, pastures, soil building, contouring and plant d,'sease. UNDERGROUND CONTROL CENTER 1 Denton is the site of the first Underground Control Center to be built by the Federal Government in the United States. This center was completed at a cost of $2,400,000. 1 It consists of an above ground "frangible" building, for entrance and exit during normal operations, au.%i a two-story undero.ound fortress, 142 feet wide and 172 feet Icng. The structure has its own water well, an infirmary, first aid station, and communications headquarters. Site for the structure is about three miles east of Denton. 1 The huge underground center serves Region 5 Headquarters for the Office of Civil and Defense Mobilization and is designed to resist nuclear blast and radiation. Region 5 consists of Texas, Oklahoma, Arkansas, Louisiana and New Mexico. 1 In time of emergency the center will house the administrative personnel of 16,000 federal employees in Dallas and Fort Worth. In the event of a national emergency the censer would serve as the coordinating and directing point for the activities of some 235,000 civilian employees of the federal government. It rill house 200 persons on a day-today basis, or 500 on a 30-day, emergency, "buttoned-up" basis. 1 The control center employs 83 full-time people with an annual payroll in excess of $750,000. TRANSPORTATION . 1 Denton is located only 18 miles northeast of the Dallas-Fort Worth Regional Airport. This facility began operations in January, 1974. It is the Jar est airport in the United States, second largest in the world, and represents an investment in excess of 700,000,000. 1 Denton is the focal point in the new Interstate Highway System (U. S. )5-E and U. S. 35-W). U. S. 35-E connects Denton with Dallas, and U. S. 35-W ties to Fort Worth. - 36- I The east and west sections of the U. S. Interstate 35 form part of a vast network that begins at the Canadian border on the north and traverses the entire United States, to end at the Mexican border on the south. North from Denton the highway connects with Oklahoma City and thence through the Midwest. 1 Rail transportation is furnished by three railroads - Santa Fe, Texas and Pacific, and Missouri-Kansas- Texas bus transportation by Continental Trailways Bus System motor freibht by twelve truck lines. EDUCATION 1 Denton is the home of North Texas State University, founded in 1890, and Texas Woman's University, Iounded in 1901. r 1 The two colleges h.cte a rnmbined enrollment of approximately 26,753 students, and more than 1,000 fatuity members. 1 As of September 1, i>83, 20,234 students were enrolled in co-educational North Texas State University. This university has a larger enrollment than Southern Methodist University at Dallas, Texas Christian University in Fort Worth, or Rice Institute at Houston. Texas Woman's University has an enrollment of 8,483. 0 North Texas State University campus comprises a land area of more than 350 acres and sixty-nine buildings valued in excess of $62,000,000. 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 43 areas. 9 Texas Woman's University, a State-supported institution of higher learrdng, has completed an extensive building program, emphasized by three high-rise structures. These are a 14-story office and cfassruom portion of the College of Education (opened in 1968), a 21-story dormitory designed to house 640 students (completed in 1967), and a 24-stcry dormitory designed to house 707 students (completed in the tall, 1969). Academic components are Embodied in eight schools. Science research programs are conducted in chemistry, biology, physics, nutrition, textiles, bone microradiology ant other related fields. 0 Over 400 Denton citizens hold earned Doctoral degrees. 1 Denton has " outstanding Public School System , accredited by the Southern Association of Collebes and Secondary Schools and Arcreditation Division of the Texas Educat on Agency. Approximately 69% of the graduates of Denton High School go on to college. The Denton school system offers accelerated programs in such courses as S.M.S.G. Math and P.S.S.C. Physics. A few of the vocational training courses available in publir schools are agriculture, homemaking, distributive education, industrial education, mechanical drawing, woodwork, etc. 67% of the faculty hold Master's degrees. Teachers and Professional Staff 316 Enrollment in school for exceptional Administrative Staff 30 children 1,307 Para-Professional 5taff 95 Pupil to teacher ratio: Number of elementary schools 8 elementary 24:1 Number of junior high schools 2 high school 20:1 Num Liar of senior high schools 1 1983 Fall Enrollment 8,677 Average students per classroom 25 Average number of high school graduates 600 6 $11,000,000 Denton State School Construction began in 1958 on the $J I,000,000 Denton State 1 School, w'th the first phase of the construction being completed in July, 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 ar,~ progressive educational institutions. 1 This State-supported educational institution for raentally retarded Texas residents is located on a 200- acre site paid for by Denton citizens. 1 Present facilities include 47 (inclu6ng outreach dorm;) dormitories which accommodate more than 1,188 students, 5 buildings for physically handicapped children with a capacity of 600, and a 52-bed acute hospital with supposing 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. - 37 - I The School has a staff of 1,489, with an annual payroll in excess of $18,000,000. BANKING 1 There are five banks in the City. . . First Denton National Bank, established 1892 First State Bank, established 1912 U. S. Bank, established 1963 Western State Bank, established 1963 Citizens National Bank, established 1976. Combined BznkDeposits 197': $131,018,000 1979 $207,085,011 1975 140,747,770 1980 228,813,123 1976 167,805,982 1981 254,567,591 1977 175,006,073 1982 289,978,804 1978 198,908,000 1983 383,519,291 1 Two savings and loan associations had combined year-end deposits as follows: 1974 $ 66,202,425 1979 $127,299,490 1975 69,310,598 1980 159,535,122 1976 84,238,471 1981 160,674,680 1977 94,168,237 1982 157,952,082 1978 105,901,284 1983 214,607,933 RECREATION / Nearby Lake Lewisville, one of North Texas' largest lakes, is one of Texas' most popular recreation areas. Lake Lewisville has a shore line of 183 miles located entirely in Denton Colnty. 1 Lake Lewisville attracts mover 3,000,000 visitors to its shores annually. The upper reaches of the Lake are only about 3 mil-s east of the Denton City Limits, while the dam is 15 miles from downtown Denton. 1 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 Irom Denton. 1 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 recreational pastimes at both reservoirs, which, because of this area's favorable climate, are in use the year round. Growth Indices Calendar Building Gas Water Electric Year Permits Meters Meters Meters ~l 72 ,25,x' 550,863 10,959 17,0)3 11,837 1973 24,037,860 11,174 11,251 12,227 1974 12,498,521 11,416 11,592 12,673 1973 18,306,334 11,755 11,733 13,061 1976 22,42,334 11,745 12,077 14,117 1977 22,244,075 12,294 12,490 15,650 1978 32,324,274 12,661 12,803 16,404 1979 71,556,446* 13,224 13,094 17,150 1980 33,454,504 13,366 13,292 18,125 1981 40,537,746 13,680 13,506 18,545 1982 38,061,425 13,950 13,889 19,565 1983 61,181,947 Includes construction of Golden Triangle Mall and Peterbilt truck factory. -38- 1 RATINGS Applications for contract ratings on tlas issue have been made to Moody's Investors Service, Inc. and Standard & Poor's Corporation. An ayplanation of the significance of such ratings may be obtained from the company furnishing the rating. I h !ratings reflect only the respective views of such organizations 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 ratings, or either of them, may have an adverse effect on the market price of the Bonds. TAX EXEMPTION The delivery of the Initial Bond is subject to an opinion of Messrs. McCall, Parkhurst do Horton, Bond Counsel to the City ("Bond Counsel"), to the effect that interest on the Initial Bond and the Bonds is exempt from all present Federal income taxes under the applicable stat rtes, published rulings, regulations and court decisions existing on the date of such opinion. The laws, regulations, court decisions and administrative regulations and published rulings upon which the conclusion stated in Bond Counsel's opinion is based are subject to change by the Congress, the Treasury Department and later judicial and administrative decisions. REGISTRATION AND QUALIFICATION OF BONDS FOR SALE The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as amended, in reliance upon the exemption provided thereunder by Section 3(a) (A,, and the Bonds have not been Gualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for qualification of the Bonds under the securitie; laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualifica- tion for sale or other disposition of the Bonds shall not be construeo as an interpretation of any kind with regard to the availability of any exemption from securities registration provisions. LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS Section 9 of the Bond Procedures Act of 1981 states: "All bonds issued by an issuer shall constitute negotiable instruments, and are investment securities governed by Chapter 8, Texas Uniform Commercial Code, notwithstanding any provisions of law or court decision to the contrary, and are legal and authorized investments for banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities, towns, villages, school districts, and other political subdivisions or public agencies of the State of Texas". The Act further provides that the Bonds are eligible to secure deposits of any public funds of the state, its agencies and politic, I subdivisions, and are legal security for those deposits to the extent of their market value. No re, iew by the City has been made of the laws in other states to determine whether the Bonds are legal inve,tments 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 General of the State of Texas, to the effect that the Initial Bond (for which the Bonds will be exchanged and substituted) is a valid and legally binding obligation of the City, and based upon examination of such transcript of proceedings, the unqualified approving legal opinion of Bond Counsel to the effect that the Initial Bond, and all Bonds ouly registered, authenticated, and delivered in accordance with the Ordinance, are valid and legally binding obligations of the City, and to the effect that the interest on the Initial Bond and such Bonds is exempt from federal income taxation under existing statutes, regulations, published rulings and court decisions. The customary dosing papers, including a certificate to the effect that no litigation of any nature has bet i filed or is then pending to restrain the issuance and delivery of the Initial Bond, or which would affect the provision made for its payment or security, or in any manner questioning the validity of said Initial Bond will also be furnished. Bond Counsel was not requested to participate, and did not take part, in the preparation 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 its caracity rs Bond Counsel, such firm has reviewed the information describing the Initial Bond and the Bonds in the Official Statement to verify that such description cord rms to the provisions of the bond Ordinance. The legal tee to be paid Bond Counsel for services rendered in connection with the issuance of the Bonds is contingent on the We and delivery of the Bonds. The legal opinion will be printed on the Bonds. - 39- AUTHENTICITY OF FINANCIAL DATA AND OTHER INFORMATION The financial data and other information contained herein have been obtained from the Citys records, audited financial statements and other sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be realized. All of the summaries of the statutes, documents and resolutions contained in !his 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 roade to such documents for further information. Reference is made to original documents in all respects. FINANCIAL AL'YISOR First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Bonds. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is contingent upon the issuance and delivery of the Bonds. First Southwest Company may submit a bid for the Bonds, either independently or as art ember of a syndicate organized to submit a bid for the Bonds. CERTIFICATION OF fHE OFFICIAL STATEMENT At the time of payment for and delivery of the Initial Bond, the Purchaser will be furnished a certificate, executed by proper officers, acting in their official capacity, to the effect that to the best of their knowledge and belief: (a) the descriptions and statements of or pertaining to the City contained in its Official Statement, and any addenda, supplement or amendment thereto, on the date of such Official Statement, on the date of sale of the Initial Bond and the acceptance of the best Lid therefor, and on Lie 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 omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions and statements, including 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 o 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 Ordinance authorizing the issuance of the Initial Bond and the Bonds will also 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. RICHARD O. STEWART M ayor ATTEST: CHARLOTTE ALLLN City Secretary -40- i APPENDIX The information contained in this Appendix has been reproduced from the City of Denton, Texas Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 1983. The information presented repre- senrs only a part of such Report and does not purport to be a complete statement of the Citys financial condition. Reference is made to the complete Annual Financial Report for further information. The City's auditors have not examined this Official Statement nor any of the City's records and accounts since the date of the report herein. i [THIS PAGE INTENTIONALLY LEFT BLANK] ARTHUR ANDERSEN & CO. DALLAS, TEXAS To the Honorable Mayor, City Council and City Manager, City of Denton, Texas: We have examined the combined financial statements of the City of Denton, Texas, as of and for the year ended September 30, 1983, as listed in the Table of Contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the combined financial statements referred to above present fairly the financial position of the City of Denton, Texas, at September 30, 1983, and the results of its operations and the changes in financial position of its proprietary fund types and nonexpendable trust funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination was made for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining and individual fund financial statements listed in the table of contents are presented for purposes of additional analysis and are not a required part of the combined financial statements of the City of Denton, Texas. The information has been subjected to the auditing procedures applied in the examination of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. The information included in the statistical section of this report has been summarized from the City's records and was not subjected to the audit procedures that were applied in the examination of the basic financial statements. Accordingly, we express no opinion on such information. Dallas, Texas, December 9, 1983. ~ J r s~ o o e~ e s o. O- i O-. J D L. - ! C n n D. 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I P n p 1 n 1 1 1 4 1 0 1 1 1 P 1 P 1 d S w! 1 R yy I I I n l S I ~ 1 ~ I N I^ I Y N Q Np I N■ 1 1 1 I I v l ~ I I \ + t=t'L I I H 1 I I 1 1 1 I I q' S~ 1 P O n j P n M a n 1 d O n p P 1 N 1 MI 1 n.D 1 rv 1 N O 1 N r V F' 1 rl J P n H O I'1 .M I J 1 O n a n 1 n 1 g I r n I ePi I n p l~~ N I n J P N r N d O 1 J I J J n n P 1 J 1 yy Lla 1 f _ 1 I - I 1 I • 1 I 1 • 1 H I \ i •n'I d d lOD O p 1 r i~ l r n i r I n I l l n l d 1 I P O 1 C I J• a 1 P 4f I O NnMlrr N J I N 1 r P~ r J 1 .a 1 i 1 O•. 1 P 1 N N W n 1 Y I I . . 1 1 ! 1 1 V N r Y1 i ~ N ; P 1 J J n I N I n I M I J~ r I H ~ IiIDL' < r 1 ' y iO O W O • O Z 1rn C N n \ a6f YI K u~ O ~ K W Y w NlGlGlGI Y K : C 26N • Y W N q C W rl ~ V e ~'O L L 'JA r SKI W • • C V ~ i C f ~ ~ Y 1 Y O • • Y O p N 11. v I.Y. y c e w L f O IJ p 0 O i Y M y {{G.. ..J1` Y■C V C QV • • Yv ~Vy<1~ y0 V pY 1" IC < YI Y~~ i Y Y J f c K M 7^ Y v v v W uN C c• O Y q Y( O rl ` a t+ Y ^ O. G ~.1 L C■ r Y u • Y c f ~ N 2~ ~ y I O C O! V Y) Y i Ypp L A I L pp y riD. t V yY S Y • Y Y D. Y O N K• ) C J >r • u O y7y• L' Y Y N > ~YQ~Y~CJ} N q Y. IM M w i•~ Y V> V f ~ K I• Y Y Y 0 1 D Y H • C C ~ L V A O ► 0J^4 -0 •OCr Du M.y ~•Y.•1Y~YY ►pNp tl.w 1y W W W• F r• L~ Y• COY L Cyy u• .yFyi Y O L ~ y YV Y Y O Y D >I J• Y r C• u u• e Z L 'S ge z 6 0 p O• it r N 0 K O Y L q r f V 1KJ CITY OF DENTON, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE, DEBT SERVICE AND CAPITAL PROJECTS FUND TYPES (NOTE IC) YEAR ENDED SEPTEMBER 30, 198) Special Revenue General Fund (Federal Revenue and Recreation Funds) Variance- Varisnce- Favorable Favorable Budget Actual (Unfavorable) Budget Act"41 (Unfavorable) REVENUES: - S - Taxes $ 6,670,474 S 7,080,749 S 410,275 S - $ Licenses ■nd pe nits 145,250 213,490 68,240 - - Utility franchise fees 391,000 367,937 (23,063) - - - - Fines and forfeitures 352,500 561,214 208,714 Fees for services 225,900 180,159 (45,741) 106,500 25,766 (80,734) Intergovernmental 550,000 282,635 (267,365) 550,000 671,510 121,510 Interest revenue 120,000 105,207 (14,793) - 1,710 1,710 Miscellaneous 698,762 427,056 (271,706) - 2,569 2,569 Total Revenues 9,153,886 9,218,447 64,561 656,500 701,555 45,055 EXPENDITURES: Current- Central government 4,376,888 4,159,406 217,482 - - Public safety 5,023,886 4,923,416 100,470 - - Public works 2,286,335 2,144,333 142,002 - - - Parks and recreation 1,138,022 1,175,368 (37,346) 86,500 82,3!8 4,142 Ocher - - - - - - Capital outlay 241,542 476,929 (235,387) 20,000 10,549 9,451 Debt service- Principal retirement - - - - - - Interest and fiscal charges - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Expenditures 13,066,673 12,679,452 187,221 106,500 92,907 13,593 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (3,912,787) (3,661,005) 251,782 550,000 608,648 58,648 OTHER FINANCING SOURCES (USES): Operating transfers in 3,832,319 5,019,563 1,187,244 - - Operating transfers out - (109,266) (I09,266) (550,000) (592,219) (42,219) Total Other Financing Sources (Us:a) 3,832,)19 4,910,297 1,077,978 (550,000) (592,219) (42,219) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (80,468) 1,249,292 1,329,760 - 16,429 16,429 FUND BALANCES, October 1 346,850 346,850 - 217,179 217,179 - FUND BALANCES, September 30 $ 266,382 $ 1,596,142 $1,329,760 $ 217,179 $ 233,608 S 16,429 urv.uu• uu.u..a was ..uv. ..vui... o.uuu 7fie accompanying notes to financial statements sr* an integral part of this statement. 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O M r`l L Y 6•0 Y L C M F Y Y Y .yc/' Y Y •[.1 } q ~ m i .1 5• C t y L Y Y' IY1 w Y C a ~ y Y✓ F O i F CV W~ IX V N AK 6 I: Z N r a] T i .O+ r V YI • CITY OF DENTON, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CNANCCS IN RLTALNCD EARNINGS - BUDGET AND ACTUAL - ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1983 Utility System Variance - Favorable Budget Actual (Unfevorable) OPERATING REVENUES: Electric service $42,614,665 $35,376,245 S(7,218,420) Water service 3,657,283 3,787,306 130,02) Sever service 2,693,993 2,063,169 (630,224) Charges for services - - Sundry 800,000 149,036 (650,964) Total Operating Revenues 49,765,941 41,376,356 (6,389,585) OPERATING EXPENSES: Purchase power 25,058,041 22,514,080 2,543,961 Fuel 6,588,400 4,482,520 4,105,880 Purchase of voter 281,680 549,552 (267,87I) Salaries and wages 4,244,670 3,313,877 910,793 Materials and supplies 571,624 395,242 176,382 Maintenance and repairs 1,291,693 930,134 361,559 Depreciation 1,782,350 2,082,998 (300,678) Miscellaneous 1,235,106 1,031,264 203,842 Total Operating Expenses 43,053,534 35,319,667 7,733,867 6,712,407 6,056,689 (655,718) Dperating Income NONOPERATING REVENUES (EXPENSES): Interest revenue 1,400,000 829,064 (570,936) Interest expense ■nd fiscal charges (2,100,106) (1,912,761) 187,345 Contibutions of veh4cles to motor pool - (217,147) (217,147) Total Nonoperating Revenues (Expenses) (700,106) (1,)00,844) (600,738) Income Before Operating Transfers and Extraordinary item 6,012,301 4,755,845 (1,256,456) OPERATING TRANSFERS OUT (5,823,826) (3,852,853) 1,970,973 EXTRAORDINARY ITEM - Cain on Refunding - 3,189,508 3,L69,508 Net Income 188,475 4,092,500 3,904,025 RETAINED EARNINGS - October 1 24,848,429 24,648,429 - RETAINED EARNINGS - September 30 823,036,904 $28,940,929 $ 3,904,n25 The accompanying notes to financial statements are an integral part of this statement. Sanitation Variance - Total favorable - 8ud8et Actual (Unfavorable) 8udjet Actual Variance s - S - $ - $42,614,665 $35,376,245 517,238,420) - 3,657,283 3,787,306 130,023 2,693,993 2,063,769 (630,224) 1,418,890 1,334,059 (64,831) 1,418,890 1,334,059 (84,831) 75,000 106,088 31,088 875,000 255,124 (619,876) 1,493,890 1,440,147 (53,743) 51,259,831 42,816,503 (8,443,328) 25,058,041 22,514,080 2,543,961 8,588,400 4,482,520 4,105,680 261,680 549,552 (267.872) 630,060 634,711 (4,651) 4,874,730 3,968,588 906,142 234,510 195,380 39,130 806,134 590,622 215,512 222,208 302,526 (80,316) 1,513,901 1,2)2,660 281,241 2,726 (2,726) 1,782,320 2,085,724 (303,404) 320,373 325,149 (4,7)6) 1,555,479 1,356,413 199,066 1,407,151 1,460,492 (53,341) 44,450,665 36,780,159 7,680,526 86,739 (20,345) (107,084) 6,799,146 6,036,344 (762,802) 1,400,000 829,064 (570,936) ' - (2,100,006) (1,912,761) 187,345 (23,768) (23,768) - (240,915) (240,915) (23,768) (23,768) (700,106) (1,324,612) (624,506) 86,139 (44,113) (130,652) 6,099,040 4,711,732 (1,387,308) (118,510) (118,510) - (5,942,336) (3,971,363) 1,970,973 3,189,508 3,189,508 (31,771) (162,623) (130,852) 156,704 3,929,877 3,773,173 (201,498) (201,498) - 24,646,9)1 24,646,931 - (2)3.269) $ (364,121) 3 (130,852) $24,803,635 $28,576,808 $ 3,773,173 CITY OF DENTON, TEXAS COMSIXt R0 STATEMENT OF CHANCES 111 FIKANCIAL POSTION - ALL tKURPRISE FUNDS FOR THE FISCAL YEAR ENDED SEMKIER 30, 1913 Total $ ,E.ded Utility Sy at" Sanitation Sept nber 30, 1903 Septn at 30, 1912 SCUMS OF WORKING CAPITAL: Operations- Net income (lose) S 4,092,500 S (162,62)) S 3,929,177 S 2,426,011 Items not requiring Wo rkinl capital. Depreciation 2,012,991 2,726 2,005,724 1,906,017 Amortiastion of bond discount and aspence 16,311 - 16,311 12,041 Working Capital Provided by Operations 6,191,679 (159,197) 6,031,962 4,344,129 Proceeds from male of revenue bonds 24,65C,340 - 24,65),340 4,500,000 Contributions- Federal spsnckas 3,16t,359 - 3,461,359 1,00:,15t Other funds - (249,910) In mid of construction 526,217 - 520,217 9)1,103) Sale of equipment - - 6,.75 Net chsnle in restricted assets and liabilities payable from restricted assets 7,955,0)3 7,953,01) (4,301,236) Total Sources of Working Capital 43,166,606 (159,097) 43,026,911 6,217,112 USES OF WOKKINO CAPITAL: Acquisition of property, plant end equipment 9,734,231 400,693 9,534,924 7.447.943 Reduction of long-ten debt 32,717,192 - 37,711,192 560,000 Total Uses of Working Capital 11,343,423 400,693 41,746,116 61027,143 Net Increase (Decrease) in Working Capital 11,141,315 S(567 590) 51,260,795 3 169,269 - . ELEMENTS OF NET INCREASE (DECKL4SU IN WORXINC CAPITAL: Increase (decrease) in current smarts- Cash ■nd investments I 651,704 S - S 656,701 1(7,162,659) Accounts rectivabls 1,265,206 73,9)7 1,359,143 2,333,455 Inventory (334) - (334) (16,041) Other current assets 594,296 (47,301) 546,916 111,043 2,531,176 26,629 2,564,505 265,794 (Increase) decrease in current liabilities- Deficit position in pooled cash - (49,247) (49,245) (166,624) Accounts payable and ocher liabilities 21t,874 9,131 291,705 237,1D2 Meter deposits (67,141) - (67,041) (43,151) Due to other funds (2,132,299) (261,997) (2,400,296) (55,220) Current portion of long-te n debt 1,:41,775 (179,601) 961,967 (20,632) (696,491) (517,219) (1,213,11)) (76,523) Net Increase (Decrease) in Wotking Capital S 1,141,315 S (560,590) $ 1,260,795 S 199,269 The accompanying notes to financial Statements are an integral part of this statement. CITY OF DENTON, TEXAS NOTES TO FINt.rlCIAL STATEMENTS SEPTEMBER 30, 1983 (1) SUPMRY OF SIGNIFICANT ACCOUNTING POLICIES The City of Denton ("the City") was incorporated September 26, 1866. The City operates as a Home Rule City, under a Council-Manager form of government and provides the following services as authorized by its Charter: public safety (police and fire), public works, parks and recreation, electric, water and sewer utilities, sanitation, and general administrative services. The financial statements of the City include all activities for which the City exercises oversight responsibility. Oversight responsi- bility includes the accountability for fiscal matters and financial interdependency. The following entities which have operations in the City or are otherwise related to the City's operations, were considered for inclusion: Firemen's Relief and Retirement Fund Denton Independent School District Denton County Flow Memorial Hospital Texas Municipal Power Agency These entities are not included in these financial statements because they are separate legal entities with separate governing bodies. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies: A. Fund Accounting The accounts of the City are maintained on the basis of funds or groups of accounts, each of which is considered a separate accounting entity. The operations of each fund are summarized by providing a separate set of self-balancing accounts which comprise its assets, liabilities, fund equity, revenues, expenses and expenditures. The following funds and groups of accounts are used by the City: Governmental Fund lypes- General Fund- The Ceneral Fund is the principal fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for in this fund. From the fund are paid the general operating expenses, the fixed charges and the capital improvement costs that are not paid through other funds. Special Revenue Funds- The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expendi- tures for specified purposes. These funds include the federal revenue sharing funds, grants from the Department of Housing and Urban Development (Community Development Block Grant) and from the Texas Criminal Justice Division, the recreation fund and miscellaneous other revenues. Debt Service Fund- The Debt Service Fund accounts for the payment of principal and interest on general long-term debt paid primarily by taxes levied by the City. Capital Projects Funds- The Capital Projects Funds account for the acquisition of capital facilities being financed from bond proceeds, contributed capital, or transfers from other funds, other than those recorded in the Special Assessment Funds, the Proprietary Funds, the Internal Service Funds and the Trust Funds. Special Assessment Fund- The Special Assessment fund is used to account for the financing of public improvements or services deemed to benefit the properties against which-special assessments are levied. Proprietary Fund Types- Enterprise Funds- The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. These funds include the Electric, Water and Sewer Utility Systems (Utility System) and the sanitation operations. Internal Service Funds- The Internal Service Funds account for the financing of materials and services provided by one department of the City to other departments of the City on a cost-reimbursement basis. These funds include the working capital fund (vehicle maintenance, warehouse and machine shop) and the motor pool operation. Fiduciary Fund Type- Trust and Agency Funds- Trust and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. These include Expendable Trust (Employee Insurance Fund), Nonexpendable Trust (Denton Arts Council) and Agency Funds (Payroll Fund). Nonexpendable Trust Funds are accounted for in essentially the same manner as proprietary funds since capital maintenance is critical. Expendable Trust Funds are accounted for in essentially the same manner as governmental funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. General Fixed Assets Group of Accounks- Tie General Fixed Assets GTCUD Df nc~aunts represents a summary of the fixed assets of the City, other char, asse+.s of the Proprietary Funds. Capital outlays in funds other than Proprietary Funds are recorded as expenditures of those funds at the time of purchase and subsequently recorded for control turposes in the General Fixed Assets Group of Accounts. General Long-Term Liabilities Group of Accounts- The General Long-Teri Liabilities Group of Accounts represents a summary of the long-term liabilities of the City paid principally by taxes levied by the City. This account group does not include debt accounted for in the Enterprise Fund. B. Basis of Accounting The accrual basis--The measurement focuses for the Enterprise Funds, Internal Service Funds and Nonexpendable Trust Fund are income determination and cost of service, respectively. Accordingly, the accrual basis, whereby revenues and expenses are identified in the accounting period in which they are earned and incurred and net income is determined, is utilized for these funds. Modified accrual basis--The modified accrual basis is used for all other fends. Modifications in the accrual basis for these funds include the following; Revenues are recognized when they become both measurable and available for use during the year. Those revenues treated as being susceptible to accrual include taxes, interest and intergovernmental revenues. Revenue sources from licenses, fines and forfeitures, service charges and other miscellaneous revenues are recognized as the cash is received. 2. Expenditures are recognized when the related fund liability is incurred, except for interest and principal on general long-term debt, which are recorded when due or otherwise payable. 3. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration. Encumbrances outstanding at yearend are reported as reservations of fund balances since they do not constitute expenditures or liabilities. C. Budgets and Budgetary Accounting The City Council adopts an annual budget which covers the General Fund, the Special Revenue Funds (Federal Revenue Sharing and Recreation Funds only), the Debt Service Fund, the Capital Projects Fund (General Projects Fund only), the Enterprise Funds, and the Internal Service Fund (Working Capital Fund only). All appropriations lapse at fiscal yearend except those of the General Projects Fund. The budgets for the General, Special Revenue, Debt Service and Capital Projects Funds are prepared on the modified accrual basis of accounting, and budgets for the Enterprise and Internal Service Funds are prepared on the accrual basis of accounting. The City Manager is authorized to transfer budgeted amounts within departments; however, any revisions that alter total expenditures of a department must be approved by the City Council. D. Investments In order to facilitate cash management, the operating cash of certain funds are pooled into a common bank account for the purpose of increasing income through combined investment activities. Investments (certificates of deposit, U.S. Treasury Notes and U.S. Government and Agency securities) are carried at cost (which approximates market value). Interest earned on investments is recorded in the funds in which the investments are recorded. E. Unbilled Receivables The City accrues amounts for utility services provided in September, but not billed at September 30. F. Inventories Inventories are valued at cost or the lower of cost or market. Cost is determined using a moving average method. C. Fixed Assets The City has retained the cost records supporting the construc- tion or acquisition of fixed assets; however, detailed fixed asset ledgers have not been maintained. In the opinion of City management, all significant additions and retirements have been recorded. Enterprise and Internal Service Funds- Fixed assets are recorded at cost, including interest during the construction period. Contributed property is recorded at fair market value at the date of contribution. Depreciation is recorded on each class of depreciable property utilizing the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Useful Life Fixed Asset (Years) Enterprise Funds- Electric System General assets - Structures 50 - Equipm^nt 5 - 20 Distribution assets - Structures 50 - Equipment 10 - 33 Transmission assets - Equipment 20 - 33 Internal combustion assets - Structures 50 - Equipment 13 - 20 Steam power assets - Structures 50 - Equipment 20 - 35 Water and Sewer System Structures 50 Water and sewer mains 20 - 33 5quipment 10 - 20 Furniture and fixtures 10 Sanitation Vehicles and equipment 10 Internal Service Funds- Vehicles and equipment 4 - 10 Renewals and betterments of property and equipment are capitalized, whereas normal repairs and maintenance are charged to expense as incurred. General Fixed Assets- General fixed assets are recorded as expenditures in the General, Special Revenue or Capital Projects Funds when ecquired. Such assets are capitalized at cost, including interest during the construction period, in the General Fixed Assets Group of Accounts. Significant gifts or contri- butions of assets are recorded in the General Fixed Assets Group of Accounts at the fair market value at the date of acquisition. Public domain (infrastructure) general fixed assets consisting of streets, curbs, sidewalks, gutters and drainage systems, are capitalized along with other general fixed assets. No depreciation is provided on general fixed assets. H. Property Tax Revenue Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on October 1 and are due and payable at that time. All unpaid taxes levied October 1 become delinquent February 1 of the following year. 'fie City records revenue from current property taxes in the year in which bills are rendered and become due. A reserve is provided for delinquent taxes not expected to be collected in the future. At September 30, 1983, the City had a tax margin of S1.99 per $100 valuation based upon a maximum ad valorem tax of $2.50 per $100 valuation imposed by Texas Constitutional law. Additional revenues up to $20,894,000 could be raised per year based on the current year's assessed value of $1,049,946,000 before the limit is reached. I. Compensated Absences The City allows employees to accumulate unused vacation up to forty days. Upon termination, any accumulated vacation time will ue paid to the employees. Generally, sick leave is not paid upon termination except for fire and policemen. Fire and policemen accumulate unused sick leave up to a maximum of 90 days. All other employees are paid only upon illness while in the employ of the City. As of September 30, 1983, the liability for accrued vacation leave is approximately $549,895 and the liability for accrued sick leave j is approximately $638,580. The amounts applicable to the Enterprise II Funds ($205,705) and Internal Service Funds ($7,946) have been recorded in those funds, and the amount applicable to other funds ($974,824) has been recorded in the General Long-Term Liabilities Account Group. the amount expected to be paid from current r--sources is not significant. J. Comparative Data Certain amounts in the 1982 financial statements have been restated or reclassified to conform to the 1983 presentation. Total columns on the combined statements are captioned as memorandum only to indicate that they are presented only to facilitate analysis. Data in these columns do not present financial position, results of operations or changes in financial position in conformity with generally accepted accounting priaciple,9. Nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. (2) FIXED ASSETS General Fixed Assets- General fixed assets balances and transactions for the year ended September 30, 1983, are summarized below: Balance Balance September 30, September 30, 1982 Additions Deductions 1983 Land S 3,819,542 $ 12,921 S (33,752) S 3,798,711 buildings 5,496,865 140,734 - 5,637,599 Streets 19,752,016 1,723,080 - 21,475,096 Machinery and equipment and other improvements 3,224,880 471,507 - 3,696,387 Construction in progress 245,797 1,767,547 (871,613) 1,141,731 Total $ 32,539,100 $ 4,115,789 S (905,365) $35,749,524 .w••.a v..v •....w....• •v........ investeent in General Fixed Assets- From bond issues $ 22,923,719 $ 2,881,053 $ (871,613) $24,933,159 From current revenue 3,196,879 370,421 - 3,567,300 26,120,598 3,251,474 (871,613) 28,500,459 From contributions 6,418,502 864,315 (33,752) 7,249,065 Total $ 32,539,100 5 4,115,789 $ (905,365) $35,749,524 Additions consist of expenditures from the Capital Projects Funds ($2,735,122), the General Fund ($476,929), the Special Revenue Funds ($36,449), Construction in Progress reclassification ($871,613) and net capitalized interest ($(5,324)). Construction in progress is composed of the following: Project Upended to Appropriation Sept embrr 30, 1963 coaairtea Central police atstio, 61,oa9,000 $1,063,372 $ 25,668 Citywide sideve.a roject 200,000 16,837 u1 1e1 Paisley-Malkey drainage 122,000 17,593 104,407 Bell-Coronido drainage 280,358 17,220 263,138 Bell-taglo drainage 110,000 156 109,b44 Ponder drainage 206,000 6,523 201,477 Panhandle drainage 669,000 1,206 667,794 loop 296 B-O-Y project 250,000 18,864 231,136 $2,926,358 $I,I42,731 $1,796,627 Enterprise and Internal Service Funds- Fixed assets of these funds are as follows: September 30 _ 1983 _ 1982 Utility System- Land and land rights $ 1,697,550 $ 870,116 Water rights 250,064 250,064 Electric plant and equipment 53,497,163 49,738,571 Water plant and equipment 31,215,599 15,398,405 Sewer plant and equipment 12,113,079 8,440,045 98,773,455 74,697,201 Less- Allowance for depreciation (38,4740043) (36,107,888) 60,299,412 38,589,313 Construction in progress 982,499 16,257,410 $ 1,281,911 $ 54,846,723 .Ja...ai.... .iaa.ama.... S,onitation- Land and land rights $ 370,908 $ - Vehicles and equipment 42,150 12,366 Lsss- Allowance for depreciation (5,768) (3,043) $ 407,290 $ 9,323 .raaa.aa.a:a ...a ae a:asi Internal Service- Vehicles and equipment $ 5,169,087 $ 4,751,453 Less- Allowance for depreciation (297140100) (2,322,048) $ 2,4540987 $ 2,429,405 ..iar....... ■iiri.a..a.r (3) LONG-TERM DEBT General Obligation and Certificate of Obligation Bonds- The general obligation and street improvement bonds are serial bonds collateralized by the full faith and credit of the City, and payable from propetty taxes. The bonds mature annually in varying amounts through 2003, and interest is payable semiannually. Bond transactions for the year ended September 30, 1983, are summarized as follows: Bonds outstanding, October 1, 1982 $13,123,250 Issues 4,742,000 Maturities 11047,750 Bonds outstanding, September 30, 1983 $1608170500 ■aaa:mzare:m General long-term debt at September 30, 1983, is comprised of the following issues: Amount Percent original Outstanding at General Obligation Interest Issue Final laount September 30, Debt Ila t el _ Do t Maturity of Lsove 1963 Street improvement 3.50 to 3.65 1960 1965 ( 600,000 5 50,000 street improvement 2.75 to 3.20 1962 1961 500,000 60,000 Central obligation 2.00 to 3.25 1963 1966 500,000 100,000 General obligation 3.10 to 5.00 1966 1966 1,000,000 160,000 Central obligation 4.25 1967 1969 600,000 160,000 Central obi i6 at ion 4.00 to 5.00 306 1966 1,000,000 275,000 General obligation 4.60 to 6.50 1969 1969 1,265,000 420,000 General obligation 5.10 to 7.00 1970 1991 1,000,000 400,000 Street improvement 5.25 to 7.25 1974 1994 1,600,000 1,100,000 Geneva' obligation 5.25 to 7.25 1974 1:94 965,000 55n,000 General obligatlon 4.50 to 6.50 1976 1996 2,500,000 1,750,000 Ceraral obligation 4.U0 to 6.00 1977 1997 3,000,000 2,250,000 General obligation 5.15 to 7.00 1979 2000 4,500,000 3,625,000 Certificates of obligation 5.50 1976 1997 125,000 95,000 Certificates of obligation 6.75 1979 1997 170,000 170,000 Certificates of obligation 71675 19/j 1991 275,000 275,000 Certificates of obligation 9.90 to 10.00 1960 1995 250,000 250,000 Korea payable 10 1960 1965 300,000 125,500 Central obligation 7.70 to 10.00 1963 2003 4,742,000 4,742,000 675,132,000 {16,617,500 Aggregate maturities of the general obligation bonds (principal and interest) for the years subsequent to September 30, 1983, are as follows: Year Principal Interest Total 1984 $ 1,264,750 $10274,268 $ 2,539,018 1985 1,272,750 980,156 2,252,906 1986 11210,000 904,025 2,114,025 1987 1,150,000 833,858 1,983,858 1988 1,160,000 763,905 1,923,905 Thereafter 100760,000 4,522,302 15,282,302 $16,817,500 $9,278,514 $260096,014 =..=M.s.==e =====Mesa. =a==eeM=M=M Proceeds of general obligation bonds are recorded in the Capital Projects Funds and are restricted to the uses for which they were approved in the bond elections. The City Charter expressly prohibits the use of bond proceeds to fund operating expenses. Revenue Bonds- The City issued revenue bonds of $25,280,000 in 1983 to refund the existing debt of the Sewer System and Utility System (Water and Electric System Revenue bonds). The existing debt was legally defeased as a result of this refunding transaction, and the City recognized an extra- ordinary pain of $3,189,508. The revenue bonds are serial obligations payable annually in varying amounts through 2007. Interest rates range from 4.75% to 9.63%. Revenue bond transactions for the year ended September 30, 1983, are summarized as follows: Bonds outstanding, October 1, 1982 $ 320210,000 Maturities and refunded debt (32,210,000) Issuance of refunding bonds 25,280,000 25,280,000 Less- Unamortized bond discount and expense 613,279 Net bonds outstanding, September 30, 1983 $ 24,6f6,721 Aggregate maturities, including mandatory redemption requirements, of the revenue bonds (principal and interest) for the years subsequent to September 30, 1983, are as follows: Year Principal Interest Total - 1984 $ 21060,000 $ 10431,375 $ 3,491,375 1985 1,7350000 1,810,650 30545,650 1986 11595,000 19719,562 3,314,562 1987 1,510,000 1,621,850 3,191,850 1988 13665,000 1,529,725 31194,725 Thereafter 16,655,000 11,051,932 273106,932 $253280,000 $19,171,094 $44,4510094 :sm:m:eemms sa6asssams= ■ssassiss3a In addition, the City has the option to retire at par all or a portion of the bonds prior to maturit;, on or after December 1, 1993. The revenue bonds are collateralized by the revenue of the utility system and the various specie. funds established by the bond ordinance. The ordinance provides that the revenue of the system is to be used first to pay operating and maintenance expenses of the system and second to establish and maintain the revenue bond funds. Any remaining revenues may then be used for any larful purpose. The ordinance also contains provisions which, among other items, restrict the issuance of additional revenue bonds unless the special funds noted above contain the required amounts and certain financial ratios are met. The City is in compliance with all significant requirements. Below is a summary of the various restricted asset accounts required by the bond ordinance as of September 30, 1983: Interest and Sinking Fungi. $2,6181531 Reserve Fund 31000,000 Emergency Fund 250,000 Extension and Improvement Fund 11150,380 $7,018,911 6...3==== Assets in these accounts consisted of cash and U.S. government jecurities. Related liabilities and retained earnings are as follows: Payable from restricted assets- Accrued interest $1,073,531 Revenue bonds payable, current 1,545,000 Retained earnings reserved for bond retirement 4,400,380 $7,018,911 ea==:esssa Bonds Authorized and Unissued- As of September 30, 1983, there were no general obligation or revenue bonds which were authorized but unissued. (4) LEASES PAYABLE: Leases payable represent the remaining amounts payable under lease purchase agreements for the acquisition of vehicles ($398,091), Xerox equipment ($42,083), computer hardware ($35,992), and word processing equipment ($65,141). These leases are recorded as capital teases. The vehicles and Xerox equipment are recorded in the Internal Service Funds, and the computer hardware and word processing equipment are recorded in the General Fixed Assets and General Long-Term Liabilities Account Groups. Remaining requirements, including interest, under these leases are as follows: General Internal Long-Term Year Service Liabilities 1984 $273,645 $1020350 1985 205,640 64,328 1986 73,389 71471 $5520674 $1741149 aeaaaaaa aaaaasaa (5) PENSION PLANS The City participates in a pension plan sponsored by the Texas Municipal Retirement System (TMRS), an agency operated by the State of Texas. The plan is a defined contribution plan covering all full-time employees except firemen. The plan is funded by contributions based on a percentage of compensation paid to employees. Employees are currently contributing an amount equal to 5% of gross pay with the City contributing 4.11% of gross pay. The City's policy is to fund pension costs accrued which include amortization of prior service costs over 20 years. As of January 1, 1983, the actuarial present value of ac-rued plan benefits was as follows: Vested $5,946,421 Nonvested 590,206 $6,536,627 a=====a=== The value of plan assets as of January 1, 1983 was $4,884,423. Firemen are covered by the Firemen'. Relief and Retirement Plan, a defined contribution plan. The City's policy is to fund pension costs accrued which include amortization of prior service costs over 30 years. As of August 31, 1982, the actuarial present va:ue of accrued plan benefits was as follows: Vested $102180812 Nonvesred 75,751 $1,294,563 The value of plan assets as of January 1, 1983 was $1,872,651. Pension expense for the year ended September 30, 1983, was as follows: TMRS $ 417,240 Firemen's Plan 74,471 $ 491,711 MEMEMOMMMA (6) COMMITMENTS AND CONTINGENCIES Agreement with TMPA- In 1976, the City, along with the cities of Bryan, Greenville and Garland, Texas (the "Cities") entered into a Power Sales Contract with the Texas Municipal Power Agency (TMPA). TMPA was created through concurrent ordinances of the Cities and is governed by a Board of Directors consisting of eight members, two appointed by the governing body of each city. Under the terms of the agreement, TMPA agreed to construct or acquire electric generating plants to supply energy and power to the Cities for a period of not less than 35 years. The Cities in turn agreed to purchase all future power and energy requirements in excess of the amounts generated by their systems from TMPA at prices intended to cover operating costs and retirement of debt. In the event that revenues are insufficient to cover all costs and retire the outstanding debt, each of the Cities has guaranteed a portion of the unpaid debt besed, generally, upon its pro rata share of the energy delivered to consumers in the prior operating year. As of September 30, 1983, total TMPA debt outstanding was approximately $1,336,655,000, and the City's guaranteed percentage is approximately 19.85%. In the opinion of management, the possibility of a material payment under this guarantee is remote in that TMPA is generating operating profits and assets Exceed liabilities! Presently, TM°A opertP,es a 390 megawatt lignite-fueled generating plant and has an interest in a nuclear-fueled generating plant under construction. Should TMPA be dissolved, each City would be entitled to an undivided interest in the property. Agreement with Lone Star Gas Company- During 1983, the City entered into a natural gas sales contract with Lone Star Gas Company which provides for natural gas through 1988 to be used as fuel for the City's electric generating facilities. The contract requires that the City estimate its future use and provides penalties if actual usage is less than 402 of the estimate. No penalties were incurred during fiscal 1983, and management does not anticipate any during fiscal 1984. Litigation- Various claims and lawsuits are pending against the City. In the opinion of City management and legal counsel, the potential losses, after insurance coverage, on all claims will not have a material effect on the City's financial position as of September 30, 1983. (7) SEGMENT INFORMATION FOR ENTERPRISE FUNDS Segment information for the year ended September 30, 1983, was as follows: Utility Sanitation System Fund Total OPERATING REVENUES $41,3760356 $1,440,147 $42,8162503 DEPRECIATION 2,082,998 2,726 210850724 OPERATING INCOME (LOSS) 6,056,689 (20,345) 61036,344 OPERATING TRANSFERS OUT 3,852,853 118,510 31971,363 NET INCOME (LOSS) 4,092,500 (162,623) 3,9291877 CURRENT CAPITAL CONTRIBUTIONS: Federal agencies 3,861,359 - 318610359 In aid of construction 5283217 - 528,217 PROPERTY, PLANT AND EQUIPMENT: Additions 9,134,231 400,693 9,5349924 1 Deletions - - - NET WORKING CAPITAL (DEFICIT) 6,706,958 (771,411) 5,9350547 BONDS PAYABLE 25,280,000 - 25,2800000 TOTAL EQUITY (DEFICIT) 49,267,528 (364,121) 48,903,407 (8) INDIVIDUAL FUND DISCLOSURES: Individual fund disclosures as of and for the year ended September 30, 1983, are as follows: Deficit Fund Expenditures Interfund Interfund Balances Over Budget Fund -----4V Receivables pay3bles (if any) (if any) General Fund $ 40677,241 $ 3,411,650 $ - $ Special Revenue Funds: Criminal Justice - 23,933 10,104 - Emily Fowler Library - - 864 - Other granLq - - - - Debt Service 14,636 452795 - 11001 Capital Projects: Street improvements 675,550 2172044 - - Construction projects - 15,043 - - Special Assessment 1,435 676,481 - - Enterprise Fund: Utility System 865,810 2,504,487 - - Sanitation 5,179 267,997 3640121 53,341 Internal Service: Working capital 23,279 146,486 - 51$73 Trust and Agency: Employee Insurance Fund 18 2,367 30,581 - Payroll Fund 5,438,373 4,384,238 - Total $11,695,521 $11,695,521 saaasaaasaa saasaaMaaoa t / . i V NOTICE OF SALE AND BIDDING INSTRUCTIONS ON $I,000,OJO CITY OF DENTON, TEXAS (Denton County) UTILITY SYSTEM REVENUE BONDS, SERIES 1184 Selling Tuesday, February 21, 1984, at 7:00 PM, C:iT THE SALE Bonds Offered for Sale at Com titive Blddin The City of Denton, Texas (the "City"), Is offering for sale its 000,000 a ay ystem Revenue Bonds, 5eries 1984 (the "Bonds" or "Bond', which shall Include, for purposes of definition, the "Initial Bond'), Address of Bids Sealed bads, plainly marked' 61d for Bonds", should be addressed to "Mayor and City Counc , City o Denton, Texas", and delivered to the City Manager, City Council Chamber, City Hall, 213 E. McKinney Street, Denton, Texas, prior 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 interlineation. Place and Time of qi#' Open_ry The City Council will open and publicly read the bids for,.he purchase 0o t~ at the City Cr+, scil Chamber, City Hall, 213 E. McKinney Street, Denton, Texas, at 7:00 PM, CST, February 21, 1994. Award of the Bonds fhe City Council will take action to award the Bonds (or reject all blds) promptly after the opening of b, 01, and adopt an Ordinance authorizing the Bonds and approving the Official Statement (the "Ordinance'). THE BONDS Description The Bonds will be dated March 1, 1984 (the "Bond Date"), and Interest will be due on December 1, 1984, and each June I and December I thereafter until the earlier of maturity or prior redemption. The Bonds will be Issued In fully registered form In any Integral multiple of $3,000 for any one maturity, and principal and semi-annual Interest will be paid by Texas American Bank/Fort Worth N.A. Fort Worth, Texas, the paying agent/registrar (the "Paying Agent/Registrar"), Principal of the Bonds will be payable to the registered holder or owner (the "Holder" or "Owner") at maturity or redemption upon presentation at the principal corporate office of the Paying Agent/Reglstrar. Interest on the Bonds will be payable by check, dated as of the Interest payment date, and mailed by the Paying Agent/Registrar to registered Holders as shown on the records of the Paying Agent/Registrar on the Record Date. The Bonds will mature on December I in each year as follows: Principal Principal Principal Year Amount Year Amount Year Amount 1983 50,000 1992 50,000 1999 30,000 1986 30,000 1993 50,000 2000 30,000 1981 30,000 1994 30,000 2001 50,000 1988 30,000 1993 50,000 2002 ;0,000 1989 50,000 1996 30,000 2003 30,000 1990 50,000 1997 30,000 2004 50,000 1991 30,000 1998 30,000 The City reserves the right, at its option, to redeem Bonds maturing on and after December 1, 1995, in whole or any part thereof by lot, on December 1, 1994, or any Interest payment date thereafter, at the par value thereof plus accrued Interest to the date fixed for redemption. If less than all of the Bonds are to be redeemed by the City, the City shall determine tha maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot Bonds, or portions thereof, for redemption. Not less than 30 days prior to a redemption date for the Bonds, the City shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid, to each Holder of a Bond to be redeemed, in whole or in part, at the address of the Holder appearing on the registration books of the Paying Agent/Registrar at the time such notice of redemption is mailed. i r Source of Payment The Bonds are special obligatforo of the City payable solely from and secured by a irst~ieri on and pledge of the revenues of the City's Utility System, after deduction of reaswble expenses of operation and maintenance. CONDITIONS OF THE SALE T oes ofo Blds and Interest Rates The Bonds will he sold In one block on an "All or None" basis, and at a price not ess than their par vzJue plus accrued 6rterest to the date of delivery of the Bonds. Bidders are invited to name the rate(s) of Interest to be borne' / the Brads, provided that each rate bid must be in a multi;de of 113 of 1% or 1/20 of 1% and the net effective interest cost must not exceed 15%. The highest rate b d may not exceed the lowest rate bid by more than 3% In rate. No limitation Is imposed upon bidders as to the number of rates or changes which may be used. All Bonds of one maturity must bear one and the same rate. No bids involving supplemental Interest rates will be considered. Each bidder shall state in his bid the total interest cost In dollars and the net effective Interest rate determined thereby (calculated in the manner prescribed by Article Wk-2, VATCS), 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 Bonds, the interest cost of each bid will be computed by determining, at the rate or rates specified therein, the total dollar cost of all interest on the Bonds from the Bond Date to their respective maturities, using 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 irregularities except time of filing, the Bonds wilt be awarded to the bidder or syndicate account whose name first appears on the Official Bid Form (the "initial Purchaser" or "Purchaser") whose bid based on the above computation produces the lowest net effective Interest cost to the City. Good Faith D!22 it A Good Faith Deposit, payable to the "City of Denton, Texas", In the amount of 20,000.00, is required. Such Good Faith Deposit shall be in the form of a Cashier's Check, or its equivalent, which is to be retained uncashed by the City pending the Purchaser's compliance with the terms of his bid and the Notice of 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 accomparsied by Imtructiom 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 interest 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 ACCOMPANYING DOCUMENTS CUSIP Numbers It is anticipated that CUSIP Identification numbers will appear on the Bonds, but Felt er t e allure to print or type 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 or typing of CUSIP numbers on the Bonds shall be paid by the City; provided, however, that the CUSIP Service Bureau charge for the assignment of the numbers shall be the responsibility of and shall be paid for by the Purchaser. Initial Deliver of Iniiia! Bond Initial Delivery will be accomplished by the Issuance of one Initial Bond also called the "Bon " , either in typed or printed form, In the aggregate principal amount of $1,000,000, payable in stated installments to the Purchaser, signed by the Mayor and City Secretary, either manually or by facsimile, approved by the Attorney General, and registered and manually signed by the Comptroller of Public Accounts. Initial Delivery will be at the principal corporate office of the Paying Agent/ Registrar. Faymc-t for the Bends 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 Initial Delivery of the Initial Bond can be made on or about March 27, 1959, and it is understood and agreed that the Purchaser will accept delivery and make payment fot the Initial Bond by 10:00 AM, CST, on March 21, 1930, or thereafter on the date the Bond is tendered for delivery, up to and Including April 10, 1960. If for any reason the City is unable to make delivery on or before April 10, 1930, 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 exterd 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 to deliver the Bonds, provided such failure is due to circumstance beyond the City's reasonable control. ss Delkver of Definitive Bonds... Upon payment for the lnlttal Bond at the time of the Initial Dell mry, the aynng gent egistrar s cancel the Initial Bond, provided registration Instructions have been received by the Paying Agent/Registrar, and shall register and deliver the registered definitive Bonds, In any Integral multiple of $5,000 for any one maturity, in acccreance with instructions received from the Purchaser and/or members of the Purchaser's syndicate account. It shall be the duty of the Purchaser to furnish to the Paying Agent/Registrar, at least five business days prior to the Inlt!aI Delivery, written instructions on forms whlrh the Purchaser must request and obtain from, and which shall be provided by, the Paying Agent/Registrar designating the names in which the Bonds are to be registered, the addresses of the registered Holders, the maturities, interest rates and denominations. If such forms are not available, written Instructions by letter shall be furnished to Paying Agent/Registrar. The Paying Agent/Registrar will not be required to accept registration Instructions after the fifth business day prior to Initial Delivery. If such written instructions are not received within the specified time period, the cancellation of the Initial Bond and delivery of registered definitive Bonds will be delayed until such written instructions are received. Condition.. to Deli The obligation of the Purchaser to take up and pay for the Bonds is subject to the Purchaser's receipt of (a) the legal opinion of Messrs. McCall, Parkhurst do Horton, Dallas, Texas, Bond Counsel for the City, (b) the no-litigation certificate, and (c) the certification as to the Official Statement, all as further descriBed in the Official Statement. Le&al Onio~ns The Bonds are offered when, as and if issued, subject to the unqualified legal opinion o t~ -he~tt orney General of the State of Texas, and Messrs. McCall, Parkhurst k Horton (see Legal Opinions in Official Statementh the opirlon of Bald firm will be printed on the Bonds. Certilicatian of Official Statement At the time of payment for, and Initial Delivery of, the Initial Bond, t City will execute a e aver to the Purchaser a certificate In the form set forth in the Official Statement. Change in Tax Eem t Status At any time before the Bonds are tendered for delivery, the Purchaser may withdraw x bid it the interest received by private holders from bonds of the same 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 Federal income taxes, by the terms of any Federal income tax law enacted subsequent to the date of this Notice of Sale and Bidding instructions. GENERAL Financial Advisor's Ri ht to Bid First Southwest Company, the City's Flranc!al Advisor, reserves the right to on t Son Blue Sky Laws By submission of his bid, the Purchaser represents that the sale cf the Bonds in states r1her 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 !aw 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 Bonds, but 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 aid Bidding te%tructions, 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 Bortds, the City will have no authorized but unissued Utility System Revenue Bonds. In late spring, IM4, the City expects to complete a capital improvement plan for the Utility S•-stem which will be submitted to the electorate in mid-Summer. Assuming voter approval, the City would expect to sell additional bonds in late 1984. Ratans The outstanding Utility System Revenue Bonds of the City are rated "A" by Moody's Investors Service, Inc. and "A+" by Standard do Pooes Corporation. Applications for contract ratings on this issue have been made to both Moodys and Standard & P='s. The results of their determinations will be provided assuon as possible. Municipal Bond Insurance In the event these Bonds are qualified for municipal bond insurance, and the Purchaser 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, 30 cop' of the Official Statement o copies of any addenda, supplement or amendment thereto), complete 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 U he requires more than 30 copies, and may also arrange, at his total expense and responsibility, for completion and perfection of the f 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 asst-nes no responsibility or obligation for the distribution or delivery of any of these co,ies to any one other than the Purchaser. Additional Co lee of Notice Bid Form and Statenent A limited number of additional copies of this otue o e a S ng nstructions, the O id 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, 300 Mercantile Dallas Building, Dallas, Texas 73101, Financial Advisor to the City. The City reserves the right to reject any and all bids and to waive Irregularities, except time of tiling. On the date of the sale, the City Council will, in the Ordinance authorizing the issu uoe of the Bonds, approve the form and content of the Official Statement, and any addenda, skpplem-ant or amendment thereto, and authorize Its use In the reolfering of the Bonds by the Purchaser. RICHARD 0. 57 EWART M>>or City of 'Jenton, Texas ATTESTS CHARLOTTE ALLEN City Secretary City of Canton, Texas 7anuary 31, 1984 1 V BOND YEARS Accumulated Year Mount _ Bond Years Bond Years Year 1985 f 50,000 87.50 87.50 1985 1986 50,000 137.50 225.00 1986 1987 $0,000 187.SO 412.50 1987 1988 501000 237.50 650.00 1968 1989 501000 287.50 937.50 1989 1990 50,000 337.50 1,276.00 1990 1991 50,000 387.50 1,662.50 1991 1992 50,000 437.50 21100.00 1992 1993 50,000 487.50 2,587.50 1993 1994 $0,000 537.50 3,125.00 1994 1995 50,000 587.50 3,712.50 1995 1996 50,000 637.50 4,350.00 1996 1997 50,1.00 6107.50 51037.50 1997 1998 50,000 737.50 51775.00 1998 1999 50,000 787.50 6,562.50 1999 2000 50,000 837.50 7,400.00 2000 2001 $0,000 887.50 8,287.50 2001 2002 50,000 937.50 9,225.00 2002 2003 50,000 987.50 10,212.50 2003 2004 50,000 1,037.50 11,250.00 2004 I Average Naturlty ---------------------------------11.250 Years OFFICIAL. BID FORM Honorable Mayor and City Council February 21, 1984 City of Denton Denton, Texas Gentlemen: Reference Is made to your official Statement and Notice of Sale and Bidding Instructions, dated January 31, 1984, of $1,000,000 CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE BONDS, SERIES 1984, both of which constitute a part hereof. For your legally issued Bonds, as described In said Notice of Sale and Bidding lrstructlons 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 Maturity Rate Maturity Rate Maturity Rate 12-1-1983 % 12-1-1992 % 12-1-1998 % 12-1-1986 % 12-1-1993 % 12-1.1999 % 12-1-1981 % 12-1-1994 % 12-1-2000 96 12.1.1988 % 12-1-1993 % 12-1-2001 96 12-1.1989 % 12-1-1996 % 12-1-2002 % 12.1-1990 % 12-1-1997 % 12-1-2003 % 12-1-1991 % 12-1-2004 % i Our calculation (-ivhlch Is not a part of this bid) of the Intere-.t cost from the above Isi Total Interest Cost $ Less Premium NET INTEREST COST $ EFFECTIVE INTEREST RATE % We are having the Bonds Insured by The Initial Bond shall be registered In the name of (syndicate managerl. We will advise the Corporate Trust Division, Texas .mer can Ban ort Worth P. 0. Box 2050, Fort Worth, Texas 76113, the Paying Agent/Registrar, on forms to be provided by the Paying Agent/ReEistrar, our registration instructions at least five business days prior to the date set for lr1t1J Delivery. We will not ask the Paying Agent/Registrar to accept any registration Instructions after the five day period. Check of the Bank, , In the amount o 20,000.00, which represents our Good Fait Deposit is attac ereto or as been made available to you prior to the opening 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 the Bonds In Immediately available funds In the Corporate Trust Division, Texas American Bank/Fort Worth N.A., Fort Worth, Texas, not later than 10:00 AM, CST, on March 27, 1984, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions. Respectfully submitted, By Autlwr ze Representative ACCEPTANCE CLAUSE The above and foregoing bid Is hereby in all things accepted by the City of Denton, Texas, this the 21st day of February, 1984. ATTESTi Mayor -amity evetary Return of Good Faith Deposit is hereby acknowledged: 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 expression: 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 January 31, 1984 INTEREST EXEMPT, IN THE OPINION OF BOND COUNSEL, FROM PRESENT FEDERAL INCOME TAXES $1,000,000 CITY OF DENTON, TEXAS (Denton County ) UTILITY SYSTEM REVENUE BONDS, SERIES 1984 Dated: March 1, 1984 Duet December 1, as shown below Interest on the Bonds will be payable June 1 and December I of each year commencing December 1, 1984. The Bonds will be issued only in fully registered form in any Integral multiple of $3,000 for any one maturity. Principal of the Bonds will be payable to the registered holder or owner (the "Holder" or "Owner") at maturity or redemption upon presentatlon at the principal corporate office of Texas American Bank/Fort Worth N.A., Fort Worth, Texas, the paying agent/reglstrar (the "Paying Agent/ Registrar"). Interest on the Bonds will be payable by check, dated as of the Interest payment date, and mailed by the Paying Agent/Registrar to registered Holders as shown on the records of the Paying Agent/Registrar on the Record Date (see "Record Date for Interest Payment"). The Utility Systein Revenue Bonds, Series 1984 (the "Bonds" or "Bond", which shall include for Purposes of definition, the "Initial Bond'), are special obligations of the City of Denton, payable, both as to principal and interest, solely from and secure-l by a first lien on and pledge of the revenues of the Citys Utility System, after deduce;: 7r. of reasonable expenses of operation and maintenance. These Bonds are authorized pursuant to Article 2368A, till et seq., Vernon's Annotated Texas Civil Statutes, and will constitute special obligations of the City. See "Security for Payment". MATURITY SCHEDULE Amount Maturity Rate Yield Amount Ma~turitt Rate Yield 3010 12-1-1995 30, 0 i2-1-i9930 30,000 12-1-1986 30,000 12-1-1996• 30,000 12-1-1967 30,000 12-1.19911 30,000 12-1-1988 30,000 12-1.19981 30,000 17-1-1989 30,000 12-1-1999* 30,000 12-1-1990 30,000 12-1-20001 30,000 12-1-!991 30,000 12-1.20011 30,000 12-1-1992 50,000 12-1-2002* 30,000 12-1-1993 30,000 12-1-20031 50,000 12-1-1994 50,000 12-1-20041 1 The City reserves the right, at :Is option, to redeem Bonds maturing on and of t:r December 1, 1993, In whole or any part thereof by lot, on December 1, 1994, or any interest payment date thereafter, at the pan value thereof plus accrued interest to the date fixed for redemption. If less than all of the Bonds are to be redeemed by the City, the City shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Payirg Agent/Registrar to call by lot Bonds, or portlora thereof, for redemption. Not less than 30 days prior t, a redemption date for the Bonds, the City shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid, to each Holder of a Bond to be redeemed, in whole or in part, at the address of the Holder appear! g on the registration books of the Paying Agent/Registrar at the time such notice of redemption is mailed. Payment Record: The City has never defaulted. Legal it The Attorne General of Texas and Messrs. 1cC ar urst Horton Attorne s Dallas Texas. Optnton Printed on t Bo sl ee Lena Op ruora. Delivery; Anticipated on or about March 27, 193 4. ELECTED OFFICALS Term Cit Council ~Explras car 1ewart April, 1994 Mayor Ray Stephens April, 1933 Mayor Pro-Tern Joe G. Alford April, 1933 Councilmember Mark R. Chew April, 1933 Councilm em Der Jack Barton April, 1931 Cozen cilm em ber Jim Rlddiesperger April, 1933 rouncilmember Char les Hopkins April, 1930 Can ci Im em ber APPOINTED OFFICIALS Name Position Chris Hartung City anger Rick SveNa Assistant City Manager Betty McKean Assistant City Manager R. E. Nelson Director of Utilities Charlotte Allen City Secretary C. J. Taylor, Jr. City Attorney CONSULTANTS AND ADVISORS Bond Counsel McCa1l,Parkhurst t4 Horton Dallas, Texas Auditors Arthur Andersen do Co. Dallas, Texas Financial Advisor First Southwest Company Dallas, Texas o[. RECISTRATION Tax E ult and Fiscal Respo'I "it A ct of 1962 'TEFRA")... TEFRA, as amended, mandates, among of er t ungs, t at a new =sues o munlcipal bonds a vere after June 30, 1963, (excepting those with a one year maturity or less) must be registered in the owner's name. PayinAge~nt/Registrar The Bonds will be issued only In fully registered form In any integral multiple OT 01.r any one maturity. Principal of the Bonds will be payable to the registered holder or owner (the "Holder" or "Owner") at maturity or redemption upon presentation at the principal corporate office of Texas American Bank/Fort Worth N.A., Fort Worth, Texas, the Paying Agent/Registrar, interest on the Bonds will be payable by check, dated as of the Interest payment date, and malled by the Paying Agent/Reglstrar to registered Holders as shown on the records of the Paying Agent/Registrar on the Record Date (see "Record Date for Interest Payment"). Successor A ent Re istrar Provision Is made in the Ordinance for replacement of the Paying Agent/Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times while the Bonds are outstanding and any successor Paying Agent/Reglstrar shall be a bank, trust company, financial institution, or other entity duly qualified and legally authorized to serve as and perform the duties and «rvices of Paying Agent/Registrar for the Bonds. Upon any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice thereof to be sent to each registered Owne, of the Bonds by United States mall, first class, postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Future RetIstration The Bonds may be transferred, exchanged and registered only on the regislratlon boo s OT . Paying Agent/Registrar, and such registration and transfer shall be withuut expense or service charge to the Holder, except fot any tax or other governmental charges required to be paid with respect to such registration and transfer. A Bond may be assigned by the execution of an assignment form on the Bond or by other Instrument of tratefer and assignment acceptable to the Paying Agent/Registrar. A new Bond or Bonds will be delivered by the Paying Agent/Reglstrar, in Ileu of the Bond being transferred or exchanged, at the principal corporate office of the Paying Agent'Registrar, or sent by United States mail, first class, postage prepaid, to the new registered Holder or his designee. To the extent possible, new Bonds Issued in an exchange or transfer of Bonds will be delivered to the registered Holder or assignee of the Holder in not more than three business days after the receipt of the Bonds to be cancelled, and the written instrument of transfer or request for exchange duly executed by the Holder or his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. New Bonds registered and delivered in an exchange or transfer shall be In any Integral multiple of $3,000 for any one maturity and for a like aggregate principal amount as the Bond or Bonds surrendered for exchange or transfer. Limitation on Transfer of Bonds Called for Redemption Neither the City or the Paying Agent/ Registrar sFWI be require to issue or transfer to an assignee of the Holder of the Bonds any Bond called for redemption, in whole or in part, within 45 days of the date fixed for redemptions provided, however, such limitation of transfer shAll not be applicable to an exchange by the Bond Holder of the unredeemed balance of a Bond called In part for redemption. Record Date for Interest Pa nt The record date NRecord Date") for the interest payable on any merest payment ate means tme 5th day of the preceding month. In the event of a non-payment of Interest on a scheduled payment date, and for 30 days thereafter, a new record date for such Interest payment (the "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due Interest (the "Special Payment Date" which shall be 15 days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the address of each Holder of a Bond appearing on the books of the Paying Agent/Registrar at the dose of business on the last business day next preceding the date of mailing of such notice. INTRODUCTORY STATEMENT This Official Statement of the City ~f Centon, Texas, a political subdivision located In Denton County (the "City'), is pro., '-d to furnish Information In connection with the safe of the City's $1,000,000 Utility System Revenue Bonds, Series 19114 (the "Bonds" or "Bond"). The Official Statement was prepared to present for the purchaser of the Bonds Information concernln$ 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 morn fully described herein. See "Table of Contents". Source of Pa eni The Bonds are and shall be payable as to principal and Interest solely from the net revenues er ve nom the operation of the City's Utility System (which Includes the combined Water, Sewer and Electric Systems), Including all additions, extensions and improvements thereto which may hereafter be made, after deduction of the reasonable expenses of operation and maintenance of the System. See "Security for Payment". Pur pose ...Proceeds o1 the $1,900,000 Utility System Revenue Bonds will be used to construct nnprovements to the existing water system, Including a new finished water pump, a raw water pump, oversized water lines and other miscellan"is Improvements. Future Bond luues ...In late Spring, 1984, the City expects to comniete a capital Improvement plan for the Utility System which will be submitted to the electorate In mid-Summer. Assuming voter approval, the City would expect to sell additional bonds in late 1984. AMninistration of the City The City operates under a H-xne R-Je Charter which was app,oved by the e ectorate a ruary 24, 1959. The Charter provides for the Council-Manager form of government for the City. Policy-making and supervisory functions are the responsibility of, and vested in, the Mayor and City Council, consisting of seven members ele,:ted at large by a vote of a majority of the residents of the City for rotating two-year terms. The City Manager is appointed by and serves at the will of the City Council to execute the laws and administer the governrnent of the City. 7 , SECURITY FOR PAYMENT These Bonds will constitute special obligations of the City, payable AS to both prlncipal and Interest and equally secured by a first lien on and pledge of the revenues of the Utility System (the "System"), after deduction of reasonable expenses of operation and maintenance, as provided by the General Laws of the State of Texas, particularly Articles 1111 et seq., Y.A.T.C.S. CONDENSED STATEMENT OF UTILITY SYSTEM OPERATIONS Fiscal Years Endin Se tember 30, 918 1979 _ 9 9 _ 19 Ti-- Gross Revenuest Electric $18,610,721 $18,216,763 $21,630,985 $23,943,169 $31,834,199 $33,376,243 Water and Wastewater 3,473,387 3,722,497 3,949,317 4,254,318 3,532,046 1,851,073 Interest Income 390,393 916,692 1,332,481 1,396,228 1,383,374 e29,064 Other Income 33 620 19 763 133 907 48 277 202 670 149 036 Total 22 S1 1 2 i73 713 27 048 690 31 843,992 38 934 289 42 203 420 Expensess Fuel and Purchased Power $11,179,333 $11,089,349 $14,382,913 $18,033,846 $22,387,647 $26,996,600 Other Operating and Administrative Expenses 4 392 664 4,777,391 6 019 967 7 030 366 8 142 038 8 072 922 Total 3 db6 90~ 0,4 44 0 729 68 S 069 2- ,,L4 Net Revenue Available for Debt Service and Other Lawful Purposes 11 61940,124 $ 7,008,774 $ 6,645,810 $ 6,739,380 $ 8,224,604 $ 7,135,898 Notes Fiscal Year 1983 - Excludes extraordinary gain of $3,189,508 on advance refunding. Estimated Average Annual Debt Service, 198412008 $ 1,863,044 Coverage of Average Annual Debt Service by 9-3043 Net Revenue 3.83 Times Estimated Maximum Annual Debt Service, 1983 $ 3,670,630 Coverage of Maximum Annual Debt Service by 9-30-83 Net Revenue 1.94 Times Utility System Revenue Bonds to be Outstanding, Including this $1,000,000 Issue $26,280,000 Utility System Fund Balances ds of 12-31-83: Interest and Sinking Fund 846,730 R-serve Fund 3,000,000 Emergency Fund 250,000 ~~ll „ NN xxp d W 01 M N M O ~ u ~ !x'77 ~ n n MAW n 1MD ggo a g ~w o. m ey b0000m N4b.bnn~NTb O . W ONp N N~pp 0 1flNo nNN~ O QO[ Pn~ MMMMN M1 t~..M.ON PODMI1.1P Mppp~N711(1 :~ppapppp r..Pn Nn Tj~ 010Y~O V11f10 •T~01D OW MMMMMMMMNNN M•-. •I ..H 10 a M M H ~g. . 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N i tiHNNnY Nr1 ...1M H N N co ~ W p..... p.... • pp. gyp. OppmJ. pp... uo1. po. pryp. pp. app~pp. ^T... om. •GIN'fPn10OOn~J~01000 NNN IN M 1D N W Vf 1(1 1D O n W 0011'1N N •7 N ti .r H n r-• ~.~1 H H N 1f1 W N 1- N ppo~ p~pp~~8 8p8p8p888p888 N ~ 60~ PPol a PP 00% m TP TpPi~PP NNNIVNNNIV ~ZP Nr-1HNN.. .1..... r.... W SUMMARY OF CERTAIN PROVISIONS OF THE ORDINANCE The Series 1984 Bonds will be Issued under the authority of the Cedinuxe adopted by the City Council of the City of Denton (the "Ordinance"). The following summary of certain provisions of the Ordinance is qualified in all respects by reference to the Ordinance for a complete description, of all terms and conditions set forth therein. Copies of the Ordinance are available upon request from the Financial Advisor. DEFINITIONS The following terms are delined in the Ordinance and shall have the meanings set forth below for the purposes of this Official Statement unless otherwise providedn "City' shall mean the City of Denton, In Denton County, Texas. "City Council" or "Council" shall mean the governing body of the City. "Bonds" shall mean the City of Denton Utility System Revenue Bonds, Series 1984, authorized by this Ordinance. "Gross Revenues" shall mean all revenues, Income, and receipts of every nature derived or received by the City from the operation and ownership of the System, Including the Interest Income from the investment or deposit of money In any Fund created by the Ordinance. "Net Revenues" shall mean all Gross Revenues after deducting the current expenses of operation and maintenance of the System, including all salaries, labor, materials, repairs and extensions necessary to render efficient service; provided, however, only such repairs and extensior as In the judgment of the City Council, reasonably and fairly exercised by the passage of the appropriate resolutions, 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 rxsld rtherwlse Impair the Series 1984 Bonds or Additional Bonds. "Pledged R,: enues" shall mean (a) Net Revenues, plus (b) any additional revenues, Income, receipts, or other resources which are expected to be available ' the City on a regular periodic basis, including, without limitation, any grants, donations, or income re, rived of to be recelvei from the United States Government, or any other public or private source, whether pursuant to an agreement or otherwise, which hereafter may be pledged to the payment of the Series 1994 Bonds or Additional Bonds. "Additional Bonds" shall mean the additional parity revenue bonds which the City reserves the right to Issue in the Iut re, as provided In the Ordinance. "Series 1934 Bonds" shall mean the "City of Denton, Texas Utility System Revenue Bonds, Series 1934", authorized by the Ordinance. "System Fund" shall mean the "City of Denton, Texas Utilltv System Fund" created by the Ordinance. "Interest and Sinking Fund' shall mean the "City of Denton, Texas Utility System Revenue Bonds Interest and Sinking Fund" created by the Bond Ordinance. "Reserve Fund" shall mean the "City of Denton, Texas Utility System Bonds and Additional Bonds Reserve Fund" created by the Ordinance. "Extension .,-4 tmprovrrnent Find' shall mean the "City of Denton, Texas Utility System Extension and Improvement Fund" created by the Ordinance. "Emergency Fund" shall mean the "City of Denton, Texas Utility System Emergency Fund" created by the Ordinance. "Systern" shall mean (1) the Citys entire existing waterworks and sewer system and the City's entire existing electric light and power system, together with all future extensions, improvements, ealargements, and additions thereto, and all replacements thereof, and 12) any other related facilities, all or any part of the revenues or Income from which do, in the future, at the option of the City, and in accordance with law, become "Pledged Revenues" as hereinafter defined; provided that, notwithstanding the foregoing, and to the extent now or hereafter authorized or permitted by law, the term System shall not mean any water, sewer, electric, or other Iacllitles of any kind which are declared not to be a pars 7 the System, and which are acquired or constructed by the City with the proceeds from the issuance of "Special Facilities Bonds", which are hereby defined as being special revenue obligations of the City which are not payable from or secured by any Pledged Revenues, but which are secured by and payable from liens on and pledges o: any other revenues, sources, or payments, Including, but not limited to, special contract revenues or payments received from any other legal entity In connection with such facilities) and such revenues, sources, or payments shall not be considered as or constitute Gross Revenues of the System, unless and to the extent otherwise provided In the ordinance or ordinances authorizing the issuance of such "Special Facilities Bonds". CREATION AND FLOW OF FUNDS (a) The Ordinance creates the System Fund, the Interest and Sinking Fund, the Reserve Fund, the Extension and Improvement Fund and the Emergency Fund. (b) All Gross Revenues shall be credited to the System Fund immediately upon receipt. All current expenses shall be paid from s . Gross Reven,im as a first charge against the same. I-) The City shall make transfers from the System Fund as follows: M To the Interest and Sinking Fund on the twenty-fifth rray of each month, In approximately equiI monthly Installments, amounts, which, together with other funds, if any, then on hand in the Interest and Sinking Fund and available for such purpose, will be sufficient to pay the principal and Interest scheduled to accrue and come due on the Series 1994 Bonds and any Additional Bonds on the next succeeding principal or interest payment date; (ii) To the Reserve Fund. The City shall maintain In the Reserve Fund an amount of money and investments equal to the lesser of $3,000,000 or the maximum annual principal and interest requirements of the Bonds (the "Required Reserve Amount"). Following the issuance of Additional Bonds, the Required Reserve Amount shall be equal to the average annual principal end interest requirements of all Bonds and Additional Bonds then outstanding; provided, however, the Required Reserve Amount shall not be less than $3,000,000 if the maximum annual principal and interest requirements on all Bonds and Additional Bonds outstanding exceeds $3,000,000. After the delivery of any Additional Bonds, the City shall cause the Reserve Fund to be increased, If and to the extent necessary, so that such fund will contain an amount of money and investments equal to the :required Reserve Amount. Any increase in the Required Reserve Amount may be funded from Pledged Revenues, or from proceeds from the sale of Additional Bonds, or any other available source or combination of sources. All or any part of the Required Reserve Amount not funded initially and immediately of ter the delivery of any installment or Issue of Additional Bonds shall be funded, within not more than five years from the date of such delivery. When and so long as the amount in the Reserve Fund is not less than the Required Reserve Amount no deposits shall be made to the credit of the Reserve Fund. The City specifically covenants that when and so long as the Reserve Fund contains the Required Reserve Amount, the City shall cause all interest and income derived from the deposit or investment of the Reserve Fund to be deposited to the credit of the interest and Sinking Fundl (iii) To the Extension and Improvement Fund. During each year, subject and subordinate to making the required deposits to the credit of the Interest and Sinking Fund and the Reserve Fund, the City shall be required to de"It to the credit of the Extension and Improvement Fund from Pledged Revenues in the System Fund an amount equal to 996 of the "Adjusted Gross Reve,tues of the System", which term is hereby delinei is mean the followings the Gross Revenues of the System for such year after deducting from such Gross Revenues an amount equal to the current expenses of operation and raalntenance of the System for such year which are directly attributable to 0) all fuel costs related to the production of electric energy by the City and/or 00 the purchase of electric energy by the City. Additional excess Pledged Revenues may, at the option of the City Council, be deposited to the credit of the Improvement Fund, but no such additional deposit Is required. All investment interest :ncome from the Extension and Improvement Fund shall be retained in and remain a patt of such Fund. (iv) For any lawful purpose not inconsistent with the City's Charter, of ter having made the required deposits to the Interest and Sinking Fund, the Reserve Fund, and the Extension and Improvement Fund. 4 SECURITY FOR FUNDS Money in all Funds created by this Ordinance, to the extent not invested, shall be secured In the manner p escribed by law. INYESTMEN S M r.s in any Fund established pursuant to this Ordinance or any ordinance authorizing the Issuance of Additiona, Bonds, may, at the option of the City, be placed In time deposits c' certificates of deposit secured by obligations of the type hereinafter described, or be invested In Government Obligations or obligations Guaranteed or Insured by the United States of America, which, in the opinion of the Attorney General of .ne United States, are backed by its full faith and credit or represent its general obligations, or invested In obligations of instrumentalities of the United States of America, Including, but wt limited to, evidences of indebtedness issued, Insured, or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, United States Postal Service, Farmers Home Administration, Federal Home Loan Mortgage Association, Small Business Administration, Federal Housing Association, or Participation Certificates in the Federal Assets Financing Trust; provided that all such deposits and investments shall be made In such manner as will, in the opinion of the City, permit the money required to be expended from any Fund to be available at the proper time or times as expected to be needed. Such investments (except United States Treasury ONigations--State and Local Government Series investments held in book entry form, which shall at all times be valued at cost) shall be valuea in terms of current market value as of the last day of each fiscal year. Unless otherwise set forth herein, all interest and income derived from such deposits and investments immediately shall be credited to, and any losses debited to, the Fund from which the deposit or investment was made, and surpluses In any Fund shall or may be disposed of as hereinafter provided. Such investments shall be sold promptly when necessary to prevent any default in connection with the Bonds or Additional Bonds consistent with the ordinances, respectively, authorizing their issuance. PAYMENT OF BONDS AND ADDITIONAL BONDS On or before December f, 1984, and semi-annually on or Wore each Jute I and December I thereafter while any of the Bonds oc Additional Bon0% are outstanding and 1,npaid, the City shall make available to the Paying Agent/Registrar therefor, out of the Interest and Sinking Fund, or if necessary, out of the Reserve Fund, money sufficient to pay, on each of such dates, the principal of and Interest on the Bonds and Additional Bonds as the same matures and comes due, or to redeem the Bonds or Additional Bonds prior to maturity, either upon mandatory redemption or at the option of the City. At the direction of the City the Paying Agent/Registrar shall either deliver paid Bonds and Additional Bends to the City or destroy all paid Bonds and Additional Bonds, and furnish the City with an appropriate certificate of cancellation or destruction. ADDITIONAL BONDS (a) The City shall have the right and power at any time and from time to time, and In one or more series or issues, to authorize, Issue, and delivery additional parity revenue bonds (herein caUed "Additional Bonds"I, In accordance with law, in any amounts, for any lawful purpose, including the refucding of any Bonds or Additional Bonds, or other obligations. Such Additional Bonds, if and when authorized, issued, and delivered In accordance with this Ordinance, shall be payable from and secured oy an Irrevocable first lien on and pl!dge of the Pledged Revenues, equally and ratably on a parity in all respects with the Bonds and any other outstanding Additional Bonds. (b) The principal of all Additional Bonds must be scheduled to be fold or mature on December 1 of the years in which such principal is scheduled to be paid or mature. FURTHER REQUIREMENTS FOR ADDITIONAL BONDS Additional Bundy shall be issued only in accordance with this Ordinance, and no Installment, series or issue of Additional Bonds shall be Issuer or i'Jivered unless: (a) The Mayor of the City er' the City Secretary sign a written certificate to the effect that the City is not in defa,,i L ds to any covenant, condition, or obligation in connection with all then outstanding Bonds and Additional Bonds, and the ordinances authorizing same, and that the Interest and Sinking Fund and the. Reserve Fund each contains the amount then required to be therein. (b) An Independent certified public accountant, or independent firm of certified public accountants, acting by and through a certified public accountant, signs a written certificate to the effect that, in his or its opinion, during either the next preceding fiscal year, or any twelve consecutive calendar 1 month period out of the 18-month period immediately preceding the month in wNch the ordinance authorizing the issuance of the then proposed Additional Bonds is passed, the Pledged Revenues were at least W L75 times an amount equal to the average annual principal and interest requirements, and GO 1.10 times an amount equal to the principal and interest requirements during the fiscal year during which such requirements are scheduled to be the greatts t, of all Bonds and Additional Ber Ss which are scheduled to be outstanding after the delivery of the then proposed Addtional Bonds. It is specifically provided, however, that in calculating the amount of Pledged Revenues for the purposes of this subsection (b), if there has been any increase in the rates or charges 16f services of the System which is then In effect, but which was not in effect during all or any part of the entire period for which tht Pledged Revenues are being calculated (hereinafter referred to as the "entire period") then the certified public accountant, or in lieu of the certified public accountant a firm of consulting engineers, shall determine and certify the amount of Pledged Revenues as being the total of (i) the actual Pledged Revenues for the entire period, plus (ii) a sum equal to the aggregate amount by which the actual billings to customers of the System during the entire period would have been increased if such increased rates or charges had been in effect during the entire period. (c) Provision shall be made in the ordinance authorizing their issuance for increas'ng the Reserve Fund to the Required Reserve Amount. (d) That all calculations of average anrtal principal and interest requirements of any bonds made in connection with the issuance of any then propcsed Additional Bonds shall be made as of the date of such Additional Bonds; and also in making calculations fcr such purpose, and for any other purpose under this Ordinance, principal amounts of any bonds which must be redeemed prior to maturity pursmiant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal of such bonds. GENERAL COVENANTS The City covenants and agrees that in accordance with and to .he extent required or permitted by laws (a) It will faithfully perforr.r at all times any and all covenants, undertakings, stipulations, aria provisions contained in the Ordinance, and each ordinance authorizing the issuance of Additions! Bonds, and in each and every Series 1984 Bond and Additional Bonds; it will promptly pay or cause to be paid the principal of and interest on every Sexes 1924 Nand and Additional Bond, on the dates and in O)e places and manner prescribed in such ordinances and Series 1984 Bonds or Additional Bonds; and it will, at the time and in the manner prescribed, deposit or cause to be deposited the amounts required to be deposited irto the Interest and Sinking Fund and the Reserve Fund; and any owner of the Series 1984 Bonds or Additional Bonds may require the City, its officials and empfeyees to carry out, respect or enforce the covenants and obligations of this Ordinance, or any ordinance authorizing the issuance of Additional Bonds, by all legal and equitable means, including specifically, but without limitation, the use and filing of mandamus proceedmos, in any court of competent jurisdiction, against the City, its officials and employees. (b) It is a duly created and existing home rule city of the State of Texas, 'rd is duly authorized under the laws of the State of Texas to create and issue the Series 1994 Bonds; that all action on its part for the creation and issuance of the Series 1984 Bonds has been duly and effectively taken, and that the Series 198( Bonds in the hands of the owners thereof are and will be valid and enforceable special obligations of the City in accordance with their terms. M It has or will obtain lawful title to the lands, buildings, structures and facilities constituting the System, that it warrants that it will defend the title to all the aforesaid lands, buildings, structures and facilities, and every part thereof, for the benefit of the owners of the Series 1984 Bonds and Additional Bonds, against the claims and demands of all persons whomsoever, that it is lawfully qualified to pledge the Pledged Revenues to the payment of the Series 1984 Bonds and Additional Bonds, and has lawfully exercised such rights. (d) it will from time to time and before the same become delinquent pay and discharge all taxes, assessments and governmental charges, if any, which shall be lawfully imposed upon it, or the System; it will pay all lawful claims for rents, royalties, labor, materials and supplies which if unpaid might by law become a lien or charge thereon, the lien of which would be prior to or interfere with the liens of the Ordinance, so that the priority of the liens granted thereunder shall be fully preserved, and it will not create or sufrer to be created any mechanic's, laborer's, materialmans or other lien or charge which (night or could be prior to the liens thereof, or do or suffer any matter or thing whereby the liens thereof might or could be impaired; provided, however, that no such tax, assessment or charge, and that no such claims which might be used m the basis of a mechanic's, Iaborees, materialman's or other lien or charge, shall be required to be paid so long as the validity of the same shall be contested In good faith by the City. (e) It will, while the Series 1990 Bonds or any Additional Bonds are outstanding and unpaid, continuously and efficiently operate the System, and shall maintain the System in good condition, repair and working order, all at reasonable cost. No free service of the System shall be allowed, and should the City of any of its agencies or instrumentalities make use of the services and facilities of the System, payment of the reasonable value shall be made by the City out of funds from sources other than the revenues of the System, unless made from surplus or excess Pledged Revenues. (f) It, while the Series 1990 Bonds or any Additional Bonds are outstanding and unpaid, will not additionally encumber the Pledged Revenues in any manner, except as permitted in the Ordinance in connection with Additional Bonds, unless said encuantxance is made junior and subordinate in all respects to the liens, pledges, covenants and agreements of the Ordinance; but the right of the City to issue revenue bonds payable from a subordinate lien on the Pledged Revenues is sp^cificaily recognized and retjincd. (g) It, while the Series 1990 Bonds or any Additional Bonds are outstanding ano unpaid, will not sell, convey, mortgage, encumber, lease or in any manner transfer title to, or otherwise dispose of the System, or any significant or substantial part thereof; provided further that whenever the City deems it necessary to dispose of any other property, machinery, fixtures or equipment, it may sell or otherwise dispose of such property, machinery, fixtures or equipment when it has made arrangements to replace the same or provide substitutes therefor, unless it is determined that no such replacement or substitute is necessary. (h) It shall cause b: lie insured, such parts of the System as would usually be insured by corporations operating like properties, with a respo-sible insurance company or companies, against risks, accidents, or casualties against which and to the extent insurance is usually carried by corporations operating like properties, including, to the extent reasonably obtainable, fire and extended coverage insurance, insurance against damage by floods, and use and occupancy insurance. Public liability and property damage insurance a'so shall be carried unless the City Attorney gives a written opinion to the effect that the City is not liable for claims whict, would be protected by such insurance. All Insurance Premiums shall be paid as an expense of operatics of the System. At any time while any contractor engaged ;n construction work shall be fully respcasible therefor, the City shall not be required to carry insurance on the work being constructed if the contractor is required to carry appropriate insurance. All such policies shall be open to the irvipection of the Bondholders and their representatives at all reasonable rimes. Upon the happening of any loss or damage covered by Insurance from one or more of said causes, the City shall make due proof of loss and shall do all things necessary or desirable to cause the insuring companies to make payment in full directly to the City. The proceeds of insurance covering such property, together with any other funds necessary and available for such purpose, shall be used forthwith by the City for repairing the property damaged or replacing the property destroyed; provided, however, that if said insurance proceeds and other funds are Insufficient for such purpose, then said insurance proceeds pertaining to the Systein shall be deposited to a special and separate trust fund, at an official depository of the City, to be designated the Insurance Account. The Insurance Account shall be held until such time as other funds become available which, together with the Insurance Account, will be sufficiem to make the repairs or replacements originally required. The annual audit hereinafter required may contain a section commenting on whether or not the City has complied with the requirements of this section with respect to the maintenance of insurance, and shall state whether or not all insurance premiums upon the insurance policies to which reference is made have beer. paid. W It shall prepare, prior to the beginning of each fiscal year, an annual budget, in accordance with law, reflecting an estimate of cash receipts and disbursements 'or the ensuing fiscal year in sufficient detail to indicate the probable Gross Revenues and Pledged Revenues for such fiscal year. The City shall fix, establish, maintain, and collect, such rates, charges, and fees for the use and availability of the System at all times as are necessary (1) to produce Gross Revenues sufficient, together with any other Pledged Revenues, to pay all current operation and maintenance expenses of the System, and (2) to produce an amount of Pledged Revenues dying each fiscal year at least equal to the greater of 1,23 times the average annual principal and interest requcrements of all then outstanding Bonds and Additional Bonds or 1.23 times the succeeding fiscal year's principal and Interest requirements of all then outstanding Bonds and Additional Bonds. (j) It shall krep proper books of record and account in which full, true, proper, and carrect entries will be made of all dealings, activities, and transactions relating to the System, the Pledged Revenues, and the Funds created pursuant to this Ordinance and all books, ducurnents, and vouchers reldting thereto shall at all reason!" • times be mark a;sil,ble for insoection upon request of any Bondholder or citizen of the City. To the extent consistent with 'he provisions of this Ordinance, the City shall keep its books and records in a manner conforming to stan'a d accounting practices as usually would be followed by private corporations owning and operating a similar System, with appropriate recognition being given to essential differences between municipal and corporate accounting practices. if (k) After the closa o: each fiscal year while any of the Bonds or any Additional Bonds are outstanding, an audit will be made of the books and accounts relating to the System and the Pledged Revenues by an independent certified public accountant or an independent firm of certified public accountants. As soon as practicable after the close of each such year, and when said audit has been completed and made available to the City, a copy of such audit for the preceding year shall be mailed to the Municipal Advisory Council of Texas, to each paying agent for any bonds payable from Pledged Revenues, and to any Bondholders who shall so request in writing. The annual audit reports shall be open to the inspection of tSe Bondholders and their agents and representatives at all reasonable times. 0) It will comply with all of the terms and conditions of any and all franchises, permits, and authorizations applicable to or necessary with respect to the System, and which have been obtained from any governmental agency; and the City has or will obtain and keep in full force and effect all franchises, permits, authorizations, and other requirements applicable to or necessary with respect to the acquisition, construction, equipment, operation, and maintenance of the Systeo. (m) It will not operate, or grant any franchkt ui, to the extent it legally may, permit the acquisition, construction, or operation of, any f-.uities which would be in competition with the System, and to the extent that it legally may, the City will prohibit any such competing facilities. (n) The City covenants to and with the purchasers of the Bonds and any Additional Bonds that no use will be made of the proceeds of any of such bonds at any time throughout the term of any of such bonds which, if such use had been reasonably expected on the date of delivery of any of such bonds to and payment therefor by the purchasers, would have caused any of such bonds to be arbitrage bonds within t'ne meaning of Section 103(c) cf the Internal Revenue Code of 1954, as amended, or any regulations or rulings pertaining thereto, and by this covenant the City is oblig+_ted to comply with the requirements of the aforesaid Sertion 103(c) and all app',;rahle and ptn_inent Department of the Treasury regulations relating to arbitrage bonds. 'he City further cuvenmlt ti-at the proceeds of all such bonds will not otherwise be used directly or indirectly so as to cause all or any part of such bonds to be or become arbitrage bonds within the meaning of the aforesaid Section 103(c), or any regulations pertaining thereto. PAYING AGENT/REGISTRAR During all times while the Series 1984 Bonds are outstanding the City will provide a competent and legally qualified bank, trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Series 1984 Bonds under the Ordinance, and that the PzJng Agent/Registrar will be one entity. The City reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 60 days written notice to the Paying Agent/Registrar. In the event that the entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or ether method) should resign or otherwise cease to act as such, the City covenants that promptly it will appoint a competent and legally qualified national or state banking Institution which shall be a corr.-, ation organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers, subject to supervision or examination by federal or state Authority, and whose qualifications substantially are similar to the previous Paying Agent; Registrar to act as Paying Agent/Registrar under the Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and deliver the Registration Books (or a copy the;eol), aloe with all other pertinent books and records relating to the Series 1994 Bonds, to the new Paying Agent/Registrar designated and appointed by the City. Upon any change in the Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each registered owner of the Series 1984 Bonds, by United States Mail, postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of the Ordinance, and a certified copy of the Ordinance shall t: delivered to each Paying Agent/Registrar. AMENDMENT OF ORDINANCE (a) The holders of Bonds and Additional Bonds aggregating in principal amount 51% cf the aggregate principal amount of then outstanding Bonds and Additional Bonds shall have the right front time to time to approve any amendment to this Ordinance which may be deemed necessary or desirable ~y the City, provided, however, that nothing herein contained shall permit or be construed to permit the amendment cf the terms and conditiors in this Ordinance or in the Bonds or Additional Bonds so as to: (1) Make any change in the maturity of the outstanding Bond., or Mfditio.al Bonds; (2) Reduce the rate of interest borne by any of the outstanding: B>nas or Additional Bonds; (3) Reduce the amount of the principal payable on the )utstanding Bonds or Additional Bonds; w r~a- (a) Modify the terms of payment of principal of or interest on the outstanding Bonds or Additional Bnodc, or impose any conditions with respect to such payment; (S) Affect the rights of the holders of less than all of the Beds and Additional Bonds then outstanding; (6) Change the minimum percentage of the principal amount of Bonds and Additional Bonds necessary for consent to such amendment. (b) If at any time the City shall desire to amend the Ordinance under this section, the City shall cause notice of the proposed amendment to be published in a financial publication of general circulation in the City of New York, New York, once during each calendar week for at least two successive calendar weeks. 5uch notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on Ide at the principal office of the Paying Agents for inspection by all holders of bonds and Additional Bonds. Such publication is not equired, howe.e-, if notice in writing is given to each holder of Bonds and Additional Bonds. (c) Whenever at any time not less than thirty (30) days, and within one year, from the date of the first publication of said notice or other service of written notice the City shall receiv - an instrument or instruments executed by the holders of at least 31% in aggregate principal amount of all Bonds and Additional Bonds then outstanding, which instrument or instruments shall refer to the proposed amendment described in said notice and which specifically consent to and approve such amendment in substantially the form of the copy thereof on file with the Paying Agents, the City Council may pass the amendatory ordinance in substantially the same form. (d) Upon the passage of any amendatory ordinance pursuant to the provisions of this section, this Ordinance shall be deemed to be amended in accordance with such amendatory rxdinance, and the respective rights, duties, and obligations under this Ordinance of the City, and all the holders of then outstanding Bonds and Additional Bonds and all future Bonds and Additional Bonds shall thereafter to determined, exercised and enforced hereunder, subject in all respects to such amendments. (e) Any consent given by the holder of a Bend or Additional Bond pursuant to the provisions of this section shall be irrevocable for a perod of six months from the date of the first publication of the notice provided for in this section, and shall be conclusive and tinding upon all future holders of the same Bond or Additional Bond during such period. Such consent may be revoked at any time after six months from the date of the first publication of such notice by the folder who gave such consent, or by a successor in title, by filing notice thereof vith the Paying Agents and the City, but such revocation shall not be effective if the holders of 31% in aggregate principal amount of .he then outstanding Bonds and Additional Bonds as in this section defined have, pr;)r to the attempted revocation, consented to, and approved the amendment. W For the purpose of this sect on, the fact of the holding of Bonds or Additional Bonds by any bondholder and the amount and numbers of such Bonds or Additional Bonds and the date of their holding same, may be proved by the affidavit of the person claiming to be such holder, or by a certificate executed by any trust company, bank, banker, or any other depository wherever situated showing that at the date therein mentioned such person had on deposit with such trust compar y, bank, banker, or other depository, the Bonds and Additional Bonds described in such certificate. T,e City may conclusively assume that such owne-ship continues until written notice to the contrary is served upon the City. APPROVAL AND REGISTRATION OF BONDS Th: Mayor of the City is hereby authorized to have control of the Bonds and all necessary records and proceedings pertaining to the Bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Bonds, said Comptroller of Public Accounts (or a deputy deslgnateJ in writing to act for said Comptroller) shall man+nafly sign the Comptroller's Registration Certificate printed and endorsed on the bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each of the Bonds. ltt~Y VALUE OF THE UTILITY SYSTEM Fiscal Year Ended 9-30-83 Land and Land Rights $ 1,697,350 Water Rights 250,064 Electric Plant and Equipment 33,497,163 Water Plant and Equipment 31, 213, 399 Sewer Plant and Equipment 12 133 079 98,773,033 Less: Allowance for Depreciation 38,070,043 Net System Value 60 2991412 CITY'S EQUITY IN SYSTEM Fiscal Year Ended 9-30-83 Resources- Utility Plant (Net) $60,299,012 Cortstrrxtion in Progress 982 499 Total Utility Plant 61,281,911 Cash, Investments and Receivables 11,267,927 Prepaid Expenses and Deposits 18,103 Inventory 1,406,507 Total Resources 73 974 48E Obligations: Total avenue Bonds Outstanding• $24,666,721 Accrued Interest Payable 1,073,531 Total Bonded Debt 23,740,252 Less: Restricted Fund Assets 7,018,911 $13,721,341 Other Liabilities 4,397,982 Net fund rran'-•c Payable 1,901,493 Meter Deposits 257,333 Total Obligations 23 478 371 City'sEquit) in System $481496,1!7 Percentage of Equity in System 65.36% Net of Unamortized Discount and Expenses (see "Utility System"). UTILITY SYSTEM In March of 1913, the City issued $25,780,000 Utility System Revenue Refunding Bands to refund and legally defease :i,z existing bonded debt of the Electric System and the Water and Sewer System of the City and to combine the separate systems in,o a single utility system. The Public Utilities BOLrd By City Charter, there has been created a Public Utilities Board (the "Board") composer! of five members, appointed by the City Council with the City Manager and the Director of Public Utilities sawing as ex-o:ficio members of the Board without voting privileges. The Board serves the Department of Utilities as a consulting, advisory and supervisory body. The duties of the Board are summarized as foliaws: 1. Review of the annual budget and the transmission thereof to the City Council. It fir nrx~ 2. Review of recommended: is. expansion of, additions to, betterment of, or extensions to the Utility System; b, incurring of debt; C. issuance of bonds, and d. fixing of rates and charges. 3. Submission annually to Planning and Zoning Commission a list of recommended capital improvements which, in the opinion of the Board, should be constructed during the forthcoming five (S) year period. All actions of the Board are subject to final approval of the City Council. Management of the Utility System The Utility System is managed by a Director of Utilities who is responsible to the City Manager. Included within the Utility System is the Utility Administration which consists of variois administrative staff and utility dispatchers, and the Budget and Rate Administration, whose responsibilities include development and monitoring of utility budgets and annual rate studies. The Utility System is organized into two major services, the Electric Department and the Water/Wastewater Department, and consists of approximately 180 employees. Each of the two major departments is under the direction of an Assistant Director of Utilities. The Electric Department is composed of three divisions: 1. Electric Production. 2. Electric Distribution. 3. Metering/Substation. Each division is headed by a Superintendent. There is also an Electrical Engineering group. The Water/Wastewater Department is composed of four divisions: 1. Water Production. 2. Water/Wastewater Field Services. Wastewater Treatment. 4. Environmental Services. Each division is headed by a Superintendent or Environmental Services Director. There is also a Civil Engineering Group The Utility Syste+n utilizes the services of the City Finance Department for meter reading, data processing and baling, customer services, accounting, p,rchasing and wareN using. The Utility System utilizes the services of the Public Works Department for eNcle maintenance, design of minor water and sewer lines, easement and/or right-of-way acquisition and insixction of developer-installed water and sewer lines. THE ELECTRIC SYSTEM General The City of Denton has owned and operated its Electric System (the "Electric System") for approximately 77 years without interruption. During this time, the E.ectric System has experienced a steady growth in customers and output, requiring periodic additions to plant and distribution facilities. Service Area the Electric 5y3tem provides electric service to 20,027 customers located In the City. The City has covenanted in the Ordinance that it will not operate, and will not grant any franchise or, to the extent it legally may, permit the acquisition, construction, or operation of, an/ electric energy distribution facilities which would be in competition with the Electric System, and, to the extent that it legally may, the City will prohibit any such competing facilities. /S~ Custtmers In 1983, the Electric System sold 506,268,000 kWh of electric energy excluding off system sales. The following tabulation shows the average number of customers frr~rn 1979 through 1983 and the average charge per kilowatt hour. _ Year End-•d September 30 _1979_ 1980 1981 1982 1983 Average Number of Customers: Residential 13,870 13,705 16,223 17,132 17,354 Corn merci a] /Industrial 2,608 2,420 2,186 2,213 2,283 Other 312 137 145 220 346 Total Customers 16,790 18,262 18,55( 19,563 20,027 Average Charge Per kWla Residential 4.560 4.540 4.8% 6.391 6.930 All Other 3.970 4.1% 5.390 6.280 6.440 The following tabulation provides information for calerdar year 1983 for the Electric System's ten largest customers in terms of both peak demand and annual revenues. These Cu3tomtrs taken together represent 28.4% of the 1983 electric revenues from sales. Denton Electric System Ten Largest Retail Customers 1983 1983 Annual Peak kW Customer kWh Revenues Demand North Texas State University 60,538,900 7,548,913 13,440 Texas Woman's University 21,251,400 1,299,700 4,844 Moore Business Forms 11,230,490 486,926 1,932 Golden Tria„gleMall 9,733,200 639,920 2,6:1 Acme BrickCompsny 9,148,890 638,984 1,890 Victor Equipment Company 7,946,853 336,228 2,399 Denton State Schcol 6,020,956 408,267 2,244 Morrison Milling Company 4,788,640 298,799 987 Signal Products Division 2,072,140 94,764 616 Total 132,553,769 7 942 501 30,973 Energy Sales The Electric System's sales of energy, in kWh, to principal customer lasses for 1979 through 1983 were as follows: kWh Sold ,00(Ys Omitted) Year Ended Sept.'mSer 30 1979 1980 1981 1982 1983 Residential 132,534 167,226 173,460 17.5,3!3 159,948 Corn mercW/Indus trial 276,199 301,982 308,348 299,040 ;+f,58I Other 23,379 24,041 17,268 25,431 20,738 Total Sales 432,312 493,309 499,096 499,784 506,268 fe+ Existing Power Supply and Interchange Agreements Present production fac4ities of the Electric System consist of five generating units described as follows N denier of Name Plate Year Placed Type Units Capacity kW in Service Steam Turbine S Unit 1 12,650 1955 Unit ' 12,650 1955 Unit 3 22,000 1962 Unit 4 61, 120 1966 Unit S 65,500 1973 3 173,920 All five units utilize natural gas as their primary boiler fuel. The City has recently sold its five diesel generator peaking units. The City is a member of the Texas Municipal Power Pool Q'TMPP9, which also includes the cities of Bryan, Garland, Greenville and the Brazos Electric Power Cooperative, Inc. of Waco, Texas, each of which has its own production, transmission and distribution facilities. The City is also a member of the Electric Reliability Counsel of Texas ("ERCOT"), the regional Reliability Coordinating Organization for Flertric Pa14er Systems in Texas. The City has access to the ERCOT intrastate network of six major investor-owned and several public systems through the TMPP members transmission system. The TMPP contract provides that each member city shall provide, through its own facilities or through (inn power contracts, a capability at least l`•% greater than its projected system peak load for each future year. The cost of TMPP facilities necessary to provide adequate ties between the members are shared Sy aJ participants. By "pooling" the "!serve capacity of their respective systems, the cities can operate safely with considerably less installed reserve power supply, thereby effecting substantial investment and operating econorries. Other advantages include an adequate and dependable source of power during periods of individuid emergency, maintenance of power dying periods of scheduled unit maintenance and interchange of e-roomy energy between members. The TMPP members are engaged in an economic dispatch progrun , all generating units of the five members are operated such that the most efficient units are lo-a, Savings are distributed on a formula of splitting the savings between the actual cost of the suN,. and costs that would have been experienced by the less efficient generators. Shown below are the interchanges the City has access to., TMPP, TMPA and fPhL Interconnections (1} TMPP 1 39KV North Interchange 60,0)0 kva Brazos 69KV Interchange 10,000 kva TMPP./TP&L Spencer Plant 138KV Interchange 100,000 kva TMPA 138KV North Interchange 100,0(,0 kva 270,(2 kva(2) (1) Texas Municipal Power Pool ("TMPP"). Texas klunicipal Power Agency ("TMPA"). Texas Power & Light Company ("TP&L"). (2) TMPA has capacity to furnish an additional 400 kva of power to a 138 kva transmission loop arcund the City of Denton from its 345 kv transmission line which is tied to the Texas Utility transmission grid. TMPA furnishes power to Denton's 69 kv trammisslon system through two 100,000 kva transformers. In the future Denton plans to also take delivery of power from TMPA's 138 ky lines which will provide additional ce.pabil.ty of approximately 200 kva. Fuel Supply In September, 1583, the t.._, entered into a contract with Lone Star Gas Company (the "Seller"), whereby the Seller agrees to supply natural gas to the City through December 31, 1983. The City may take delivery of the gas at its generating station or at any of the generating stations of the Cities of Garland, Bryan or Greenville. Take-or-pay provisions of the contract call for payment by the City of 40% of estimated fuel requirements as projected 15 months in adsance of each year. The Cities may also take delivery of up to 10% of a prior year's gas requirement during the newt year to meet minimum purchase quantities. Penalty for not purchasing the minimum gas quantities is payment of such deficiencies at 20% of the weighted average of the monthly cost of gas. The price of the gas is the sum o! a base price for delivery plus the average wellhead cost of gas to the Seller. The base price ranges from 37C per MCF in 1983 with escalation based on an inflation inoex but not to exceed k per MCF per year. Wellhead gas prices presently range from approximately $3.60 per hfCF to $3.90 per MCF. The City has the option of purchasing up to 30% of its gas requirements from other gas "producers" with such gas credited to its minimum contract volumes. Seller has agreed to transport gas for a fee of 3% per MCF escalatable at the same percentage rate as the base price. The City has presently entered into an agreemen t with Enserch for delivery of such "producer" gas at a price of $3.13 per MCF. Texas Municipal Power ARency In July 1975, the Cities of Bryan, Garland, Denton and Greenville (the "Cities"), by concurrent ordinances, created the Teya" Municipal Power Agency (the "Agency"), a joint poser 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 representatives from each city and is empowered to plan, finance, acquire, construct, own, operate and maintain facilities to be used in the business of generation, tt ansmission and sale to and exchange of electric energy with the Cities and any private utilities which are joint owners with the Agency cf an electric generating facility located within the State of Texas. Earh of the Cities has entered into an identical Power Sales Contract (the "Contract") with 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 requi,es the Agency to prepare annual b-.dgets, proyecting its Annual 5ystem 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 amount of money on deposit in the Agency's Band 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 proceeds, each of the Cities is unconditionally obligated to make a payment, the aggregate of which shall be the amount necessary to mainta'.n 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 Percentage Shares for each of the Cities for 1934 are as follows; City of Bryan 20.28% City of Denton 19.85 City of Garland 49.57 City of Greenville 10.30 Total 100.00% Each of the Cities unconditionally covenants in the Contract that its Percentage Share of the payments to the Agency's Bond Fund, Reserve Fund and Contingency Fund will be made, it required, and ncre of the Cities shall have the right ^f set-off, recoupment 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 superior lien on the gross revenue 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 inade by the Agency without the approval of the Cities. /F a A,~rrcved Projects... The first generating project of the Pgency approved by the Cities is the Giblons Creek Steam Electric Station, completed in Grimes County, Texas, and includes a net 390 mee iwatt i"MW'") lignite-fueled steam electric pant, related reservoir, railroad spur and transmission facilities, an adjacent surface mine %.td associated properties and equipment. Gibbons Creek was placed into commercial operation in OetoFer, 1983. The secord generating project of the Agency approved by tke Cities is an interest In the nuclee.- fueled Comanche Peak Steam Electric Station and certain associated transmission facilities. on 3arn.ary 2, 1979, the Agency entered into a joint ownership agreement with Dallas Power Et Light Company, Texas Electric Service Company, Texas Power dt Light Company and Texas Utilities Generating Company, inder which the Agency acquired a 6.2% ownership interest in the Comanche Peak station presently under construction. The station will consist of two I,150 MW nuclear-fueled pressurized water reactor steam generating sits +nd related reservoir, makeup water facilities, railroad spur, nuclear foci and other properties and equipment. Unit One is presently scheduled to be in commerdrl operation in late 1980 and Unit Two in mid 1986. The Cities have also approved, as "System Development and Reliability Expenditures," certain transmission facilities. Future Power Supply Resources Preliminai y discussions have been underway with Brazos Electric Power Cooperative, Inc. of Waco regarding possible future participation in a future lignite-fired power generation plant, to be either an addition to the existing San Miguel lignite plant or a new plant in East Texas. The City is investigating the installation of three 1,000 KW hydroelectric turbines on two nearby existing reservoirs and has filed application with the Federal Energy Regulatory Commission for construction licenses. The exact schedule for installation of these units is uncertain at this time pending additional feasibility studies. 19 HISTORICAL STATISTICAL DATA Year Ended September 30 Sala of kWh: 1979 _ 1980 1981 1982 19 3 - a: enti 132,333,863 167,285,852 173,460,113 173,313,102 159,VA,444 Comm ercial/Industrial 276 199 288 301,982,186 308,347,623 299,039,686 323.581.187 468:131111 ) 459,288,038 431,807,738 474,352,785 483,519,631 Public Street and Highway 4,666,680 4,702,073 4,750,623 3,180,806 4,903,103 Other 18,912,638 19,333,793 12,337,337 20,2501247 13,833,03 5ub-total 432,312,491 493,309,911 499,093,748 499,783,841 506,267,773 Sala for Resale 1.416.00 0 .,~7 450 000 849 000 4 689 000 60.221.000 Total Sala 433,729,491 x00,778,411 499, 44, 4 504,472, 4 366,483,773 Loss and Unaccounted 28,169.33 7 27 559 097 27,716,421 3[,901,096 37,419,227 Total kWh to System 461,896,87 528,313,00 527,661,169 536,373,937 603,938,000 % Lass and Unaccounted 6.10% 3.22% 5.26% 6.00% 5.20% Avera e -Customers: Res,es, eQ ntial 13,.170 13,703 16,225 17,132 17,398 Commercial/Industr,al 2,:33 _ 2,557 2,331 2,433 2,629 Total 16,603 18,252 18,336 19,565 20,027 Peak Day Power Requirement 109,009 131,000 03,000 133,000 140,000 Present Plant Capacity 173,920 173,920 173,920 173,920 173,920 Analysis of Electric Billing: All Customers: Average Slonth kWh/Customer 2,170 2,231 2,241 2,129 2,106 Bill per Customer $ 90.06 $ 97.41 $ 115.08 $ 134.47 $ 140.89 Revenue per kWh $ 0.0413 $ 0.0432 $ 0.0513 $ 0.0632 $ 0.0669 Residential Customers: Average Month kW Customer 796 888 891 853 766 Bill per Customer $ 36.30 $ 40.32 $ 42.77 $ 34.32 $ 33.21 Revenue per kWh $ 0.0456 $ 0.0454 $ 0.0480 $ 0.0639 $ 0.0695 Commercial/1 ndust rial: Average Month kW Customer 8,998 10,472 11,472 11,261 10,320 Bill per Customer $ 339.92 $ 449.20 $ 604.37 $ 697.61 $ 664.77 Revenue ptr kWh 0.0400 $ 0.0428 $ 0.0527 $ 0.0619 $ 0.0644 Gross Income: Resident, al $ 6,046,432 $ 7,599,678 $ 8,327,068 $11,208,331 $11,108,355 Corn m ercial/Industrial 11,060,823 12,629,060 16,253,007 18,523,737 20,972,780 Other 8301951 902,93 ►273,163 1 831 721 1923 829 1717 93E 206206 2f I3I 675 25 b 7 840 3l 511 789 "939, 434 • Does not include off-system sales, income derived from contribution-in-aid or sales of surplus material, etc. Electric System - Capital Improvement Plan The Utility Department is required by charter to annually prepare a Capital Impro ement Plan (CIP) and submit it to the Planning and Zoning Commission for incJusion in the City's oserali CapW Improvement Play,. The CIP is required to be a five year projection of capital requirements with projects listed :n order of priority. The Utility Department Five Year Capital Improvement Plan is as f ollows: ELECTRIC From Frori Bond Current Year Total Proceeds Revenue Other 1984 ,351,000 X1,205,000 1,01 ,00 ,12~ +,000 1985 4,036,000 2,505,000 1,400,000 1. ,000 1986 2,901,000 1,316,000 1,393,000 170,000 1987 2,962,000 1,333,000 1,432,000 193,000 1993 3,042,000 1,283,000 1,583,000 176,000 The major electric system capital improvements are the construction of two new substations in 1983186 and 1988, and the enlarge-nent of two existing substations in 1986 and 1997, and the addition to the City's Service Center. The remainder of the electric system CIP is for annual additions to the electrical distribution system sufficient to serve new customers and capital improvements to existing facilities. Projected Loads and Resources The projected loads and resourc-s of the Electric System for the period 1984 through 1988 are presented in the following chart as determined by the City- (In Megawatts) Peak Net R--serve Year Loads Resources Mar pjn 1984 99 257 1 gs 1983 146 271(2) 86 1996 150 285(3) 90 1987 136 283 83 1988 163 283 73 (1) TMPA Gibbons Creek, Denton's 20% allocation (78M W) (see "Texas Municipal Power Agency"). (2) Comanche Peak Unit 1, Denton 's 20% allocation (14MW). (2) Comanche Peak Unit 2, Denton's 2096 allocation (14,M W) and the Lewisville Project. Sales of Excess Capacity The City, together with four other members of the TMPP, has entered into a contract with West Texas Utilities ("WTU") which provides for the sale to WTU of excess gas-tired generating capacity. The contract calls for sales of 150,000 kW in 1995 and 260,000 kW in 1986, at a price of $3,00 per k't' per month. The contract req:ires WTU to pay a monthly capacity charge, and if energy is taken, an additional charge for fuel cost, operating and maintenance charges, start-up costs and line losses. Revenues from the contract are expected to be $3.23 million in 1983 and $7 million in 1986, and the revenue will be divided among the sell:ng group in the proportion that each member's excess generating capacity bears to total generating excess capacity. The City expects that its share will approximate 15% of such revenues. A supplemental agreement among the selling group calls for the Brazos Electric Co-op to serve as agent for the group to administer, dispatch and account for revenues and for allocation of expenses of sales. The contract is contingent upon the ability of WTU to obtain transmission wheeling agreements to allow capacity to reach its grid. Other such wheeling agreements are presently in existence and the City expects WTU will be successful in the timely completion of such agreements. ~r Federal Regulation Under current Federal Statutes and regulations, the Elertr;c S)stem is not subject to Federal regulation in the establishment of rates, the issuance of securities or Oe operation, mainte-.ance or expansion of the electric System. The City submits various reaorts to U.e Federal Energy Regulatory Commission Q FERC") and ut;lizes the FERC System of Accounts it maintaining ,:s books of accounts and records. THE WATER AND WASTEWP.TER SYSTEM General The Water System provides retail water service to all customers located within the city limits, as well as wholesale water service to the City of Corinth. The water distribution system consists of 323 miles of water mains, 3 million gallons of ground storage, and 4.36 million gallons of elevated storage. The City believes it is in compliance with all State and Federal water quality requirements. Water Su The present muni:ipal supplies are obtained primarily from sur,..ce sources, but undergroind sources are available for emergency and back-up purposes. The City has previously acquired comerva'ion storage rights in nearby Lewisville Reservoir whici; was constructed by the U.5. Corps of Engineers. ''his Reservoir contains a total of 436,000 acre feet of conservation ,torage. The City holds the rights to 21,000 acre feet of storage, with the balance being held by t;4 City of Dallas ("Dallas"). The S ate of Texas Water Rights Commission has awe,rded the City 4.6 millior gallons per day in water rights f om Lewisville Reservoir with the right to "perfect" an additional 3.3 million gallons per day, The City presently uses approximately 9 million gallons per day, as an annual average, and purchases from Dallas all amounts over 4.6 million gallons per day. The water contract with Dallas is similar to the contracts for retail and/or wholesale water t'iat Dallas supplies to eighteen (I8) other North Texas municipalities. The City is presently purchasing water from Dallas at a rate of 37.3% per 1,000 gallons. Water quality meets all Texas Department of Health and other State standards. Fnture Water Supply In 1980, the City and Dallas contracted with the Corps of Engineers for the construction and development of Ray Rot. As Reservoir in Denton County, located immediately above the present Lewisville Reservoir on the Elm Fork of the Trinity River ten miles nortieast of the City. In the contracts with the Corps of Engineers, the City will pay for 26% of the construction cost, and Dallas will pay for 74%. Water obtained from the reservoir will be pro-rated on the basis of each city's proportional share of total construction costs. The estimated completion date is approximately 1988 with water being available from the Reservoir in approximately 1990. The estimated safe yield of the Ray Roberts Reservoir had been calculated at 73 million gallons per day, of which the City would be entitled to receive up to 20.7 million gallons per day. This amount, plus a safe yield of 4.6 million gallons per day available from the present water rights from the Lewisville Reservoir, will be sufficient to meet the City's estimated water needs through the year 2003. The City is presently conducting a long-range water supply study to determine water requirements and alternatives after the year 2000. Water Treatment Plant The City Watr: Treatment Plant is designed to treat an average of 16 million gallons per day 11b1GD") with a hydraulic design overload capability of 24 million gallons per day. The Texas State Health Department recognizes the maximum capability of the plant to be 16 million gallons per day. The historical peak day was 18.3 million gallons, The City has budgeted funds to make improsements in the water filter media of the plant which will provide treatment capability of 24 MGD based on the Texas State Health Department regulations. Water Usage - (Gallons) Average Maximum Average Maximum Year Day Day Year Day Day 19'73 6,636,907 12,177,000 1979 7,920,820 14,360,000 1974 6,822,000 12,620,070 1980 9,477,386 18,867,200 1973 7,216,282 13,330,000 1931 7,117,332 13,403,000 1976 7,264,000 14,080,000 1982 6,937,193 14,933,000 1977 7,923,000 14,119,000 1983 7,333,000 17,371,000 1973 8,394,600 16,466,000 Wastewater Treatment The City owns and operates an activated sludge type wastewater treatment facility. The 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 MCD addition to the plant has been completed and was put into operation in .May, 1982. The City's 12 MGD wastewater treatment plant is designed to serve the City up to a population of 90,000. The wastewater system has been efficiently operated and maintained. Water and Wastewater - Capital Improvement Plan The Utility Department is required by charter to annually prepare a Capital Improvement Plan (CIP) and submit it to the Planning and Zoning Commission for inclusion in the City s overall Capital Improvement Plan. The CIP is required to be a five year projection of capital requirements with projects listed in order of priority. The Utility Department Five Year Capital Improvement Plan for the Water System is as follows: From From Bond Current Year Total Proceeds Revenue Other 1984 2,128,000 1,667,000 223,000 167,000 1983 5,348,000 4,780,000 407,000 237,000 1986 4,390,000 3,822,000 419,000 349,000 1987 3,736,000 3,121,000 310,000 103,000 1988 4,399,000 3,983,000 416,000 398,000 The major water system capital improvements are for major water line additions, a raw water pump station, a finished water pump and for annual additions to the system to serve new customers and capital improvements to existing facilities. UTILITY RATES General It is the City's policy to review electric, water and wastewater rates on an annual basis to assure adequacy and equity. Independent consultants and City Staff generally perform this review on an alternating year basis. Rate recommendations are submitted by the staff to the Utility Board for review and approval, which then makes recommendation to the City Council for final approval. To date, the City Council has approved all rate recommendations of the Utility Board. Electric Rates Electric rates were last changed effective October 30, 1983, at which time the rate structure was altered to more accurately reflect cost of service among customer classes, but total revenues were not affected. Current rate structure is shown below. (Effective October 30, 1983) Residential Facility Charge $ 6.30 Singly Phase 11.00 Three Phase Months of May through October Up to 3,000 kWh $0.063 per kWh plus an energy cost adjustment Over 3,000 kWh $0.070 per kWh plus an energy cost adjustment Months of November through April Up to 1,000 kWh $0.060 per kWh plus an energy cost adjustment Over 1,000 kWh $0.033 per kWh plus an energy cost adjustment Note: When usages are less than 700 kWh during June through September, deduct $2.00 from the monthly facility charge each month until monthly usage exceeds 700 kWh. ~3 Energy Cost Adjustment When fuel or purchased power costs are more than three cents (X) per kWh, an Energy Cost Adjustment (ECA) is charged, The ECA is calculated by using the total cost per kWh of fuel and purchased power at the City's Power Plant divided by total sales subtracting three cents U{) which is already included in the base rate. Commercial and Industrial 11) Net Monthly Rate: (Demand Charge) Primary Service (LP) $4.90 per monrh per kW' of billing demand Secondary Service (GS) $5.10 per month per kW of billing demand General Service Primary (GP) $4.90 per rnonth per kW of billing demand (Energy Charge) Primary Service (LP) All kWh, at $0.04811<1kh Secondary Service (GS) All kWh at $0.051/k'i'h General Service Primary (GP) All kWh at $0.649/kWh (2) Customer facility Charge: Primary Service (LP&GP) $49.50/month Secondary Service (GS) Three Phase $15.00lmonth Single Phase $10.00/month Energy cost adjustments are the same as those for residential customers. Governmental Local government - (City, County, School District) (Demand Charge) (1) Net Monthly Rate: $3.50/month/KW of billing demand (Energy Charge) Billing Months June through September All kWh at $0.051/kWh (2) Customer Facility Charge: Single Phase $10.00/month Three Phase $13.00/month Energy cost adjustments are the same as those for residentiai customers. Water Rates Water rates will increase by 10.3% effective March 1, 1984, reflecting, among other things, increased raw water costs, increased capital improvements and inflation. (Effective March 1, 1984) t Resi('ential Users Billing Months Ma) r- October _ Biding Months November - April Facility Charge $0.23 Facility Charge $4.25 0 - 20,000 gallons 1.30/M gallons Vol nne Charge 1.30/M gallons Above 20,000 gallons 1.60/M gallons Minimum Charge - $4.23 Ay Commercial/industrial Users Customer Facility Charge $7.23 plus Volume Charge 1.231M gallons Minimum Charge Wastewater Rates Wastewater rates will increase by 34% effective March I, 1984, reflecting, among other things, increased debt service on the CKIs share of a major expansion on the treatment and collection system, increased capital improvements funt:-d by current revenues, and inflation. !Z.zective March 1, 1984) Residential Commercial/Industrial Based on 981t of average usage of Based on 80% of water consumption) December - February but not to exceed 23,000 gallons) Facility Charge $3.00 plus Facility Charge $6.30 plus Volume Charge 1.50/M gallons Volume Char ge 1.601M gallons Note: All service outside City Limits at 150% of above rates. Rate Regulation Within its bolindaries, the City has exclusive jurisdiction over the elect-ic, water and sewer system rates. Pro Forma Combined Projected Operations Shown below are projected financial operations for the Utility Syste Trese projections are based upon many assumptions, certain of which are also described below. Population Forecasts... Recent population forecasts completed by t'e North Texas Council o! Governments projects Denton's population to grow at an annual 2.4% rate and to be as follows: 1984 1983 1986 1987 1983 33,600 34.900 36,200 57,600 5E,9c0 Per Capita Electric and Waur Consumption The following shows the City's projections of electrical energy and water use on a per capita bbasis 1984 1983 1986 I.A7 1998 Energy Consumption per Capita (kWh/person/year) 10,000 10,150 10,300 10,450 10,600 Water Consumption per Capita (gallons/day/person) :43 143 144 143 146 Electric System Load Forecast 1984 1983 1986 1987 1993 Electric E Pergy (kWh) 336 337 579 601 627 Peak Load (M1V) 139 146 130 136 163 The City has lowered its estimate of annn;al electrical load growth twice in the last two years. Gilbert Associates, Consulting Engineers, in their 1980 load forecast, estimated growth at an average annual rate of 6.336. In December, 1981, the City reduced the estimate to 5%. s In May, 1932, the City lowered its load growth forecast to its current 4% estimate. In its review, it considered, among other things, Lower toad projections of several neighboring utilities, continued high interest rates which restrict the housing, commercial and industrial consmvion industries, cost elasticit; of ele.tric energy, and the -ity's own consumer energy conservation and energy management planning activities. t'+ater Consumption Forecast The City ha, lowered its estimate of water consumption growth to 3.5% per year from a previous estimate of 3.3%, which was listed in a Wi ter Supply Study oxnpleted by Freese and Nichols, Consulting Engineers, in 1982. The lowered growth fo•ecasts are based on the City's estimates of effects of price elasticity and to the large percentage of new dwelling units being apartments which use less water per capita than do single family residences. 1984 1995 1986 1937 1938 Annual Consumption Billions of Gallons 2.79 2.37 2.96 3.05 3.14 Average MOD 7.6 7.9 3.1 8.4 8.6 Ex m Assum Lions Electric System projected expenses are baled on 1984 budgeted expenses, assuming that al T. energy is priced at the "avoided' cost of producing the same energy from natural gas. For 1934 throurn 1983, the Electric System projected Fuel and Purchased Power experdes are based on the TMPA February, 1982 Official Statement, adjusted for reduced electric energy cons mption and load growth, as previously discussed. The Electric System's Operations, Maintenance, Administrative and General Expenses for 1934 through 1988 are based on projections recently developed for the capital improvement plan and reflect an anticipated 9% increase in expenses for salaries and 6% increase in all other expense categories. Water/Wastewater Operations, Maintenance, Administrative and General expenses are anticipated to increase at an annuel rate of 9% for salaries and 6% for all other expense categories, increased annual costs of electric power were obtained from the Electric System's protected annual ircrea:es. Purchased Water was estimated to increase at an annual rate of 10%. K k~ ELECTRIC, WATER AND WASTEWATER SYSTEMS COMBINED REVENUE AND EXPENSE PROJECTIONS Dollars in Thousands Fiscal Years Ending September 30, 1984 1983 8986 1987 1988 Revenues: Electric $36,428 $43,374 $49,477 $53,789 $60,711 Water and Wastewater 7,011 8,793 9,761 10,240 11,160 Ocher 1.00 11000 1 000 1.0 1000 Tota] Revenues 543,649 6 149 60 3 64 929 72 871 Expenses: Electric Flxland Purchased Paw $26,432 $34,435 $38,256 $40,628 $46,498 Other 51609 6 018 6,458 6 931 7 439 Sub -Total (Electric) 31,641 40,43 43,833 49,92 33 W'attr/Waslewater 5 443 5,871 6 377 6 871 7140.6 Total Expenses 36,972 46,324 51,091 54,430 61,343 Net Revenue Available fer Debt Service. $ 8,676 $ 9,875 $ 9,147 $10,499 $11,528 Debt Service $ 3,740 $ 4,691 $ 5,083 $ 5,508 $ 6,140 Other Expenditures: Capital Improvements 1,627 2,175 2,291 2,143 2,434 General Fund Transfers 2,367 2,474 2,630 2,816 2,944 Der.t Service Coverage 2.32X 2.09X 180X 1191X 1.88X Energy Sales (kWh) (l) 336 352 579 603 627 Electrica; Revenue per kWh (millsikWh) 68 79 83 89 97 (1) The proj:ctiers above do not reflect any sales of TMPA energy or capacity to parties other than the TMPA membrs. The variable costs for the Gibbons Creek and Comanche Peak plants are expected to be significantly less than the cost of even the most efficient natural gas-fired generating facilities. The chief reason that the TMPA members have developed Oese resources is to displace their natural gas fueled capacity. Therefore, both projects will be used as base load units and the TMPA e,embers will use their full capacity from start-up. Although there will be no excess capacity for We, on an hour-by-hour basis there is expected to be surplus energy available from the units. Siru;e the variable energy cost of Gibbons Creek and Comanche Peak are expected to be 23 mills per kWh and I I mills per kWh, respectively, in 1984 as opposed to 42 mills for natural gas, the plants are expected to be operated at the maximum plant capacity factor possible. Because of the regional utility dependence on natural gas, and the expected cost advantage of TMPA projects as compared to natural gas, the City be!ieves it will be able to sell almost all such surplus energy. A forecast of such energy sales was prepared based on several assumptions including: (i) sales projected by a TMPA computer analysis, (u) the price of surplus energy on a split-savings basis, and (iii) the natural gas and variable TMPA cost assumptions included in the table above. On a net basis, profits to the City from such energy sales would reduce the electric revenue requirements on average by 6 mills per kWh for the years 1983 to 1988, respectively. The projections above 65 not reflect any sales by the City of excess generating capacity. However,the City has entered into an agreement to sell excess gas-fired generating capacity to WTU. (See '-Sales of Excess Capacity"). Such sales of excess gas-fired generating capacity would reduce the electric revenue requirements on average by approximately one mall per kWh in 1985 and 1986, respectively. ~7 VALUATION AND DEBT INFORMATION 1983 Market Valuation $1,150,231,819 Less Exemptions: Homestead $29,161,552 Over 65 27,368,710 Disab;ed or Dei.aased Veterans 467,821 Agricultural Productivity 19,520,610 76,518,693 1983 Ta able Assessed Valuation $1,073,713,126 City Funded Debt Payable From Ad Valorem Taxes: Generd Obligation Bonds (as of 1-1.84) $ 16,692,000 Interest and Sinking Fund (as of 1-1-S4) $ 988,512 Ratio Funde. Debt to Taxable Assessed Valuation 1.55% 1980 U. S. Census Population - 48,063 1983 Estimated Population - 51,700+ Per Capita Taxable Assessed Valuation - $20,763.15 Per Capita Funded Debt - $322.86 Area- 33.2 Sc re Miles • 5ource: North Central Texas Council of Governments. !tote 1. Pursuant to authority permitted by Section 1-b, Article VIII of the State Constitution, which became elf ective January I, 1973, the City has granted an exemption of up to $16,000 of Assessed Valuation to the residence homactead of property owners over 65 years of age. The City also allows a maxim pen of $5,000 for all declared homesteads in the City. The Taxable Assessed Valuation, as shown above. does not include $27,368,7010 and $29,131,552 Assessed Valuation of properties exempted under these authorities. Note is The Legislature, pursuant to a constitutional amendment and Article 7130h, VATCS, 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 perscrW property with the amount of Assessed Value exempted ranging from $1,300 to $3,000, dependent upon the amount of disability or whether the exemption is applicable to a survi ring spouse or children. The Taxable Assessed Valuation, as shown above, does not include $467,821 Assessed Valuation of properties exemptec' under this authority. Note 3: Pursuant to the "Property Tax "ode (Chapter 23P, adopted in 1979, the City has exempted $19,320,610 of agricultural land value. The Taxable Assessed Valuation as shown above does net include this amount. Note 4: The above statement of indebtedness does not include $26,280,000 outstanding Utility System Revenue Bonds, as these bonds are payable solely from the net revenues of the System, as defined in the Bond Ordinance authorizing th,- tonds. AD VALOREM TAX LEGISLATION The City's General Obligation Bonds are payable from ad valorem taxes levied upon all taxable property within the City. The "Property Tax Cade" (V.T.C.A., Tax Code), adopted in 1979, is a codification of Texas law as to ad valorem taxation and reference is hereby made thereto for identification of property subject to taxation; property exempt from taxation and other exemptions granted and allowed, if claimed; the appraisal of property for purpkmes of taxation and the procedures to be followed and limitations applicable to the levy and collection of ad valorem taxes. Among other features, the Property Tax Code provides for: 1. A sirgle kp;caisaJ District in each County of the State to aopraise property for purposes of taxation for all taring units located wholly or partly within the County. 2. All property to be assessed at 10045 of its appraised value and prohibits the assessment of property for taxation on the basis of a percentage of its appraised value. ~8 3. An increase in the effective tax rate of a taxing unit to be limited to not more than 3% u-;ess a public hearing is held. In calculating the effective tax rate, taxes for bonds or other contractual obligations are excluded. Recent amendments (Chapter 13, Acts of the 67th Legislature, First Called Session, 1981) to the Property Tax Code (designated to clarify and remedy technical flavs experienced in implementing various provisions thereof) provide for: I. Postponement of full implerr entation cf an Appraisal District's operations, on a local option basis, until 1983 or 1984. 2. Mandatory county participation in the Appraisal District. 3. Charges the provisions relating to an effective annual tax increase being subjett to a referendum election by. a. Raising the amount of :he annual tax inaease necessary to trigger a referendum election to g'ts; b. Reducing the number of qualified voters necessary to petition for a referendum election to 10%; c. Extending the period ava!Iable to collect signatures on a petiti on for a refertdum elrction to 90 days; d. Eliminating the requirement that a minimum of 25% of the qualified voters must vote in a referendum election to be valid. 4. The State Property Tax Board to conduct an annual ratio study in each Appraisal District to determine the degree of uniformity of apppraisals and the weighted average level of appraisals within each major kind of property (effective 1.1-84). 5. An increase in penalties for delinquent taxes. The new penalties are: a. 6% - First month 196 - Additional penalty each month through June 12% - All delinquencies on July I regalaess of delinquency period; b. A taxing unit may add an additional penalty to a maximum of 0% of taxes, penalty and interest due it order to defray costs of tax attorneys. 6. An i~tcrease in interest charged on delinquent taxes. The new interest charges are: a, 1%- First month; and b. An additional 1% increase each month thereafter. 1. Property within the Appraisal District to be reappraised at least once every 4 years (effective I-l- 84 8. The establishment and application of uniform discovery and appraisal procedures on all types of business inventories without regard to the nature of the property comprising the inventory. 9. The statute purports to provide an increase for the first time in the appraised value of property above its 1981 assessed value in any year from 1982 through 1983, which may be, at the option of the local taxing unit, limited to Ira times the percentage of increase in the value of all other property on the unit's tux rolls, 10. Changes in the composition and selection of board members, the allocation of Appraisal District costs, the size of the Appraisal Review Board and the financial accountability of Appraisal District. If. Local taxing units to challenge the Appraisal Review Boards appraisals and judicial review of challenges, and authorizes local taring units of an Appraisal District to overturn and veto actions of the Board of Directors of the Appraisal District. 9 12. Changes in the procedures and requirements pertaining to tax increases by local taxing units. A constitutional amendment conceiving homestead property exemptions was submitted to, and adopted by, the voters of the State of Texas on November 3, 1981. Such amendment provides local governments the option of granting homestead exemptions of up tc 40% of market value for the 1982 through 1984 tax years, up to 30% of market value for the 1985 through 1987 tax years, and up to 20% of market value thereafter. Minimum exemption is $5,000. The amendment further provides that taxes may continue to be levied against the value of the homestead exempted where ad valorem tax,,% have been previo'nly pledged for the payment of debt, if cessation of the levy would impair the obligation of the contract by which the debt was created. CAPITAL LEASES 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 throug,"i 1986. Annual costs of the leases are as follows: 1984 $373,993 1985 269,968 1986 80,860 The City has no other non-funded Gebt as of 7anuary 1, 1994. VALUATION AND FUNDED DEBT HISTORY Ratio Funded Fended Debt Debt to Taxable Cuts.anding Taxable Fiscal Assessed at End Assessed Period Valuation of Year Valuation 1974-75 $ 112,158,726 7 593,000 6.86% 1975-76 124,327,113 9,383,000 7.71% 1976-77 136,340,623 12,024,000 8.81% 1977-78 271,339,229 (1) 11,333,934 4.23% 1978-79 288,902,702 13,213,101 3.27% 1979-80 304,943,680 13,364,488 3.0496 1980-81 337,948,941 15,033,000 4.45% 1981-82 663,437,088(2) 12,935,000 1.93% 1982-83 1,049,946,349(3) 16,702,000 1.39% 1983-84 1,073,716,126 13,490,000(4) 1.44% (1) Increased basis of rssessment from 40% to 60%. (2) Increased basis of assessment from 60% to 100%. (3) Revaluation. (4) Projected. I TAXABLE ASSESSED VALUATIONS BY CATEGORY Property A ssessm ^nt As%of Real Pro ert_y Personal Property Taxable Fiscal Appraised - o % of Assessed Period Value Amount Total Amount Total Valuation 1973-74 40% 82,409,280 80.62% 19,813,360 19.38 102,222,840 1974-73 40% 89,883,617 80.14% 22,273,049 19.86% 112,158,726 1975-76 40% 93,733,078 77.00% 28,592,083 23.00% 124,327,163 1976-77 40% 98,863,846 72.41% 37,676,779 27.59% 136,340,625 1977-78 60% 213,133,760 78.33% 3!;203,469 21.43% 271,339,229 1978-79 60% 221,300,472 76.60% 67,602,230 23.40% 288,902,702 1979-80 60% 229,022,620 73.10% 73,921,060 24.9096 304,943,680 1980-81 60% 246,203,248 72.83% 91,743,693 27.13% 337,948,941 1981-82 100% 450,732,239 67.94% 212,704,829 32.06% 663,437,088 1982-83 100% 831,397,479 79.19% 218,349,070 20.82% 1,043,946,349 1983-84 100% 829,133,028 77.22% 244,380,098 22.78% 1,073,713,126 ESTIMATED OVERLAPPING FUNDED DEBT PAYABLE FROM AD VALOREM TAXES Aso L-1-34) Estimated Total % Overlapping Taxing) risdiction Funded Debt Applicable Funded Debt City Denton 16,692,000 100.00% 16,692,000 Dent:m Independent School District 23,403,000 93.76% 21,944,528 Denton County 10,713,000 29.4496 3,134,496 Total Overlapping Funded Debt $41, 791,024 Ratio Overlapping Funded Debt to Taxable Assessed Valuation 3.89% Per Capita Overlapping Funded Debt - $808.34 TAX RATES OF OVERLAPPING SUBDIVISIONS Taxin Jurisdiction 1983 1982 1981 1980 1979 uty o enton 0.360 0.3100 0.774 1.29 1.24 Dentonlndependent Schoo: District 0.810 0.7300 1.220 1.23 1.68 Denton County 0.212 0.1663 0.237 0.77 0.67 TAX RATE LIMITATION All taxable property within the 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 cbligations of the City within the lirrits prescribed by law. Article XI, Section 3, of the Texas Constitution is applicable to the City of Denton, and limits its maximum ad valorem tax rate to $2.30 per $100 Assessed Vauuation for all City purposes. The City operates under a Home Rule Charter which adopts the Constitutional provisions. TAX DATA (Year-n ng 9.30) Distribution Tax Tax General Interest and % Curetnt % Total Year Rate Fund Sinkin Fund Tax Lev Collections Collections I f 957N X00 WHO- -WW4-0 1,739,788 96.20% T7-.0 TAS 1974-73 1.700 0.8978 0.8022 1,906,698 93.12% 97.64% 1975-76 1.700 0.8174 0.8826 2,113,362 94.74% 97.54% 1976.77 1.780 1.0938 0.6862 2,437,423 94.74% 97.74% 1977-78 1.240 0.7728 0.4672 3,36:.606 33.04% 94.33% 1978-79 1.240 0.7280 0.3120 3,582,433 94.05% 96.37% 1979-80 1.240 0.7286 0.3114 3,780,389 93.67% 96.69% 199"1 1.290 0.6700 0.6200 4,339,541 93.17% 93.64% 1981-82 0.774 0.4630 0.3090 4,930,971 96.2616 99.04% 1982-83 0.310 0.3375 0.1723 5,376,210 93.27% 98.04% 1983-84 0.560 0.3499 0.2101 6,012,794 in Process of Collection. Property within the City is assessed as of January 1 of each year; taxes become due October 1 of the same yeari and become delinquent after Ja,tuary 31 of the following year. Split payments are permitted: first half by December 31; second halt by March 31. Discounts are not allowed. 3/ MUNICIPAL SALES TAX ---I f ective 4-1-68 The City has adopted the provisions of Arti,Je 1066c, Vernon's Texas Civil Statutes, as amended, which grants the City the povrer to impose and levy a l% Local Sales and Use Tax within the City, the proceeds being credited to the General Find. Collecions and enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits the proceeds of the tax, after dedu:tion 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 TaxLev Tax Rate Capita 1973 5-Y7-5-,r6-4 50.33% 0. 364 19.68 1974 926, 03n 53.29% 0.9039 20.81 1973 1,000,932 32.68% 0.8924 21.39 1976 1,194,333 36.66% 0.9632 23.28 1977 1,234,432 31.88% 0.9234 26.19 1978 1,629,832 48.44% 0.6007 31.62 1979 2,061,124 37.33% 0.7134 39.83 1980 2,336,124 67.62% 0.8723 47.96 1981 3,017,806 69.22% 0.3338 39.00 1982 3,293,302 66.82% 0.3408 64.17 1983 3,171,313 32.74% 0.2934 63.34 TOP TEN TAXPAYERS 1983 % of Total Taxable Taxable Assessed Assessed Name of Taxpayer Nature of Pro ~rt Valuation Valuation Paccar, Inc. Peter u t ruck an actuf ~ ers 3 3,-914T,& 5-0 X 17% General Telephone Company Telephone Utility 33,793,891 3.13 Victor Equipment Company Welding Equipment 18,276,818 1.70 Andrew Corporation Radio Antenna Manufacturers 13, 307,337 1.26 First State Bank Bank 13,423,719 1.25 Denton Mall Shopping Center 10,321, A7 0.98 Moore Business Forms, Inc. Business Form Manufacturer 9,279,910 0.86 First Denton National Bank Bank 8,370,911 0.80 Westgate Medical Center Hospital and Professional Building 8,300,676 0.77 Acme Brick Company Britk Manufacturer 71.3291199 0.70 137 I 0 26 14,64% AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS - NONE GENERAL INFORMATION REGARDING CITY AND ITS ECONOMY LOCATION. . 0 Denton is the County Seat of Lenton County, located at the apex of the Dallas-Fort Worth-Denton industrial triangle. 0 The City covers an area of 33.2 square miles and is located only 38 miles from downtown Dallas, and 36 miles from Fort Worth. ECONOMY... 0 Denton is . 0 In the midst of a rich agricultural and livestock area. 0 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. 0 One of the three major university centers in Texas. 0 The home of diversified industrial interests. 0 The site of the Nation's first underground Control Center of the Office of Emergency Planning and Office of Civil and Defense Mobilizatiro. 0 One of the key cities in the econemically significant Dallas Standa•d Metropolitan Area. ECONOMIC RANKING 0 The following data was taken from Survey of Buying Power, Sales and Marketing Management, July 25, 1983. Median Age of Population 27.9 % of population whose age is: I - 24 i5.8% 23 - 34 22.0% 33 - 49 18.6% 50 - Over 13.8% Households 58.1 Thousands Net Effective Buying Income $ 1,834,543 Median Household EBI S 28,856 % of Households by EBl Group 101000 - 13,999% 18.8% $20,000 - $34,999 30.7% 35,000 - $49,959 22.8% 50,000 - Over 13.7% Buying Power Index - .0723 Retail Sales (000's) $578,471 Food 173,768 Automotive 115,810 Eating and rrinking 60,877 General Merchandise 69,273 Furniture-Home Furnishings-Appliances 26,194 Drug 17,610 1.7 ECONOMIC AND POPULATION GAINS 0 Denton has noted a consir:ent population increase And a steady economic growth in the last four decades. 0 Historical population totals from U. S. Census records are: 1940 Census 11,192 1930 Census 21j.372 1960 Census 26,844 1970 Census 39p&74 1980 Census - 48,063 0 The North Central Texas Council of Governments estimates the 1983 population of the City at 51,700. 0 The City's ascension toward a top rung on Texas' economic ladder is attributed partly to the steady influences of governmental activity which includes the year-by-year expansion of the two State-supported universities, and ^%rtly becawe of such environmental factors at its location in a rich agricultural region, some oil and gas production in the northwest section of Denton County, its inclusion in the Dallas-Fort Worth Metroplex, its proximity to three of Texas' largest reservoirs (Lake Texoma is only 40 miles from Denton), its excellent highway and transportation ferilities, its mild climate, and the less tangible but influential aspects of social, cultural and educational advantages that have prompted professional or "white collar" workers to choose Denton as a place of residence. INDUSTRY AND BUSINESS 0 In excess of 73 diversified manufacturing plants are located in the City. Some of the largest are as follows: Com party Product nrmsTnjover 5001 core Business Forms, Inc. Business forms and systems Russell-Newman Manufacturing Company Ladies lingerie Victor Equipment Company Gas cutting and welding equipment Firms Fm tonr 230 to 500: Acme Brick ampany Bricks, clay pottery Andrew Corporation, Texas Division Radio frequency antennas 3ackson Concrete Ready-mix concrete 3osten's, Inc. High school and military rings Peterbuilt Motors Company Diesel trucks Firms Emplo in 100 to 230: Denton Pu is ng Company Newspaper publisher Moore Business Systems Small business computer systems The Morrison Milling Company Consumer and food service mixes Turbo Refrigeration Company Industrial ice makers, plate heat exchangers, heat exchanger tubing Firms Em to in SO to 100: is s Concrete Company Concrete, aggregates, equipmen: rental and building materials Harley, Bag Division of Union Camp Multi-wa:l paper, bags Harpool Seed, Inc. Seed - farm, turf, vegetables Kolmar Laboratories, Inc. Cosmetics Lead Mailing Systems Labeling and inserting of direct mail packages Orthane Division of Ohio Rubber Company Polyurethane injection mold,-1 and cast products Signal Products Division, Amerace Corp. Custom molded plastic components Transport Systems, Inc. Semi-trailers Sources Denton Chamber of Commerce. INDUSTRIAL FUTURE 0 Denton is most favorably located within 38 miles of two major cities (Dallas and Fort Worth) and is, olficially, 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. 0 A plentiful supply of skilled labor is available to industry in the Denton area. Total labor force in Denton County as of December 1, 1993 was approximately 86,413, with approximately 82,980 presently employed and 3,433 unemployed - for an unemployment percentage of only 4.0%, There are three principal industrial districts Denton Industrial Park, Rayzor Industrial Park and West Park Industrial Park all of which have access to more than adequate rail and highway facilities, and all necessary utilities. Recent Development. Brik Pak Inc., a Texas corporation, is a member of the international Tetra Pak group of companies. The firm specializes in aseptic packaging which allows liquid foods such as milk and fruit juice to be stored, shipped and merchandised without refrigeration. Phase I of the plant consists of a 217,000 square loot warehouse at a cost of $40,000,000. Brik Pak plans to open in April, with an initial employment of 60, and total employment expected to be 200. The company also has plans to construct a second phase in late 1983 or early 1996 - the same size and value as phase 1. AGRICULTURE 0 Denton County is one of the more diversified agriculture counties in Texas. With soil types ranging from rich black to deep sandy loam, and good soft, artesian water, it is an ideal center for diversified farming and livestock raising. 0 Principal crops are cotton, corn, wheat, oats, hay, grain sorghums and peanuts. Dairy cattle, beef cattle, sheep, hogs, chickens and turkeys contribute a substant'al End steady income every year to the farmers and ranchers of the county. 0 Income from all agriculture and livestock products averages in excess of $30,000,000 annually. 0 The Texas Agricultural Experiment Station, Sub-Station No. 6, located about five miles northwest 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, pasture-, soil building, contouring and plant disease. UNDERGROUND CONTROL CENTER 0 Denton is the site of the first Underground Control Center to be built by the Federal Government in the United States. This center was completed at a cost of $2,400,000. 0 It consists of an above ground "frangible" building, for entrance and exit during normal operations, and a two-story underground fortress, 142 feet wide and 172 feet long. The structure has its own water well, an infirmary, first aid station, and communications headquarters. Site for the structure is about three miles east of Denton. 0 The huge underground center serves Region 3 Headquarters for the Office of Civil and Defense ,Mobilization and is designed to resist nuclear blast and radiation, Region 5 consists of Texas, Oklahoma, Arkansas, Louisiana and New Mexico. 0 In time of emergency the center 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 thot activities of some 2)3,000 civilian employees of the federal government. It will house 200 persons on a day-to-day basis, or 300 on a 30-dav, emergency, "buttoned-up" basis. 0 The control center employs 83 full time people with an annual payroll in excess of $750,000. TRANSPORTATION 0 Denton is located rnly 18 miles northeast of the Dallis-Fort Worth Regional Airport. This facility began operations in 3anuary, 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. 0 Denton is the local point in the new Interstate Highway System (U. S. )5-E and U. S. 33-W). U. S. 35-E connects Denton with Dallas, and U. S. 33-W ties to Fort Worth. 0 The east and west sections of the U. S. Interstate 33 fcrm part of a vast network that begins at the Canadian border on the north and traverses the entire United States, to end at the Mexican border cn the south. North from Denton the highway connects with Oklahoma City and thence through the Midwest. 0 Rail transportation is furnished by three railroads - Santa Fe, Texas and Pacific, and Missouri-Karssas- Texas bus transportation by Continental Trailways Bus System motor freight by twelve truck lines. EDUCATION... 0 Denton is the home of North Texas State University, founded in 1890, and Texas Woman's University, founded in 1901. 0 The two colleges have a combined enrollment of approximately 26,733 students, and more than 1,000 faculty members. 0 As of September 1, 1983, 20,234 students were enrolled in co-educational North Texas State University. -his unitersity has a larger enrollment than Southern Methodist University at Dallas, Texas Christian University in Fort Worth, or Rice Institute at Houston. Texas Woman's University has an enrollment cf 8,483. 0 North Texas State University campus comprises a land area of more than 130 acres and sixty-nine buildings valued in excess of $62,000,000. 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 43 areas. 0 Texas Woman's University, a State-supported institution of higher learning, has completed an extensive building program, emphasized by three high-rise structures. These are a 14-story office and classroom portion of the College of Educati jn (opened in 1968), a 21-stay dormitory designed to house 640 students (completed it 1967), and a 24-svey dormitory designed to house 707 students (.:ompleted in the fall, 1969). Academic components are e•.tbodied in eight schools. Science research programs are conducted in cher;stry, biology, physic:, nutrition, lextiies, bone microradiology and other mated fields. 0 Over 400 Denton citizens hold earned Doctoral degrees. 0 Denton has an outstanding Public School System, accredited by the Southern Association of CoL'eges and Secondary Schools and Accreditation Division of the Texas Education Agency. Approximately 69% of the graduates of Denton High School go on to college. The Denton school system offers accelerated programs in such courses as S.M.S.G. Math and P.S.S.C. Physics. A few of the vocational training courses available in public schools are agriculture, homemaking, distributive education, industrial education, mechanical drawing, woodwork, etc. 67% of the faculty hold Master's degrees. Teach trs and Professional Staff 316 Enrollment in school for exceptiensl Administrative Staff 30 children 1,307 Para-Professional Staff 93 Pupil to teacher ratio: Number of elementary schools 8 elementary 24:1 Number of juni x high schools 2 high school 20:1 Number of senior high schools 1 1983 Fall Enrollment 8,677 Average students per classroom 23 Average number of high school graduates 600 0 $11,000,000 Denton State School Corotruction began in 1938 on the $11,000,000 De ton State School, with the first phase of the construction being completed in July, 1960, at Which time ;he first group of students was admitted. The second phase was completed in 1963. it is ere of America's most modern and progressive educational institutions. 0 This State-supported educational institution for mertally retarded Texas residetts is located rn a 200. acre site paid for by Denton citizens. 0 Present facilities include 47 (including outreach dorms) dormitories which accommodate more than 1,188 students, 3 buildings for physically handicapped children with a capacity of 600, and a 32-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. 0 The School has a staff of 1,489, with an annual payroll in excess of $18,000,000. BANKL'VG . 0 There are five banks in the City First Denton National Bank, established 1892 First State Bank, established 1912 U. S. Bank, established 1963 Western State Bank, establL~hed 1963... Citizera National Bank, established 1976. Combined Bank D!,po its 1974 $131,018,000 1979 $207,085,011 1973 140,747,770 1930 228,313,123 1976 167,805,982 1981 234,367,591 1977 173,006,073 1982 239,978,804 1978 198,908,000 1933 343,519,291 0 Two savings and loan associations had combined year-end deposits as follows: 1974 $ 66,202,423 1979 $127,299,490 1973 69,310,398 1980 139,333,122 1976 84,238,471 1981 160,674,680 + 1977 94,168,237 1982 137,932,082 1978 105,901,294 1983 214,607,933 RECREATION 0 Nearby Lake Lewisville, one of North Texas' largest lakes, is one of Texas' most popular recreation areas. Lake Lewisville his a shore tine of 183 miles located entirely in Denton County. 0 Lake Lewisville attracts over 3,00;,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. 0 Grapevine Reservoir, another large body of water created by the U. S. Army Corps of Engireers, is located in Denton and Tarrant Counties. The dam is 23 miles from Denton. 0 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 recreational pastimes at both reservoirs, which, becaise of this area's favorable climate, are in use the rear roune. Growth Indices Calendar Building Gas Water Electric Year Permits Meters Meters Meters 1972 53 ,3SS,r6l I5 iM3 11,837 1973 24,037,860 11,174 11,231 12,227 1974 12,498,521 11,416 11,592 12,673 1973 18,306,334 11,733 11,753 13,061 1976 12,142,334 11,745 12,077 14,117 1977 22,244,073 12,294 12,490 15,650 1978 32,324,274 12,661 12,803 16,404 1979 71,336,L46` 13,224 13,094 17,130 1980 33,454,304 13,566 13,292 18,123 1981 40,337,746 13,680 13,506 18,543 1982 38,062,423 13,930 13,889 19,365 1983 61,181,947 ` Includes construction of Cowen Triangle Mal and Peterbilt truck factory. RATINGS Applicatiotis for contract ratings on this issue have been made to Moody's Investors Serdce, Inc. and Standard ik Poor's Corporation. An explanation of the significance of such ratings may be obtained from the company furnishing the rating. The ratings reflect xly the respective views of such organizations and the City crakes no representation as to the approprnateress of the ratings. There is no assurarce 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 bith of such rating companies, if in the judgment of either or both companies, circumstances so warrant. Any such downward revisi:n or withdrawal of such ratings, 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 S Hortor, Bond Counsel to the City ("Bond Coursel"), to the effect that interest on the Bonds is exempt from all present Federal irxomt taxes under 0e applicable statutes, published rulings, regulations and court decisions existing on tl,e rate of such opinion. The laws, regulations, court decisions and administrauvrt regulations and published rulings upon which the conclusion stated in Bond Counsel's opinion is based are subject to change by the Congress, the Treasury Department and later judicial and administrative decisions. REGISTRATION AND QUALIFICATION OF BONDS FOR SALE The sale of the Bonds has not been registered under the Federal Securities Act of 1913, as amended, in reliance upon the exemption provided thereunder by Section 3(a) (2}, and the Bonds have not been qualifieJ under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds been qualified under the securities acts of any jurisdiction. The City assumes ro responsibility for qual,fication of the Bonds under the securities laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualifica- tion for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration provisions. LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS Section 9 of the Bond Procedures Act or 1981 states: "All bonds issued by an issuer shall constitute negotiable instruments, and are investment securities governed by Chapter 8, Texas Uniform Commercial Code, notwithstanding any provisions of law or court decis;on to the contrary, and are legal and authorized investments for banks, savirgs banks, trust companies, building and loan associations, savings and losn associations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities, towns, villages, school districts, and other political subdivisions or public agencies of the State of Texas". The Act further provides that the Bonds are eligible to secure: deposits of any public, funds of the state, its agencies and political subdivisions, and are legal security for those deposits to the extent of their market value. No review by the City has been made of the laws in ocher states to determine whether the Bonds are legal investments for various institutions in these states. LEGAL OPINIONS AND NO-LITIGATION CERTIFICATE The City Aili furnish a complete transcript of proceedings had incident to the aethurization and issuance of the Bonds, inrfudir,g the unqualified approving legal opinion of the Attorney General of Texas as to the lmtisJ bond ani any changes in denominations or form authorized in said proceedings, to the effect that the Bonds are valid and legally binding obligations of the City, and based w)ot exam:nati-n of such transcript of pro-eedings, the unqualified approving legal opinion of Bond Course], to like e..ect and to the effect that the interest on the Bonds is exempt from Federal income taxation under applicable statutes, regulaticns, published 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 cf the Bonds, or which would affect the provision rrade for their payment or security, or in any manner questioning the validity of said Bonds will also be fu^nished. Bond Counsel was not requested to participate, and did not take part, in the preparation of tie 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 if the information contained therein, ex-ept that, in its capac,ty as &)no Counsel, such firm has reviewed the information describing the Bonds in the Official Staterne.nt to verify that such description conforms to the provisions of the Ordinance. The legal fee to be pa'.d Bond Counsel for services rendered in connection with the issuance of the Bonds is contingent on the ease and delivery of the Bonds. The legal opinion will be printed on the Bonds. 8 s r®reaa,~o AUTHENTICITY OF FINANCIAL DATA AND OTHER INFORMATION The financial data and other information contained herein hale been obtained from the Citys records, audited financial statements and other sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be 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 resolutiora. 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 aNnnectlon with the issuance of the Bonds. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is contingent upon the issuance and delivery of the Bands. First Southwest Company may submit a bid for the Bonds, either independently or as a member of a syndicate organized to su!rr.it a bid for the Bonds. CERTIFICATION OF THE OFFICIAL STATEMENT At the time of payment for &id delivery of the Bonds, the Purchaser will he furnished a certificate, executed by proper officers, acting in their official capacity, to the effect that to the best of their knowledge and belieft (a) the descriptiors and statements of or pertaining to the City contained in its Official Statement, and any addenda, suppiernent or amendment thereto, on the date of such Official Statement, 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 omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light cf the circumstances under which they were made, not misleading; (c) insofar as the descriptions and statements, including 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 reison 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 Ordinance authorizing the issuance of the Bon-Is will also 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. RICHARD O. STE%rART Mayor ATTESTr CHARLOTTE ALLEN City Secrevary 3/ ■o LAN, OFFICES ' MCCALL, PARKHURST b HORTON Moser H. MCCALL 900 DIAMOND SHAMROCK TOWER JOHN 0. MCCALL t.p9L-19931 PAVL !.NORTON PETER M.TART DALLAS, TEXAS 75201-4567 MILLARO PARKHURST RICHARO C. PORTER u9o/-1913, ANOELO R. PARKER AREA COO[ EH 746-9301 CLARENCE E. CROWE O. CHARLES KOSOISH THOMAS L. POSCHARSKT' TEL3CORM: 414 790-7049 11903-19091 KENNETH C ILTZ JOHN W. RUeOTTOM JEFFREY A. LCUSCHEL THOMAS K. SPUROCON LC. ORaxOLARA, M KENNETH R. ARTIN' 'UCENBKD " NEW . OR,I ONL7 February 21, 1984 Honorable Mayor and Council of the City of Denton Denton, Texas Gentlemen: City of Denton Utility System Revenue Bond, Series 1984, $1,000,000 In compliance with Section 9.02 and Section 9.04 of the City Charter of the City of Denton, you are advised that the bids for the captioned issue of bonds have been tabulated and that we find that the bid of a syndicate managed or headed by the following: lYoscc? yn~~. X'Orrltj with the bonds to bear interest at the rates t erein specified, with such bidder to pay par and accrued interest to date of delivery for said bonds, plus a premium of $ - o- is the lowest and best bid received, and we recommend that it be accepted. We further certify that we have examined the ordinance presently placed before the Mayor and Council for the purpose of authorizing the issuance of said bonds, and, in our opinion, the said proposed bond ordinance is legal, and the bonds to be issued thereunder will be special obligations of the City pay- able from, and secured by a first lien on and pledge of, the "Pledged Revenues", which include initially the "Net Revenues of the System" as such terms are defined ir, the Bond Ordinance, with the System consisting of the City's entire combined waterworks, sewer, and electric light and power system. Respectfully, MCCALL, PARKHURST 4 HORTON By lt~ f ~ LAW OFFICES MCCALL, PARKHURST & HORTON H069Y H. MTCALL 900 DIAMOND SHAMROCK TOWER JOHN D. MCCALL 11411IR-19412? PAUL 9, HORION PETER M. TART DALLAS, TEXAS 76201-3587 MIt LARD PARKHURST RICHARD C. PORK. 111106-49121 ANGELO P PARKE)- AREA CODE 214 742-0501 CLAPENC[ C. CROW[ 0. CHARLES 90001SH 91903-.9621 THOMAS L. POSCHARSKP• TE12COPICIC 2H 700-7019 KENNETH C. ILT2 JOHN W RUSOTTOM JEFFPE7 A. LEUSCHCL THOMAS K. SPURGEON LE, 0RiZZOLARA, M KENNETH R. ART1N• 'VCENIC9 IN NEW TORK ONLY February 21, 1984 City of. Denton Utility System Revenue Bond., Series 1984, $1,00011000 _ Enclosed herewith are the following: L/ (1) Eight copies of the ORDINANCE AUTHORIZING THE ISSU- ANCE OF THE BOND with an appropriate CERTIFICATE attached to the front of each copy. Any blanks in said ORDINANCE and CERTIFICATE should be filled in, and said CERTIFICATE should be executed by the Mayor and City Secretary after passage of said ORDINANCE, all as indicated. In particular, the name of the initial registered owner of the Initial Bond should be filled in the blank in Section 3(a) on page 1 of the Bond Ordinance, and in the blank in the first paragraph of the FORM OF INITIAL BOND in Section 5 on page 2 of the Bond Ordinance. 71he appli- cable interest rates should be filled in the blanks on page 3 of the Band Ordinance, and the name of the successful bidder and any premium should be filled in the blanks, respectively, on page 30 of the Bond Ordinance. (2) Seven copies of the GENERAL CERTIFICATE to be ex- ecuted by the Mayor and City Secretary, as indicated. (3) Seven copies of the CPA's CERTIFICATE to be executed as indicated. -rr %)y (4) One copy of the Initial Bond (in blue backed cover) for execution with the manual signatures of the Mayor and the City Secretary on Page 5 of the bond, and by affixing the City Seal on page 5 of the 1. nitial Bond. The name of the initial registered owner of the Initial Bond, as well as the interest rates applicable to each installment of principal, should be filled in on pages 1 and 2 of the Initial Bond. (5) Seven copies of the TREASURER'S RECEIPT, which should be signed by the person, firm, or corporation duly chosen and acting as Treasurer, but left undated. -ro W.,/ ?;i ~j-=~`J (6) Seven copies of the SIGNATURE IDENTIFICATION AND NO-LITIGATION CERTIFICATE, which should be signed by the officers indicated therein, but left undated. The signatures on each copy of the Certificate should be verified by a bank official in the manner indicated therein, and the bank seal should be impressed on each such copy. (7) Seven copies of the CLOSING CERTIFICATE, which should be signed by the officers indicated therein, but left undated. (6) Seven copies of a NO-ARBITRAGE CERTIFICATE to be executed as indicated, but left undated. (9) Letters addressed to the Attorney General, Comptroller of Public Accounts, and the bark where the bond is to be delivered. Any blanks in said letters should be filled in properly, and the letters should be signed by the officer indicated therein, but left undated. After execution as aforesaid, please return seven copies of enclosure (1) and six copies of enclosures (2) and (3). The remaining copy of each may be retained for the City's permanent records. All copies of enclosures (5) through (9), together with the Initial Bond listed under (4), should be returned to us as soon as practicable and we will we will make proper distribu- tion of them at the appropriate time. Sincerely yours, McCALL, PARKHURST & HORTON /e., - Thomas K. Spurgeon TKS:k Enc i GENERAL CERTIFICATI: THE STATE OF TEXAS COUNTY OF DENTON CITY OF DRMI We, the undersigned, hereby officially certify that we are the mayor and City Secretary, respectively, of the City of Denton, Texas, and we further certify as follows: 1. That said City is a duly incorporated Home Rule City, having mire 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 changed or amended since the passage of the ordinance authorizing the issuance of the City of Denton Utility System Revenue Refunding Bonds, Series 1983, dated March 1, 1983. 2. That no litigation of any nature has ever been filed pertaining to, affecting, or contesting: (a) the ordi.i,ance (the "1984 Bond Ordi- nance") which authorized the proposed City of Denton Utility System Revenue Bond, Series 1984, dated March 1, 1984, in the principal amount of $1,000,000 (the "Series 1984 Bond"), (b) the issuance, delivery, payment, security, or validity of said proposed Bond, (c) the title of the present nembers and offioers of the City Council of said City to their respective offices, or (d) the validity of the corporate existence or the Charter of said City. 3. That none of the Pledged Revenues, as defined in the Series 1984 Bond Ordinance have been pledged or enc=ibered to the payment of any debt or obligation whatsoever, except in connection with the aforesaid proposed Bond, and the outstanding bonds of the following issue: City of Denton Utility System Revenue Refunding Fonds, Seri(:. 1983 (the "Series 1983 Bonds"), authorized by Ordinance passed on March 10, 1983 (the "1983 Bond Ordinance"). 4. That the City is not in default as to any covenant, condition, or obligation in connection with the above described outstanding Series 1983 Bonds and the 1983 Bond Ordinance authorizing same; and that the Interest and Sinking Fund and the Reserve Fund created by said 1983 Band Ordinanc_- for the benefit of the above described outstanding Series 1983 Bonds and all Additicnal Bonds issued pursuant to the 1983 Bond Ordinance each con- tains the amount mi required to be therein. 5. That the statements and information set forth in the Official Statement dated January 31, 1984, pertaining to the aforesaid proposed Series 1984 Bond and tha City, and particularly the Utility System operat- ing statement, debt service regairements, and coverage factors set forth therein are true and correct, and the Water, Sewer, and Electric Dates set forth therein are currently in effect and were authorized by ordinances duly passed by the City Council. SIGNED ANC 3EALED this 21st day of February, 1984. City Secr , City r, 1 o L n (CIr" SEAL) e'•F ~e',r ~ \7 i;i nkr ,ll,~y± r CST` tv+~~, 16 - itV 44'~~~t\ l Sky. N0. AN CRDINANCE AMENDING ARTICLE 17 OF APPENDIX B TO THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, BY ADDING A NEW SECTION "N" TO SAID ARTICLE, EXEMPTING PUBLIC PARKS FROM THE SIrN RESTRICTIONS OF SAID ARTICLE AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: PART I. That Article 17 of Appendix B the Code of Ordinances of the City of Denton, Texas, is hereby amei:ded by adding a new Section "N" to read as follows: N. The provisions of this Article shall not apply to advertising signs located or proposed to be located in public parks owned and operated by the City of Denton and specifically permitted by the City Council in accordance with Section 15-51 Chapter 15, of the Code of Ordinances of the City of Denton, Texas. PART II. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 1984, I r I ARD OTONf R CIT OF DE TEXAS ATTEST: CHARLOTTE ALLEN, CITY SECf:ETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS BY: ' e 1 t x 1. N rr e e ~ ~ , ~ a , r i t % w~wwe I NO. / AN ORDINANCE PROVIDING FOR THE ABANDONMENT OF A PORTION OF A TRACT OF LAND DEDICATED FOR UTILITY AND STREET RIGHT-OF-WAY WITHIN THE CITY OF DENTON AND AUTHORIZING THE MAYOR TO EXECUTE A QUITCLAIM DEED CONVEYING ALL RIGHT, TITLE AND INTEREST OF THE CITY IN SAID LAND TO THE OWNER OF THE ADJACENT TRACT OF LAND; AND DECLARI14G AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas acting pursuant to law, and upon the request and petition of the grantee herein, deems it advisable to abandon and convey the hereinafter described tract of land co, grantee and is of the opinion that said portion of land is not needed for public use and that same should be abandoned anO quitclaimed to Dr. Fred Tillis. WHEREAS, the City Council of the City of Denton is of the opinion that the best interest and welfare of the public will be served by abandoning and conveying the sa+nn to Dr. Fred Tillis, for the consideration hereinfter more fully set forth; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: SECTION I. That the following described tract of land in the City of Denton, Texas be and the same is hereby abandoned, vacated and cloned insofar as the right, title and interest of the public are concerned: All that certain tract or parcel of land situated in the C. Poullalier Survey, Abstract No. 1007, Denton County, Texas, being part of the right-of-way of Teasley Lane as shown on the plat of Teasley Mall Subdivision to the City of Denton as shown by the plat recorded in Volume 12, Page 45, Plat Records of said County, and being more fully described as follows: BEGINNING at the southeast corner of said Lot 1, Block A of Teasley Mall Subdivision; THENCE north 1°16'06" east with the east boundary line of Lot 1 a distance o= 76.31 feet to an iron pin at the beginning of a curve; THENCE with a curve to the left having a central angle of 89°56'49" a radius of 25.0 feet, a chord of north 43'42'18" west 35.3+ feet an arc distance of 39.25 feet to an iron pis on the south boundary line of Londonderry Lane; THENCE south 88°40'43" east with the south boundary line of Londonderry Lane a distance of 20.0 feet to an iron pin at the beginning of a curve; THENCE with a curve to the right having a central angle of 89°56'49", a radius of 25.0 feet, a chora distance of solath 43°42'18" east 35.34 feet, an arc distance of 39.25 feet to an iron pin being 45 feet from and at right angles to the center line of Teasley Lane; a i IM1 ~ I f 77-7-1 7 7 4r r a'' 1l , ./.9 rJ' vJa a(IA y a< . J ~w r r7 ~.j t r ' fYv I 1 { THENCE south 1°16'06" went 45 feet from and parallel to the centerline of Teasley Lane a distance of 76.52 feet to an iron . pin; THENCE north 88°04'28" west a distance of 20.0 feet to the point of beginning and containing 0.0465 acre of land. SECTION II. y That the Mayor and City Secretary are hereby authorized to execute and deliver that certain quitclaim deed attached hereto and incorporated herein conveying said tract of land described therein to Dr. Fred Tillis. SECTION III. That portion of the tract of land herein described being vacated, abandoned, and closed is made subject to all existing zoning regulations and deed restrictions, if any, and subject to all existing easement rights of others, if any, whether apparent or not. SECTION IV; This ordinance shall take effect and be in full force and effect from and after the date of its passage, and it is so ordained. PASSED AND APPROVED this the day of 1984. J .P.ILWW, MAY CI OF DE TON, TEX ATTEST: AS J "N Clf CITY OF DENTON, TEXAS i APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS t w 4j Y 8+.. 2fir.:' t~ '..t:j 5.. .1 j !ti ( irl'•y:J,:: V.i ~~aM1.-AA WA. ~1 g n' 7 . 1 ~~1 IJd y,ry M ,~ys,,~, ~y ~`'j(• '?~~~3,+,~.~~~rr,~.7 ~'~j}l: 'Ft, }a~'ti~'~S~c'~~~:"~rY~f.~i'~~ti'~',:~'+I k - 3~1-'-C~-7 C{='OL'Tf"Ct.7lTl~DL~tD - 911 ifkw `.-T]~E STATE OF TEXAS, i KNOW ALL 31EN BY THESE PRESENTS: COUNTY OF DENTON } That The City of Denton, Texas, a Municipal Corporation ~I + of the County of Denton and State of Texas for and in consideration of the sun of - ------------------------TEN AND NO/100 ($10.00) DOLLARS, to it in hand paid by Dr. Fred Tillis of the County of Denton and State of Texas , the receipt of which is hereby acknowledged, do, by ti~tse presents, BARGAIN, SELL, RELEASE, AND FOREVER i ~QUIT CLA7:1i unto the said Dr. Fred Tills, his E i heirs and assigns, all its rght title and interest in and to that certain tract or par- cel of land lying in the County of Denton and State of 'texas, described as follows, { to-wit: All that certain tract or parcel of land situated in the C. F. { Poullalier Survey, Abstract No. 1007, Denton County, Texas, being part f of the right-of-way of Teasley Lane as shown on the plat of Teasley Mali Subdivision to the City of Denton as shown by the plat recorded in Volume 12, Page 45, Plat Records of said County, and being more `I :ally described as follows: BEGINNING at the southeast corner of said Lot 1, Block A of Teasley Mall Subdivision; THENCE north 1°16'06" east with the east boundary line of Lot 1 a distance of 76.31 feet to an iron pin at the beginning of s curve; THENCE with a curve to the left having a central angle of 89°56'49", a radius of 25.0 feet, a chord of north 43°42'18' west 35.34 feet an arc distance of 39.25 feet to an iron pin on the south boundary line of Londonderry Lane; THENCE south 88°40'43" east with the south boundary line of Londonderry Lane a distance of 20.0 feet to an iron pin at the beginning of a curve; THENCE with a curve to the right having a central an§le of 89°56'49", a radius of 25.0 feet, a chord distance of south 43 42'18" east 35.34 feet, an arc distance of 39.25 feet to an iron pin being 45 feet from and at right angl(aa to the center line of Teasley Lane; THENCE south 1°16'06" west 45 feet from and parallel to the centerline of Teasley Lane a distance of 76.52 feet to an iron pin; THENCE north 88 04'28" west a distance of 20.0 feet to the point of beginning and containing 0.0465 acre of land. i , } TO HAVE AND TO HOLD the said premises, together with all and singular the rightF, privi- I t ~ leges and appurtenances thereto in any manner belonging unto the said Dr. Fred '^il.lis ~ his heirs and assigns, forever, so that neither the said City of Denton, Texas, a Municipal Corporation, its successors i nor x any Person or persons cWming under it shall, at any time hereafter, li .'1 ~t~:~~I' have, claim or demand any right or title to the aforesaid premises or appurtenances, or any part there- I' it of. ! , WITNESS our hand at Denton, Texas this day of February A. D. 1984. ~I Witnesses at Request of Grantor: T13E_CLT -0 -2EN 413, A _ ATTEST: BY: , v •yy~ ~f ~ T- R C;iARD STE RT, M.AY i==- CHARLOTTE--PrLLBN =--C-T YSECRE3fitI2Y a= = I' ~i ~ 1 .',..z} 1 1". i~:2~ ~F b'✓•~l.~r ~~17t°~Y M Y 1 1 , ir' Y a 1 1 q ff 'r?41 ~ ~/qq C M `A~1~, ,e ,i,~ X 1~ r i ps~a 2 yj~,~y ~~3y1~~y!~y\ 1,~1~` ` r ti , i r . ~ :1• 7n '~~'`A to ~ ~ ~;S 1 v"~+1 ♦.±~'S p~ta. iSj~r~?~~~' ~.~y+•~~2~th'1i^ y1'.!.1~1NTT.':i'i►S!1'+."~C A f ~ b7 I~ c r. P`x Cy/ _ {i cy i /M\ f I z :0 i ~..q 0 tij O 0 4 ~ t£-1 0 ~ ~y 2 C i t-4 F z y n > ; . M ' 9 d N L. 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V f ~ ~ r , CS'. a ' NO. s AN ORDINANCE PROVIDING FOR THE ABANDONMENT OF A PORTION OF A TRACT OF LAND DEDICATED FOR UTILITY AND STREET RIGHT-OF-WAY WITHIN THE CITY OF DENTON AND AUTHORIZING THE MAYOR TO EXECUTE A QUITCLAIM DEED CONVEYING ALL RIGHT, TITLE AND INTEREST OF THE CITY IN SAID LAND TO THE OWNER OF THE ADJACENT TRACT OF LAND; AND DECLARING AN EFFECTIVE DATE:. i WHEREAS, the City Council of the City of Denton, Texas acting pursuant to law, and upon the request and petition of the grantee herein, deems it advisable to abandon and convey the hereinafter described tract of land to grantee and is of the opinion that said portion of land is not needed for public use and that same should be abandoned and quitclaimed to E. W. Belcher, et ux. WHEREAS, the City Council of the City of Denton is of the f opinion that the best interest and welfare of the public will be served by abandoning and conveying the same to E. W. Belcher, et THEREFORE he consideration herein ter more fully set forth; NOW, ` BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: SECTION I` That the following described tract of land in the City of Denton, Texas be and the same is hereby abandoned, vacated and closed insofar as the right, title and interest of tLo public are concerned: I All that certain tract or parcel of land that is situated in the Alex Robertson Addition to the City of Denton, said addition being situated in the A. Hill Survey, Abstract No. 623, Denton County, Texas, said tract or parcel being a portion of Ruth Street as dedicated, and being more fully described as follows: BEGINNING at the northwest corner of the intersection of Ruth Street and Cook (Ross) Street; THENCE south 0°4'47" east along the west right-of-way line of Cook (Ross) Street a distance of 50.00 feet to an iron pin; THENCE south 88°56'14" west along the south right-of-way line of Ruth Street a distance of 204.01 feet to an iron pin; THENCE; north 0°5'0" west along the west end of Ruth Street a distances of 50.00 feet to an iron pin; THENCE north 88°56'14" east along the north right-of-way line of Ruth Street a distance of 204.01 feet to the point of beginning and containing 10199.1 square feet of land. t SAVE AND EXCEPT the City of Denton retains a 16' utility easement across the north portion of this tract of land. q SECTION II. That the Mayor and City Secretary are hereby authorized to execute and deliver that certain quitclaim deed attached hereto r .'f ri i.. .T y.;.a.~,{' • '~T t7'~'1e $B!~Tr / I: -tr 7'T~ 1 Ids '•yti. tr r.,~ ji 1 "~}}k i a~~~ t rv,p~F •~Jy °"r°o / Z kt~;'S i. 1,i ..ire t .,y,3?'?e r14~, r,:'.,yt Xalvt Cj~~r Sehi~fi°,Yu rb ~'t_T -'ibB _ y. '~n {.~..,rpV y.' r iY r rM1 s ' f~J~' ~i1~ s r 1~.' 7 1T ~lYp ~ lip h T r1 ~ , rAll }}l~ij Tt 4A ! v ~ 1~ p rl G P~}'. i ~IpIF 1r4 i ,l l,J'F '.r' s R~>" tl Yl~fn f~ r4 l~y ~SU .>ri"Y`~F:)F lYi~ ii.l~ 7 r ' ~ r~SI Y ~!Y ~f p~~•. °i ~Lrh 11~' i ,~Iyo, ' i,{} r`Np lil.h~'{~, `i pG Mgr gT ~r~ itj i;{ yJ.tl~ i ~~1,1 w ~ r slyyW del t~~ t; t ~7~ F { ~Yl: its ~i/ Znr ry,a ~~J~ r.j, ~~.Y~1 I .jy~ r~ r~Jrtiri~M1~1~{fL'jt It"1VtN 4 ~ jYb. irF t+41+ rl ! r i~f~J}tit i~ ~ f r M1 103L r { < p Y, 6 i °i 4 s '4 ~ ~ 1 L .I r ~ 1 l ~ ~ ` r~~t Y ~ ~4 7 `k, J.s' ,y•.pi ~ .:v e. .Y x e.,i~~p'.l vR 4H it}~ ~ p S~V 1'~.'.' r+w~~iw~ww~wi~l~wrlar ~ . and incorporated herein conveying said tract of land described therein to E. W. Belcher, et ux. SECTION III. That portion of the tract of land herein described being vacated, abandoned, and closed is made subject to all existing zoning regulations and deel restrictions, ifany, and subject to all existing easement righvs of others, if any, whether apparent or not. SECTION IV. This ordinance shall take effect and be in full force and effect from and after the date of its passage, and i.t is so ordained. - I PASSED AND APPROVED this the Q~~ ~~~1___ day of fG 984. 1 ~ CIT OF DE ON, , ATTEST: TEXAS f A':y CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS BY: I =t- i s f 1 rR r L, N E TM r / 1M ~rs^rr7-,• \r y(•^-• f~, J t' ~.r 7 ..r r r'~ .y THE STATE OF TEXAS, ffll'0W,'ALL 31EN BY THESE PRESENTS: } ! COUWY OF DENTON } That The City of Denton, Texas, a Municipal Corporation 1{ i~ of the County of Denton snd State of Texas , for and in consideration of j the sum of 1 i --------------------TEN AND N01100 ($10.00) --------------------COLLARS, i to it in hand paid by E. W. Belcher, et ux i , of the County of Denton and State of Texas the receipt of which ~I is hereby acknowledged, do, by these presents, BARGAIN, SELL, RELEASE, AND FOREVER f QUIT CLAIM unto the said E. W. Belcher. et ux, their heirs and assigns, all its right title and interest in and to that certain tract or par. cel of land lying in the County of Denton and State of Texas, described as follows, to-vdt: All that certain tract or parcel of land that is situated in the Alex Robertson Addition to the City of Denton, said addition being situated in the A. Hill Survey, Abstract No. 623, Denton County, Texas, said tract or parcel being a portion of Ruth Street as dedicated,, and being more fully described as follows: BEGINNING at the northwest corner of the intersection of Ruth Street and Cook (Ross) Street; THENCE Eouth 0°4'47" east along the west right-of-way line of Cook i ~I (Ross) Street.a distance of 50.00 feet to an iron pin; THENCE south 88°56'14" west along the south right-of-way line of Ruth Street a distance of 204.01 feet to an iron pin; THENCE north 0°5'0" west along the west end of Ruth Street a distance of 50.00 feet to an iron pin; THENCE north 88°56'14" east along the north right-of-way line of Ei Ruth Street a distance of 204.01 feet to the point of beginning and containing 10199.1 square feet of land. SAVE AND EXCEPT the City of Denton retains a 16' utility easement across the north portion of this tract of land. I 1 TO HAVE AND TO HOLD the said premises, together with all and singular the rights, privi. i leges and appurtenances thereto in any manner belonging unto the said E +I • Be.'~cher, et ux, their heirs and assigns, forever, so that neither the said 1 the City of Denton, Texas, a Municipal Corporation, its successors nor heiravwx any person or persons claiming under it shall, at any time aereaf ter, { hare, claim or demand any right or title to the aforesaid premises or appurtenances, or any part there- ~I of. E WITNESS our hand at Denton, Texas this k day of February A. D. 19 84 CITY 0 qLTON TEXAS W itnesses at Request of Grantor: ATTEST: BY: P. CH'P ART, MAY T~~11:r hN J e-'mi'l' a'.~.'~iw ♦ r ~ { " , 'fir '.tfi , t t ' 5l *'yS ~r ~'r k~'`'l,,r ~~~Vffr ra su.'a <; .~~;~t~~~+~a~>~"►~*"t~~"ira~~Jt.~~t'~`~f~~~~~!Y"k`Y~~~sr~~,~~~.~~~~,4,+~"Kr~rl:~~ • , ~'~a'~~~1''~s3 n. 4 i i I v r 1TJ 1T7 y < I M n r7 ~-r I x e . 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NO. AN ORDINANCE SETTING A DATE, TIME AND PLACE ON THE PROPOSED ANNEXATION OF CERTAIN PROPERTY BY THE CITY OF DENTON, TEXASr AND AUTHORIZING AND DIRECTING THE MAYOR TO PUBLISH NOTICE OF SUCH PUBLIC HEARING. THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. On the IL day of /j r1984, at 7:00 o'clock P. M. in the City Council Chambers of the Municipal Building of the City of Denton, Texas, the City Council will hold a public hearing giving all interested persons the right to appear and be heard on the p°oposed annexation by the City of Denton, Texas of the property described below. ~-A, On the 46r day of <C~- 1984, at 7:00 o'clock P.M. in the City Council Chamber of the Municipal Building of the City of Denton, Texas, the City Council will hold a public hearing giving all interested persons the right to appear and be heard on the proposed annexation by the City of Denton, Texas of the followinq described property, to-wit: All that certain tract or parcel of land lying and being situated in the County of Denton, State of Texas and being part of the 0. Brewster Surveyr Abstract No. 56 and the D. Daugherty Surveyr Abstract No. 357 and being more particularly described as follows: BEGINNING at a point in the present city limits, said point lying at the intersection of the west boundary line of the tract described in Ordinance No. 69-40, Tract II with the southeast corner of the tract described in Ordinance No. 80-56, said point also lying 500 feet west of and perpendicular to the centerline of I.H. 35-W; THENCE south 20°50'12" west along said present city limits as established by Ordinance No. 69-40 and 500 feet west of and parallel with the centerline of I.H. 35-W, passing at 1427.62 feet the south boundary line of a tract described in deed recorded in Volume 725, Page 365, same being the north boundary line of a tract described in deed recorded in Volume 725, Page 370 of the Deed Records of Denton County, Texas and continuing for a total distance of 1676.17 feet to a point for a corner; THENCE south 26°51'40" west along said present city limits and 50U feet west of the centerline of I.H. 35-W, a distance of 1605.4: t feet to a point for a corner in an east and west road, same being the south boundary line of said tract; THENCE south 89°55' west in said road, sarmc !sing the south boundary line of said tract a distance of 406.14 feet to a point for a corner, same being the southwest corner of said tract; THENCE north 0°33'45" east along the west boundary line of said tract a distance of 1670.98 feet to a point for a corner, same being the northwest corner of said tract described in deed recorded in Volume 725, Page 370, said point also being the southwest corner of said tract described in deed recorded in Volume 7250 Page 365; PAGE ONE a 1~S ,.~f, 1 1t F 1 a L' THENCE north 2°42' east along the west boundary line of said tract a distance of 1322.74 feet to a point for a corner in the present city limits, said point being the southwest corner of the tract described in Ordinance No. 80-67; THENCE south 69°49' east along said present city limits, passing at 868.80 feet the southeast coiner of the tract described in Ordinance No. 80-67 same being the southwest corner of the tract y described in Ordinance No. 80-56, and continuing for a total distance of 1681.22 feet to the place of beginning and containing 75.21 acres of land, more or less. SECTION II. The Mayor of the City of Denton, Texas, is hereby authorized and directed to cause notice of such public hearing to be published once in a newspaper having general circulation in the City and in the above described territory not more than forty days nor less than twenty days prior to the date of such public hearing, all in accordance with the Municipal Annexation Act (Article 970a, Vernon's Texas Civil Statutes), SECTION III. This ordinance shall be in full force and effect immediately following its passage and approval. ' PASSED AND APPROVED this the day of `C , 1984, C 0. STEWA YOR CIT OF DE TON, TEXAS ATTEST: CRARL WA-I-RF ITSECTARY CITY OF DENTON, TEXAS 1 APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY r CITY OF DENTON, TEXAS` T, BY: C9 I PAGE TWO a iF1 { 1 1 Sf x,'~ Arm NOTICE OF PUBLIC HEARING ON CONTEMPLATED ANNEXATION NOTICE IS HEREBY GIVEN TO ALL INTERESTED PERSONS THAT: The City of Denton, Texas, proposes to institute annexation proceedings to alter the boundary limits of said City to add the following described territory to the corporate limits of the City of Denton, tc-wit: All that certain tract or parcel of land lying and being situated in the County of Denton, State of Texas and being part of the 0. Brewster Survey, Abstract No. 56 and the D. Daugherty Survey, Abstract No. 357 and being more particularly described as follows: BEGINNING at a point in the present city limits, said point lying at the intersection of the west boundary line of the tract described in Ordinance N~-. 69-40, Tract II with the southeast corner of the tract described in Ordinance No. 80-56, said point also lying 500 feet west of and perpendicular to the centerline of I.H. 35-W; THENCE south 20°50'12" west along said present city limits as established by Ordinance ho. 69-40 and 500 feet west of and parallel with the centerline of I.H. 35-W, passing at 1427.62 feet the south boundary line of a tract described in deed recorded in Volume 725, Page 365, same being the north boundary line of a tract described in deed recorded in Volume 725, Page 370 of the Deed Records of Denton County, Texas and continuing for a total distance of 1676.17 feet to a point for a corner; THENCE south 26°51'40" west along said present city limits and 500 feet west of the centerline of I.H. 35-W, a distance of 1605.49 feet to a point for a corner in an east and west road, same being the south boundary line of said tract; THENCE south 89°55' west in said road, same being the south boundary line of said tract a distance of 406.14 feet to a point for a corner, same being the southwest corner of said tract; THENCE north 0°33'45" east along the west boundary line of said tract a distance of 1670.98 feet to a point for a corner, same being the northwest corner of said tract described in deed recorded in Volume 725, Page 370, said point also being the southwest corner of said tract described in deed recorded in Volume 725, Page 365; THENCE north 2°42' east along the west boundary line of said tract a distance of 1322.74 feet to a point for a corner in the present city limits, said point being the southwest corner of the tract described in Ordinance No. 80-67; i' R THENCE south 89°49' east along said present city limits, passing at 868.80 feet the southeast corner of the tract described in ` Ordinance No. 80-67 same being the southwest corner of the tract a described in Ordinance No. 80-56, and continuing for a total distance of 1681.22 feet to the place of beginning and containing 75.21 acres of land, more or less. a A Public Hearing will be held by and efore the City C uncil of the City of Denton, Texas, on the 13T~ day of Z_~ , 1984, at 7:00 o'clock P. M. it, the Ci y CCoul Cham ers of the Municipal Building of the City of Denton, Texas, for all persons interested in the above proposed annexation. At said time and place all such persons shall have the right to appear and be heard. Of all said matters and things, all persons interested in the things and matters herein mentioned, will take notice. NOTICE-PAGE ONE 1cR ~ 'T ^m 3 <;.n..- ew. , f - r r4 T r T w-r T r' s~ H+1 .re 'AC yr 3 „ '3' r 7, IF'1jf~~T' r '47' tP R~ ii w w 1'• if ~'eyJr~'r. ~M ° Yl . ;rf nL ° I r yf ~r ti -aye A~ 1 ! i '1 t " ,,t Lrrye is r; A Public Hearing will be held by and before the City Co ncil of the City of Denton, Texas, on the/tom day of lt~,= 1984, at 7:00 o'clock P. M. in the City Council C %amber o t e Municipal Building of the City of Denton, Texas, for all persons interested in the above proposed annexation. At said time and place all such persons shall have the right to appear and be heard. Of all said matters and things, all persons interested in the things and matters herein mentioned, will take notice. n: ~r. /IrARD O. SiE T, MAR CIF D NTON, TEXAS ATTLST: CHARL T LL N, IT SECRETARY i k i- ti NOTICE-PAGE TWO i C 'TFY _L >1' iA" x r r^ ~ i'r r • - -Fr ~,'4 q', "R°' FF ~C:FYI~rq s~1~{fl r ~ t~P J 1 L i R. r „ r ' 1 i* i~ No. y~ AN ORDINANCE SETTING A DATE, TIME AND PLACE ON THE PROPOSED ANNEXATION OF CERTAIN PROPERTY BY THE CITY OF DENTON, TEXAS, AND AUTHORIZING AND DIRECTING THE MAYOR TO PUBLISH NOTICE OF SUCH PUBLIC HEARING. THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. /ILI On the day of~ 1984, at 7:00 o'clock P. M. in the City Counci C ambers o t e Municipal Building of the City of Denton, Texas, the City Council will hold a public hearing giving all interested persons the right to appear and be heard on the proposed annexation by the City of Denton, Texas of the property describe3 bolow. L On the day of _t 1984, at 7:00 o'clock P.M. in the City Council Chamber o-fthe Municipal Building of the City of Denton, Texas, the City Council will hold a public hearing giving all interested persons the right to appear and re heard on the proposed annexation by the City of Denton, Texas c: the following described property, to-wit: All that certain tract or p,.rcel of land lying and being situated in the CocnLr of Centoa, State of Texas, being part of the H. H. H~.ygood Survey, Abstract No. 517 and the Wm. Hudson Survey, Abstract No. 586 and m•.)re particularly described as follows: BEG,NNIN, at a point in the presant city limits as established by Ordin,nce No. 64-40, Tract 7I1, said point lying 500 feet east of and perpendicular to thr, centerline of U. S. Highway 377 and in the north boundary line of the said Hudson Survey, same being the south boundary line of the said Haygood Survey; THENCE north 28°09'10" east, 500 feet east of and parallel with the centerline of said Highway 377 a distance of 2476.73 feet to a point for a corner in the east boundary line of a tract conveyed to Dr. Joe W. Rhoades by deed recorded in Volume 639, Page 486 of the Deed Records of Denton County, Texas; THENCE south 0°48'30" west along the east boundary line of said tract a distance of 526.18 feet to a point for a corner; THENCE south 86°58'43" east a distance of 27.84 feet to a point for a corner; THENCE south 0°56'04" west a distance of 1392.23 feet to a point for a corner; THENCE south 77°14'30" west a distance of 1195.78 feet to the I place of beginning and containing 25.99 acres of land; more or i less. SECTION II. The Mayor of the City of Denton, Texas, is hereby authorized and directed to cause notice of such public hearing to be p-blished once in a newspaper having general circulation in the City and in the above described territory not more than forty days nor less than twenty days prior to the date of such public hearing, all in accordance with the Municipal Annexation Act (Article 970a, Vernon's Texas Civil Statutes). I F PAGE ONE T T: r r ~'+"~,•n.'-'~s ~ +v"'t ' 7 ! ~ r. t s ! • + i s i~~rf .r '•e a ~ ~ ' r f~ M!~ i ~ t ,I 1.. lA,t ...'Ay k. .y ~t fJ y r J .il+ rr t 1'r III~~~ ~ br\ ~I',5 r.r I /rtrl t T Y } ! ! r r...i t r- • W I ~~i . 4 U! [ .f~:~ i 1.h _L"+ I t Zw~4~.. +E.~.$LVnf ~ili~w~5iY5~'~t~~~Z~~f~`,~l '~iCn l~r:fllw~~1'.•Ar er, e.~~~. r SECTION III. This orlinance shall be in full force and effect immediately { following its passage and approval. PASSED AND APPROVED this the day of , 1984. C ARD O S E , MAYO CIT OF D NTON, TEXAS J ATTEST: C OTTE ALLEN, CI SECRET CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS i BY: V I PAGE TWO s~~#3~D!byi' 0471 fir,.. ; ' ° ~ w `V 1 .~f4+' d r ' NOTICE OF PUBLIC HEARING ON CONTEMPLATED ANNEXATION NOTICE IS HEREBY GIVEN TO ALL INTERESTED PERSONS THkT: The City of Denton, Texas, proposes to institute annexation proceedings to alter the boundary limits of said City to add the following described territory to the corporate limits of the City of Denton, to-wit: All that certain tract or parcel of land lying and being situated in the County of Denton, State of Texas, being part of the H. H. Haygood Survey, Abstract No. 517 and the Wm. Hudson Survey, + Abstract No. 586 and more particularly described as follows: BEGINNING at a point in tha present city limits as established by Ordinance No. 69-40, Tract III, said point lying 500 feet east of and perpendicular to the centerline of U. S. Highway 377 and in the north boundary line of the said Hudson Survey, same being the south boundary line of the said Haygood Survey; 4,3 THENCE north 28°09'10" east, 500 feet east of and parallel with the centerline of said Highway 377 a distance of 2476.73 feet to a point for a corner in the east boundary line of a tract conveyed to Dr. Joe W. Rhoades by deed recorded in Volurse 639, Page 486 of the Deed Records of Denton County, Texas; THENCE south 0°48'30" west along the east boundary line: of said tract a distance of. 526.18 feet to a point for a corner; THENCE south 86°58'43" east a distance of 27.84 feet to a point . for a corner; THENCE south 0°56'C4" west a distance of 1392.23 feet to a point for a corner; THENCE south 77°14'30" west a distance of 1195.78 feet to the place of beginning and containing 25.99 acres of land, more or .r less. A Public Hearing will be held by and before the City Council of the City of Denton, Texas, on the day of J 1984, -~V 1984, at 7:00 o'clock P. M. in .he City Council Chambers of the Municipal Building of the City of Denton, Texas, for all persons h interested in the above proposed annexation. At said time and a place all such persons shall have the right to appear aced be heard. Of all said natters and things, allersons ter the things and matters herein mentioned, will take notice. ested in Y A Public Hearing will be held by and before the City Co nci1 of the City of Denton, Texas, on the 1_A--day of 1984, at 7:00 o'clock P. M. in the City Council Cha er of the Municipal Building of the City of Denton, Texas, for all persons interested in the above proposed annexation. At said time and place all such persons shall have the right to appear and be heard. Of all said matters and things, all persons interested in 6 the things and matters herein mentioned, will take notice. f i AR O STE RT'MAY O Y OF DINTON, TEXAS ATTEST: CHARLOTTE ALLEN, CITY SECRETARY ' PAGE SOLO rA^~^s,~ r4^'Y+• 7ft' ,c T~? $~r""~'«'r+?~r^s~F-+, S r. ra A - '•~\Y..++r~w..9s i 77r 7S"A'7.r 7w147WW t77T." 5':r 'n' . r r~~..1 ty '61}y~{ ~.r ltd ~E i~ l'~ a~ 1~ ~'B{'t,ni i 4'..1 }x J, NC.1 1 r is ~ 4AR V,'t ` r4 ...7~~ 3.. I r 7' J'r~ ~ `~.1 ~1 S.~r`la'~"t+'` ~'i~ al+'•~ W+~i`y ',SY .>~lllt r:Yw.~aw..~ i ~r J t. ~7 r • ' ,nJ~ i~r,1 r 4 A ,I ~ ~F ~ ~ ~ ~ 1'~ f ~ ~ NO 1 1 s, v AN ORDINANCE ANNEXING A TRACT OF LAND CONTIGUOUS AND ADJACENT TO THE CITY GF DENTON# TEXAS; BEING ALL THAT LOT, TRACT OR PARCEL Ora OF BAND CONSISTING OF APPROXIMATELY 175 ACRES OF LAND LYING AND BEING SITUATED IN THE COUNTY OF DENTON, STATE OF TEXAS AND BEING PART OF THE W. DABBS SURVEY, ABST. NO. 328 AND THE J. WEST SURVEY, ABST. NO. 1331, DENTON COUNTY, TEXAS; CLASSIFYING THE SAME AS AGRICULTURAL "A" DISTRICT PROPERTY; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the request for annexation was introduced at a regular meeting of the City Council of the City of Denton, Texas, on the petition of the City of Denton, Texas; and WHEREAS, an opportunity was afforded, t a public hearing held for that purpose on the 1r,_ day of 1983, in the Council Chambers for all interested persons to state their views and present evidence bearing upon the annexation provided by this Qrdinance; and WHEREAS, an opportunity was afforded, at a public hearing held for that purpose on the d6 r~day of 1983, in the Council Chambers for all interested persons to state their views and present evidence bearing upon the annexation provided by this ordinance; and WHEREAS, this ordinance has beet published in full at least one time in the official newspaper of the City of Denton, Texas, prior to its effective date, and after the public hearings; A0W1 THER FOR., THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTICN I. a' That the hereinafter described tract of land be, and the I same is, hereby annexed to the City of Denton, Texas, and the same is made hereby a part of said City and they land and the present and future inhabitants thereof shall be entitled to all the rights and privileges of other citizens of said City and shall be bound by the acts and ordinances of said City now in effect or which may hereafter be enacted and the property situated therein shall be subject to and shall bear its prorata part of the taxes levied by the City. The tract of land hereby annexed is described as follows, to-wit: All that certairr, lot, tract or parcel of land lying and being situated in this Courity of Denton, State of Texas, and being part e~ of the W. Dabbs Survey, Abst. Ho. 328 and the J. West Survey, f Abst. No. 1331 and being more paiticu!.arly described as follows; , y; BEGINNING at a point in the present city limits, said city limits being established '.)y Ordinance No. 74-36 Tr. 1I, said point lying 350 feet north of and perpendicular to the centerline of U.S. Highway 380 and in the east boundary line of the W. Dabbs Survey, Abst. No. 328, same being the west boundary line of the J. Williamson Survey, Abst. No. 1418; THENCE north along said survey lines passing the northeast corner of said Dabbs survey, some being the southeast corner of ti\ the said West survey and continuing north passing the northwest corner of the said Williamson survey, same being the southwest corner of the A. Calvin Survey, Abst. No. 306 and continuing d T s ,.g rA7'r'A',o"} 7 Y:•'R 61 ~~t~t'~ r" K ~~~''r taw kr~ f 3'f`IT ~ b' *f1f~~~y,~kj W r~t 1 ,i h Y•el?~i,+ ~1 021 ~ ,fir. } r • r ~ 'i° ~ . ~f ~ \w+t .S t rly~ rpr } ti '.y ~r J> f'7.~ t dR ~*~l r[e~~ J'~♦ ~t.r iA1' f 410 'S~ 7 r ~fJ] I'pYifi n:~1~r~~' On '"i r {i ~ e,J, .h.~ L~is4. 1 if, ~ r aj'.til'~le war T r wdi'r U,r ~lf ~x ~1:~ r s 7(+} ♦ ~'4r t~5f ~ ~"t: w4 !n, tr ,Y ti{. ~t G'. S ML r t fir,. [ A ' l+ 'i ~ .rr y'•'~''~ ~ r~i ~M V i'~i ? wt I.~1 11 d hf:rt~~.SP ~~"~r•J^ tl~lr 1 ~{fit, l.~ ~ 'h p".l~.i^f~ ,i north to a point for a corner, said point lying 10,560 feet Er north of and perpendicular to the said present city limits; ' THENCE westerly 10,560 feet north of and parallel with the said present city limits to a point for a corner in the east boundary line of a tract of laid conveyed to Ray Lynch by deed and recorded in Volume 871, Page 421, of the Deed Records of Denton County, Texas; ^r THENCE south along the east boundary line of said Lynch Tract to s point for a corner, said point lying 10,060 feet north of and perpendicular to the said present city limits; THENCE easterly 10,060 feet north of and parallel with said present city limits to a point for a corner, said point lying 500 feet west of the east boundary line of said West survey, same being the west boundary line of said Calvin Survey; THENCE south 500 feet west of and parallel with said survey line to a point for a corner in said present city limits, said point lying 350 feet north of and perpendicular to the centerline of U. S. Highway 380; THENCE easterly along said present city limits and 350 feet north of and parallel with the centerline of U. S. Highway 380 to the place of beginning and containing 175 acres of land, more or less. tC SECTION II. The above described property is hereby classified as Agri- cultural "A" District and shall so appear on the official zoning map of the City of Denton, Texas, which map is hereby amended ti accordingly. SECTION III_ f, This irdinance shall be effective immediately upon its passage. Introduced before the City Council on the 10th day of January, 1984. s' PASSED AND APPROVED by the City Council on the 21st day of ; February, 1984. CI' OF NTON, TEXAS ATTEST: TTE , CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM; C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS Y BY r rK' PLAN Of- SERVICE FOR ANNEXED AREA, CITY OF DENTON, TEXAS J,. WHEREAS, Article 970a as amended req~+ires that a plan of service be adopted by the governing body of a city prior to passage of an ordinance annexing an area; and WHEREAS, the City of Denton is contemplating annexation of an area which is bounded as shown on a map of the proposed annexation, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXA: Section 1. Pursuant to the provisions of Article 970a as • amended, Texas Code Annotated, Caere is hereby adopted for the proposed annexation area the following plan of service: I. Basic Service Plan A. Police (1) Patrolling, radio responses to calls, and other routine police services, using present personnel and equipment, will be provided on the effective date of annexation; (2) Traffic signals, traffic signs, street markings, and other traffic control devices will be installed ' as the need therefore is established by appropriate study and traffic standards. B. Fire rt. ' (1) Fire protection by the present personnel and equip- 4.,r ment of the fire fighting force, will be provided on the effective date of annexation. C. Water tip} r4' (1) Water for domestic, commercial and industrial use will be provided at ci`y rates, from existing city lines on the effective date of annexation, and Y thereafter from new lines as extended in accordance i with article 13.06 of appendix A of the code of the City of Denton, Texas. D. Sewer (1) Properties in the annexed areas will be connected to sewer lines in accordance with article 13.06 of appendix A of the code of the City of DenLun, Texas. E. Refuse Collection ' (1) The same regular refuse collection service now pro- vided within the city will be extended to the annexed area within one month after the effective date of annexation. ~f. x«-' a r. , t e~ ~ t i t ~~N Q F Y? ~ t. H Te FdrS..' J.4 ~t w dk Y~•~~`. ~ ~ Cl~^.~ ♦ ~ ~ I y/ }J y r [1~ I• ~ ~ R7 bN >J' , tf"~~lY ~~~1{~x'~h[it "•T y `t~F.{ ~1 !J ryi ,ZFc ~wy'!~ y' tk'~/• ~~.~~Y,~7~ p~{l~til ^f^Mat.i1 ,~t T"( 1 ^ 1~... r I ~ 'A . 1P- WIM . J • r t } ,~~1~)'' 4 A -ell, "IV PPPP A ~,~ie r r J Tf:.C A M.;Service Plan' Annexed Areas Page two F. Streets (1) Emergency maintenance of streets (repair of hazardous chuckholes, measures necessary for traffic flow, etc.) will begin on the effective date of annexation. q ' (2) Routine maintenance on the same basis as,in the present city, will begin in the annexed area on the effective date of annexation. (3) Reconstruction and resurfacing of streets, installa- tion of s'orm drainage facilities, construction of curbs 9.1 gutters, and other such major improvements, as the need therefore is determined by the governing body, will be accomplished'under the established policies of the city. G. Inspection Services =..,c (1) Any inspection services now provided by the city (building, electrical, plumbing, gas, housing, sanitation, etc.) will begin in the annexation area on the effective date of annexation. H. Planning and Zoning (1) The Planning and Zoning jurisdiction of the city will extend to the annexed area on the effective ' date of annexation. City plann.ng will thereafter ` encompass the annexed area. C U I. Street Lighting (1) Street lighting will be installed in the substan - tiall; dcvelopecl areas in accordance with the established policies of the city. J. Recreation rI•' (1) Residents of the annexed area may use all existing recreational facilities, parks, etc., on the effec- tive date of annexation. The same standards and policies now used in the present city will be fol- lowed in expanding the recreational progra.n: and i•';' facilities in the enlarged city. K. Electric Distribution r(1) The city recommends the use of City of Denton for electric power, r ti -1, 1 v ( c~~~+~s tip ~a>y KF#'t "~~.1..• ii, lJ~ St i r5 j Y T',")1 F .Y `f U a r' P .e t a JJ a FY{ ~ IJ a'., 1 .t. r ,.y1 T „y Y1 ~ ~i SJ 1. J {7kS~ ~yP~yI ` z~`1~~IaJ r.. l~bar~ w J 2 r, " , c<~~9 k..l 5N nY 5 fm r~~.' f r bye,9 " .`l,a iF J. t z 5,r t r9 N'T 5', rc rr r } ° r•-~ F / , ' rr , ~f A_.°3:, i-All ~ - ~ mot` f ~j ~ t 1 • ✓i "yliCVri a a ; •iG~~~4 A ^~;,!jr.~ ^ 1 } y^~i~i'..~ rn yt' 4 d• r • a~ ter +Ly :~M` r'•y.'' service Plan- Annexed Areas Page three L, Miscellaneous (1) Street name signs where needed will be installed within approximately 6 months after the effective 3 date of annexation. II. Capital Improvement Program (CIP) The CIP of the City consists of a five year plan that is up- dated yearly. The Plan is prioritized by such policy guide- lines as: (1) Demand for services as compared to other areas based partly on density of population, magnitude of problems compared to other areas, established technical standards and professional studies, and natural or technical restraints or opportunities. -?1 (2) Impact on the balanced growth policy of the city. (3) Impact on overall city economics. The annexed area will be considered for CIP planning in the r upcoming CIP plan, which will be no longer than one year from the date of annexation. In this new CIP planning year the annexation area will be judged accordingly,to the same established criteria as all other areas of the city. A, F: IFr. rx 4 1 }I ' n S ir.. 1 y rf t ♦ max.' 1 I - y r} • z . a try r G'1„ rl4~.f~ari ik~ r 1 ` i a rw Ia.v~ Y+i yty. i F .rf. a ~ . r y,f~j F fi~'7,} PP r y r ,1 i'r ..o-} i~ f41d }a+rf J ~ ht 11 CI J r i 1 1 'r:. f 1 + SeAi, e~ r,.y,•„ ~ tt` ' b~ ~~f r r ir • " 5 ! } 'r r r'r 1't w f J bq' ~4f ~_1°~ "'444~~~~ (''H'1~~E!f 1 f F r - 1 r ~ r wyr Jy9L ~ry"1Ir~ p MRS'. _•I,!`J n-~ "Y'`~ •t'.~ 1' {fA .Cfi. ~l1 w r~t{~\?"~~y~~J ~ f„' ^,~1,7.j3 ~YF L r ~7~ r f N 1 1 1 t ' y j r K.t€ yi yw•1,~ ii r ~~P f {('1 #Yt. r' .t ~F ~~~2~a ri~Y } SD : t,r ~ + 1 G ~'i3f ( it 3','G .r i.~.•J ~ij ,a,. f kd r frn Isl., rr'~,cf~k , rs ~h i:' .✓ypL?~ f 4 r t R1' r s3 . ~ ••tii ';n, m a sx~' i~u°b,..si~ _ t! y r t t it S / ll + yr .r w 4` t f ! r f''1.ty~ Ry ~?7 iF/4,~y it r 4+ ' 'f e i i ° t' At j' : +L 4t ' f ~f ' t t1 1':.7 S '17~ rig '..a; left nR,~• 1.71 J°ar,M1 ~ 1 y''Y. Lr ~Jy t .~~`Y.t f1r~iu ri Ay."' 3j,A w':4 a° ~d y~>> ~e ~ <b w' ,iA', fti' ! k t r+ J'(1, 't NO. AN ORDINANCE CALLING AND ORDERING AN ELECTION TO BE HELD IN THE CITY OF DEWON, TEXAS, ON APRIL 7, 1984s FOR TFE PURPOSE OF ELECTING A MAYOR AND TWO COUNCILPERSONS TO THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS FOR PLACES 7, 6 AND 5; ORDERING THAT THE PUNCH CARD ELECTRONIC VOTING SYSTEM ADOPTED BY DENTON COUNTY BE -1SED IN SAID ELECTION; PROVIDING FOR VOTING PLACES AND APPOINTING ELECTION OFFICIALS AND PROVIDING FOR ELECTION SUPPLIES. THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION I. Pursuant to the terms and provisions of Section 3.01 of the Charter of the pity of Denton, Texas, a municipal election is hereby ordered held in the City of Denton, Texas on the 7th day of April, 1984, for the purpose of electing the mayor and two (2) councilpersons to the City Council of the City of Denton, Texas, as follows: Place 7 - The Mayor to be elected for a two (2) year term. Place 6 - Councilperson to be elected for a two (2) year term. Candidates for Place 6 must reside in Single Member District 3 or 4. Place 5 - Councilparson to be elected for a two (2) year term. Candidates for Place S must reside in Single Member District 1 car 2. each to be elected at large by the qualified voters of the City of Denton. SECTION II. The polls for said election on April 7, 1984 shall be open from 7:00 A.M. to 7:00 P.M., and the election voting places or polling places shall be as follows: 1. All qualified voters residing in Single Member District No. 1 shall vote at: AMERICAN LEGION HALL 629 LAKEY STREET DENTON, TEXAS 2. All qualified voters residing in Single Member District No. 2 sl;dll vote at: FIRE STATION' NO. 4 2110 SHERMAN DRIV" DENTON, TEXAS PAGE 1 A K Ay:, P f ~ L l< l~~ [ t v 7. S i t .~1 w~ 1 y~ • + M;~"~^, f}a '1~ ~:'~,Y ~4 M 7. f a~* ffti it (~p~4 ~~>r ~~,~y ~x~. 6!.~ 1r,. i c is 1 •ylyrli 1 'i d P,[ kk`'Yr t 9 J.,f wC •l ~1 1y~A )}}}Yv w 6 J q1., S d ~ PP .N.. 1`*~»l° rArl~'J 4Y7r i ~W~F`:+';^'1~?,y; `.Y(i'"r.•'!~.4.f 431 "6~M1A. ~`IY'~l •:i ~k~' 3. All qualified voters residing in Single Member District No. 3 shall vote at: NORTH LAKES RECREATION CENTER 2001 WEST WINDSOR DRIVE DENTON, TEXAS 4. All qualified voters residing in Single Member District No. 4 shall vote at: DENIA PARK RECREATION CENTER 1001 PARVIN DENTON, TEXAS SECTION III. The election officials for said election on April 7, 1984 shall be as follows: 1. (a) Jo Luker shall be the Presiding Judge at the Central Counting Station. (b) Joann Garbacik shall be the Manager of the Central Counting Station. (c) Marilyn Robinson shall be the Tabulation Supervisor at the Central Counting Station. 2. Bill Luker shall be the Presiding Judge at the American Legion Hall in Single Member District No. 1. 3. Doris Chipman shall be the Presiding Judge at the Fire Station No. 4 in Single Member District No. 2. 4. Lee Knox shalt be tlie Presiding Judge at the North Lakes Recreation Center in Single Member District No. 3. 5. Thelma Escue shall be the Presiding Judge at Denia Park Recreation Center in Single Member District No. 4. 6. Charlotte Allen, City Secretary shall conduct absentee voting under the Texas Election Code. The respective Presiding Judge of each voting Place and the Central Counting Station shall be authorized to appoint a sufficient number of Clerks as they may deem necessary to assist them in said election, including bilingual assistants as required by law. SECTION IV. i Absentee voting shall be conducted by the Office of the City Secretary in the municipal building on East McKinney Street in the City of Denton, Texas, and the polls for absentee voting shall. be open for voting in person between the hour of 8:00 A.M. PAGE 2 r +r r Y L 4 k i H J r f -n ?1'~ r~ r"r • , ! f~rr4 1 ~ r , ir~yr .,r f ''~5 r ~`df1 M~ , ,t h . r r , , _ V~ Y i ~ Jy "~k;, i:.. .yi nh.,P~' I ~•a ~"r 1 + r '4 r i "~t ~y +i} i r ro-9 "~'r"?X a-, ,t , i ' w f'+• , ~ "'i ~af a.: E{~~C$~:`~"~a " and 5:00 P.M. Monday through Friday during the times allowed for absentee voting. SECTION V. The City Secretary is hereby authorized to prepare the official ballot for said election and perform each and every act required by the Charter and laws of the State of Texas for holding a -ctions. SECTION V1. It is further ordered that the punch card electronic voting system adopted by Denton County be used in said election in accordance with the term and provisions of Article 7.15 of the Texas Election Code. The punch card electronic voting system shall be used for absentee voting in person and by mail. PASSED AND APPROVED this the 21st day of February, 1984. CIT OF D TON, TEXAS ATTEST: 'CHARLOTTE ALLtN, CITY bLUKETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM C. J. TAYLOR, JR., CITY ATTORNEY CI'T'Y OF DENTON, TEXAS BY: i i PAGE .3 . ..r"s 0,lar'+9 E~ y.fir,3 ~^J x Lry ♦.t`6~ 1 Pr °jy it .'.✓LF'~Ttr~`~ `°fl../1w f Y is NO. 84-26 SE HA DECRETADO CITAR Y ORDENAR QUE SE LLEVE A CABO UNA ELECCION EN LA CIUDAD DE DENTON, TEXAS EL DIA 7 DE ABRI7, DE 1984 A PROPOSITO DE ELEGIR A UN ALCALDE Y A DOS MIEMBROS DEL CONCILIO Ar, CUERPO LEGISLATIVO MUNI- CIPAL DE LA CIUDAD DE DENTON, TEXAS PARA OCUPAR LAS PLAZAS 71 6 Y 5; SE ORDENA QUE SE USE 1N DICHA ELECCION EL SISTEMA ELECTRONICO DE TARJE- TAS PERFORADAS PARA VOTAR, QUE FUE ADOPTADO POR EL CONDADO DE DENTON; QUE SE PROPORCIONEN LOS SITIOS PARA VOTAR Y QUE SE NOMBREN LOS OFICIALES ELECTORALES Y QUE SE PROPORCIONEN LOS MATERIALES NECESARIOS PARA LA ELECCION. EL CUERPO LEGISLATIVO MUNICIPAL DE LA CIUDAD DE DENTON, TEXAS AQUI DECRETA: SECCION I. Referente a los terminos y a las provisiones de la Secci(5n 3.01 de la Carta Consti:tucional de la Ciudad de Denton, Texas, se decreta que se llev~.ra a cabo una eleccion municipal en la Ciudad de Denton, Texas el dia 7 de a.'-)ril de 1984, con el proposito de elegir al alcalde y a dos miembros del concilio para el cuerpo legislativo municipal de la Ciudad de Denton, Texas Como sigue: Plaza 7 - E1 alcalde sera elegido por un termino de dos arics. Plaza 6 - E1 miembro del concilio sera elegido por un termino de dos aflos. Los candidatos para la plaza 6 deberan de residir en el Distrito de un Solo Miembro 3 o 4. Plaza 5 - E1 miembro del concilio sera elegido por un termino de dos arios. Los candidatos para la plaza 5 deberan de residir en el Distrito de un Solo Miembro 1 o 2. cada uno sera elegido por los residentes de la Ciudad de Denton que reuneri los requisitos para votar. SECCION II. Las casillas electorales para la eleccion del dia 7 de abril de 1984 se abriran desde las 7 A.M. hasta las 7 P.M., y los sitios para votar o casi- llas electorales seran distribuidos como sigue: 1. Todo residente de la Ciudad de Denton que reune los requisitos para votar y que vive en el Distrito de un Solo Mieiabro No. 1 votara en: AMERICAN LEGION HALL 629 Lakey Street Denton, Texas 2. Todo res.idente de la Ciudad de Denton que reune los requisitos para votar y que vise en el Distrito de un Solo Miembro No. 2 votary en: FIRE STATION NO. 4 21.10 Sherman nrive Denton, Texas PAGINA 1 3. Todo residente de la Ciudad de Denton que reune los requisites para votar y que vive en el Distrito de un Solo Miembro N- 3 votara en: NORTH LAKES RECREATION CENTER 2001 West Windsor Drive Denton, Texas 4. Todo residente de la Ciudad de Denton que reune los requisitos para votar y que vive en el Distrito de un Solo Miembro No. 4 votara en: DENIA PARK RECREATION CENTER 1001 Parvin Denton, Texas SECCION III. Los oficiales de la eleccion del dia 7 de abril de 1984 seran los siguientes: 1. (a) Jo Luker sera el Juez que Preside en la Estacion Central de la Computation de Votos. (b) Joann Garbacik sera la Administradora de la Estacion Central de la Computacion de Votos. (c) Marilyn Robinson sera la Supervisora de la Tabulacion en la Estacion Central de la Computacion de Votos. 2. Bill Luker sera el Juez que Preside en la American Ia:gion Hall en el Distrito de un Solo Miembro No. 1. 3. Doris Chipman sera la Juez que Preside en Fire Station No. 4 en el Distrito de un Solo Miembro No. 2. 4. Lee Knox sera el Juez clue Preside en North Lakes Recreation Center en el Distrito de un Solo Miembro No. 3. 5. Thelma Escue sera la Juez que Preside en Denia Park Recreation Center en el Distrito de un Solo Miembro No. 4. 6. Charlotte Allen, Secretaria de la Ciudad, conducira las elecciones para electores ausentes bajo el Codiao Electoral de Texas. Cada Juez que Preside en los sitios de votacion y en la Estacion Central de la Computacion de Votos sera autorizado para nombrar a los secretarios que se consideren necesarios Para ayudar en dicha eleccion, i.ncluyendo a asis•- tentes bilingues como se requiere por la ley. SECCION IV. Las elecciones para los electores ausentes se conduciren en la Oficina de la Secretaria de la Ciudad en el edificio municipal en la calle de East McKinney en la Ciudad de Denton, Texas y el sitio de votacion para electores ausentes estara abj.erto para votar en pers,cna desde las 8 A.M. hasta las 5 P.M. de lunes a viernes durante el tiempo especi:icalo•para votar de esta manera. PAGINA 2 SECCION V. La Secretaria de la Ciudad esta autorizada para preparar la papeieta oficial para dicha eleccion p ra desempenar cualquier oficio que se requiera por la Carta Constitucional y las leyes del Estado de Texas para llevar a cabo elecciones. SECCION VI. Se ha dispuesto que el sistema electronico de tarjetas perforadas para votar, edoptado por el Condado de Denton, sera usado de acuerdo con las provisiones y los terminos del Articulo 7.15 del Codigo Electoral de Texe,s. Las personas que usaran el voto de ausencia, deberan de utilizar el siste- ma electronico de tarjetas perforadas para votar er, i,~ersona o por correo. PASADO Y APROBADC el dia 21 de febrero de 1984. i Richard 0. Stewart, Alcalde Ciudad de Denton, Texas TESTIGO: Charlotte Allen, Secretaria de la Ciudad Ciudad de Denton, Texas APROBADO COMO FORMA LEGAL C.J. Taylor, Jr., Procurador de la Ciudad Ciudad de Denton, Texas Por: PAGINA 3 d~.:' G 1.~1 • L X41 i r ♦ her u1~, ~ sr * ~ 1~ v :M ~L4 i ° a_~i. ~!.,r,YJ~yt~tp ~~Ct^~., `4 d. i , RESOLUTION IN APPRECIATION OF EARL E. JONES WHEREAS, the City of Denton is losing one of its most valued _ employees, Earl Jones, who wa.7 employed by the city of Denton or. February 18, 1946, serving until his retirement on January 31, 1984; and ~J WHERl+S, Earl Jones has always served the city of Denton and its rg citizens and beyond the mere efficient discharge of his duties ;n promoting the welfare and prosperity of the City, and has earned thv full respect and admiration of , his subordinates; and WHEREAS, the City of Denton has been extremely fortunate in having enjoyed the dedicated and outstanding services of Earl Jones; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON: x~ that the sincere and warm appreciat_on for Earl Jones felt by the members of the City council, employees of the City .;x r of Denton, and citizens of the community be formally conveyed to him in a permanent manner by causing this Resolution to be transcribed into the official minutes of the City of Denton, Texas, and forwarding to him a true' copy hereof; and BE IT FURTHER RESOLVED, rr t+ that the City of Denton does hereby officially and sincerely extend its best wishes to the Honorable Earl Jones for a long ,".nd successful retirement as a member of our community.; IN WITNESS WHEREOF, I have hereunto set my hand and caused the official seal of the City of Denton, Texas to be affixed this the 21st day of February, 1984. ,l IC ARfl0. S ♦iRT, YO CIT OF DE ON, TEXAS .S 1 ATTEST: CHAR kt- An(L-- LOTTE ALLEN, CITY SECRETARY x CITY OF DENTON, TEXAS afi 7{ a;~i1 + t .s APPROVED AS TO LEGAL FORM: ti :t JO D. MORRIS, ASSISTANT CITY AT NEY, CITY OF DENTON, TEXAS f:3~y e { c a r CITY OF DENTON EMPLOYMENT AGREEMENT THIS AGKEEMENT is made and entered into Dy and between the CITY OF DENTON1 TEXAS, uereinai:ter called "City" and CHRIS HARTUNG hereinafter called "Emg'oyee," both follows: of whom understand as RECITALS The City desires to employ the services of Chris Hartung as City Manager of the City of Penton as prov'.ied by the City charter and ordinance creating at-.d setting forth the duties of the City Manager. AGREEMENT 1. General City hereby engages Chris Hartung as City Manager of the City of Denton, Texas to perform the functions and duties specified in the City charter of the City of Denton and uy applicable provisions of the City code and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign. City Council appoints Chris fiartung as City Manager and may remove him at any time subject to the provisions of tuis agreement. 2. Compensation City agrees to pay Chris Hartung for W.s services at the base i salary rate of $56,000.00 annually payable in irstaliments at the same time as other employees of the City are, paid, and $3UU.UU per month car allowance. City agrees to increase said base salary and/or other benefits of Employee in sucu amounts and to such an extent as the City Council may determine that it is desira;,le to do so on the oasis of an annual salary review of said Employee made at the same time as similar consideration is given other employees generally. An annual performance review wili be couductLd during October of each year. Cit~ of Denton Employment Agreement Page Two J. Hours of WorK It is recognized that the City Manager must devote a great deal of his time outside normal office riours to business of the City, and to that end, the City Manager will be allowed to take compensatory time off as he shall deem appropriate during said normal office hours. Employee siiall not spend wore than ten (1.0) nours per week in teaching, consulting, or other non-City connected business without the prior approval of the Council. 4. Professional Development The City hereby agrees to budget and to pay the travel and subsistence expenses of Employee fur professional and official development of Employee and to adequately pursue necessary oficial and other iunctious for City, including but not limited to the Annual Conference of the International City I4anagement Association and such other national, regional, state and local governmental groups and committees thereof which Employee serves as a member. The City also agrees to budget and to pay for the travel and subsistence expenses of Employee for short courses, institutes and seminars that are necessary for Iiis or her professional development and for the good of the City. The City agrees to budget and pay the professional dues and subscriptions of the Employee necessary for his continuation and full participation, includin^ the riolding of responsible offices in national, regional, c.te and local associations and organizations necessary desirable for his continued professional participation, rrowth and advancements, and for the good of the City. 5. Termination and Severance Pa In the event of iris involuntary separation as City Manager, lie Saab be entitled to receive a lum sum payment equal to sixty (60) days aggregate salary; provide, however, that in the event Employee is terminated uecause of his or iier conviction for any offense involving mor-l turpitude or any illegal act involving personal gain to nim, then, in that event, City shall have no obligation to pay the aggregate severance sum designated in this paragraph. Involuntary separation as used in this paragraph means his discharge or dismissal by the City Council or uis resignation City of Denton Employment Agreement Page Tttree following a reduction in salary or other financial benefits of Employee in a greater percentage titan an applicaole across-the-beard reduction for all City employees or in the event tre Cicy tefi;ses iollowing a written notice to comply with any other provlsions benefiting Employee herein or the Employee resigns, ollowing a suggestion, whet-,her formal or informal, by the City Councii that he resign, thin, in that event, Employee may at tiis option, De deemed to De "cermiuated" at the date of such reduction or such refusal to comply .within the meaning and context of the nerein severance pay provision. Before voluntarily resigning iris position, Chris Hartung agrees to give the City Council at least tnirty (30) days notice in writing of his intF_ntion to resign, stating the reasons therefor. b. Ottier Terms and Conditions of Employment All provisions of the City charter and code, and regulations and rules of City relating to vacation and siCK leave, retirement and pension system contributions, holidays and other fringe benefits and working conditions as ti, y now exist or hereafter may be amended, also shall apply to Employee as they would to other employees of the City, in addition to said benefits enumerated specifically for cite benefit of Employee, except as herein provided. Employee will accumulate vacation time at the rate of one (1) day per month and be eligible to take six (6) days of vacation time after serving for six (b) months. Employee shall oe entitled to receive the same vacation and sick leave benefits as are accorded department heads, including provisions governing accrual and payment therefor on termination of employment. EXECUTED in duplicated originals this the/` day of « 190. EMPLOYEK: THE CITY OF DENTON, TEXAS BY: X~- t"'e'/C2% i taro to rt, t ayo Cit of enton, Texas WPLOYEE: 1 G. Chris Ha to , City anager City of Denton, Texas 1210C* 4n a it i ~F. \1: , s r .j;.`"1 i . 1. ~ V ~ .t tn!i Y~~~'Ps• 1~. 1 i i 1 R E S 0 L U T i 0 N WHEREAS, on September 19, 1977, the City Council of the City of Denton, Texas entered into .:n employment agreement with G. Chris Hartung to serve as City Manager of the City of r Denton, Texas; and WHEREAS, the City Council of the City of Denton is desirous f of retaining G. Chris Hartung as the City Manager of the City ~I of Denton, Texas; y,. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS: " SECTION That the Mayor of the City of Denton, Texas is hereby authorized to enter into a revised employment agreement with G. Chris Hartung to be effective immediately from and upon its y)( date of execution and for a period of one year thereafter. a SECTION II. s. That this resolution be effective immediately from and after its passage and approval by the City Council of the City V' of Denton, Texas. f PASSED AND APPROVED this the 21st day of February, 1984. ' NTEW~MT,-KAYOKV CI OF NTON, TEXAS ATTEST: A tiI ~`.AIL "CHARLOTTE ALLEN9 ~5'ECKEMY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: y C. J. TAYLOR, JR., CITY ATTORNEY t CITY OF DENTON, TEXAS ; f BY: at y, A, J, % 1 3f~f h , ~ r [ • 1~ Y ins L,"'/~ M1ir $l' .i , ~ ~S,S S y "i. r". , s''T r5~~ } "H,1~'v ~~L4P"'T~., r~~i~ R E S O L U T 1 9 N {-e WHEREAS, the City attorney of the City of Denton is appointed to office by the City Council and serves at they pleasure of the City Council u.'iet the terms and provisions of Article VI of the Charter of the City of Denton, Texas; and WHEREAS, on November 12, 1979 the City Council of the City r of Denton appointed C. J. Taylor, Jr., City Attorney of the City of Denton, Texas; and WHEREAS, the employment contract of C. J. Taylor, Jr. has, s been extended by the City Council of the City of Denton from year to year; and UHEREAS, after the annual performance review, the City ' J Council of the City of Denton is desirous of retaining C. J. ' Taylor, Jr. as the City Attorney of the City of Denton, Texas: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, OF THE CITY OF DENTON, TEXAS: SECTION I. The City Council of the City of Denton hareby extends the y employment contract of C. J. Taylor, Jr. as City Attorney of the City of Denton, Texas, for an additional one year to perform the function and duties specified in the City Charter, a t the City Code, and the laws of the State of Texas, and to perform such other legally permissible and proper duties and ' functions as the City Council shall from time to time assign. Ad SECTION II. The City Council agrees to pay C. J. Taylor, Jr. for his services an annual base salary of $45,115.20 payable in ?R installments at the same time as other employees of the City are paid. SECTION III. An annual performance review will be conducted by the City Council during the month of October of each year, and the City Council agrees to increase said base salary, fringe or other PAGE 1 i♦ e , A ' `J ~i4)i ~ fr~tau~3~~~"~1BiFL'1fYL~~ l t 41 ` w' r-, ' k i'i.~ } :t, (ff^l:u ~.~,J ~:~k:.A1~ ~ ♦;1 f u benefits in such amounts and to such an extent as the City Council may determine that it is desirable to do so on the basis of the annual periormance review made at the same time as similar consideration is given to other employees of the i city. SECTION IV. It is recognized that the City Attorney has to devote a great deal of his time outside normal office hours to business M of the %Uty, and to that end, the City Attorney will be y .a allowed to take compensatory time off as he shall deem appropriate during said normal office hours, provided, however, the City Attorney shall devote his entire time to he performance of the duties and shall not spend more than ten (10) hours per week in teaching, consulting, or other non-City connected business without the prior approval of the City A • Council. The City Council hereby agrees to budget and pay the travel and subsistence expenses of the City Attorney for A F~, professional and official development and to adequately pursue necessary official and other functions for the City, including but not limited to the Annual Conference of the Municipal Law +t Officers, City Attorney's Association and such other national, rY} regional, state or local governmental groups and committees thereof which the City Attorney serves as a member.; • r* The City Council also agrees to budget into pay for the i travel and subsistence expenses of the City Attorney for short r W y; courses, institutes and seminars that are necessary for his +s professional devei-)pment and for the good of the City of fI F Denton. The City Council agrees to budget and pay the professional dues and subscriptions of the City Attorney necessary for his continuation and full participation, including the holding of responsible offices in national, regional, state and local #r PAGE 2 I~..4I#YM 9~ 44# Y Si 1 S, _ _ .l i• ttL~ r~ _ ~C 51 t • .•'t .'Ar ~4 :'A r.N ~a ~~C[ Y .per + OY Jel, •.o jp 'r fi ~i `fr" { Y:-Cp, a rt S :4 rr w tusC ~'aC i } associations and organizations necessary and desirable for his continued professional participation, growth and advancement, and for the good of the City of Denton. SECTION V. Before voluntarily resigning his position, C. J. Taylor, t Jr., agrees to give the City Council at least thirty (30) days notice in writing of his intentions to resign, stating the reasons therefor. 1 In the event of his involuntary separation as City Attorney, he shall be entitled to receive a lump sum payment equal to sixty (60) days aggregate salary; provided, however, that in the event of his termination because of his conviction for any offense involving moral turpitude or any illegal act involving personal gain to him, then, in that event, the City s, shall have no obligation to pay the aggregate severance sum designated herein. Involuntary separation as used in this paragraph means his discharge or dismissal by the City Council or his resignation following a reduction in salary or other financial benefits of the City Attorney in a greater percentage than an applicable across-the-board reduction for all City employees or in the event the City refuses following a written notice to comply R i' with any other provisions benefiting the City Attorney herein _Ai or the City Attorney resigns, following a suggestion, whether formal or informal, by the City Council that he resign, then, in that event, the City Attorney may at his option be deemed to be "terminated" at the date of such reduction or such ay refusal to comply within the meaning and context of the herein severance pay provision. y'a4 SECTION VI. All provisions of the City Charter, City Code, and Rules ~Jk 0 and Regulations of the City adopted by the City Council relating to vacation and sick leave, retirement and pension 3 wy` PAGE 3 ~ • ♦ Ott. v, 'i • ~1 system contributions, holidays and other fringe benefits and f i working conditions as they now exist or hereafter may be j amended, shall apply to the City Attorney as it would to other employees of the City, in addition to said benefits enumerated f specifically for the benefit of the City Attorney, except as t; herein provided. The City Attorney shall be entitled for receive the same vacation and sick leave benefits as are v rf accorded other department heads, including provisions a governing accrual and payment therefor on termination of a employment. `a PASSED AND APPROVED this the 21st day of February, 1984. ~a i Q. CI Y OF D TON, TEXAS ATTEST: CHARLOTTE , GITY BUY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS ~x BY: f yi Y rY PAGE 4 ki cx Y a :r RrX?' 4 R E S O L U T I O N WHEREAS, the City Council of the City of '+enton is of the opinion that the best interest of the citizens of Denton County would be served if John William McCrory is denied parole; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON, TEXAS: r SECTION I. The City Council of the City of Denton, Texas, hereby Y' objects to the release from prison of Denton County resident ` John William McCrory and requests the Texas Board of Pardons and Paroles to deny the request for parole by John William McCrory. SECTION II. That the City Secretary is hereby directed to forward to i the Texas Board of Pardons, Room 711, Stephen F. Austin ,t Building, Box 13401, Austin, Texas 78711 a certified copy of this resolution objecting to the parole of John William McCrory. PASSED AND APPROVED this the 21st day of February, 1984. ti4. -a r / i T: CIT OF DTON, TEXAS ATTEST: CHARLOTTE SECRETARY CITY OF DENTON, TEXAS k t ` APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS I, ;J BY: i S RFS01,UTI0N I ~ WlEREAS, a majority of the Council will be out of the City of Denton on March 6, 1984, and it is necessary that the Council meeting for such date be postponed until March 13, 1984; NOW, x THFFEFORF, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DFNTON, TEXAS: SFCTION I. * That the regular Council meeting to be held on March 6, 1984 e be postponed until March 13, 1984. PASSED AND APPROVED this the 21st day of February, 1984. s r STEW , CIT OF D NTON, _FXAS ATTEST: T EN, CITY SECRET R CITY OF DENTON, TEXAS s APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXASR BY: l'~A M I 6 y, yi lr '..L4.Cn•iirrr , : w .'fir hr F r C' t ~p. Y i R E S O L U T I O N WHEREAS, there are within the City of Denton, certain roads which are an integral part of the county road system; and one or more County Commissioners of the County of Denton have expressed r. the desire to cooperate in specific instances in the repair and maintenance of certain roads within the city which are part of the county road system; and WHEREAS, for such County Commissioners to undertake any road work upon roads within the city, the express consent of the city is required; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DENTON, TEXAS: SECTION I. That the County Commissioners of Precincts 1, 2, 3 and 4 of the County of Denton are hereby expressly authorized to repair, construct, reconstruct and maintain roads within their respective precincts which are within the city limits of the City of Den:.on. PASSED AND APPROVED this the J day of , 1984. x /ICWD TFW , R CITY OF DE TON, :ERAS ATTEST: UHAFLOTTE ALLEN, C1 SS % SECRETARY T4 CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM: C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS BY: ..rT CC-215- EASEMENT. Martin Stationery Co., Calk" THE STATE OF TEXAS, vot 1347Pir,;E203 COUNT KNOW ALL LIEN BY THESE PRESENTS: ~~Oh~ DENCON THAT Theron Gerald Snider, Jr PROPERTY RECORDS c t42.5 of DENTON COUNTY, TEXAS , in consideration of the sum of One dollar ($1.00) and no cents------------------- and other good and valuable consideration in hand paid by the City of Denton, Texas receipt of which is hereby acknowledged, do 1-y these presents grant, bargain, sell and convey unto to the City of Denton, Texas . the free and uninterrupted use, 'liberty and privilege of the passage in, along, upon and across the following described property, owned by him . Situated in Denton County, Texas, in the J . Brock Survey, Abstract No. 55. et,l that certain 0.052 acre tract, or parcel of land situated in the J. Brock Survey, Abstract Number 55, City of Denton, Denton County, Texas; said tract being part of a tract occupied on the ground as tract shown by deed to Theron Gerald Snider, Jr. and recorded in Volume 967, page 908 of the Deed Records of Denton County, Texas and being more part;cularly described as follows: Beginning, for the North East corner of the tract being described herein at an iron ;in set in the South right-of-way of McKinney Street (50' South of centerline) being in the West line of T.M. Downing Survey, Abstract Number 346 and the East line of salt: Brock Survey at a distance of 141.7 feet East of East tight-of-way of Woodrow Lane; Thence South 01 degrees 34 minutes East with said Brock Survey 16.0 feet to an iron pin; Thence North 88 degrees 10 minutes 40 seconds West parallel with the center of said road 141.7 feet to an iron pin in said East right-of-way of Woodrow Lane; Thence North 01 degrees 34 minutes West with said right-of-way 16.0 feet to an iron pin in said South right-of-way of McKinney Street; Thence South 88 degrees 10 minutes 40 seconds East 141.7 feet to the point of be- ginning. And it is further agreed that the said City of Denton, Texas , in consideration of the benefits above set out, will remove from the property above described, such fences, buildings and other obstructions as may now be found upon said property. Forthe purpose of constructing, installing, repairing and perpetuall- maintaining public utilities in, along, upon and across said premises, with the right and privilege at all times of tha grantee herein, his or its agents, employees, workmen and representatives having ingress, egress, and regress in, along upon and across said premiss Wir the pu ow; o making additions to. improvements on and repairs to the said public utilities or a t 4 AVE AND TO HOLD unto the said City of Denton, Texas as aforesaid for the purposes aforesaid the premises above described. Witness my hand this the, 41a o January f84 fiheron Ger 1 Snider, Jr. VOL1e~~~PES`~ ACKNOWLEDGMENT THE STATE OF TEXAS, COUNTY OF DENTON BEFORE NIF., the undersigned authority, on this day personally appeared Theron Gerald Snider, Jr. known to me to be the person whose name subscribed to the foregoing instrument, and acknowledged to me that he txecutee the same for the purposes and consideration therein expressed. EN UNDER MY HAND AND SEAL OF OFFICE, This 10 clay of • January A.D. 1984 Notary Public, in and for the ggLLk qqjj exas. My Commission Expires ...._......'..~4..',.t1. . . ACKNOWLEDGMENT THE STATE OF TEXAS, i COUNTY OF _ f BEFORE ME, the undersigned authority, on this day personally appeared known to me to be the person whose name subscribed to the foregoing instrument, and acknowledged to me that be. executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This jy cf A.D. 19 (L.S.) Notary public, in and fur the "state of Texaa, My Commission Expires CORPORATION ACKNOWLEDGMENT THE STATE OF TEXAS, COUNTY OF._ BEFORE ME, the undersigned authority, on this day personally appeared_..__._.__.__ known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said a corporation, and that he executed the same as the act of such corporation for the purpot 6 and consideration thcretn expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This _...day A.D. U.S.) _ Notary Public, in and for the State of Texas. My Commission Expires CLERK'S CERTIFICATE THE STATE OF TEXAS, COUNTY OF 1, _ County Clerk of the County Court of said County, do hereby certify that the foregoing instrument of writing date or. the - day of , A. D. It' , with its Certificate of Authentication, was filed for word in my office on the day of A. D. 19 , at o'clock. M., and duly recorded this day of....... A. D. I9......_., at, o'clock M., in the . Records of said County, in Vulume..... on pages WITNESS MY HAND AND SEAL OF THE COUNTY COURT of said County, at office in. , the day and year last above written. AWE Of TFY.M COUNTY Of DMON CD911TY ClEftlC 6[n!,v Lan;~, ia» ' Lf frtrtby certify ON nr Klrurneat Nr: N d ca 1hVounty Clerk......................... County, Texas. (L. S.) date and lime slamnd Nreon by ma wd was dufyldtj' _ Deputy. owed In the s*T% 4-4 f=Ca Lf :fe nand rtcoide H QWDn twnty, leaa; as elz,;,:d he,tcn by net, FEB231984 Opp 04 -I ~~GItRIY {uAfis CObflly, ipta t'; q~"+ ~ d o a ~ fj c Ci a t: a, n N o° i o fir'n v e y/ i 7.a G`' ' U i E u 0 9 N Q t~ k ' C n w i a _c I Y; O V„ - G L 0 1 °r l ° 01 2Va ~t - 9 I I a t~ PO c3 i 5 rl ri CC-215-EASEMENT, a Martin Statlonery Co.. Dallas vOL 12417pnE261 THE STATE OF TEXAS, KKOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON REAL PROPERTY IECOROS 94?4 THAT Donald R. Vidrine and Jimmie Dean Bishop of DENTON COUNTY, TEXAS in consideration of the sum of One dollar ($1.00) , nd no cents------------------- and other good and valuable consideration in hand paid by the City of Denton, Texas receipt of which is hereby acknowledged, do by these presents grant, bargain, st.11 and convey unto to the City of Denton, Texas , the free and uninterrupted use, liberty and privilege of the passage in, along, upon and across the following described property, owned by them . Situated in Denton County, Texas, in the C. Carter Survey, Abstract No. 268. All that certain lot, tract or parcel of land lying and being situated in the City and County of Denton, State of Texas, and being part of the J. Carer survey, Abst. No. 268, and being part of Lot No 4, Block J, of the Brentwood Addition, an addition to the City/County of Denton, and also being part of a tract of land ap conveyed from Sam C. Evans and wife,Pat Evans to Donald R. Vidrine and Jimmy Dean Bishop by deed dated 12-23-69 and recorded in Volume 596, Page 412 of the Deed Records of Denton County, Texas, and more particularly described as follows: Beginning at the Southeast corner of said tract, same being the Southeast corner of said Lot 4 and in the North right-of-way of Crestwood; Thence North 88048' West along the South boundary line of said Lot 4, same being the North right-of-way line of Crestwcod, a distance of 10.01 feet to a point for a corner; Thence North 1027' West, 10 feet West of and parallel to the East boundary line of said Lot 4, a distance of 185.25 feet to a point for a corner, said point lying 10 feet South of and perpendicular to the Northeast boundary line of said tract; Thence North 58056' West, 10 feet South of and parallel to the Northeast boundary line of said tract to a point in the North boundary line of said tract, same being the South right-of-way line of Castle Lane; Thence Easterly along the North boundary line of said tract, same being the South boundary line of Castle Lane to the Northerly Northeast corner of said tract; Thence South 58056' along the Northeast boundary line, a distance of 27 feet to a point for a corner, same being the Easterly Northeast corner of said tract; Thence South 1027' Fast, along the East boundary line of said tract, a distance of 191.2 feet to the place of beginning. And it is further agreed that the said City of Denton, Texas , in :onsid~rjtj&l Q( the belitfits above set out, will remove from the property above described, such fences, bt Udjvgi and other obstructions as may now be found upon said property. For the purpose of constructing, installing, repairing and perpetually maintaining public utilities in, along, upon and across said premises, with the right and privilege at all times of the grantee herein, his or its agents, employees, workmen and representatives having ingress, egress, and regress in, along upon and across said premises for the purpose of making additi ms to, improvements on and repairs to the said public utilities or #of qny pirt~ eraofa. O : ,p .w !T~t A }X~ MD unto the said City of Denton, Texas as aforesaid for ~t the purposes aforesaid the premises above described. Witness our hands , this the 9 $A day of rdaeWy A.D, 19 84 Do aid, R. Vidr e mmie Dean Bishop vot 1j'47P!rA2 ACKNOWLEDGMENT THE STATE OF TEXAS, COUNTY OF DENTON BEFORE ME, the undersigned authority, on this day personally appeared Donald R. Vidrlne. known to me to be the person whose name fJ subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed. E AND SEAL OF OFFICE, This S#-k)day of A04-wy A, D. 1945A Lb.. •..Itr. Notary Public, in and for the (ate of Texas. 1Siy Commission Expires...4.'..(..•.Qfr...____._._.-.._....._..._. ACKNOWLEDGMENT THE STATE OF TEXAS, COUNTY OF DENTO`I BEFORE ME, the undersigned authority, on this day personally appeared Jimmie. Dean_ Bishop known to me to be the person whose name ;jr subscribed to the foregoing instrument, and acknowledged to me that he.. executed the acme for the purposes and consideration there r expressed. YEN UNDER MY HAND AND SEAL OF OFFICE, This %5 day of A"rMiv/Y.. A.D. 19.6¢ t N. lM1fa M T~tt11 A Notary Pubic, in and for the Sta 9yI Texas. leaf My Commission Expires _...4.'.1.......Ya . CORPORATION ACKNOWLEDGMEN'T' THE STATE OF TEXAS, BEFORE ME, the undersigned authority, COUNTY OF. _ . on this day personally appeared_ . known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said - a corporation, and that he executed the same as the act of such corporation for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, This .....__-.-._...._...day of__._.-~_.. , A.D. 19.-..._.. (L-S.) _ _ Notary Public, in and for the State of Texas. My Commission Expires _ CLERK'S CERTIFICATE THE STATE OF TEXAS, 1 County COUNTY OF . . . . . . I, _ _ _ . Clerk of the County Court of said County, do hereby certify that the foregoing instrument of writing dated on the day of A. D. 19 , with its Certificate of Authentication, was filed for record in my office on the day of_ . _ , A. D. 19. at. o'clock.. M., and duly recorded this day of..... A. D. 19.. , at o'clock _ M., in the ........,Records of said County, in Yolcme............ , on pages...._. WITNESS MY HAND AND SEAL OF THE COUNTY COURT of said County, at office in. , the day and year last above written. b1Aif OF TEXAS Cum OF DEMOtt COUNTY CLERK, Den on County. Tries County Clerk . County, Texas. (L. S.j[hereby cerbly that Ills Imtrumeat was flkd oa 16e , Deputy. dole and lime stamped hosoa by me end was duly y Corded In the volume and Pape of the rimed raco* of Denton Cmritj, Tway as stxroed hereon by ma. FEB 2 31934 . fa G A COUNTY CLERK. IN n Cou0. T ~ a L S A r a. a a ie a r3 RF G. ~ i I w~3 ~ •w ~ ~ ~ ro .C: h ti O 1 -O v v o s YJ V I w ix. +r; rai Z! T14 E U i ! W 7+ 1 f V 'O: W Ni A ii r W C; „1 i A i W j fay 7. 1i I Q E ' y ~j Sv O o KV J /c`r `rte vi ( _CEt;SS ` I j■ ' , O p i e s C 14 ~.■{a .Q ~paj 1 f r tt~ M I V Rl W 1 tL S r r; RED PROPERR RECORDS THE STATE OF TEXAS S RELEASE OF LIEN COUNTY OF DENTON S 1.0300 WHEREAS, the City Council of the City of Denton, Texas, has here- tofore by Ordinance No. 61-24 , duly enacted on the 11th day of July , 19 61 , determined .he necessity for and ordered the improvement of Bolivar Street in the City of Denton, Texas, in the manner and according to the plans and specifications therefore, which plans and specifications have heretofore been approved and adopted by said City Council; and WHEREAS, a notice duly executed in the name of the City of Denton, Texas, of the enactment of the said above described ordinance has heretofore on the -21st day of October , 19 66 been filed in the Deed Records of Denton County, Texas, in Volume 543 , Page 233 and 'WHEREAS, the City Council of the City of Denton, Texas, by Ordi- nance No. 61-24 , duly enacted on the 21st day of October 19 66_, declared the liability of the adjacent property owners for a portion of the cost of improving the said portion of Bolivar Street , and declared the same to be a lien upon the said abutting properties; and WHEREAS, in the aforesaid instruments, Lot 75/416 Unit 5 in the name of H.B. Bledsoe, Est, was shown to be specially assesed in the amount of $_437.18 and WHEREAS, the property owner's share of the cost of improving Lot 1.5/416 Unit 5 abutting upon Bolivar Street in the City of Denton, Texas, is $ 437.18 ; now, therefore, IN CONSIDERATION'of the payment by the said H.B. Bledsoe, Est. to the City of Denton, Texas, of $431.18 receipt of which is hereby acknowledged, the said City of Denton, Texas, does hereby forever release and discharge the said H.B. Bledsoe, Est. . his/her heirs and assigns, and Lot 7.5/416 Unit 5 as shown on the City !lap of the said City of Denton, Texas, from any PAGE ONE n r • 0' and all special assessment liens and claims arising by virtue of the improvements to lz*.oot in the City of Denton, Texas, described in the aforesaid ordinances by the City Council of said City, and in the aforesaid notice recorded in Volume 482 , Page 359 of the Deed Records of Dentory County, Texas. / EXECUTED this the ; day ofd, , 198 . CITY OF DENTON, TEXAS BY .riA OR J T I • s AR '•C zu OF .D$N:TON, TEXAS THE STATE OF TEXAS S COUNTY OF DENTON S This instrument was acknowledged before me on the cay of ' 19byQ~C~(` zI4- 0!, Mayor of the City of Denton, Texas, a Municipal Corporation, on behalf of said Municipal Corporation. JEANETiE SCATT NUTbRY t ~W7 ra,~ ►,er< asa d tau, 1 4y kmmissho [~pkf Ya rh 3L I9~ PUBLIC L,`.... DENTON COUNTY, TEXAS My Cumm155ion expires: P.iGE T'1O z - C vz o G 3 r W H _ f 04 HENRY S. MILLER CO, DEVELOPMENT GROUP October 1 1984 Mr. David Ellison Senior Planner City of Denton 215 East McKinney Denton, Texas 75201 RE: Traffic Light on High;Fay 288 Denton Yoga Center Dear David: Enclosed please find a copy of a letter from one of our leasing agents etTi hasizing the importance of the above referenced traffic light. Please advise us as to the schedule for installation of this light. Sincerely, Thomas M. Amer Project Directcr dle 200i Bryan Towel, 30th Fim Dallas. Te.aa 75201 12141 766.9171 i HENRYS. GRILLER CO., REALTORSI 2001 BRYAN TOWER 70TH FLOOR, DALLAS, TEXAS rs20E-2183 (214) 743-9E7+ AUSTIN DALLAS EL PASO FORT WORTH HOUSTON SAN ANTOMO BRUS-gLS FRAWURT TELEX M245P MEMORANDUM TO: Tom Mosser FROM: Greg Rabin DATE: September 25, 1984 RE: Traffic Light for Denton Towne Center Tom : As we discussed a month ago, I still feel a traffic light at the Golden Triangle Mall entrance and the thoroughfare between our D.~nton Towne Center would greatly alleviate the traffic problems all ready generated for the retail explosion in the mall area. This matter has been brought to my attention by many of the tenants on University Drive, the other Denton retail area. Some merchants say they will not consider relocating or expanding to this area until they (the city) decide to correct the traffic problems there. I know you cannot install the light, but your persistence with the City of Denton might solve this problem and better the mall area. I am trying to eliminate any objections from our prospective merchants. Thanks. GR/eo NO^/i[IUAI.'gCOAA'Pa'S.4A•BIS U'pgAl !'~SP":'A"'ors ~CCAr CS fJ[k [a5 ivy.r_'E 7 uCAC [5'A•C 4A4tiiC [lVr SOC Crv (Y ^Q5•ah aC+l*C45 W9.VUr ~ri•.2 A4I[aCAV•6''.'E74..[c•.'C.vs~:ta5.u[arAV 5CC 4"•7[n(Y CS'A•E Ctx.YYIC+S M'[aY r.?Jt ^C4(5'.'[n~[Lr'C• It 6 t.~.~~ io~r s A N N E X A T I O N S 1 9 8 4 Ora. Date Annexed Area Annexed Location of Annexation 84-115 September 18, 1984 11.10 acres North of I-35E ana soutneast of Maynill to ~(A-6) 84-111 September 4, 1984 31.33 acres East sine of FM 2164 (north Locust) and west of 'twin Lakes Mobile Home Park - Nash (A-5) 84-106 August 21, 1984 9.01 acres beginning approximately 700 feet east of Snerman Drive - hotloway (A-4) 84-098 August 7, 1984 47U.00 acres beginning 350 feet south of and perpendicular to the centerline of Hwy 380 (A-3) 84-097 August 7, 1984 81.44 acres South side of Paige Road and along the west side of Swisner Road and north of the MKT Railroad (A-1) 84-Ob3 may 22, 1984 75.21 acres West of I-35W and'norta of Corbin Road (L-1645) 84-025 February 21, 1984 175.00 acres worth side of Hignway 380 east (Z-1621) 84-018 February 13, 1984 267.08 acres between 1-35W and Santa Fe Railroaa ('L-lbIZ) 84-017 February 71 1984 348.U0 acres I-35E between Loop 288 ana Mayhill Road (z-1613) 84-016 February 7, 1984 43.90 acres West of I-35W and south of city limits ('L-1611) 84-015 February 7, 1984 1014.40 acres South of Hwy. 380 and west of 1-35 ('L-1b1U) A N N E X A T I O N S 1 9 8 3 ord. it uate Annexed Area Annexed Location of Annexation 83-134 November 15, 1983 15U.5U acres FM 416 and Maynill Roaa, extending easterly e5O feet either side of centerline o: Fr14zo for a distance of approximately j,000 reet. (L-1590) 83-090 August 16, 1983 2~9.6U acres South side of Jim coristal and west of existing city limit (6-1578) 83-055 June 7, 1983 151.49 acres South of Texas Pacitic-.,4K'P RR, nortn of Highway 380 and east of Cooper CreeK Road (4-1564) 83-033 April 5, 1983 456.00 acres East of FM 2181 and north of Robinson icoaa (L-1560) 83-027 March 15, 1983 3.42 acres cJt; of intersection of 1-35 and Hwy 77 (6-1552) 83-016 February 15, 1983 63.89 acres Last side of Maynill Road (Z-1541) 83-017 February 15, 1983 111.72 acres troth sides of em 1830 soutn of Hobson Lane (6-1542) 83-018 February 15, 1983 121.12 acres ooutn of Euwaras/Foster Road ('L-1549) 83-019 February 15, 1983 24.60 acres immediately east of hewer Plant (6-1550) A N N E X A T I O N S 1982 and part of 1981 Ord. i Date Annexed Area Annexed Location of Annexation 82-052 June 8, 1982 208.00 acres between Jim Christal Road and Highway 380 (Z-1534) 82-007 January 12, 1982 201.50 acres North side of Uenton, between Sherman Drive ana Wortn Locusi (Z-1518) 82-006 January 12, 1982 470.70 acres Nortn side of Uenton, oetween Highway 380 ana Sherman Drive (Z-1512) 82-005 January 12, 1982 53b.49 acres Nortn side or Denton, between Nortn Locust and *1'exas Instruments Property (4-1519) 82-004 January 12, 1982 401.93 acres between Texas Instruments Property and I-35 (Z-1520) 82-003 January 12, 1982 8.30 acres North side of Spencer Road east of bridges 6treet (2-1514) 82-002 January 12, 1982 .28 acre small parcel located between Fort Worth Drive and FM 1830 (Z-1513) 81-094 Octoher 6, 1981 44U.00 acres Maynill Community (Z-1505) 81-076 August 25, 1981 63.OU acres West side of FM 1830 (4-1496) ANNEXATION HISTORY January, 1976 April, 1983 Area of Dis- Vol. Invo1. Carry- Year Denton annexed Annex. Annex. 10% over acres (acres) acres acres acres (acres) 1983 231943.41 781.61* 21394.34 1,b12.73 19132 22,11b.21 1,827.2 21211.b2 3d4.4L 1981 21,639.68 26.474 63.U 44U.0 2,163.96 1,723.9b 1980 21,360.49 92.27 371.4b 2,136.04 2,i3b.04 1979 21,380.73 113.51 93.27 2,138.07 2,138.07 1978 22,055.64 755.2 80.29 2,205.56 2,205.56 1977 21,468.72 586.92 2,146.87 2,146.87 1976 21,468.72 2,146.87 2,146.87 309 of 23,943.41 acres = 7,183.02 - 781.61 committed 6,401.41 acres or lU sections * includes annexations completed and in progress thus far this year I c z rn m ~ r 0 C D =m (A v m z N r*~ Z o ° - vC W -4 mA 5 m 11,E jr n~ y m D D Z ~mg ` N O ~ o $ ~ LM D mr z O v vii A a 3 p' n o Q io -1 T CL M ^v --h o c (1) ==r v v c~ rc n 3 ~ N O Q r fi N a 3 CD CD 3 is 7 7 r-4 l< a rf A_ Ll vi Ant -CS C H O w Ss t< C+ -S T3 (D d o E rD -S N X N r9 N \ U rt C+ r9 + rnn J. a~ro s ~n 0 N r (D r) _ z ° 3 Z C+ -I a n o rn so. to O OO a V_-S m l< (D M rD N n f~ fD w N 3 rzD O O O M m r+ ff C+ ~ 3 v < Ca= <<rv { rfl0 N E CL C+ , n Do O. a C+ ct O O L" Z J..--I a O LM E G N --4 O rD (D C NtoM 3 a %0 N O O N s~ o D R A v ; c b o a C+ o 0 z =(D11 =M c°4o a~C D a 1 -5 -s n C+ c N E M LC "S Cl E O r0 N 3 • J, M 7 r-► !C ANNUAL REPORT fl c~iaro«ma ~ U t~rs~~,nso~v 'FES 2 A 1984 • :I DENTON FIRE DEPARTMENT 1983 ADMINISTRATION CITY OF DENTON CITY MANAGER CHRIS HARTUNG MAYOR RICHARD STEWART MAYOR PRO-TEM COUNCIL MEMBER RAY STEPHENS JACK BARTON COUNCIL MEMBER COUNCIL MEMBER JIM RIDDLESPERGER CHARLES HOPKINS COUNCIL MEMBER COUNCIL MEMBER MARK CHEW JOE ALFORD I CITY of DENTON, TEXAS MUNICIPAL SUILDI IG / DENTON, TEXAS 76201 / TELEPHONE (817) 566.8201 February 29, 1984 Mr. Chris Hartung City Manager Denton, Texas Dear Mr. Hartung: I am pleased to submit the Annual Report of the Fire Department for the year 1983. This report provides a brief comprehensive summary of the work of the department and its personnel. In submitting this report, I want to express my sincere thanks to you, members of the council and other public officials and their departments for the cooperation and service rendered to this department. It is our hope to continue to direct the fire department so that it'will serve our city in every way possible and help direct safety awareness in the citizens from fire as well as life safety. Respectfully submitted: Jack Gentry 'Jack Gentry Fire Chief JG /ec FIVE YEAR COMPARISON FIRE AND RESCUE EMERGENCY CALLS YEAR YEAR YEAR YEAR YEAR 1979 1980 1981 1982 1983 COMMERICAL 91 59 97 97 105 RESIDENCE 222 141 157 135 135 INSTITUTIONAL 30 17 36 51 69 CARS L TRUCKS 126 121 170 170 162 GRASS 5 TRASH 155i 292 146 248 261 APARTMENTS 71 36 41 35 58 MISTAKEN ALARMS 14 74 58 16 17 FALSE ALARMS 22 13 14 22 20 RESCUE 36 142 93 103 72 MUTUAL AID 4 9 4 9 11 MISCELLANEOUS 81 115 96 148 83 ASSIST AMBULANCE 467 646' 653 808 897 TOTAL 1,358 1,665 1,565 1,842 1,872 NUMBER OF ALARMS BY STATIONS Station #1 657 35.10% Station #4 263 Station #2 14.05 3.33 17.78$- I Station #3 I 619 33.07% I I i i AVERAGE RESPONSE TIME 4.07 MINUTES l _ FIRES RESCUE EMERGENCY CALLS ~1 r 1 I 1~ 1 00 it ~ ~~a0~ r1 ~/L.--• 21.47% 34.13% 402 639 13.30` 31.10$ 249 582 IDN l~~sr 11 NUMBER OF ALARMS BY TIME OF DAY i FIVE YEAR COMPARISON EMERGENCY AMBULANCE CALLS YEAR YEAR YEAR YEAR YEAR 1979 1980 1981 1982 1983 EMERGENCY MEDICAL 429 518 557 557 624 HEART ATTACK 212 215 203 268 270 OVER DOSE 45 40 40 43 44 MOTOR VEHICLE ACCIDENT 408 449 404 488 549 INJURED PERSON 359 333 384 391 411 UNCONSCIOUS PERSON 97 174 168 225 242 GUN SHOT WOUND 17 25 24 18 20 STABBING 11 22 10 16 13 TRANSFERS (emergerxy) 143 131 111 121 92 OTHER 13 14 30 28 19 TOTAL 1,734 1,921 1,931 2,155 2,284 FIVE YEAR COMPARISON AMBU' ANCE STATICS YEAR YEAR YEAR YEAR YEAR 1979 1980 1981 1982 1983 Calls Inside City Limits 1313 1500 1589 1696 1824 Calls Outside City Limits 404 421 342 459 460 Emergency Transfers to Dallas 69 80 62 71 42. Emergency Transfers to Ft. Worth 18 25 31 6 10 Emergency Transfer to Other Cities 3 2 4 8 1 City Emergency Transfers 51 18 31 29 33 A.L.S. Requiring Physician Approval 392 458 509 512 523 Average Response Time City 3.16 3.51 3.26 4.40 5.04 Average Response Time County 10.60 9.77 10.10 11.75 12.57 Runs to Flow Hospital 758 832 837 908 995 Runs to Westgate Hospital 413 461 471 570 594 Runs to Denton Osteopathic Hospital 31 19 27 15 15 Runs to Other Health Facilities 132 156 122 127 103 * No Transports NIA NIA 474 535 577__ I TOTAL CALLS 1734 1921 1931 2155 2284 * No transports include calls where patient refused, fire department refused, no sick or injured on scene, mistaken and false alarms, and dead on scene. i EMS PERSONNEL STATISTICS 1983 I Two (2) Firefighters graduated from Paramedic School at the University of Texas Health Science Center at Dallas. A new Ambulance #30, was delivered to the Fire Department in August. A Haz/Mat Rescue Unit was put into service in 1983. The Fire Department currently employs (40) Firefighter /[MT's and (16) Fire- fighter/Paramedics. An EMT School for Denton Firefighters is scheduled to begin in early January, 1984. Also, three (3) Firefighters are scheduled to begin Paramedic School in late January, 1984. EMS CALL STATISTICS Total Calls: City of Denton 1,824 79.88 Out of City Limits 460 20.28 TOTAL 2,284 100% Type of Calls: Medical Emergency 624 27.38 Heart Aaack 270 11.48 Overdose 44 28 Motor Vehicle Accident 549 248 Injured Person 411 188 Unconscious Person 242 118 Gunshot Wound 20 .888 Stabbing 13 .578 Emergency Transfer 92 48 Cther 19 .858 EMS Calls Per Fire District: District #1 766 428 District #2 237 138 District #3 584 328 District #4 237 138 EMS Calls Per Shift: A Shift 778 348 B Shift 765 33.,48 C Shift 741 32.68 EMS Calls Per Station Central 1,210 52.98 Station #3 1,074 47.1% Average Response Time: Inside City Limits 5.04 minutes Outside City Limits 12.57 minutes EMS Calls Outside City Limits: Argyle 30 Bolivar 2 Ccrinth 26 Justin 8 Krum 22 Lake Dallas 149 Ponder 6 Sanger 63 Shady Shores 13 Other 141 TOTAL 460 Average Time Spent at Scene 14.78 minutes Average Time from Dispatch to Arrival at Hospital 29.89 minutes Average Time from Dispatch to Clear on Call 38.05 minutes Average Time from Dispatch to Clear on Emergency Transfers------2.5 hours (Dallas E Ft. Worth) - s 3000 I 2500 2284 2155 2000 i 1734 'a y 1500 Y • t. 1000 1058 500 * 1978 1979 1980 1981 1982 1983 Number of Runs Per Year 1978 -1983 Service Acquired in June 1978 TIME OF DAY OF EMS CALLS ~I X1111 N I, 525 685 365 709 IDNiGHr Day of Week: Sunday------------------- 366 Monday--------------------308 Tuesday 283 Wednesday-----------------310 Thursday 302 Friday--------------------- U2 Saturday-------------------333 PATIENT DESTINATION 1000 995 900 I i } 800 0 = 700 a m Q 600 594 577 tx +C-, 500 400 y 300 ,f'•< C v L 200 G1 tit Z 100 103 15 Flow Westgate 0.0. H. Other No Hospital Hospital Transports 43.3% 26% 0.60% 45% 25% *No transports include call wnere patient refused, fire deportment refused, no sick or injured on sceno,mistoken and false alarms and dead on scene, FIVE YEAR COMPARISON AMBULANCE SERVICE BILLED AND AMOUNT COLLECTED AMOUNT AMOUNT $ of YEAR BILLED COLLECTED COLLECTIONS 1979 70,445 35,720 50.7% 1980 75,689 40,515 53.5% 1981 72,094 39,164 54.3% ii I 1982 83,343 47,709 57.2% 1983 124,556 62,553 50.2% SPECIAL TRAINING SUMMARY Number Subject Attending Fire Service Management Seminar-(Greenville) 8 Hazardous Materials* 78 Chris Cowan Seminar (Denton) 9 Firefighter Safety Course* 81 _ompany officer Development Course* 36 Richardson Fire Training School 4 High Rise Rescue Course (Mesquite) 1 Fire Service Management Seminar (Carrollton) 5 Texas A ¢ M Municipal Fire school 3 (College Station) *Texas A & M University Extension Courses held in Denton The Texas Commission on Fire Protection, Personnel Stan- dards and Education, issues certificates to Firefighters based upon the training they have received and the number of yea s of firefighting experience. The following table shows the num- ber.of Denton Fire Department personnel holding advanced levels of firefighter certification. Level Number of Certificates Intermediate Fire Fighter 35 Advanced Fire Fighter 11 Master Fire Fighter 6 TRAINING SUMMARY Company Training Sessions ~ (186) Special Training Sessions (68) 17.26 47.16 Recruit Training Sessions 35.76 (141) TOTAL TRAINING SESSIONS 395 Company Training Man-Hours (3485.5) 10.48 Recruit Training Man-Hours (862.5) I I 42% I Special Training 47.68 Man-Hours (3947) TOTAL MAN-HOURS in TRAINING 81295 FIRE PREWITION INSPECTION ACTIVITIES 1983 Fire Inspections: (Types Conducted) Routine Inspections (1st visit inspections) 981 Re-inspections 413 Certificate of Occupancy Inspections 274 'pecial Test (test of code compliance of installation of gasoline tanks, extinguishing systems, etc.) 35 In-Service Inspections by Fire Engine Companies 49 Construction Plans Reviewed 121 Permits Issued 11 Code Information Contacts 56 Hazards Found 690 Hazards Corrected 465 Complaince for 1983 67; Comnlaints: Received 30 Unfounded 1 Corrected i_6 Pending 13 FIRE INSPECTIONS, 1983 (By Occupancies) Occ. Pub. Bldgs.: Jan. Feb. N.ar. Apr. May June July Aug, Sept. Oct. Nov. Dec. Total Govmnt. Bldgs. 0 0 0 2 7 2 1 0 0 0 0 0 12 Hosp. 6 Inst. 1 6 11 5 8 7 6 3 4 13 9 6 79 Schools 8 3 8 2 8 20 0 13 17 4 8 8 9 100 Churches 0 0 1 0 2 0 0 1 0 3 1 0 8 Amusement Bldgs. 6 13 10 7 12 3 3 6 4 2 3 10 79 Dwelling: Hotels 2 3 7 4 0 14 10 5 0 6 0 0 50 Apartment 0 2 3 7 5 6 17 15 6 IO 24 8 103 Dwelling 9 10 4 2 4 9 5 0 1 5 4 2 55 Lodging 0 0 2 0 0 0 0 0 0 0 0 0 2 Hercantiles: Office 20 11 27 5 14 7 13 19 4 15 17 13 165 Small Retail 42 33 43 26 25 43 19 54 16 18 19 79 418 Restaurants 21 9 16 5 11 2~t 17 11 10 17 14 23 177 Large Single-Occ. 12 2 8 2 0 9 5 5 7 25 16 92 Multi-Occ. 14 0 0 0 0 34 30 18 1 30 37 69 233 Storage 5 3 0 1 1 0 0 0 1 1 0 1 13 Whlsle. Businesses 1 3 3 0 1 0 0 0 1 1 0 1 11 Manufacturing: Metal Workers 1 3 2 3 6 2 0 1 1 1 4 1 25 Wood Workers 2 0 0 0 1 6 1 0 1 0 0 2 13 Miscellaneous 0 3 0 1 0 6 0 0 0 6 3 2 21 Chemical Workers 0 0 0 0 0 0 0 0 0 0 0 0 0 Flammable Liquids 0 0 0 0 0 0 0 0 0 0 0 0 0 Paper Workers 0 0 1 2 0 0 0 0 I 0 0 0 4 Food Products 0 0 0 0 0 0 0 0 0 0 0 0 0 Text. Fab, Workers 1 0 0 1 1 0 0 0 0 0 0 0 3 Multiple Occ. Manuf. 0 0 0 0 0 0 0 0 0 0 0 0 0 Misc. Bldgs.: Bulk Oil 3 0 0 0 0 0 0 0 0 0 0 0 3 Pub. Garages 17 10 7 4 4 1 3 5 0 2 3 4 60 Misc. 2 3 0 0 0 0 3 2 3 0 0 3 16 Private Garages 1 0 0 0 0 0 0 0 0 0 0 0 1 TOTAL 168 117 153 79 110 192 133 158 74 139 171 249 1,743 FIRE INVESTIGATION ACTIVITIES 1983 INVESTIGATIONS CONDUCTED 216 DETERMINED ACCIDENTIAL--------------------- 162 DETERMINED SUSPICIOUS 15 UNDETERMINED ORIGIN 22 INCENDIARY 17 CASES CLEARED 194 CASES PENDING 22 FIRE 6 LIGHTENING INSURANCE LOSSES IN EXCESS OF $100 FOR OCTOBER 11 19°2 THROUGH SEPTEMBER 30, 1983 DATE DATE OF AMOUNT OF PAID LOSS NAME OF ASSURED AND LOCATION OF RISK LOSS 01-82 01-07-82 140000.00 UI-83 U1-12-83 Wisener 610 Apollo 141.00 03-83 01-19-83 Neblett 617 Texas St. 29120.00 03-83 01-23-83 Lindsey 2636 Bolivar 19694.00 03-83 01-24-83 Sims 314 Industrial 59666.00 03-83 0-L-24-83 Haywood 1730 Southridge 10553.00 03-83 01-27-83 Ivey 1120-1120 A - B West Hickory 51000.00 08-83 02-02-83 Pollard 920 Laguna Dr. 649.00 02-83 02-07-82 Amin 111 W. University 109893.00 02-83 02-07-82 Amin 111 W. University 447.00 08-83 02-18-83 McMahan 412 & (Rear or 412) Bell Ave. 800.00 08-83 03-05-80 Ramada Inn 820 1-35 East 845.0 07-83 03-05-80 Ramada Inn Inc. 820 I-35East 11423.00 03-83 03-06-83 Swan & Wells 714 Bell Avenue 10260.00 04-83 03-24-83 _Xinson 104 Vinsonville Lane 1,050.00 04-83 03-29-83 Knox 3821 Atlas 605.00 11-82 04-01-82 Jessie's Beauty College 407 Sunset 360.00 05-83 04-01-•83 Johnson 2320 Green Oaks 575.00 04-83 04-02-83 Carruthers 916 Hill 252.00 08-83 04-03-81 Hankins 3305 rt. Worth Dr. 5,000.00 06-83 04-19-83 Leverett Scott St. 160266.00 05-83 04-21-83 Napp 2102 Westwood St. 49544.00 09-83 04-25-83 Marley Millworks, Inc. 206 Dotson 65,986.00 05-82 04-26-82 Leverett 315 Hettie 159000.00 06-83 05-10-83 Carpenters Union 616 Ft. Worth Dr. 10201.00 10-82 C5-20-82 Univ-,rsity State Bank 1200 W. University 50585.00 07-83 05-22-83 Crarper.ter 926 Sherman Dr. 958.00 08-33 05-22-83 Halloway 1113 Congress St. 250.00 06-83 05-27-83 Lively 3813 Titan "frail 110.00 08-83 05-28-83 Mason 2803 Bell Ave. 250.00 02-83 06-01-82 Jackson Concrete Inc. 1111 Willow Springs Rd. 19242.00 08-83 06-02-83 Mrs. Mullins Est. 1801 Hwy 380 West 19285.00 08-83 06-01-83 Spruance 936 Ft. Worth Dr. 219.00 06--83 06-05-83 Rainey 2229 Georgetown 375.00 08-82 06-11-82 Storrie 1428 N. Locust 29446.00 12-82 06-11-82 County of Denton 401 W. Hickory 111823.00 02-83 06-13-82 Dee Jays Groceries 406 W. Hickory 6,032.00 12-82 06-13-82 Dee Jays Croceries 406 W. Hickory 4,364.00 10-82 06-21-82 The Cozy Oaks 809 Sunset 591.00 10-82 07-18-82 Miller 2280 W. Oak 19818.00 10-82 07-23-82 Pritchett 821 Denton St. 250.00 10-•82 07-26-82 Hilliard 115 Woodrow Lane 450.00 10-82 07-28-82 Mrs. Surber 2614 Glenwood 408.00 03-83 07-28-82 Tech Fastner Co 717-719 S. Elm 947.00 12-82 09-17-82 Minton 1005 Collier 121036.00 06-83 10-18-82 Luker 1800-1804 Scripture 30683.54 11-82 10-18-82 Hoke 2914 Croydon 639.00 01-83 10-22-82 Tunnell 3901 Montecito 655.30 FIRE 6 LIGHTENING INSURANCE LOSSES IN EXCESS OF $100 FOR OCTOBER 10 1982 THROUGH SEPTEMBER 30, 1983 DATE DATE OF AMOUNT OF PAID LOSS NAME OF ASSURED AND LOCATION OF RISK LOSS 02-83 10-25-82 Tidball 115 N. Elm 9,709,00 05-83 10-28-81 Sage 225 N. Locust 197.00 11-82 10-28-82 Waldrip Enterp., Inc. 1307 Stuart Rd, 1,831.00 02-83 11-00-82 Krause Pontiac, Etc. 1610 W. University Dr. 19010.00 12-82 11-02-82 Lambert Properties, Inc. 225-227 W. Hickory 59944.00 03-83 11-0-282 American Insurance Computers 229 W. Hickory 75,000,00 02-83 11-02-82 American Ins. Computers 229 W. Hickory 2050000.00 12-82 11-03-82 McCain 2501 Bell Avenue 202.00 12-82 11-03-82 Punch 600 Boardwalk 141.00 11-82 11-11-82 Smith 2711 N. Locust 859.00 01-63 12-12-82 Sauter 921 Manhattan 59979.00 01-83 12-16-81 Curry 1004 U. Mulberry 209589.00 TOTAL 5400314.28 Impact of Fire Prevention Activities 1983 Fire Prevention and Fire Safety has taken a front seat with the Fire Department during the past year, and many positive activities have resulted during 1983. In the City of Denton and surrounding areas along, approximately 70,319 people have new-found information in Fire Prevention and Safety. The breakdown of the number of people exposed to Fire Prevention material and activities are as follows: 1. N.T.Fair Exhibit 6,000 2. Babysitting Clinics 39 3. Scouts (Cub, Boy and Girl Scouts) 77 4. Christmas Fire Safety (letters to churchgs) 75 T.V. Coverage 39000 5. Alternative Heating - Cable T.V. 5,505 Newspaper Coverage 60000 6. Smoke Detector Campaign- Programs 93000 Newspaper Coverage 6,000 Cable T.V. Coverage 15,000 7. Station Tours 233 8. Neighborhood Meetings 27 9. Fire Safety Programs Adult 305 Children 1,704 Special Education 60 Safety Committees - Businesses 149 " " - Medical 95 Store Programs & Displays 1,000 10. LEARN NOT TO BURN - Fun & Fitness Run 50 11. Fireworks Safety Cable T.V. Coverage 10,000 Newspaper Coverage 6,000 Many of the above figures are based on the circulation and area coverage of our local newspaper and Cable T.11. station. Some of the figures are an actual count, most especially on the station tours and programs given. Synopsis of Public Fire Education 1983 During the 1983 fiscal year, the Denton Fire Department hosted the re-organization of the Region VI Public Fire Educators. This group was organized one year ago at a Public Fire Education Conference held at Texas Woman's University, and laid dormant until the re-organization in 19P3. Since that time, the Region has applied for and been awarded a mini-grant, and has started a newsletter. The organization, re-organization, application for the mini- grant and newsletter originated within the Denton Fire Depart- ment. Also during February, Denton was asked to participate on the planning committee for the Oklahoma State Public Fire Education Conference held in Stillwater in August. Denton was the only out of state department represented on the planning committee for this conference. The Denton Fire Department also supports the education of the Firefighters within the department and the state of Texas by sending firefighters as well as instructors to the Texas A & M Firemen's Training School. This year three firefighters participated in the school and three of the department personnel were instructors in the school. In May of 1983, Mrs. Elizabeth Hendricks of the Consumer Product Safety Commission awarded a grant to the Fire Prevention Division of the Department for their work on a Smoke Detector and Alternative Heating Campaign. This was the third grant of this type to be awarded to the Department. In August of 1983, the National Fire and Burn Education Association contacted the Fire Prevention Division of the department to be involved in a pilot project for a National Smoke Detector campaign. The pilot was aired in Washington, Oregon and Texas. The Denton Fire Department was responsible for getting Governor Mark White to do a public service announcement on smoke detectors and the announcement was shown state-wide October, November and December. They were also responsible for getting the Governor to sign a proclamation on Smoke Detectors as well as getting the Mayor of Denton, Mr. Richard Stewart to sign a similar proclamation. During the month of October a poster contest was held in all the third grades in the elementary schools in Denton, prizes were awarded by the local merchants. Some of the vosters were used by the Consumer Product Safety Commission in Washington, and all the posters were displayed in the Public Library through the end of December. All of this was done in addition to regular daily duties required by the department, and as a result not only have we reached the citizens of. Denton, but also the state of Texas. r 1 r, , LONE STAR GAS COMPANY - TRANSMISSION DIVISION STATEMENT OF GAS COST ADJUSTMENT AND CITY GATE RATE FOR THE MONTH OF MARCH, 1984 PREPARED IN ACCORDANCE WITH THE ORDER OF THE TEXAS RAILROAD COMMISSION UNDER DOCKET NO. GUD-3543 FEB 2 8 IgA4 The attached documents consisting of an MGCA Statement and Schedules A through F showing the gas cost adjv,stment, the out-of-period purchase account, the revenue from extracted products account, the correcting account, and the city gate rate to be charged to the Distribution Division for gas delivered to residential and commercial customers and for company-used and unaccounted-for gas were prepared by me or under my direct supervision. I hereby certify that the information contained herein is true and correct to the best of my knowledge and b±lief and that it was prepared in accordance with the attachment to the order of the Texas Railroad Commission in docket GUD-3543 dated November 22, 1982. 1-1-AA ike Florence, irector of Rate Administration and Research Lone Star CCs Company Filed: February 17, 1984 MGCA Stat2ment LONE STAR GAS COMPANY - TRANSMISSION DIVISION STATEMENT OF GAS COST ADJUSTMENT AND CITY GATE RATE* EFFECTIVE MARCH, 1984 IN ACCORDANCE WITH ORDER OF TEXAS RAILROAD COMMISSION UNDER DOCKET NO. GUO-3543 Line Mcf Amount Amt./Mcf 1 Estimated Gas Purchases 34 693 000 $127 618 000 $ 3.6785 2 Plus Estimated Withdrawal From Storage 853 000 2 820 000 3.3060 3 Less Estimated Injection Into Storage 590 000 2 230 000 3.7797 4 Estimated Net Gas Received Into System 34 956 000 $178 208 000 3.6677 5 Ratio Volume Sold To Volume Received r .9754 6 Estimated Weighted Average Cost Of Gas Sold (EACOG) 3.7602 7 Plus Gas Cost Correction Factor (MGCCF) Based On January, 1984 .2655 8 Less Base Cost Of Gas Included In Base Rate 3.5195 9 Less Extracted Products Revenue Adjustment (MEPRA) Based On January, 1984 ,0890 .0585 SO Plus Base Extracted Products Revenue Per Mcf 0491 11 Plus Out-of-Period Adjustment Per Mcf (MOPA) Based On January, 1984 . ,5858 12 Subtotal x 1.0025 13 State Utility Tax Recovery Factor 5873 14 Gas Cost Adjustment (MGCA) . 4.0200 15 Plus Base City Gate Rate 16 Regular City Gate Rate 4.6073 17 Less Credit Pursuant to FERC Increrrental Pricing Surcharge .000 $ 4.6073 18 City Gate Rate *Intracompany charge to the Company's distribution divisions for sale to residential and commercial customers and for distribution company-used and unaccounted-for gas. Schedule A LONE STAR GAS COMPANY - TRANSMISSION DIVISION GAS COST CORRECTION ACCOUNT (GCCA) FOR THE MONTH OF JANUARY, 1984 AND GAS COST CORRECTION FACTOR (MGCCF) FOR THE MONTH OF MARCH, 1984 Line GCCA For January, 1984 1 Balance In Account At Beginning Of Month %GCCA2p) S (620 455) 2 Weighted Average Cost Of Gas During Month (WACOG ) S 3.9119 3 Less Estimated Average Cost Of Gas During Month gEACOG ) _ 3.7455 4 Excess Of Actual Over Estimate P S .1664 5 City Gate Sales Mcf During Month (r.CSV ) 31 744 029 6 Charge/Addition To Account (T(;CCP)p 5 282 206 7 City Gate Sales Mcf During Month (RCSV ) 31 744 029 8 Gas Cost Correction Factor Charged During Month (MGCCFpI $ (.0229) 9 Credit/Reduction To Account (726 938) 10 Interest On TGCCp (TGCCi = Line 6 x .OllG7)* -0- 11 Balance In Account At End Of Month (GCCAc) S 5 388 689 MGCCF For March, 1984 12 Estimated City Gate Sales Mcf (RCSVf)A## 20 299 042 13 Gas Cost Correction Factor (MGCCFf = Line 11 - Line 12) 2655** A Applies only when [Line 3 - Line 2) - Line 21 is equal to or greater than 0.05. Enter on Line 7 of MGCA Statement. Adjusted City Gate Sales During March, 1983 To Normalize Weather. a. Base Load Per Customer Per Mcnth From Docket GUD-3543, Mcf 4.365 b. Number Of Residential And Commercial Customers Billed X 1 161 407 C. Base Load Sales, Mcf 5 069 542 d. Total City Gate Sale Mcf 15 169 350 e. Heating Load Sales, Mcf (d-c) 10 099 808 f. Ratio Normal HDD (363) To Actual HDD (254) At D/FW Airport X 1.5079 9, Normalized Heating Load Sales, Mcf 15 229 500 h. Base Load Sales, licf (c) 5 069 542 i. Normalized City Gate Sales, Mcf 20 299 ^42 Schedule s LONE STAR GAS COMPANY - TRANSMISSION DIVISION WEIGHTED AVERAGE COST OF GAS (WACOG) FOR THE MONTH OF JANUARY, 1984 Line Mcf Amt./Mcf Amount All Sources 1 Gas Purchased Per Books (Before EEI Fuel 52 976 851 $3.9139 $207 345 238' And Shrinkage Exclusion) 2 Less Purchases For Off-Systr:m Sales 2 300 2.6374 6 066 3 Less Purchases For Sec 311.(b) Sales 5e 974 551 $3.9139 $207 339 172 4 Subtotal 5 Less Purchases For EE'. Fuel And Shrinkage 1 306 282 3.9139 5 112 657 6 LeES Out-of-Per:co Adjustment Amount - - 2 800 660 7 Total Gas Purchased (TGPa, ACGPa, TCOGa1 51 668 269 $3.8597 $199 425 655 Non-Affiliated Su.pliers 8 Gas Purchased Per Books (Before EEI r-el SO 179 557 $3.9370 $197 554 465 And Shrinkage Exclusion) 9 Less Purchases For Off-System Sales 2 300 2.6374 6 066 10 Less Purchases For Sec. 311(b) Sales 50 177 257 $3.9370 $197 548 399 11 Subtotal 12 Less Purchases For EEI Fuel and Shrinkage 1 306 282 3.9139 5 112 657 _ - 1 688 500 13 Less Out-of-Period Adjustment Amount q8 370 475 $3.9031 $190 747 242 14 Total Gas Purchased (TGPn, ACGPn~ TCOGn,) 15 Line 7 Mcf and Lesser Amt./Mcf on Line 7 Or 14 51 668 269 $3.8597 $199 425 855 16 Plus Withdrawals From Storage (TGTIS, ACSW) 3 737 733 3.2628 12 270 230 17 Less Injections Into Storage (ACSI, TGIS) 2 974 894 3.9113 11 635 703 18 Net Gas Peceived Into System 52 431 108 53.6157 522000 060 382 19 Ratio Voluree Sold To Volume Received . .9754 20 weighted Average Cost Of Gas Sold (WACOG) $3.9119** + Includes NGPA accruals of $531,206 and NGPA reversals of $17,125. Enter on Line 2 of Schedule A. I i Schedule C LANE STAR GAS COMPANY - TRANSMISSION DIVISION EXTRACTED PRODUCTS REVENUE ACCOUNT (EPRA) FOR THE MONTH OF JANUARY, 1984 AND EXTRACTED PRODUCTS REVENUE ADJUSTMENT (MEPRA) FOR THE MONTH OF MARCH, 1984 Line EPRA For January, 1984 1 Balance In Account At Beginning Of Month (EPRA2p} $ 1 279 322 2 Contract Revenue From Ens. Expl. In Acct. 491 (LSCR) $ 1 580 646 3 Enserch Exploration Operating Income (EEIOI) $3 581 762 4 Portion Assigned To LSG Co. For This Purpose X .4073 5 Amount Or EEIOI Assigned For This Purpose l 458 852 6 Plus Remainder Of Revenue In Acct. 491 (TOR) 197 504 7 Plus Incidental Oil 6 Gasoline Revenue In Acct. 492 (TOR) 534 790 8 Less Windfall Profits Taxes Related To Acct. 492 Revenue (19PT) 24 174 9 Total Extracted Product Revenue For This Purpose $ 3 747 818 10 Monthly Allocation Factor From Schedule F WAF) X .3761 11 Credit/Addition To Account (TEPP.C)" 1 409 554 12 City Gate Sales Mcf During Month (RCSV) 31 744 029 13 Extracted Products Revenue Credited During Month (MEPRA) X$ .0472 1 498 318 14 Charge/Reduction To Account 15 Interest (EPRAi = (Line 1 - Line 14) x .01167) (2 556) 16 Balance In Account At End Of Month (EPRAc) $ 1 168 002 MEPRA For March, 1984 20 299 042 17 Estimated City Gate Sales Mcf From Schedule A (RCSV } f 0585•' 18 Extracted Products Revenue Adjustment (1'EPFL1 = Line 16 - Line 17} R If less than zero, the credit/addition to the account shall be zero. R" Enter on Line 9 of %1GCA Statement. Schedule 0 LONE STAR GAS COMPANY - TRANSMISSICN DIVISION OUT-OF-PERIOD GAS PURCHASED EXPEWSE ACCOUNT (OPGPFA) FOR THE MONTH OF JANUl.RY, 1984 AND OUT-CF-PERIOD ADJUSTMENT WOPA) FOR THE MONTH OF RARCH, 1984 Line OPGPEA FOR JANUARY, 1984 1 Balance in Account At Beginning Of Month (OPGPEA2p) $ 295 350 2 Out-of-Period Adjustment Expense During Month (OPGPF.) $ 2 800 660* 3 Less 0♦ Of Amount Related To Deliveries After 11-30-62 -0- 4 Less 5% Of Amount Related To Deliveries 2-3-80 To 11-30-82 16 235 5 Less 15% Of Amount Related To Deliveries 7-1-75 To 2-2-80 8 6 Less 35% Of Amount Related To Deliveries 3-1-72 To 6-30-75 -0- 7 Reduced OPGPE For This Purpo~o $ 2 784 417 8 Monthly Allocatior, Factor From schedule F WXF) X .3761 9 Net Charge/Addition To Account 1 047 219 10 City Gate Sales Mcf During Month (RCcV) 31 744 029 11 Out-of-Period Adjustment Charged During Month (11OPA) X$ .0109 12 Credit/Reduction To Account 346 010 13 Interest (OPGPEA1 Y (Line 1 - Line 12) x .011671 (591) 14 Balance In Account At End Or Month (OPGPE.Ac) $ 995 9688 MOPA FOR KARCH, 1984 15 Estimated City Gate Sales Mcf From Schedule A (F.CSVf) 20 299 042 16 Out-of-Period Adjustment (MCPA = Line 14 - Line 15) $ x491** * Includes $1,484,031 in out-of-period gas purchased expense classified as roll-over. Enter on Line 11 of HGCA Statement if less than $.OG00. 1 more than $.0600 enter $.0600 plus 1/6 of amount in excess of $.0600. Schedule E Para 1 of 2 LONE STAR GAS CCP;PANY - TRANSMISSION DIVISIOU OUT-OF-PERIOD ADJUSTMENTS - ALL SOURCES FOR THE MONTH OF JANUARY, 1984 Adjustment Amount From 3-1-72 From 7-1-75 Flom 2-3-80 After To 6-30-75 To 2-2-80 To 11-30-82 11-30-82 Supplier Out-of-Period Price Adjustments Vernon E. Faulconer, Inc. $ - S - $ - S 18 255 Jones & Pellow Oil Co. - 48 35 128 15 096 Warren Petroleum Co. - - 5 400 - Amoco Production Co. - - - 5 540 Enserch Expl., Inc. - - 126 745 53 537 Enserch Expl., Inc. - - - 13 040 Getty Oil Co. - - - 15 166 Robert Klabzuba - - - 22 758 Various Other Adjustments - 2 1 660 4 543 Total S - S 50 $ 168 933 $ 147 940 Out-of-Period Price Corrections Amquest Corp. S - $ - S - $ 53 711 Dow Pipeline Co. - - - (349 962) Esperanza Trans. Corp. - - - 185 645 Haynes Prod. Co., Inc. - - - (52 975) Esperanza Trans. Corp. - - - 389 957 Getty Oil Co. - - - 153 593 Ridge Oil Co. - - - (86 710) Bunker Expl. Co. - - - 381 900 Monsanto Oil Co. - - - 50 446 Coronado Trans. Co. - - - 124 603 Getty Oil Co. - - - K 284 Getty Oil Co. - - - 74 027 Pioneer Gas Products Co. - - - (151 651) Transok Pipeline Co. - - - 104 842 Warren Petroleum Co. - - - (54 924) Farmland Industries, Inc. - - - .17 G49 Spindletop Oil & Gas - - - (87 671) Enserch Expl. Inc. - - - (67 135) Delhi Gas Pipeline Corp. - - - 61 697) Fouston Pipeline Co. - - - 109 202 Mobil Oil Corp. - - - (66 559) Roberts & Hdmmack, Inc. - - 43 465 22 729 Tenneco Oil Co. - - - (107 340) Pow Valley Expl., Inc. - - - (100 202) Coronado Trans. Co. - - - 138 474 Schedule E Page 2 of 2 LANE STAR GAS COMPANY - TRANSMISSION DIVISION OUT-OF-PERIOD ADJUSTMENTS - ALL SOURCES FOR THE MONTH OF JANUARY, 1984 (CONT'D) Adjustment Amount _ From 3-1-72 Fror 7-1-75 From 2-3-60 After To 6-30-75 To 2-2-60 To 11-30-62 11-30-82 Out-o`-Period Price Corrections (Cont'd) Warren Petroleum Co. $ - S - S - $ 58 325 Enserch Expl., Inc. - - - (478 013) Exxon Co. USA - - - (199 899) Union Texas Trans. Co. - - - 219 082 J. R. Parten - - - (86 959) Highland Resources, Inc. - - - 367 395 Delhi Gas Pipeline Corp. - - - (321 667) Union Texas Trans. Co. - - - (62 295) Enserch Expl., Inc. - - - 1 464 045 Cities Service Oil Co. - - - 104 5j5 Smackover Shell Ltd. - - - 52 928 West Texas Gas Inc. - - - 105 376 Rainbow Pipeline Co. - - - (118 627) Warren Petroleum Co. - - - (127 273) Tucker Drilling Co. - - - (160 703) Henderson Clay Products Co. - - - 252 754 Teco Pipeline Co. - - - 427 797 Amquest Corp. - - - 79 514 Coronado Trans. Co. - - - 94 398 Sunburst Energies, Inc. - - - 484 047 Sunburst Energies, Inc. - - - (519 371) Coronado Trans. Co. - - - 112 325 Tejas Gas Corp. - - - (77 634) Chevron USA Inc. - - - 98 509 Transierra Expl., Inc. - - - (63 907) Warren Petroleum Co. - - - (96 174) Chevron USA Inc. - - - (62 799) Getty Oil Co. - - - (95 354) Chevron USA Inc. - - - 53 155 Amoco Production Co. - - - 65 262 Amoco Production Co. - - - 89 177 CRA Inc. - - - 56 533 Bengal Gas Trans. Co. - - - 153 306 Valero Trans. Co. - - - (263 668) Various Other Corrections - - 112 297 (199 996) Total 5 - $ - $ 155 762 52 327 975 Total Adjustments 5 Corrections $ - 8 50 $ 324 695 $2 475 91D Recovery Disallowance X .35 X .15 X .05 X .00 Pecol. +ri P^oun.t Vicallouc•'4 : - S 3 ^v IG ^35 $ -0- "Enter on Lines 3, 4, 5, and 6 of Schedule D. 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I P wT O« P •O Z p m P N W P O O . LO M W ✓1 •n CQ W N t~ m n ] R 11 Y N N N« N •r •-1 « r i« N N N N N ~ W p•I W a J: C la ~ N W ~Y O d v E I O Z•~I •I 1 1 1 I I I 1 I 1 1 I I 1 I r I i I ~j no, 00000 0ooo:]noooG oo - m • V I r l I I 1 1 I 1 1 1 1 I I ~ I I I 0 V « "a VIN C p b C C y W ✓1 P N n r1 d rv r rv N l'J n U1 Y1 C r r a •-I a:, dNr ~.•m Pm OPrNn ~O J' ] mnd V O'•al N•p •OdndNdN «GNdn O n PO O d.T .y PL•1nv PN~-Od «O N P vJ O E M F+ m V NON Pnn V mnn0 Pt] V O L1 NN ] -7 G « a s N m n P v P P N O n m V m 0 ~%'i n P V V Y N J n n n J d n n n N N n n n[ ~ N V N H U N W O O « J n v1 N m CO as P+ ^ J P .i M C ~ Y v L• T U v O 4 \ O v p D T Lr 1i L V O 4 V O A n a ~ E ~ a ~ :.-1 e p . 5 E a ~ ~ Y ~ ~ ~ ~ _ :O F Y> U C J] L Y T C n ~Y C. u> V O 4 ti p > L• C ] V V O h a V G r] 7 0 J V] V] J J 'J 1 J-] ~NO'= Onlr~!:~ nnl AO S9•~+. L'l '1 C <r O O 7 : . I~ AGREEMENT .'OR SERVICES THIS AGREEMENT is made this FIRST day of OCTOBER A.D. 1983 by and between the CITY OF DENTON, hereinafter referred to as "EMPLOYER;' and GALLAGHER BASSETT INSURANCE SERVICE, a division of ARTHUR J. GALLAGHER do CO., an Illinois corporation, authorized to do business within the State of Texas, hereinafter referred to as "SERVICE AGENT." 1. TERM This Agreement shall take effect at the time the EMPLOYER'S self- insurance program becomes effective, but not later than October 1, 1983, and shall continue in effect for one year after its initial effective date, after which date this %greement shall continue in effect until cancelled by either Party as herein provided. 11. CANCELLATION This Agreement may be cancelled at any anniversary by either Party giving the other written notice of cancellation ninety (90) days prior to such anniversary date. 111. COMPENSATION EMPLOYER shall pay SERVICE AGENT for services rendered herein the l annual s im of THIRTY NINE THOUSAND SEVEN HUNDRED TWENTY SEVEN DOLLARS ($399727.00). At the end of the first anniversary of this Agreement, the annual compensation shall be subject to adjustment as mutually determined by EMPLOYER and SERVICE AGENT, based on changes in workload. SERVICE AGENT agrees to notify EMPLOYER in writing of any increase in service fee based on changes in workload thirty (30) days prior to each anniversary. i z I W. OBLIGATIOP'S I SERVICE AGENT will supervise and administer the self-insurance plan for f the EMPLOYER in full compliance with all applicable laws, rules and regulations governing the administration of self-insurance; and SERVICE AGENT will act a- the representative of the EMPLOYER in all matters related to such adminis- tration and will perform fully all the below-listed functions: A. CLAIMS: 1. Complete handling of all loss adjustments, investigations and settlements falling within the EMPLOYER'S self-insured retention. 2. Maintain a claim file for each reported claim; submit monthly t experience reports in the form the EMPLOYER requires; provide complete accounting for the program which at all times is subject to { review by the EMPLOYER. i 3. Recommend claim reserves and provide a continuous review and updating of these to reflect changes. i ' 4. AFsist the Risk !Manager in the analysis of claims to prevent future similar occurrences with periodic reports reflecting trends, hazardous areas and recommendations for accident p-evention. 1 S. Coordinate investigations on litigated claims with attorneys approved by the EMPLOYER and with adjusters and attorneys of the excess insw ante carrier as required. It is expressly understood by the f Parties to this Agreement that all legal costs and loss payments will f be charged to the EMPLOYER'S Loss Fund. b. Set up and maintain a bank trust account for the purpose of keeping segregated funds which will be furnished by the EMPLOYER to SERVICE AGENT to establish a reserve for the payment of claims, and reconcile this fund monthly with the EMPLOYER. The amount of this fund is to be kept to a minimum so as to maximize the retention of cash. -3- 7. Obtain approval from responsible EMPLOYER ,ersonnel before paying any claim in excess of FIVE THOUSAND DOLLARS ($5,000.09) and furnish precautionary reports on all serious claims. 8. Be available to consult with th.- EMPLOYER on any insurance matter and make available to the Risk Manager the expertise and experience of SERVICE AGENT'S staff of professionals to assist him in achieving a successful self-insurance program. i 9. In the event of cancellation of this Agreement, SERVICE AGENT +vill continue to handle all pending claims on the following terms: SERVICE AGENT will receive fifty percent (50%) of the monthly fee for the first ninety (90) days of service and twenty-five percent (25%) of the monthly fee for the next ninety (90) days. After one hundred II eighty (180) days, files will be returned to the EhlPI.OYER in an orderly manner provided that approval is given by the excess :nsurance carriers. In the event such approval is nat received, the fee will be 't negotiated based on the number of outstanding claims. The EMPLOYER agrees to indemnify, protect, save and keep harmless GALLAGHER BASSETT INSURANCE SERVICE and ARTHUR J. i GALLAGHER dr CO. from any and all loss, cost, damage, or expense arising out of the administration and handling of any claims after these records and files have been returned. 10. Assist in the collection of claims against others for damage to EMPLOYER., property and make recommenjations regarding salvage matters. 11. All sizable and unusual claims will be reviewed by SERVICE AGENT'S internal legal staff at no additional cost to the EMPLOYER. 12. Provide all necessary personnel to perform the services agreed upon herein. -4- B. LOSS PREVENTION: SERVICE AGENT'S Loss Prevention services will be provided in the following areas, where coverages apply: t. Workers' Compensation Loss Prevention 2. General and Public Liability Loss Prevention 3. Automobile and Fleet Loss Prevention SERVICE AGENT will prepare computerized loss data which will detail loss experience by location as follows: 1. By dollar loss 2. By accident frequency 3. By line of coverage 4. By accident cause Loss analysis of computer data will be used to identify problem areas so control action plans can be developed. SERVICE AGENT'S Loss Prevention service will assist in the devel- opment of control programs, where needed, for coverages covered by this Agreement. Existing safety programs will be evaluated as to their effectiveness in controlling the causes of accidents in EMPLOYER'S operations. Location audits to determine how effective the safety program is functioning can be made. -5- The frequency of our own safety surveys will be based on need from analyzing th? accident causes and trends. Periodic meetings with members appointed by the EMPLOYER'S administration will be held to ensure a mutually satisfactory assignment of priority to EMPLOYER'S loss prevention needs. Progress report meetings to review accident problems and needed action should be scheduled with responsible individuals from the EMPLOYER'S adrninistration and SERVICE AGENT periodically. V. CONSIDERATION The promises made and the obligations assumed by each Party to this Agreement are made and assumed in consideration of tie promises made and the obligations assumed by the other Party to this Agreement. The EMPLOYER is making this Agreement specifically with the SERVICE i AGENT and the same is intended to be a personal service Agreement. f SERVICE AGENT shall not assign this Agreement or any responsibilities pursuant to said Agreement without the express consent of the EMPLOYER. : The Parties hereto, may, by mutual written agreement, change the scope of services or the amount of compensation set forth in this Agreement. VI. EQUAL OPPOR'rUNITY CLAUSE In consideration with the execution of this Agreement, the EMPLOYER and the SERVICE AGENT shall not discriminate against any employee or applicant for employment because of race, religion, color, sex or national origin. The EMPLOYER and SERVICE AGENT shall take affirmative action to ensure that applicants are employed and that employees are treated fairly during their employment without regard to race, religion, color, sex or national origin. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment, or recruitment advertising; layoff, or termination; rates of pay, or other forms of compensation; and selection for training, including apprenticeship. -6- SIGNATURES By these signatures, the Parties agree to all the terms, conditions and provisions of this Agreement. Dated this 29th day of _February , A.D. 1984 CITY OF DENTON GU •NTHER AHLF, VICE PRESIDE GALLAGHER BASSETT INSURANCE SERVICE DIVISION OF ARTHUR J. GALLAGHER & CO. i r THE STATE OF TEXAS COUNTY OF DALLAS Arthur Andersen 5 Co., an inaependent firm of Certified Public Accountants, acting by and through the undersigned Certified Public Accountant, hereby certifies as follows: 1. That this certificate is executed with reference to the proposed City of Denton Utility System Revenue Bond, Series 1984, dated March 1, 1984, in the principal amount of $1,000,000 (the "Series 1984 Bond"), authorized by ordinance passed by the City Council of the City- of Deoton, Texas, on February 21, 1984. 2. That the term "Pledged Revenues" as used in this certificate has the same meaning as used and defined for such term in the Ordinance passed by the City Council of the City of Denton on March 10, 1983 (the "Series of 1983 Bond Ordinance"), authorizing the issuance of the City of Ponton Utility System Revenue Refunding Bonds, Series 1983 (the "Series 1983 Bonds"). 3. That, in our opinion, during the next preceding fiscal year of the City (which fiscal year ended September 30, 1983) the Pledged Revenues were at least: (i) 1.25 times an amount equal to the average annual principal and interest requirements of the Series 1983 Bonds and the Series 1984 Bond, and (ii) 1.10 times an amount equal to the principal and interest requirements of the Series 1983 Bonds and the Series 198+ Bond during the fiscal year during which such requirements are scheduled to be the greatest. EXECUTED this the dbkday of, 1984. ARTHUR ANDERSEN b CO. Certified Public Accountant THE STATE OF TEXAS , COUNTY OF DALLAS BE RE ME, 4he un r ned anthority, on this day personally appeared G-v. , a Certified Public Account- aat, known to me to be the person whose name is subscribed to the fore- going certificate, and acknowledged to me that he executed said certifi- cate on the date stated therein. GIVEN UNDER MY HAND and seal of office, this the day of 1984. Notary Public in and for Dallas County, Texas My Commission expires_ ev (NOTARY PUBLIC SEAL) CERTIFICATE OF AUTHENTICITY THIS IS TO CEFTIFY that the microphologrophs appearing on this film-File (Farting with FEBRUARY 1984 and Ending with FEBRUARY 1984 are f accurate and cgmple!e reproductlons of the records of (Company and Dept.) CITY OF OENTON CITY SECRETARY _as delivered In the regular course of business for photographing. N Is further cartifled lhal the microphotographic processes were accomplished in e manner and on flln, which meets with requirements of the National Bureau of Standards hr permanent mlcrophologrop;iic copy. Do% pre4vcod.tdao-&C90e 91TR 9y _ 11,WMtTECHli0L00Y AY(*fx comwe OF snow PLACErain W4it)Park Ppw State Arlington, Texas 76010