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HomeMy WebLinkAbout03-24-1998 o City Council Agenda Packet March 24, 1998 I ' i r" 1 25xIO 32", a.~a 0 AQW& No-U--(21L--- AGENDA Agenda Item CITY OF DEN 'CON CITY COUNCIL Dat6.__,EA1.d. March 24, 1998 Special Called Meeting of the City of Denton City Council on Tuesday, March 24, 1998 at 11,00 a.m. in the Council Chambers at City Hall, 215 E. McKinney, Denton, Texas at which the following items will be considered; 1, Receive and open bids regarding the City :f Denton's Utility System Revenue Bonds, Series 1998. 2. Consider adoption of an ordinance authorizing the issuance, sale, and delivery of City of Denton Utility System Revenue Bonds, Series 1998, and approving and authorizing instruments and procedures relating thereto, and providing an effective date. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of , 1998 at o'clock (a.m.) (P.m.) I CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS 1S ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETMO. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349.8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1.800-RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARYS OFFICE. iA 1 3ax zSx~CJ ~Cl*,. 0 wAGENDA CITY OF DENTON CITY COUNCIL March 24,1998 Auer determining that a quorum is present and convening in an oper meeting, the City Council will convene in a closed meeting of the City of Denton City Council on Tuesday, March 24, 1998 at 5:15 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney, Denton, Texas at which the following items will be considered: 1, Closed Meeting: A. Conference with Employees - Under TEX. GOVT, CODE Sec. 551.075. The Council may receive information from employees during a staff conference or briefing, but may not deliberate during the conference. ANN' FINAL ACTION, DECISION, OR VOTE ON A MATTER V LIBERATED IN A CLOSED MEETING OR ON INFORMATION RECEIVED IN A CVNFERENCE WITH EMPLOYEES WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEX. GOVT. CODE CH. 551. THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE SEC, 551.001, ET SEQ. (TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, ' INCLUDING, WITHOUT LIMITATION SECTIONS 551.071.551.085 OF THE OPEN MEETINGS ACT. Work Session of the City of Denton City Council on Tuesday, March 24, 1998 at 6:00 P.M. in the Council Work Session Room at City Hall, 215 E, McKinney, Denton, Texas at which the following items will be considered: NOTE: A Work Session is used to explore matters of interest to one or more City Council Members or the City Manager for the purpose of giving staff direction into whether or not such matters should be placed on a future regular or special meeting of the Council for citizen input, City Council deliberation and formal City action. At a Work Session, the City Council generally receives informal and preliminary reports and informatior from City staff, officials, members of City committees, and the individual or organization proposing council action, if invited by City Council or City Manager to participate in the session. Participation by individuals and members S of organizations invited to speak ceases when the Mayor announces the session is being closed to public input. Although Work Sessions are public meetings, and citizens have a legal right to attend, they are not public hearings, so citizens are not allowed to participate in the session unless invited to do so by the Mayor. Any citizen may supply to the City Council, prior to the beginning of the session, a written report regarding the citizen's opinion on the matter being explored. Should the Council direct the matter be placed on a regular meeting agenda, the staff • will generally prepare a final report defining the proposed action, which will be made available 0 to all citizens prior to the regular meeting at which citizen input Is sought. The purpose of this procedure is to allow citizens attending the regular meeting the opportunity to hear the views of Ihcir fellow citizens without having to attend two meetings. Q 32xI • some 0 v' Wel City of Denton City Council Agenda March 24, 1998 Page 2 1. Receive a report from the Denton Black Chamber of Commerce regarding a request to amend their 1997.96 Hotel Occupancy Tax Budget, hold a discussion, and give staff ' direction. 2. Receive a report, hold a discussion, and give staff direction regarding the adoption of a nrw master plan for Civic Center Park. The Parks and Recreation Board has recommended approval of the proposed Master Plan. 3 Receive a report, hold a discussion, and give staff direction regarding the draft landscape ordinance 4. Receive a repot and hold a discussion regarding growth forecasts and projections. 5. Receive a report, hold a discussion, and give staff direction regarding the Denton Plan Draft Policy Documents. CERTIFICATE 1 certify that the above notice of meeting was posted on the bulletin board at the City Hall of the city of Denton, Texas, on the day of 1998 at o'clock (a.m.) (P.m.) CITY SECiUTARY NOTE; THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. • PLEASE CALL THE CITY SECRETARY'S 0111CE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1.600-RELAY•TX SO 7 HAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. 0 D 4 Apenaa Nn. qQ_ Agenda Item ; AGENDA INFORMATION SHEET Date AGENDA DATE: March 24,1998 DEPARTMENT: Finance CM/DCNVACM: Kathy DuBoseo SUBJECT- Receive and open the bids regarding the City of Denton's Utility System Revenue Bonds, Series 1998. BACKGROUND On March 24, 1998, David Medanich of First Southwest Co, Ted Brirzolara III of McCall, Parkhurst and Horton will deliver and open the bids regarding the City of Denton's Utility System Revenue Bonds, Series 1998. The process of opening sealed bids publicly and tabulating them before the City Council is required by City Charter. The $7,175,000 in bonds will be issued to fund system distribution and extension improvements; debt service reserves; and, cost of issuance associated with the sale of bonds. The projects were previously approved in 1997.2002 Capital Improvement Program (CIP). PRIORACT10NlREVIEM (Council, Boards,Commisslons) On February 3, 1998 the City Council approved ordinance k 98-024 directing the publication of Notice of Intention to Issue City of Denton 1 Utility System Revenue Bonds and directing the issuance and publication of Notice of Sale of said bonds; and providing for an effective date. e ' FISCAL INFORM TION The Utility System Revenue Bonds, Series 1998 will rcquiN an average annual debt services payment of approximately S 554,232. l ji 1 i %,,.a { ?5 x 10 32X10 e arr. 0 DID INFORMATION To be distributed under a separate cover. Y Respectfully submitted: 44~4-A 40k Diana 0. Ortiz Director of Fiscal Operations -r 2F x~ 32x~n i moss= 11 i 0 anwsm 0 Ann" 1.vendii Itam a Date-. AGENDA INFORMATION SHEET 1 AGENDA DATE: March 24, 1998 DF,PARTn1ENT: Flnance CM(DCbI/ACM: Kathy DuBose V~b ,Nr S11 JECT - Consider adoption of an ordinance authorizing the issuance, sale, and delivery of City of Denton Utility System Revenue Bonds, Series 199g, and approving and authorizing Instruments and procedures relating thereto; and providing an effective date. BACKGROUND On March 24, 1998, David Medanich of First Southwest Co, Ted Brizzolara Ili of McCall, Parkhurst and Horton will deliver and open the bids regarding the City of Denton's Utility Systein Revenue Bonds, Series 1998, The process of opening sealed bids publicly and tabulating them before the City Councii is required by City Charter, i The $7,175,000 in bonds will be issued to fund system distribution and extension improvements; debt service reserves; and, cost of issuance associated with the sale of bonds. The projects were previously approved in 1997.2002 Capital Improvement Program (CIP). PRIOR ACTIONJREVIM (Council, Boards, Commissloo,) On February 3, 1998 the City Council approved ordinance # 98-024 directing the publication of Notice of Intention to Issue City of Denson Utility System Revenue Bonds and directing the issuance and publication of Notice of Sale of said bonds; and providing for an effective date. FISCAL INFO NATION The Utility System Revenue Bonds, Series 1995 will require an average annual debt services payment of approximately S 554,232, Res ectfully submitted: • Diana 0. Ortiz Director of Fiscal Operations 1 WV "04 K O 32 x 0 M ORDINANCE NO, 96-~ I ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON UTILITY SYSTEM REVENUE BONDS, SERIES 1998, AND APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES RELATING THERETO; AND PROVIDING AN EFFECTIVE DATE THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, the City of Denton, Texas, heretofore has duly issued the following revenue bonds: City of Denton Utility System Revenue Refunding Bonds, Series 1987, dated January 1, 1987; City of Denton Utility System Revenue Bonds, Series 1988, dated August 1, 1988; City of Denton Utility System Revenue Bonds, Series 1989, dated October 1, 1989; City of Denton Utility System Revenue Bonds, Series 1992, dated March 1, 1992; City of Denton Utility System Revenue Bonds, Series 1993, dated March 1, 1993; City of Denton Utility System Revenue Refunding Bonds, Series 1993-A, dated June 1, 1993, City of Denton Utility System Revenue Refunding Bonds, Taxable Series 1993-8, dated June 1, 1993; City of Denton Utility System Revenue Bonds, Series 1996, dated May 1, 1996; and City of Denton Utility System Revenue Refunding Bonds, Series 1996-A, dated May 1, 1996; @ WHEREAS, the City Council of the City of Denton deems it necessary and advisable to authorize, issue, and deliver the additional Utility System Revenue Bonds hereinafter described, A WHEREAS, the Series 1998 Bonds hereinafter authorized and described are to be issued, sold and delivered pursuant to Vernon's Ann. Tex. Civ, Arts. 2368a and 11 I 1 through 1118, the City's @ Home Rule Charter, and other applicable laws, NOW, THEREFORE I Nab ~.~r ~4 ~~~1❑ 32XIO B 0 M THE COUNCIL OF THE CITY OF DENTON WY EB GTtc^.AINS: f Sectio;. 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 principal amount of $7,175,000, for the purpose of providing for improvements and extensions of the City of Denton Utility System, which consists of the City's Combined Waterworks, Sewer, and Electric Light and Power System, and shall be designated "City of Denton Utility System Revenue Bonds, Series 1998" (the "Series 1998 Bonds"). Section 2, DESCRIPTION OF THE BONDS. (a) With respect to the Series 1998 Bonds, 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. 1MTIAL DATE, DENOMINATION, NUMBER, MATURITIES, INITIAL. REGISTERED OWNER, AND CHARACTERISTICS OF THE INITIAL BOND. 1 I (a) The Initial Bond is hereby authorized to be Issued, sold, and delivered hereunder as a single" registered Bond, without interest coupons, dated MARCH 13, 1998, in the denomination and aggregate principal amount of $7,175,000, numbered R•1, payable in annual installments of principal to the initial registered owner thereof, to-wit; i or to the registered assignee or assignees of said Bond or any portion or portions thereof (tn each case, the "registered owner"), with the annual installments of principal of the lrutial 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 Ordinance. • (b) The Initial Bond (i) may and shall be prepaid or redeemed prior to the respective ,.-heduled due dates of tnstallrnasts of principal therec C (u) may be assigned and trwferred, (rli) may I be converted and exchanged for other Bonds, (tv) shay, have the characteristics, and (v) shall be signed and sealed, and the principal of and interest on the Initial Bond shall be payable, all as provided, and in the manner required or indicated, in the FORM OF INITIAL BOND set forth In Ns 1 Oruinance • • 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 respective dates of shall prepayment or redemption, of the installments of principal of the Initial Bond, and Wd Interest 2 I 10 32XI❑ 0 0 WrIYEOr 0 94 90; 10:401 $141649260 •r DATON•CM-ACC10, Eo r MAR-24-88 08.44 FRON.HoCALL PARKtiURST a HORTON ID-2147649260 PACE 2/2 be pays+blq all is the manner provided and W the rata and on the data Gated 1a the FORM OF DAMAL BOND sd forth in thb Ordinance. I SOC&O S. FORM OF INITIAL Bom. The form of the latch! Bor4 Wuding the fora: of RegWadoo Owd$ode of the Compboller of Public Aooou is of the Stde of Tmu to be endorsed on the Initial 804 Ad be subetaaddy as mows: ~ i FORM OF RDMALAM NO, R-1 $7,175,000 UNITED STATES Of I AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON UT111TY SYSTEM REVENUE BOND SERIES 1998 THE CITY OF DENTON, to Deotoo County, TOM (the "ISaer"X being a po66W subdivision of the State of Texas, bmby promise to pay to or to the tegista'ed ftiV a of snip" of tb6 Boad a my portion or portions hem! (tn each case, the "re0stered owner") the aggtepate pdaclpal ethos or $7,175,0Ca (SEVEN MWON ONE HUNDRED SEVENTY FIVE THOUSAND DOUARS) in annual inttallrmats of priadpd due and payable on DomrA f 1 In each of the years, atd in she reVOWYe prieeiMl emo A% ar ad Forth in the W0wiog Schedule: FRINCTAL M NCIPAL YF,A~ AMOIIN'1' x m AMOUNT 1998 $160,000 2008 5360,000 1999 360,000 2004 360,000 2000 360,000 2010 360,000 2001 360,000 2011 360,000 • 2002 360,000 2012 360,000 2003 360,000 2013 3$5,000 2004 360,000 2014 3SS,000 2005 W,000 2015 3S3,000 2006 360,000 2016 35$,000 2007 360,000 2017 355,000 3 i 25.. 10 32xlo 0 and to pay interest, Gom the date of this Bond hereinafter stated, on the balance of each such installment of principal, respectively, Gorr time to time remaining unpaid, at the rates as follows: per annum on the above installment due in 1998 per annum on the above installment due in 1999 per annum on the above installment due in 2000 per annum on the above installment due in 2001 per annum on the above installment due in 2002 per annum on the above installment due in 2003 per annum on the above installment due in 2004 per annum on the above installment due in 2005 per annum on the above installment due in 2006 per annum on the above installment due in 2007 per annum on the above installment due in 2008 per annum or, the above installment due In 2009 per annum on the above installment due in 2010 per annum on the above installment due in 2011 per annum on the above installment due in 2012 per annum on the above inaallment due in 2013 per annum on the above instalment due in 2014 per annum on the above installment due in 2015 per annum on the above installment due in 2016 ~ per annum on the above installment due in 2017 with said interest being first due and payable on December 1, 1998, and semiannually on each June 1 and Docember 1 thereafter while this Boni' or any portion hereof is outstanding and unpaid. Said interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. THE INSTALLMENT S 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 instaliments of prbicipal and the interest on this Bond are payable to the registered owner hereof through the services of CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, DALLAS, TEXAS, which is the "Paying Agent/Registrar" for this Bond. Payment of all principal of and interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each principal and/or interest payment date by check, dated as of such date, drawn by the Paying A Agent/Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of this Bond (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose is hereinafter provided, and such check 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 hereot at the address of the registered owner, as it appeared on the I Sth day ofthe month nrxt preceding each such date (the "Record Dew") on the Registration Books kept by • the Paying Agent/Registrar, as hereinafter described. The Issuer covenants wish the registered owner 0 r of this Bond that on or before each principal and/or interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and Sinking Fund" maintained pursuant to 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. 4 I ~igmel"f ~s , r r, I v 74 32x1 0 0 i • ~ it IF THE DATE for the payment of the principal of or interest 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/R4strar 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 :Le. I TIBS BOND has been authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $7,173,000, for the put pose of providing for improvements and extensions of the City of Denton Utility System, which consists of the City s Combined WaterwoA5, Sewer, and Electric Light and Power System. ON DECEMBER 1, 2008, or on any date whatsoever 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 fio,.n any a4lrble sodree, 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 55,000), 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 io 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 prepay- ment 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 Bor d, or the portion thereof which is to be so prepaid or redeemed, thereby automatically shall be t•eated as prepaid or redeemed prior to its scheduled due date, and shall not bear interest after the rate 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 interest 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 all such prepayments or redemptions of principal of this Bond or any portion hereof. THIS BOND, to the extent of the unpaid or unre6.:-,:.;,d principal balance hereof, or any unpaid and unredeemed portion hereof in any integral multiple of $3,000, may b. 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 0 Bond must be presented and surrendered to the Paying Agent/Registrar for cancellation, together t , With proper instruments of assignment, in form and with guarantee of signatures satisfactory to the 1., L Paying Agent/Registrar, evidencing assignment by the initial registered owner of this Bond, or any s~ portion or portions hereof in any integral multiple of 55,000, 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. Any instrument or in, truments of assignment satisfactory to the Paying Agent/Registmr S i ra w I 32 X I 0 O Desna r 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 registerM 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/Rcgistrar 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 a. ected 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 aggregate 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 hereinafter 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 corresponding to the due date of the installment of pri ncipal of this Bond or portion hereof for which the substitute bond is being exchanged, and shall bear interest at the rate applicabie 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. PS 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 Gas close of business on any Record Dale and ending with the opening of business on the next following principal or interest pay. nent 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 d ~ 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 substitute therefor, and promptly will cause written notice thereof to be mailed to the registered owner of this Bond. 6 i k. J i 32X Was MR y~rssr o , IT IS HEREBY certified, tecitod, and covenanted that this Bond has been duly tad validly authorized, Issued, sold, and delivered, that all acts, conditions, and things required of proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been perforated, existed, and been done in eoeordana with law, that this Bond is a special obligation of the Issuer, secured by and payable, together with other bonds, from a fast 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 restrictions 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 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 ail outstanding bonds which are segued by and payable from a first ben on and pledge of ti a Pledged Revenues. 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 BECOMINO the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions 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 Ordinance 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 and attested with the manual signature of the City Secretary of the Issuer, has caused the oft'icW seal of the Issuer to be duly impressed on this Bond, and has caused this Bond to be dated March 15, 1998. ATTEST; CITY OF DENTON, TEXAS By: By: Jennifer Walters Jack Miller City Secretary, City of Denton, Texas Mayor, City of Denton, Texas (CITY SEAL) I (BOND INSURANCE LEGEND, IF ANY) 7 10 32A] 0 c FORM OF REGISTRATION CERTIFIC ATE OF THE COMPTROLLER OF PUBLIC ACCOLtNTS: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO " I hereby certify that this Bond has been examined, certified 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 Comptroller of Public Accounts of the State of Texas i (COMPTROLLER'S SEAL) Section 6. ADDITIONAL CHARACTERISTICS OF THE BONDS, RcWstration and Transfer. (a) The Issuer shall keep or cause to be kept at the principal corporate trust office of ' CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, DALLAS, 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 trailed, as herein provided, but it shah be the duty of each registered otyner 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 Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any 0 other entity. Registration of each Bond may be transferred in the Registration Books only upon presentation and surrender of such Bond to the Paying Agent/Registrar for transfer of registration and cancellation, together with proper written iactruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing (i) 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 C 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 register ed owner thereof once only, and to one or more assignees designated in writing by the initial registered owner thereof All Bonds issued and delivered in conversion of and exchange for the Initial Bond shall be in any denomination B Q~ (may t [ w r,.. M'?SA , 0 ' 0 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 presm'bed in the FORM OF SUBSTITUTE BOND set forth in this Ordinance, and slag have the characteristics, and may be assigned, 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 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 balmg 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 assignee 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 portions 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 characteristics herein described, payable to such assignee or assignees (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), bR low, for the conversion and exchange of Bonds by any registered owner of a Bond. The Issuer all pay the Paying Agent/Registrar's standard or customary fees and charges for making such trans- ~er and delivery of a substitute Bond or Bonds, but the one requesting such transfer shall pay any axes or other govgrnmental 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 opening of business on the next following principal or interest payment date, or, (n) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days j prior to its redemption date. (b) Ownership of Bonds. The entity 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 J purposes of this Ordinance, whether or not such Bond shall be overdue, and the Issuer and the Paying i Agent/Registrar shall not be affected by any notice to the contrary; and payment of, or on account J 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 to paid. I (c) Payment of Bonds and Interest. The Issuer hereby further appoints the Paying Agent/Registrar to act as the paying agent for paying the principal of and Interest on the Bonds, and g ~)f; n 32X 0 'aiv2',7 to act as its agent to convert and exchange or replace Bonds, all as provided in this Ordinance . The Paying Agent/Registrar shad 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 exclurnges of Bonds, and all replacements of Bonds, as provided iu this Ordinance. (d) Conversion and Exchange or Replacement Authentication. Each Bond issued and delivered pursuant to this Ordinance, 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 Agent/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 registered owner or such assignee or assignees, as appropriate, be converted into and exchanged for fully registered bonds, without interest awpons, in the form prescribed in the FORM OF SUBSTITUTE BOND set forth in this Ordutiance, in the denomination of $5,000, or any irtegrd multiple of 55,000 (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 amour t equal to the unpaid or unredeemed 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 I P 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 b have a principal maturity date correspotAing 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 tKchanged If a portion of any Bond (other than the Initial Bond) shall be redeemed prior to its scheduled maturity as provided hert,n, a substitute Bond or Bonds having the same maturity j 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 mate ity 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 A 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 is 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 subtritute Bt,nd so authenticated after such first scheduled Record Date shall • bear interest from the in-erast payment date next preceding the date on which such substitute Bond was to authenticated, unb•ss such Bend Is authenticated after any Record Date but on or before the next following interest pa)inent date, In which case it shall bear interest from such next follow^ag ~ interest payment date; pi waded, 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 W. THE INITIAL BOND 10 N In ~)C 32X I I I t;,c.vs~rat 0 Y I 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 ;ssued 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 in this Bond, and that this Bond has been issued in conversion of and exchange for or replacement ora 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 Te-cas. CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, DALLAS, TEXAS Paying Agent/Registrar Dated By Authorized Representative" An authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Boai, date and manually sign the above Certificate, and no such Bnnd shall be deemed to be issued or outstanding unless such Certificate is so exa-.uted 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 i Bond or portion thereof, and the Paying Agent/Registrar shall provide for the printing, execution, 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 Vemon'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 AgenvRegistrar, and, upon the execution of the above Paying Agent/Registries 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 A originally was issued pursuant to this Ordinance, approved 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 transferrin• , 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 Q 0 (i) during the period commencing with the close of business on any Recotd 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 43 days prior to its redemption date 11 • atom ~ O I~ (e) In General. All Bonds issued in conversion and exchange or replacement of any other Bond or portion thereof; (i) shall be issued in fully registered fors, without interest coupons, with the principal of and interest on such Bonds to be payable only to the registered owners thereof (il) may and sham be redeemed prior to their scheduled maturities, Cti) may be transferred and assigned, Cry) 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 shalt be payable, all as provided, and in the runner required or indicated, in the FORM OF SUBSTITUTE BOND act forth in this Ordinance. (f) Payment of Fees and Charges. The Issuer hereby covenants with the registered owners of 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/Registnr 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 Paving en The Issuer covenants with the registered owners of the Bonds that at all times while the Bonds are outstanding the Issuer will provide a competent and legally qualified bank, taut 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/Regislrar upon nW 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 aging as Paying Agent/Registrar (or its successor by merger, acquisitions, or other method) should resign or otherwise cease to act as such, the Issuer covenants that it will promptly 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/Registr, r, the previous Paying Agent/Registrar shall promptly 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/Registrar designated and appointed by the Issuer. Upon anythange in the Paying Agent/Registrar, the Issuer promptly will cause a written notice thereof to be sent by the new Paying AgeftRegistrar 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 cetified copy of this • Ordinance shall be delivered to each Paying Agent/Registrar. Section 1. FORM OF SUBSTITUTE BOND. The form of all Bonds issued in conversion and exchange or replacement of any other Bond or portion thereot; 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. 0 12 ."lid R'F~w +r +I' ~iti rl IJ 3241 r , 0 0 tiw>~ 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 1998 INTEREST MATURITY ORIGINAL DATE _RATE DATE OF ISSUE CUSIP NO, % MARCH 15, 1999 ON THE MATURITY DATE specified above the CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a political subdivision of the State of Texas, hereby promises to pay to or to the registered 1 assignee hereof (either being hereinafter called the "registered owner") the principal amount of ~I and to pay interest thereon from March 15, 1998, 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 first due and payable on December 1, 1998, and semiannually on each June 1 and December 1 thereafter, except that if the date of authentication of this Bond is later than the first Record Date (hereinafter defined), such principal amount shall bear interest from the interest payment date next j preceding the date of authentication, unless such date of authentication is after any Record Date (hereinafter defined) but on or before the next following interest payment date, in which case such principal amount shall beat Interest from such next following interest payment date. Said interest shall t be calculated on the basis of a 360-day year composed of twelve 30-day months. 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 dull 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 • CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, DALLAS, TEXAS, which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agett/Registrar to the registered owner hereof on each Interest payment date by check, dated as of such interest payment date, drawn by the Paying Agent/Registru on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of the Bonds (the "Bond 1 Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter • provided, arW such check shall be sent by the Paying Agemt/Registru by United States mail, first-class 1D • postage prepaid, on each such interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared at the close of business on the 1 Sth day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/Reostmr, as hereinafter described. However, the payment of such interest may be made by 13 - 7'i " In 3?XI0 0 Mom O any other method acceptable to the Paying Agert/Registrar and requested by, and at the risk and expense of: the registered owner hereof. Any accrued interest due upon the redemption of this Bond n prior to maturity as provided herein shall be paid to the registered owner at the principal corporate trust office of the Paying Agad/Registrar upon presentation and surrender of this Bond for redemp- tion and payment at the principal corporate trust office of the Paying Agent/Registrar, 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 available funds, of all principal of and interest on the Bonds, when due. IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying AgawRegistrar is located are authorized by law or executive order to close, ben 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 ctose; 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 15, 1948, authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $7,175,000, for the purpose of providing for improvements and extensions of the City of Denton Utility System, which consists of the City's Combined Waterworks, Sewer, and Electric Light and Power System. ON DECEMBER 1, 2008, or on any date whatsoever thereafler, 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 principaLL-lount thereof, plus accrued interest to the date fixed for redemption. AT LEAST 30 days prior to the date fixed for any redemption of Bonds or portions thereof prior to maturity a written notice of such redemption shaft be published once in a financial 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 appeared on the 451h day prior to such redemption date; provided, however, that the failure to send, mail, or receive such notice, or any defect therein or in the sending or mailing r 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 Inch notice as required above shall be the only notice actually required in connection with or as a pr+requisiie to the redemption of any Bonds or portions thereof 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 date fixed for 14 icure s ~t tt 32 X I D 'IT 711ZM -1 0 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 redemption, 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 same 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 unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the Issuer, alI as provided in the Bond Ordinance, THIS BOND OR ANY PORTION OR PORTIONS HEREOF IN ANY INTEGRAL MULTIPLE OF $5,000 may be assigned 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 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 satisfactory 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 of any such portion or portions hereof is or are to be transferred and registered. The form of j Assignment printed or endorsed on this Bond shall be executed by the registered owner or its duly authorized attorney or representative, 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. Ths-6.,.,w shall pay the Paying Agent/Registrars standard or customary fees and charges for making sucl • :n: rer, but the one requesting such transfer shall pay any taxes or other governmental charges fNU ed 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, (ii) 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 1D , Ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the registered owner or the assignee or assignees hereof, be converted into and exchanged for a like aggregate principal Zoe amount of fully registered bonds, without interest couponq, 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 I ~ r i 32 X o , 0 C in writing by the appropriate registered owner, asaignee, or assignees, as the case may be, upon sur- render of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. The issuer shall pay the Paying Agem/Regist es standard or customary fees and charges for trurdfer ft converting, and exchanging any 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 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 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, (o) 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 Agaq/Regutrar for the Bonds Is clanged by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covermmted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and will promptly 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 mid validly authorized, issued, sold, and delivered; that all cats, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authoriration, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with low, that this Bond is a special obligation of the issuer, secured by and payable, together with other bonds, from a first lien on and P pledge of the "Pledged Revemuee, 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 restrictions 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 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 fast lien on and pledge of the Pledged Revenues. A THE REGISTERED OWNER hereof shall never have the right to demand payment of this Bond or the interest hereon out orany 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 registered owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such • terms and provisions, acknowledges that the Bond Ordinance Is duly recorded and available for O hVection 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 Ordinance constitute a contract between each registered owner hereof and the Issuer. 16 25 • 0 1 IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile signature of the Mayor of the Issuer and countersigned and attested with the manual or facsimile signature of the City Setretary of the Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile, on this Bond. i; ATTEST: CITY OF DENTON, TEXAS By: By. Jennifer Walters Jack Miller City Secretary, City of Denton, Texas Mayor, City of Denton, Texas (CITY SEAL) FORM OF PAYING AGENT/RrGI9M$'S AL nCATION CERTMCATE PAYFNO AGENT/REGISI'RAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in this Bond; and that tai. Bond has been issued in conversion of and exchange for or replaoeme a of a bond, bonds, or a portion of i bw.d or bonds of an issu, originally was approved by the Attomey General of the State of Texts at d registered by the C,..nptroller of Public Accounts of the State of Texas. ` CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, DALLAS, TEXAS Paying Agent/114strar Dated By Authorized Representative 0 (BOND INSURANCE LEGEND, IF ANY) is ~ • • 1, UJI i 17 i 5 Y 32x .w. • 0 ';Y3'Y':4rq I FORM OF ASSIGNMENT: ASSIGNMENT FOR VALUE RECEIVED, the undersigned registered owner of this Bond, or duly authorized representative or attorney thereof" hereby assign i this Bond to (Assignee's Social (print or typewrite Assignee's name and Security or Taxpayer address, including rip code) Identificadon Number) and hereby irrevocably constitutes and appoints attorney to transfer the registration of this Bond on the Paying Agent/Registraes, Registration Books with full power of substitution in the premises. Dated: Signature Guaranteed; NOTICE: Signature(s) must be Registered Owner guaranteed by an eligible guarantor NOTICE: This signature must correspond institution participating in a with the name of the Registered Owner securities transfer association appearing on the face of this Certificate in recognized signature guarantee every particular without alteration or program. enlargement or any change whatsoever, Section 8. DEFINITIONS. As used In this Ordinance the following terms shall have the meanings set forth below, unless the text hereof specifically Indicates other wim: (a) The terms "City" and "Issuer" shall mean the City of Denton, In Denton County, Texas. • I (b) The term "City Council" or "Council' shall mean the governing body of the City. (c) The term 'Bonds' shall mean collectively the Wtial Bond as defined and described In Section 2 of this Ordinance and all substitute bonds exchanged therefor, and all other substitute bonda and replacement bonds, Issued pursuant to and as provided In this Ordinance, • • • (d) The letsn "parity Bonds" sheen ratan coUedively ()the outstanding City of Denton Utility ILI System Revenue Refunding Bonds, Series 1987, authorized by ordinance pissed on January 27, 1987 (the "Series 5 authorized lbyord,innance pas on August 21988 (the "Sede esr~ s 4 Revenue 8 Bond), ('die 188 18 s r~ f h;. 10 32x1 0 outstanding City of Denton Utility System Revenue Bonds, Series 1989, authorized by ordinance passed on October 24, 1989 (the "Series 1989 Bonds"), (iv) the outstanding City of Denton Utility System Revenue Bonds, Series 1992, authorized by ordinance passed on Much 3, 1992 (the "Series 1992 Bonds"), (v) the outstanding City of Denton Utility System Revenue Bonds, Series 1993, " authorized by ordinance passed qn Much 16, 1993 (the "Series 1993 Bonds"), (vi) the outstanding City of Denton Utility System Revenue Refunding Bonds, Series 1993-A, Authorized by ordinance passed on June 8, 1993 (the "Series 1993-A Bond"), (vii) the outstanding City of Denton Utility System Revenue Refniding Bonds, Taxable Series 1993-B, authorized by ordinance passed on June 8, 1993 (the "Series 1993•B Bonds"), (viii) the outstanding City of Denton Utility System Revenue Bonds, Series 1996, authorized by an ordinance passed on May 7, 1996, (arc) the outstanding City of Denton Utility System Revenue Refunding Bonds, Series 1996-A, authorized by an ordinance passed on May 7, 1996 and (x) the Bonds (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. (0 The term "System" shall mean p) 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 pennitted 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, i 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 other- wise provided 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 A and income of eery 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 this Ordinance. (h) The terms "Net Revenues of the System", and "Net Revenues" shall mean all Gross Revenues after deducting therefiom An amount equal to the current o"ises of operation and mainte- nance of the System, including all salaries, labor, materialt, repairs, and extensions necessary to ~ ♦ ~ render efficient service, provided, however, that only such rer airs and extensions, As in the}udgment ~ j of the City Council, reasonably and fairly exercised by the Adoption of appropriate volutions, are necessary to keep the System in operation And render adequate service to add City and the inhabitants 1 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". 19 1 a ; I Payments required to be made by the City for water supply or water fiaTit m 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 expenses of operation and maintenance of the System under this Ordinance. Depreciation and amortization shall not constitute or be regarded as expenses of operation and mrntenance of the System. (i) The term "Pledged Revenues" shall mean (t) the Net Revenues, plus (2) any additional revenues, income, or other resources which are expected to be available to the City on t regular periodic basis, Muft 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 in the future may, at the option of the City, be pledged to the payment of the Parity Bonds or Additional Bonds, Q) 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 1 of America, including obligations the principal of and interest on which are unconditionally 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 24 and 25 of" the ordinance passed on March 10, 1983, authorizing the City of Denton Revenue Refunding Bonds, Series 1983 (the "Series 1983 Bonds"); and it is hereby determined, declared, and resolved that all of the Parity Bonds (including the Bonds) are secured and payable equally and ratably on a parity, and that Sections 8 through 28, 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, n (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 estaKshmernt and maintenance of the Funds created by this Ordinance,'and any Funds created by any ordinance auloriwill the IssuaAce 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 propen;es constituting the System. • i1 Section 10 SYSTEM 1°1JN1D, There heretofore has been and is hereby created and there shall be established and madntalned on the books of the City, and accounted for separate and spot 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 Immediately upon 20 f L~I.YL'i. ~.yw r , u ~ ,may 17 ~1 32 X R..! 1 1 s O I receipt, unless otherwise provided in this Ordinance. All current expenses of operation and maintenance of the Systm 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 i 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, 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 Revenue Bonds Interest and Sinking Fund" (the "Interest and Sinking Fund"). Section 12. RESERVE FU*ID. There heretofore has been, and is hereby, created, and there shall be established and maintained at Chase Bank of Texas, National Association, and hereafter, et 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 Denton Utility System Bonds and Additional Bonds Reserve Fund" (the 'Reserve Fund"). The Reserve Fund ahn11 be used to pay the principal of and interest on any Parity Bonds or Additional Bonds when and to the extent the a?nounts 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 has been and is hereby created and there shall be established and maintained on the books of the City, and accounted for separate and span 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 p•.rrpose of paying the costs of i improvements, enlargements, extensions, additions, replacements, or other capital expenditures related to the System or for paying the costs of unexpected or extraordinary repairs or replacements 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 avail- able, or for any other lawful 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 apan 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 unexpected 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 e 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 21 32 x O r - Section 15. DEPOSITS OF PLEDGED REVENUES. Pledged Revenues shall be credited to or deposited in the Lite" and Sinking Fund, the Reserve fund, tFe Extension and Improvement Fund, and other funds when and as required by ibis 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 seared by obligations of the type hereinafter described, or be invested 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 horumentalities 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 Banks, Government National Mortgage Association, United States Postal Service, Farmers Home Administra6on, Federal Home Loan Mortgage Association, Small Business Administration, Federal Housing Association, or Participation Certificates in the Federal Asseu Financing Trust; provided that ' all such deposits and investments shall be made in such manner as wig, 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 ' xal Government Series investments held in book entry form, which shall at ail times be valued at D 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. FVNDS SECURED. That money in all Funds crated by this Ordinance, to the extent not invested, shall be secured in the manner prescribed by law, 1 Section 18. PRIORITY OF DEPOSITS AND PAYMENTS FROM SYSTEM FUND. That the City shall make the deposits and payments frofn Pledged Revenues In the System Fund when and 0 as requ'ved 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 requited by this Ordinance and any ordinance authorizing any Additional Bonds; Second, to the Reserve Fund, when and in the smounts required by this Ordinance and j 0 0 • ! any ordinance authorizing any Additional Bonds; and u Third, to the Extension and Improvement Fund, when and as required by Section 21 of this Ordinance. 22 ~ Ire 32XIO 0 0 I~ 1 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 We of the Mal 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 irderest 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 requirement, 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 kiting 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 which is in excess of $3,000,000 and which is at least equal to the average annual principal and interest requirements of the outstanding Series 1987 Bonds, the Series 1988 Bonds, the Series 1989 Bonds, the Series 1992 Bonds, the Series 1993 Bonds, the Series 1993•A Bonds, the Taxable Series 1993.9 Bonds, the Series 1996 Bonds and the F Series 1996-A Bonds (the current "Required Reserve Amount") Following the issuance and delivery of the Initial Bonds the Required Reserve Amount shall become and be an amount of money and investments equal to the average annual principal and interest requirements of all the outstanding Parity Bonds and Additional Bonds; prosided further, however, that the Required Reserve Amount shall never be less than $3,000,000 if the maximum annual principal and interest requirements on all outstanding Parity Bonds and Additional Bonds exceeds $3,000,000. Immediately after the issuance and del,very of the Initial Bond tl ere shall be deposited to the credit of the Reserve Fund, from the proceeds of the sale of the Initial Bond, money sufficient to cause the Reserve Fund to conlain an aggregate amount of money and investments equal to the Required Reserve Amount for all then out. standing Parity Bonds Ater the delivery of any future Additional Bonds the City shall cause the Reserve Fund to lx increased, if and to the extent necessary, to 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 We of any Additional Bonds, or any other available source of combination of sources. All or any part A of the Required Reserve Amount not funded initially utd 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 15th day of ea:h month Principal amounts of the Parity Bonds and any Additional Bonds which must be redeemed pursuant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of principal for the purpose of calculating principal and interest requirements on such bonds. Whcn and so long as the amount in the Reserve Fund is not leas than the Required Reserve Amount no deposits shall be made to the credit of the Reserve Fund; but when C 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 1160th of the Required Reserve Amount, until the Reserve Fund is restored to the Required Reserve Amount. The City 23 Q IRW f~a'iN~^L F w ..I : r. IF F.J 0 0 specifically covenants that when and so long as the Reserve Fund contains the Required Reserve Amount, the City shall cause all amounts in excess of the Required Reserve Amount to be deposited to the credit of the Interest and Sinking Fund. Section 21. EXTENSION AND DOROVEMENT FUND REQUIREMENTS. 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 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 attributable to (i) all fuel costs related to the production of electric energy by the City and/or (d) the purchase of electric energy by the City, Additional excess Pledged Revenues nay, 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 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. Section 22. DEFICIENCIES- EXCESS PLEDGED REVENUES. (a) If on any occasion t 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 up as soon as possible from the next available Pledged Revenues, I (b) Subject to making the required deposits to the credit of the various Funds when and u 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, 1998, and semiannually on or before each June I and December 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 tither 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 d certificate of cancellation or destruction. 0 Section 24. FINAL DEPOSITS (a) Any Parity Bond or Additional Bond shall be deemed to be paid, retired, trod 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, 24 In 32y Irj O r• Y v,. t , ji dtL1: Kf or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (including the giVm of any required notice of redemption or provision for the (roper giving of such notice having been made), or (ii) shall have been provided by inevocabl) Aepositing with or making available to a Paying Agent therefor, in trust and irrevocably set aside exclusively for such I > payment, (1) money sufficient to make such payment or (2) Government Obligations which mature A% 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 tees, compensation, and expenses of such Paying Agent pertaining to the Parity Bonds and Additional 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 paid 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 (b) Any moneys so deposited with a paying agent may at the direction of the City also be invested in G)vemment Obligations, maturing in the amounts and times as hereinbefore set forth, and all income from all Govemmertt Obligations in the hands of the paying agent pursuant to this Section which is not required for the 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 ~e 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 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 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 I of the years in which such pr'a:ipal is scheduled to be paid or mature. Section 26 FURTHER REQUIREMENTS FOR ADDITIONAL BONDS Additional S 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 connection with all then i outstanding Parity Bonds and Additional Bonds, and the ordinances authorizing same, and that the Interest and Sinking Fund and the Reserve Fund each contain the amount then required to be therein. ' (b) An independent certified public accountant, or Independcut firm of certified public accountants, acting by and through a certified public accountant, signs it written certificate to th s effect that, in his or its opinion, during either the next preceding fiscal year, or any twelve consecutive calendar month period out of the 1 9-month period immediately preceding the month in which the 25 A ~ t1 i In 32x00 ~ iirwei+~ • 0 ordinance authorizing the issuance of the then proposed Additional Bonds is passed, the Pledged Revenues were at least (1)1.25 times an amount equal to the average annual principal and interest i, requirements, rwnd (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 vNch 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 pur.)oses of this subsection (b), if there has been any increase in the rates or charges for services of the System which is then in effect, but which was not in effect during all or any pan 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 I~ 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'xen in effect during the entire period. (c) Provision shad be made in the ordinance authorizing their issuance for increasing the Reserve Fund to the Required Reserve Amount as required by Section 20 hereof. (d) All calculations of average annual principal and interest requirements of any bonds made in connection with the issuance of arty then proposed Additional Bonds shall be made as of the D 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. r Section 27, GENERAL COVENANTS. The City further covenants and agrees that in accordance with and to the extent required or permitted by law: (a) P dormancs. It well faithfully perform at all times any and all covenants, undertakings, stipulation, and provisions contained in this Ordinance, and each ordinance authorizing the issuance 1 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 prescribed in such ordinances and Parity Bonds or Additional 0 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 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. O (b) CitJs Le Authority. The City is a duty created Arid 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 pan for the creation And issuance of the said obligations has been or will be duly and eiTectively taken, and that said obligations In the hands of the 26 ' 0 c 'F9RSi'L holders and owners thereof are and will be valid and enforceable special obligations of the City in accordance with their terms. I (c) M. 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 whomso• ever, 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) Lk a. The City 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, that it will pay all lawful claims for rents, royalties, labor, materials, and supplies which if unpaid might by law become a hen or charge thtreon, the lien of which would be prior to or interfere with the liens hereof, so that the priority of the Hens 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, Iaborees, nutedgman's, or other ben or charge which might or could be prior to the liens hereof, or do or suffer any matter or thing whereby the Hens hereof might or could be impaired; provided, however, that no such tax, assessment, 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 the validity of the same shall be contested in good faith by the City. d (e) 0 aper lion of System: No Free Service While the Parity Bonds or any Additional Bonds are outstanding and unpad 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 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, instrumentalities, lessors, or con:essionakes out of funds from sources other than the revenues of the System, unless madefrom surplus Pledged 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 its pemmtted 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 or Additional Bonds; but the right orthe City to issue revenue bonds payable from a subordinate lien on surplus Pledged Revenues is specificaly recognized and retained, as permitted under Section 22(b) hereof). , (g) Sly or pispgsal 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 0 ' transfer title to, or dedicate to other use, or otherwise dispose of, the System, or any significant or substantial part thereof, provided that whenever the City deems it necessary to dispose of any property, machinery, fixtures, or equipment, or dedicate such property to other use, it may do so eit',er 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. 27 2 C) 32X } y• Mh; e ' o (h) Insurance. (1) The City shall cause to be insured such par is of the System as would usually be insured by corporations operating like properties, with a responsible insurance company or companies, against risks, accidents, or casualties against which and to the extent insurance is usially carried by corporations operating like properties, including, to the extent reasonably obtu.inable, 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 insurance premiums shall be paid as an expense of operation of the System. At any time while any contractor engaged in construction work hall be fully responsible therefor, the City shall not be required to carry insurance on the work being constructed if the contractor is required to carry appropriate insurance AD 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 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 t'amaged or replacing the property destroyed, provided, however, that if said insurance proceed- and other funds are insufficient for such purpose, then said insurance proceeds pertaining to tfr: 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 Account, will be sufficient to make the repairs or replacements originally 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 maintenance of insurance, and shall state whether or not all insurance premiums upon the insurance policies to which reference is made have been paid. (i) Annual BAdget and Rate Covenant. The City 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 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 (1) to produce Gross Rev; nues sufficient, together with any other Pledged Revenues, to pay all current A 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 1.2S times the succeeding fiscal year's principal and interest requirements of all then outstanding Ps Bonds and Additional Bonds. (j) Record3. The City shall keep proper books 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 Punds created pursuant to this Ordinance, end all books, documents, and vouchers relating thereto shall at all reasonable times be made available for inspec lon 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 i 28 '"t 10 32X 0 • 1 f 0 }I~ 11 I f~ accounting practices as usually would be 1! Uowed by private corporations owning and operating a similar System, with appropriate recognition being given to essential differences between municipal and corporate accounting practices r (k) Audits. After the closq of each fiscal year while any of the Parity Bonds or any Additional Bonds ar., 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 Otter 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 the Bondholders and their agents and representatives at all reasonable times. (1) GoveramenW Agencies. It will comply with all of the terms and conditions of any and all franchises, pemdts, and authorizations applicable to or necessary with respect to the System, and which have been obtained from any governments] agency; and the City has or will obtain and keep in fish force and eaect all franchises, permits, authorization, and other requirements applicable to or necessary with respect to the acquisition, constnsction, equipment, operation, and maintenance of the System. (m) Np 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 facillt "s. (n) No Arbitrage. The City covenants to and with the purchasers of .he Parity Bonds and any Additional Bonds that no use will be made of the proceeds of any of zsch bonds at any time throughout the term of any of such bonds which, if such use had been rea ,onably expected on the date of delivery of any of such bonds to and payment therefor by tl : purchase a, would have caused any of such bonds to be arbitrage bonds within the meaning of Section 149 of the Internal Revenue Code of 1996, as amended (the "Code"), or any regulations or rulings pertaining thereto; and by this covenant the City is obligated to comply with the requirements of the aforesaid Code 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 aforesaid Code, or any regulations pertaining thereto. Section 28, AMENDMENT OF ORDINANCE. (a) The holders or owners of Parity Bonds and Additional Bonds aggregating in principal amount 510/6 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 pemtit or be construed to permit the amendment of the terms and conditions in this Ordinance or in the Parity Bonds or Additional Bonds so as to. (1) Make any change in the maturity of the outstanding Parity Bonds or Additional Bonds; 29 in 32X & * 0- I • 0 (2) Reduce the rate of interest borne by any of the outstanding Parity Bonds or Additional Bonds; i (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 Additional 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 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 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. 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 holden or owners of at least 51% in a$ -negate principal amount of all Parity Bonds and Additional Bonds then outstanding, which instrumerl 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 ordinance, and the resxctive rights, duties, and obligations under this Ordinance of the City, and all the holders or owners of then outstanding Parity Bonds 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 oPsix months from the date of the • first publication orthe notice provided for in this Section, and shall be conclusive and binding upon C 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, b4 it 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 30 In IXICI 32 K , 0 o Bonds as in this Section defined have, prk r 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 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 DESTROYED BONDS. (a) lac e t Bonds in the event any outstanding Bond is damaged, mutilated, lost, stolen, or 11 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) An i lion for Replacement Bonds. Application for replacement of damaged, mutilated, ` lost, stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying Agent/Registrar. In every case of 1oA 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 mutilateQ. (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 continuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the Issuer may A 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, (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, O and other expenses in connection therewith Every replacement bond issued pursuant to the o O 0 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 ZOO Ordin nce equally and proportionately with any and all other Bonds duly issued under this Ordinance 31 3 2 fir", iX 0 L J a s I (e) Authorily for Issuing gnlacement Bonds. In accordance with Section 6 of Vernon!$ Ann. Tex. Civ. St. Art. 717k-6, this Section of this Ordinance shall constitute authority for the issuance of any such replacement bond without necessity of further action by the 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/Registrar, 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. COVENANTS REGARDING TAX-EXEMPTION. The Issuer covenant:; to refrain from any action which would adversely Ject, and to take such action to ensure, the treatment of the Bonds as obligations described in section 103 of the Code, the interest on which is not includable in the "gross income" of the holder for purposes of federal income taxation. In furtherance thereof, the Issuer covenants as follows: (a) to take any action to assure that no more than 10 percent of the proceeds of the Bonds (less amounts deposited to a reserve fumd, if any) are used for any "private business use", as defined in section 141(bX6) of the Code or, if more than 10 percent of the proceeds are so used, that amounts, whether or not received by the Issuer, with respect to such private business use, do not, under the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Bonds, in contravention of section 141(bX2) of the Code; (b) to take any action to assure that in the event that the "private business use" described in subsection (a) hereof exceeds 5 percent of the proceeds of the Bonds (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a 'private business use which is "related" and not "disproportionate", within the meaning of section 141(bx3) of the Code, to the governmental use; (c) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the goods (less amounts deposited into a reserve fund, if any) 6 directly or indirectly used to finance loans to persons, other than state or local 1 governmental units, in contravention of section 141(c) of the Code; °I (d) to refrain F.om taking any action which would otherwise result in the Bonds A being treated as "private activity bonds" within the meaning of section 141(b) of the Code, (e) to refrain from taking any action that would welt in the Bonds being "federally guaranteed" within the meaning of section 149(b) of the Code; (f) to refrain from using any portion of the proceeds of the Bonds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire 0 investment property (as defined in section 14BOX2) of the Code) which produces a materially higher yield over the term of the Bonds, other than investment property acquired with 32 32X10 .r 0 0 l I (1) procoods of the Bonds invested for a reasonable temporary period of 3 years or less until such proceeds are needed for the purpose for which the Bonds are issued, (2) amounts invested in a bona fide debt service fund, within the meaning of section 1.148-1(b) of the Treasury Regulations, and (3) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10 percent of the stated principal amount (or, in the can of a discount, the issue price) of the Bonds; (g) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requiranads of section 148 of the Code (rdating to arbitrage), Section 149(8) of the Code (relating to hedge bonds), and, to the extent applicable, section 149(d) of the Code (relating to advance refundings); and (h) to pay to the United States of America at last once during each five-year period (beghni:ng on the date of delivery of the Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings', within the meaning of section 148(1) of the Code and to pay to the United Sates of Anxrica, rat later that 60 days after the Bonds have been paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148(t) of the Code. The Issuer understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of t efunding bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the date of issuance of the Bonds. It is the understanding of the Issuer that the covenants contained herein are intended to assure compliance with the Code and any regulations or rulings promulgated by the U. S. Department of the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated which modify, or expand provisiont of the Code, as applicable to the Bonds, the Issuer will not be required to comply with any covenant contained herein to the extent that such failure to comply, in the opinion of nationaNy-recognized bond counsel, will not adversely affect the exemption from federal income « taxation of interest on the Bonds under section 103 of the Code. In the event that regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to the ® Bonds, the Issuer agrees to comply with the additional requirements to the extent necessary and reasonable possible, in the opinion of nationally-recognized bond counsel, to preserve the exemption from federal incotne taxation of imerest on the Bonds under section 103 of the Code. In Furtherance of such intention, the Issuer hereby authorizes and directs the Mayor to execute any documents, catificates or reports required by the Code and to make such elections, on behalf of the Issuer, which nuy be permitted by the Code as are consistent with the purpose for the Issuance of the Bonds, The tl Issuer covenants to comply with the covenants contained in this section after defeasance of the p Bonds 33 32 X 0 0 In order to facilitate compliance with the above covenant (h), a "Rebate Fund" is hereby established by the Lauer for the solebenefit of the United States of America, and such fund shall not be subject to the claim of any other persort, including without limitation, the owners of the Certificates. The Rebate Fund is established for the additional purpose of compliance with Section 149 of the Code, Section 31. ALLOCATION OF, AND LM TTATION ON, EXPENDITURES FOR THE PROJECT. The Issuer covenants to account for the expenditure of sale proceeds and investment earnings to be used for the purposes described in Section i of this Ordinance (the "Project") on its books and records by allocating proceeds to expenditures within 19 months of the later of the date that (1) the expendture is made, or (2) the Project is completed The foregoing notwithstanding, the Issuer shall not expend We proceeds or investment earnings thereon more than 60 days after the earlier of (1) the fifth anniversary of the delivery of the Bonds, or (2) the date the Bonds are retired, unless the Issuer obtains an opinion of nationally-recognized bond counsel that such expenditure ail not adversely affect the tax-exempt status of the Bonds, For purposes hereof, the Issuer shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. Section 32. DISPOSITION OF PROJECT. The Issuer covenants that the property constituting the Project will not be sold or otherwise disposed in a transaction resulting in the receipt by the Issuer of cash or other compensation, unless the Issuer obtains an opinion of nationally. recognized bond counsel that such We or other disposition will not adversely affect the tax-exempt 1 status of the Bonds. Section 33. INTEREST EARNINGS ON BOND PROCEEDS. Interest earnings derived 6-om the investment of proceeds from the sale of the Initial Bond, other than proceeds deposited in the Interest and Sinking Fund and the Reserve Fund, shag be used along with other available proceeds for improving the System; prodded that after completion of the improvements if any of such interest earnings remain on hand, such interest eamings shall be deposited in the interest and Sinking Fund. It is further provided, however, that any interest earnings on bond proceeds which are required to be rebated to the United States of America parsuartt to the Covenants Regarding Tax-Exemption herein so as to prevent the Bonds from being arbitrage bonds shall be so rebated and not considered as interest earnings for the Farposes of this Ordinance. * Section 34, CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND S COUNSEL'S OPINION, CUSIP NUMBERS, PREAMBLE, AND INSURANCE. The Mayor of the Issuer is hereby authorized to have control of each Initial Bond issued hereunder and A necessary records and proceedings pertaining to each 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 each 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 on such Initial Bond, and the seal of said • • Comptroller shall be impressed, or placed in facsimile, on such 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 each Initial Bond or on any 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 34 32XI n- 0 , asxem O -..rte the convenience and information of the registered owners of the Bonds. The preamble to this Ordinance is hereby adopted and made a part hereof for all purposes. If insurance is obtained on any of the Bonds, the respective Initial Bond and all other Bonds shall bear an appropriate legend concerning insurance as provided by the insurer. Section 35. SALE OF INITIAL BONDS: The Initial Bond is hereby sold and shall be delivered to , for cash for the par value thereof and accrued interest thereon to date of delivery, plus a premium of S . It is hereby officially found, deter- mined, and declared that the Initial Bond has been sold at public sale to the bidder offering the lowest interest cost, after receiving sealed bids pursuant to an Official Notice of Sale and Bidding Instructions and Official Statement dated , 1998, prepared and distnbuted in connection with the sale of the Initial Bond. Said Official Notice of Sale and Bidding'nstructions and Official Statement, and any addenda, supplaneat, or amendment thereto have been tird 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, 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 respects. Section 36. DTC REGISTRATION. The Bonds initially shall be issued and delivered in such manner that no physical distribution of the Bonds will be made to the public, and The Depository Trust Company ("DTC"), New York, New York, initially will act as depository for the Bonds. DTC has represented that it is a limited purpose trust company incorporated under the laws of the State of New York, a membrr of the Federal Reserve System, a "clearing corporation" within the meaning of the New York VWjrm Commerci al Code, and a "clearing agency" registered under Section 11A of the federal Securities Exchange Act of 1934, as amended, and the Issuer accepts, but in no way verifies, such representations. The Initial Bond authorized by this Ordinance shall be delivered to and registered in the name of the Punhaser. However, it is a condition of delivery and We that the Purchaser, immediately after such delivery, shall cause the Paying Agent/Registrar, as provided for in this Ordinance, to cancel said Initial Bond and deliver in exchange therefor a substitute Bond for each maturity of such Initial Bond, with each such substitute Bond to be registered in the name of CEDE & CO., the nominee of DTC, and it shall be the duty of the Paying Agent/Registrar to take such action. 6 is expected that DTC will hold the Bonds on behalf of the Purchaser and/or the DTC Participants, is defined and described in the Official Statement referred to and approved in Section 33 hereof (tt,e "DTC Participants") So long m each Bond is registered in the name of CEDE & CO., the Paying Agent/Registrar shall treat and deal with DTC in all respects the same as if it were the actual and beneficial owner thereof It is expected that DTC will maintain a book entry system which 0 will identify beneficial ownership of the Bonds by DTC Participants in integral amounts of S5,000, with transfers of ownership being effected on the records of DTC and the DTC Participants pursuant to rules and regulations established by them, and that the substitute Bonds initially deposited with DTC shall be immobilized and not be further exchanged for substitute Bonds except as hereinafter provided. The Issuer is not responsible or liable for any functions of DTC, will not be responsible for raying any fees or charges with respect to its services, will not be responsible or liable for 0 mairdaining, supervising, a reviewing the records of DTC or the DTC Partici pants, or protecting any interests or rights of the beneficial owners of the Bonds It shall be the duty of the Purchaser and the DTC Participants to rake all arrangements with DTC to establish this book-entry system, the beneficial ownership of the Bonds, and the method of paying the fees and charges of DTC. The issuer does not represent, nor dm it in any way covenant that the initial book-entry system 33 S tl; , %mum U established with DTC will be maintained in the firtue. The Issuer reserves the right and option at any time in the firtt e, in Its sole discretion, to terminate the DTC (CEDE & CO ) book-entry only regis- rt the Bonds to be registered in the name of any tration requirement described above, and to Perm owner. If the Issuer exerd:,ft its right and option to terminate such requirement, 't shall give written notice of such termination to the Paying Agent/Registrar and to DTC, and thereafter the Paying Agent/Registrar shall, upon presentation and proper request, register any Bond in any name as provided for in this Ordinance. Notwithstanding the initial establishment of the foregoing book-entry system with DTC, if for any reason any of the originally delivered substitute Bonds is duly filed with the Paying Agent/Registrar with proper request for transfer and substitution, as provided for in this Ordinance, substitute Bonds will be duly delivered as provided in this Ordinance, and there will be no assurance or representation that any book-entry "tin will be maintained for such Bonds. Section 37. COMPLIANCE Wfl}I RULE 15c2-12. (a) AmN Reports. The Issuer shall provide annually to each NRMSIR and any SID, within six months after the end of each fiscal year ending in or after 1996, furaricial information and operating data with respect to the Issuer of the general type included in the final Official Statement authorized by Section 35 of this Ordinance, being the information described in Exhibit hereto, which Exhibit is attached to and incorporated in this Ordinance as if written word for word herein. Any 5nancial statements so to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit hereto, or such other accounting principles as the Issuer may be required to employ from time to time pursuant to state law or regulation, and (2) audited, if the Issuer commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audit of such financial d statements is not complete within such period, then the Issuer shall provide unaudited financial statements by the required time and will provide audited financial statements for the applicable fiscal year to each NRMSIR and any SID, when and if the audit report on such statements become available, (ii) If the Issuer changes its fiscal year, it " notify each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to the next date by which the Issuer otherwise would be required to provide financial information and operating data pursuant to this Section. The financid information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any 1 document (including an official statement or other offering document, if it is available from the NISRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. 0 (b) Material Evmt Notices. The Issuer shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, or any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: I, Principal and interest payment delinquencies; • 2. Non-payment related defaults; 0 • 4_ ~ 3. Unscheduled draws on debt service reserves reflecting financial diAScultiee..; 4. Unscheduled draws on credit enhancements refleaing financial difficulties; 36 *""a•+',3rtT~^;Y 32X I I....f s , 0 4 5. Substitution of audit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the Bonds; 7. Modifications to rights of holders of the Bonds; 6. Bond calls; 9. Defeasances; 10. Release, substitution, or sale of property seauing repayment of the Bonds; and 11. Rating changes. The i :euer shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by ti;e Issuer to provide financial information or operating data in accordance with subsection (a) of this Section by the time required by such subsection. (c) , (L) The Issuer shall be obligated to observe and perform the covenants specified in this Section for to long ae, but only for so long as, the Issuer remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the Issuer in any event will give the notice required by Subsection (b) hereof of any Bond Waits and 1 defeasance that cause the Issuer to no longer be such an "obligated person". (ii) The provisions of this Section are for the sole benefit of the registered owners end beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The Issuer undertakes to provide only the financial information, operating data, financial statements, and notices % ich it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the Issuer's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The Issuer does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. N (iii) UNDER NO CIRCUMSTANCES SHALL THE ISSUER BE LIABLE TO THE REGISTERED OWNER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE ISSUER, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND RENT DY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF • ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC q • PERFORMANCE. 37 r r n' y In 32X W11 0 i (iv) No default by the Issuer in observing or performing its obligations under this Section shall comprise a breach of or default under the Ordinance for purposes of any other provision of this iII Ordinance. Nothing in this Section is intended or shall act to disclsinm, waive, or otherwise limit the duties of the Issuer under federal and state securities laws. j (v) The provisioris of this Section may be ameWed by the Issuer from time to time to adapt to changed arwrnst .4 thW arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operrtions of the Issuer, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule since such offering as well as sucb changed circumstances and (2) either (a) the registered owners of a majority in aggregate prindpal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the Issuer (such as + nationally recognized bond counsel) determined that such amendment will not materially impair the interest of the registered owners and beneficial owners of the Bonds. If the Issuer so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance with subsection (a) of this Section an explanation, in narrative form, of the reason for the amendnxwd and of the impact of any change in the type of financial information or operating data so provided. The Issuer may also amend or repeal the provisions of this continuing I disclosure agreement if the SEC amends or repo si i the applicable provision of the Rule or a court of foal jurisdiction enters judgment that such pm, 40.5os of the Rule are invalid, but only if and to the extant that the provisions of this sentence would A pmmt an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds. (d) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaiung Board. i "NRMSIR" means each person whom the SEC or its staff has determined to be a nationally recognized muniapal securities information repository withiv.Se meaning of the Rule from time to time. { A "Rule" means SEC Rule 15c242, as amended from time to time. j I "SEC" means the United States Securities and Exchange Commission. 1 "SID" means any person designated by the State of Texas or an authorized department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state i information depository within the meaning of the Rule from time to time. s Section 38. F'[JRt1iER PROCEDURES. The Maya of the Issuer, the City Secretary of the Issuer, and all other officers, employees, and agents of the Issuer, and each of there, ship 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, acknowledge, and deliver in the name and tinder 38 32X~~ ,I 0 a i the corporate seal and on b&& of the Issuer all such inawmerits, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Bond W- nance, the Bonds, the We of the Bonds, and the Notice of Sale and Official Statement, and the Assistant City Manager/Fwnce of the City shall cause the eapenees of issuance of the Bonds to be paid from the proceeds of sale of the Initial Bond or from other lawfully available funds of the Issuer. In can any officer whose Apiadme shall appear on any Bond shall can 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. Section 39. OPEN MEETINGS. The City Council has found and determined that the j meeting at which this Ordinance is considered is open to the public and that notice thereof was given in accordance with the yrovuions of the Teat Open Meetings, Law, Tea. Gov't. Code, Chapter SS 1, as amended. Section 40. EFFECTIVE DATE. This Ordinance shall become effective immediately upon its passage and approval, PASSED AND APPROVED this the 24th day of March, 1998. Jack Miller, Mayor 1 ATTEST: Ji i I I Jennifer Walters, City Secretary APPROVED AS TO LEGAL FORM: r~ Herbert L. Prouty, City Attorney By: IVA r ~r I i 39 x 1❑ 3200 I o I I EMMA DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 37 of this Ordinance: Annual Financial Statements and Operating Data The financial infornution and operating data with respect to the Iswer to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the tables of the Official Statement referred to) below; Tables numbered 1 through 14, inclusive, under the captions "The Utility System", "Debt Service Requirements" and "Fioar4sl Informatics" in the Official Statement. Appendix B in the Official Statement, Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to in the paragrapb above. ` r 1 I 2.510 32x e c , F f IRST S0U1€[W6'T 004~MY n..w c. u~r,.mt LVMLX 1 March 24, 1995 Ms. KAy DuBow A-AstaM city mower of rirance City of Denton 215 FAN McKinney Denson, Tex" 76201 Re: Bond Ratings for $7,175,000 City of Dacft% Texas Utility System Revatatc Bonk Scees 1998 Dew Kathy: Atucbed please find the mtiag aarlysis for both Moody's Investors Service, Inc. and SwWW dt Pools Coepom ion dative to the above dcscn'bed Revenoc Bonds. The ratings have been reconfirmed of "Al" whb a aWk aa" fmm M*Ws sad w "A+" whb a dabk outlook irate Stoa&rd R rear's. The ratings miled a good liaanai4l position, a sUbk service srea, adequate capacity to meet the necda of cuss mcrs, oompetitive odes and good mmi emm and policy. Given the unocrtaioty of the sowk Indatry at a whole, the rating %cm6at we moisfied that Denton is tating all steps aeoessary io moat any cim=swww that may readt front d"ulation. The City Is well positioned to meet the nerds of its Owhic, Water and Sewer austomm lot many yaws to comp. Should you roquire eddidond Information plow atl. • Simae Devid K. Medanich J lxvn-srwivi 84mwo StNa 1946 )XV 1WA Awww 01W W a Ad^ !ew ),M1-46M -11 f %,104010' hs Jif-H "ota 32XI0 ..s 0 , O i i I ~ I MOODY'S RATES CITY OF DENTUN UTILITY SYSTEM REVENUES BONDS AN Al Denton (City of) TX Utilities Texas Mo^dy's Rating Issue Rating City of Denton AL Sale Amount ,171175,000.00 Expected Sale Date 03124198 Rating Description Utility System Revenue sonde, Series 1998 lIL'{1 YORK, harsh 20, 1998 Moody's Investors Serviec bas assigned an Al rating to the City of Denton's outstanding utility System Revenue sonde in 1 coajunetion wltb the city's upcoming sale of 87.175 million in utility System Revenue Honda, Series 1998, which are scheduled to be Sold on Web 24, 1996, The Al r.rting and stable outlook on this credit are derived from the following fact0191 a strong service area and modestly growing customer boost historically well managed system operations which are dominated by the electric system, continue to result in strong coverage ratios for both annual debt service costs, as well as projected maximum annual debt service costal and a favorable debt position vith manageable additional needs, iioody's believes that the city's favorable location in the metroplex, has contributed in recent year to steady growth in taxable values in ail sectors of the city's taxbase. This continued valuation growth has also translated into stability in the system's already extensive custoasr base, wbiob has been increasing annually at almost I.12 over the past four years. Also contributing to the area's stability is the presence of two major univstsities and the Federal Energy Management Agency ITEM), Area diversification in cousesrcial mud industrial growth also continues, as reflected by a growing taxbaae and low city unemployment levels. The city's Decanter tote was 2.829 while the state's was 4,52. To addition, overall resident wealth sad income levels are equal to state leveles which is worth noting, since they are Somewhat Stewed downward due to a large student population, tt . eistotically, financial operations of the system have been wall maintained, 7 and are primarily, supported by alectrie system operations, In Noody'e opinion, net system revenues continue to provide strong con rage of debt service requirements as evidenced by FY L991 net revenues providing 2.8= eovetara of debt service requirements and 3,03x covstage of projected sla IMM normal debt service requirements, iaaluding this issue. As montioxed above, electric utility operations dominate overall operations of the system, as reflected by electric ravenues comprising 73.42 of total TY 1991 operating tevenusal i bowever9 each utility stands on its own with no support from the otbst utility systems, In addition, historically the city's uiillty system has throwyh both Q cost tooovsry and transfers contributed significantly to the operations of the city's General rand. In ligLe of potential deregulation for nlectrie systems octoas the country, officials in recent years have, and plan to continue to ;.•g ti w. H a:Ma r.' r AQ f 1... I 32 X 1 S O e r lessen the support the utility system provides to tba city'e Canmsal Pund. Year-to-data officials report operations are running at or near budget overall. Water and sever revenues are slightly down due to the exceptionally wet winter in the arms. The system's debt position remains modest, me reflected by a debt ratio of 26.62 and TY 1997 debt service costs comprising lust under ts.02 of total operating expmodituras. Tba city plena to issue an additional $40.6 million in the next three to six mouths to both refund certala oatetandina maturities, as vell as psy-off an outstanding Corp of Ynainamrs note, vhich will result in a significant net present value savings to the city. In addition, Moody's believes that future borrowings to address capital needs should remain affotdsble, given that projected needs are maaagsable and the fact that all systea debt is retired in twenty years. , A11ALT6T6 i Dennis Porearo, Analyst, Public Finance Group, Moody's investors service Orlie Prince, Senior credit officer, Public Tinanca Croup, Moody's investors service Steven Levine, Diractor, Public rinanee Oroup, Moody's investors Sarviae MTACTSf Journaliets, (111) SS3-1376 Research Clieaten (212) 553-1625 i rh.4 ANNE A , O"ton, We U01 Sys R•v Bnd• sw 98 RW A+ by Sp EdW&d R Ak'(118* New Yair (1) 212.2 I?41; Kh W0np, *W Yak (1) 212.2w 1d0 NY Standard E, Door's CreditNire 3/23/90 standard a Poor's today aasignad its single- 'A' -plus rating to Denton, Texas's utility system revenue bonds series 1990 issued for Denton Utility System. In addition, standard i Poor's affirmed its single-'A'- plus rating on Denton's outstandl bon". Tha rating reflects the following credit risks which include the electric system's (70 of total revenues) reliance upon Texas Municipal Power Agency (TWA) for 651 of its power requirements, sad high systems fixed cost, primarily from off balance sheet debt of TWA. Credit strengths which preclude a lower rating include the following$ A stable service area economy, Adequate capacity to meet demand in each of the systems (electric, water and wastewater), Competitive utility rates !a all three systaws, sound financial operations, and, Strong liquidity levels. Additionally, the electric systems business position to affirmed at average reflecting the improving cost of power from TmPA. TVA operates one coal powered plant with a cost of power that has been declining since it switched fuel sources a couple of years ago and more efficient operations at the plant. The electric system has experienced stable retail melee growth, an 110 incraoss between 1993 mad 1997. Management has bean proactive in obtaining competitive electric rates for all classes of users, the residential, and industrial rates compare favorably to other power providers. In areas where there are dual and triple tettifications, the city's electric systems has had soave success In securing additional customers. Nanageaent has already begun to prepare for retail wbaeiing by putting more flexible rates in place, lover purchases mad the • systems own generating capacity am sufficient to meet demand until 9000. 7later supply amerces and treatment capacity an sufficient to meet demand until 2038 and wastewater treatment capacity is designed for a city of 110,000. financial operations have historically been strong with coverage of asnusl debt service of 3.53 times (x) in 1197. Covers" of total fixed cost (purchased power) is still sound • at 1.50 tines. Liquidity has weakened on an unrestricted 0 • basin, hoverer total funds {unrestricted and restricted cash and investments) axe up to $107 million, which includes $54 1 # ~ 32 r~ - WOL 4" 0 :arm reto stabilisation fnad. The capital plan is united to ranewl and raplaosarat prol*cts mad tba city aoticipatis fundin tbsss grojaots from ixtaraally 4sssrated Rands. . Ovate stsl~impwut oo to eooiimre it b* covetitive in it's retail razes to lot" io OUL&l users, standard s poems acid. Craditr3ra I I ' I , I TOM FAM 25 32XI❑ I ~aisaww I~ O Jl1V I f11iT.71 C{M~PAhY Owls K Medatl.L ~ Dun Mr Mamb 24,1998 Ms. Katby Nam Assistant City Manager of Finance City of Denton 215 East McKinney VeuWn, Texas 76201 Re: Bond Ratings for $9,660,000 City of Denton, Texas Cmesei Obligation Roods, Series I"I mod $5,625.000 City of Dmton, Texas Certificates of Obligation. Scrics 1998 Dear Ktatby: Attached please fwd the rating analysis for Moody's Investors Service, Inc, relative to the sale of the ahoy described issuer, Moody's has upgraded the City's 'AI " rating with a stable outlook to &W 'Al' rating with a positive outlook, The positive outlook is miributabie to the following! • Sizable and expending tax base. • Residential sad commercial timloptnent. • Stabilizing helm of two universities, i • Historically slabk fimacW opetat' m. • Menagaraxtt. The City it very close to the "Ara" category from Moody's. The positive outlook is the next stop to brigs Deacon to that level. Curmdy Standard A pooh Corpondoa ragas the i City AA• with a positive outloeic, but their rating hat not barn mimed at Ni time. We export the rating to M released by the cad of the week, • Should you require additional himusdon please call. Sitaerel r Dmvld K. Modasicb • • J1110 lwtrcrmw HAM1U.A3 Sim-c 1946 r/IK✓ rkfw /,view •.rril SfM! • dl.Cn, fr.e '•.L I l~!! • 711-fS1It h1 • fir!!!•9ljleSe 0 0 MDODY'S RATES CITY OF DEMMN, TEXAS, GENERAL OBLIGATION TAE SUPPORTED DEBT AN , At Denton (city of) TX Municipality Texas Moody+s Rating Issue Rating Certificates of Obligation, Series 1998 Al Sala Amount $5,625,000.00 Expected Sala Date 04107188 Rating Description Certificates of Obligation. Series 1998 General Obligation Bonds, Series 1988 Al Sale Amount $9,660,000,00 Expected Sale Date 04101188 RatinS Description General Obligation Bonds, Series 1998 MEW YORK, March 20, 1998 Moody's investors Service has assigned an At rating to the g.tneral obligation tax supported debt of the City of Denton, TaRas, in conjum•tion with the city's upcoming sales of $0.660 million in General obligatiou Bonds, Series 1998, and $5.623 in Certificates of Obligation, Series 1998, both scheduled to be sold on April 7, 1998. Factors contributing to this credits Al ratint and positive outlook include( a sisable and expanding taxabasa, as both residential and coca rcial development continuer in the city) a growing economic base which is aachored by the presence of two major universities( historically, financial operations have been conservatively managed resulting in favorable reserves and year-and easb position; and slthough debt burden ratios are above average, debt aerviee expenses are manageable. Moody 's believes that the city0s favorable location in the uetroplex has contributed in recent years to steady growth in taxable values in ■Ll sectors of the city's taxbass, The five year (1983-98) average annual growth rate in afaeesed valuation of property is 4,11. Also contributing to tba area's stability is the presence of two major universities and the Federal gwrgy S Management Agency (FEND). Area diversif teat Lou in commercial and industrial growth also continnss, as reflected by a growing taxbaaa and lov city unemployment levels. The city+a December 1991 rate was 2,82, vhile the state's wee 4.51. In addition, overall resident vealtb and income levels are equal to state levels, vhLch is worth noting, finds they are fooevhat ekewd dovtward due to a large student population. Historically, city managements eonrervative practices have resulted in ampia 0 General Fund reserves and a favorable fad of year cash position. n 1981 O ending General Fund balance was 22.91 of FY Ife7 Genital Fund revenuss. City operations era primarily supported by sales taxes, ptopett taxes and Franchise fees, which accounted for 31.631 29.21, and 16.611 teapeatively in M9UNL s rY 1597. Sales tax revenues continue to report modest gaine, ae reflected by a four year (1997-97) average Annual growth rate of 4.3X. Property tax colltctione continue to be strong, as reflected by a Lot al annual collection rate over the past three years of over 1002 annually. Management reports and Mloody's agrees that given the economically sensitive nature of the city's largest revenue source, sales taxes, that the continued maintenance of ample reserves is critical to providing the city with sufficient operating flexibility to offset any downturn in this revenue source. Although debt burden is high at 6.21, which is primarily attributable to overlapping entities which account for almost d4.02 of overall not debt outstanding, debt position remains manageable. Debt service as a percentage of expenditures remains affordable at just under i32, and rate of rotareaeent stays aggresaiva, with 70.12 of principal retired is too years, officials report that at present, they have no irmediate borrowing plans after this issue, but, that they do expect M continue to have modest needs annually. Moody's expects that future debt needs will remain affordable, given management's conservative nature, as well as the expectation that modest taxable value growth is expected to continue over the next several years. ANALYSTS, Dennis Porcarc, Aoslyst, Public Fine=* Croup, Moody's Investor, Service Orlie Prince, Senior credit Oftlear, Public Pinanee Group, Moody's Investors service Steven Levine, Director, Public finance Group, Moody's Inventors Service CONTACTSi Journalist., (212) $53-0376 Research Ciisotei (212) 553-1625 r 6 'K ' p 1 r t, I- rr CITY OF DENTON, TEXAS $7,175,000 UTILITY SYSTEM REVENUE BONDS, SERIES 1998 Sealed Bid Due Tuesday, March 24,1998, at 11.00 AM, CST L. • The following ratings have been assigned: Moody's Investors Service, Inc. "AI" Standard & Poor's Rating Croup "A+" A Division of McGraw-Hill, Inc. . ej PaF.PARrn BV: Ii - ~~xfa 32xld • 0 IHOODY'S RATES CITY OF DENTON UTILITY SYSTEM REVENUES BONDS AN Al Denton (City of) TX ' utilities I Texas Moody's Rating ~ Issue Rating City of Denton Al f V Sale Amount $7,175,000.00 Expected Sale Date 03/24198 Rating Description Utility System Revenue Bonds, Series 1998 NEW YORK, March 20, 1998 Moody's Investors Service has assigned an Al rating to the city of Denton's outstanding Utility System Revenue Bonds in conjunction with the city's upcoming sale of $7.175 million in Utility Sys!.- Revenue Bonds, Series 1998, which are scheduled to be sold on Marck ?A, 1998. The Al rating and stable outlook on this credit are derived from the following factored a strong service area and modestly growing customer base( historically well managed system operations which are dominated by the electric system, continue to result in strong coverage ratios for both annual debt service costs, as well as projected maximum annual debt service costa( and a favorable debt position with manageable additional needs. Moody's believes that the city's favorable location in the metroplex, has contributed in recent year to steady growth in taxable val-les in all sectors of the city's taxbaee. This continued valuation growth has also translated into stability in the system's already extensive customer base, which has been increasing annually at almost 1.12 over the past four years. Also contributing to the area's stability is the presence of two major univeraities and the Federal Energy Management Agency (FEMA). Area diversification in commercial and industrial growth also continues, as reflected by a growing taxbaee and low city unemployment levels. The city's December rate was 2.8%, while the state's was 4.5%. In addition, overall resident wealth and income levels are equal to state levels, which is worth noting, since they are somewhat skewed downward due to a large student population. Historically, financial operations of the system have been well maintained, and are primarily supported by electric system operations. In Moody's opinion, I net system revenues continue to provide strong coverage of debt service requirements as evidenced by FY 1997 net revenues providing 2.ex coveia,le of debt service requirements and 3.05x coy+rsge of projected maximum annual debt (service requirements, including this issue. As mentioned above, electric e utility operW ons dominate overall operations of the system, as reflected by electric revenues comprising 73.4% of total FY 1997 operating rovenuast Q however, each utility stands on its own with no support from the other utility systems. In addition, historically the city's utility system ham through both cost recovery and transfers contributed significantly to the operations of the city's General Fund. in light of yotential deregulation for electric systems I across the country, officials in recent years have, and plan to continue to f ?5x~~~ 320Q W'I "Em w 0 C • aaee.rr - Elessen the support the utility system provides to the city's General Fund, 1Year-to-date officials report operations are running at or near budget overall. Water and sewer revenues are slightly down due to the exceptionally wet winter in the area. { The system's debt position remains modest, as reflected by a debt ratio of ] 26.62 and FY 1997 debt service costs comprising just under 15.02 of total operating expenditures. The city plans to issue an additional $40.6 million in " the next three to six months to both refund certain outstanding maturities, as well as pay-off an outstanding Corp of Engineers note, which will result in a significant net present value savings to the city. In addition, Moody's believes that future borrowings to address capital needs should remain affordable, given that projected needs are manageable and the fact that all system debt is retired in twenty years. l ANALYSTS i Dennis Porcaro, Analyst, Public Finance Group, Moody's Investors Service Orlie Prince, Senior Credit Officer, Public Finance Group, Moody's Investors Service Steven Levine, Director, Public Finance Group, Moody's Investors Service CONTACTS1 Journalistet (212) 553-0376 Research Clients% (212) 553-1625 I I 1 • r1I 1 , rI 1 1 - - - 25 x ~0 32x'❑ 9 , 0 SS~ - G I + I I Denton, TX's Util Sys Rev Bnds Ser 98 Rtd A+ by S&P + ' Edward R McGlede, Now York (1) 212-208.1741; Kin Wong, New York (1) 212.208-1180 NY Standard & Poor's Creditwire 3/23/98 Standard & Poor's today assigned its single-'A'-plus rating to Denton, Texas's utility system revenue bonds series 1998 issued for 1 Denton Utility System. In addition, Standard & Poor's affirmed its single-'A'- 4 plus rating on Denton's outstanding bonds. The rating reElects the following credit risks which include the electric system's (70t of total revenues) reliance upon Texas Municipal Power Agency (TMPA) for 654 of its power requirements, and high system fixed cost, primarily from off f balance sheet debt of TMPA. Credit strengths which preclude a lower rating include the followings - A stable service area economy, - Adequate capacity to meet dwAand in each of the systems (electric, water and wastewater), Competitive utility rates in all three systems, sound financial operations, and, p Strong liquidity levels. Additionally, the electric systems business position is affirmed at average reflecting the improving cost of power from MA. TMPA operates one coal powered plant with a cost of power that has been declining since it switched fuel sources a couple of years ago and more efficient operations at the plant. { The electric system has experienced stable retail sales l growth, an lit increase between 1993 and 1997. Management has been proactive in obtai%ing competitive electric rates for all I classes of users, the residential, and industrial rates \ compare favorably to other power providers. In areas where there are duel and triple certifications, the city's electric systems has had some success in securing additional customers. e ' Management has already begun to prepare for retail wheeling by putting more flexible rates in place. Power purchases and the I systems own generating capacity are sufficient to meet demand until 2000. Water supply sources and treatment capacity are sufficient to meet demand until- 2030 and wastewater treatment capacity is designed for a city of 110,000. Financial operations have historically been strong with e coverage of annual debt service of 3.53 times (x) in 1997. 0 Coverage of total fixed cost (purchased power) is still sound at 1.58 times. Liquidity has weakened on an unrestricted ~.J basis, however total funds (unrestricted and restricted cash f and investments) are up to $107 million, which includes 854 I I 32 X 01 ssio 0 rata stabilization fund. e+etPsiand the cis limited to renewal and rePlacement pThjec funding these projects from internally generated funds. The outlook reflects the sound financial perfo►Aance and ' management's expectation to continue to be competitive in it's retail rates to large industrial users, Standard E Poor's said. creditwire I . i I i I f =I%- P. B3 - 1 its 32xIC] 1 O Prepared by. ` TABULATION OF BIDS RECEIVED AT SALF OF ' S7,175,000 CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE BONDS, SERILS 1998 SELLING TUESDAY, MARCH 24, 1998, AT 11.00 AM, CST i TRUE INTEREST ACCOUTiT MANAGER COST" G f 1. a 0 ?.5x~ 32 xr~ r 414e~a18 , o "3lcetd Bayer's"6datof IS Baedr BuY Vahutkd Of Pw Boo& [ 71k roost Impurtwt lukk u to whit de hlunklpaJ Revmu Bond Mar3n hu dun In on dm period versus umber h die 'Bad Buyer's" 25 I` Revenue Bond hdee. PublidW ua Tmoby of exh week, k Is dk accepted NNe of tie Munkipt Bad lruhl" to dctem w tMids W mnvemcno of hue reR net r, dk ttuhet. T9e Srdea 4 Daxd 66 30 yea revenue Dmds ad 13 iesuera nted from'An' b'Bu 3' by Maody'r Invc" Service, Inc. aN from 'AAA" to 'A' by Snn4rd A Poor'a Cogmtbn. Bards In dk bulea imhde HousbB. Tnrtspormiom Hogrital and PaOudon Coriml Ctedim .ft L J491F. JM 3734 1341 ML _L22L 1444. 1P43. 1 1453 14 1 )awry 1 116 7.77 736 7.32 6,66 6,14 3.56 691 S.6 1.96 5.32 2 1.31 7.66 715 7.10 6,53 6,41 5.34 647 3.79 SM 5.25 3 1.00 7.35 1.49 7.34 6.65 640 3.54 6176 3.70 6,01 5.30 4 7.94 7.36 7.32 7.31 6.70 6.36 5.50 6.16 J." 6.00 537 1 7.24 6.76 6.02 Febmry 1 754 7.59 132 7.06 6.79 6.19 5.49 6.63 5.69 393 3,35 2 7.76 1.63 730 7.07 6.63 6.22 $31 6.1i 5.67 3.97 3.31 3 7,90 T.62 7,49 713 6,45 6,06 5.64 6.40 5.67 3.64 3.29 4 7163 7.63 73! 131 5.62 $.99 in 6.34 5.76 3.93 5.36 'i 5 5.66 I Mann 1 7.30 7.93 730 7.30 6.62 3,69 6.07 6.31 5.96 5,97 545 ` 2 6.02 7.79 7.50 7.19 6.66 5.13 6.13 6.40 613 6.02 SAO ` $ 6,09 7.71 7.33 1.33 6.17 3.90 6,06 623 6.10 6,06 3,36 4 127 7.93 7.34 7.35 617 S.99 616 d34 6.13 6.09 S 113 1.67 7.37 6,39 629 April 1 LiS 7.80 731 729 6.93 6,01 6.53 6.22 6,11 6.14 2 1.21 7.62 7.33 727 676 6,06 6.30 6.19 632 6.14 1 3 121 7.69 7.64 719 6.74 91 6.43 6.17 619 6.13 4 a29 7.61 L77 712 6.62 5.95 6.42 6.29 6,16 613 5 6.13 3.93 May 1 127 762 7 L14 6.77 3.111 643 630 6,31 601 1 2 6.26 7.64 7,66 1,09 6,70 190 6,60 6.16 6.32 3.96 3 6.34 7.36 7.31 7,14 659 197 6.41 6.13 6.17 7.91 4 6.32 7.31 7.49 1.16 6,74 $.94 6.41 6.02 6,10 3.91 S 7.50 7,13 6,17 191 Jute 1 111 7,43 1.49 1.24 6,73 5.91 6.k 6,nU 6.20 3.33 j 2 1.13 721 7.46 7 36 6.69 3.92 610 1.94 614 S.77 I 3 1.10 1.27 1.$3 7,31 6,62 316 634 6.10 6.27 5.72 4 9.10 742 1,46 7.b 6,36 519 6,43 6.05 610 S.92 S 6.12 7.34 6.56 626 fuly 1 1,14 112 7.43 7... 6.55 3,75 6.32 621 6.13 S.11 2 1,13 7.27 7.40 7.19 6.36 576 6.47 6,05 614 $.66 ' 3 1,16 1.26 7.40 7.17 633 $.74 6.46 6.30 6,10 !39 4 1,13 1.26 739 1.13 6.21 5.61 6,47 627 6,10 5,54 5 F11 3.17 3, 49 Atilust 1 1 05 7.19 733 7.10 6 24 3.63 637 6.35 6.01 3.62 2 9.11 7.31 7.51 7.07 620 5.66 6.49 6.40 5.92 3.71 3 9.20 7179 7.33 7,03 636 5.61 643 641 3.96 5.69 d' 4 1.19 7.47 7.10 103 6,47 5.56 6.46 6.40 600 3.61 Ma S 7.46 7.70 7,00 616 6.09 Septemkr I a,10 7 7,66 7.02 6.31 532 6,43 6.16 6.19 5.46 , v 2 7,96 7.43 1.64 7.00 531 5.41 6,46 6.09 6.12 3.69 1 7.16 739 773 6.95 643 5,49 651 611 6,10 5.31 4 7.92 1.39 7,61 6,91 6.49 17.51 6.66 621 6,01 $,63 S 7.93 3.73 6,70 0.a*cr 1 713 7.30 7.75 6.17 6AS 5.32 6,92 6.14 S.9$ 3.39 2 7.63 7.46 7.13 6.90 6.49 5,41 673 6.09 3.99 5.64 't 3 7.17 7.47 1,73 6.91 6,71 $ 44 6.11 3.97 5.97 $.67 ` 3 770 7.17 t61 669) oil 16 6,91 5.36 6.93 6,02 3,94 5,60 O ` r Nmemhr 1 1,64 7.47 7.3! 667 6.70 3.12 716 1.93 1.91 163 y 2 7.77 7.43 7,53 6,16 6.37 1,69 713 3.94 IN 1.60 3 7.66 7.39 1.42 6.91 6.49 S.70 7.37 5.99 3.13 S.37 4 7.93 1.33 7.41 6.93 6.47 3.14 111 5,19 $.90 535 S 7.31 733 5.71 Dmemher 1 1.96 7.33 7.33 6.96 6.49 5,71 731 3.63 5 , 13 SAS 2 1.96 729 7.21 6.90 6.42 5.13 7.11 5.79 $93 SAS 3 7,94 7,29 1.36 6.94 6.44 3.62 7.02 5.79 593 !41 4 LM 7.33 139 6.16 641 3.39 6.99 $71 S92 $.10 5 7.11 6.40 5.52 6.97 541 ~ x 0a 32xlll M O vu+tarau NET BOND ISSUE'S INTEREST BUYER'S AVERAGE HISTORICAL SALE. INFORMATION SALE DATE RATE INDEX LIFE $2,750,000 City of Denton, Texas Utility System Revenue 5.7.96 5.9352% 6.32 12.952 Years Bonds, Series 1996 $36,510,000 City of Denton, Texas Utility System Revenue 57.96 6.0811% 6.32 17.930 Years Refunding Bonds, Series 1996A $27,085,000 City of Denton, Texas Utility System Revenue 618/93 5.1763% 5.68 9.194 Years Refunding Bonds, Series 1993A s2A00,000 City or Denton, Texas Utility System Revenue 3116193 5.3706% 5.71 11.279Yean Bonds, Series 1993 Y j $20,000,000 City of Denton, Teas Vtit ity System Revenue 10124189 7.0619% 7.22 1 I.M Yean • Bonds, Wes 1989 7 , 0~ 32X 10 O CITY OF DENTON, TEXAS (Denton County) 3 ( . 1. ' 3 $7,175,000 UTILITY SYSTEM REVENUE BONDS, SI'RIES 1998 L ~ Sealed Bids Due Tuesday, March 24,1998, at 11:00 AM, CST 32XIII 1 e o NOTICE OF SALE AND BIDDING INSTRUCTIONS ON 57,173,000 , CITY OF DENTON,TE7LAS (Denton Count)) UTILITY SYSTES1 REVENUE SOWS, SERIES 1998 Sealed Nds Due Tuesday, March 24,199!, a I 11:00 AM, CST TI4E SALE ` Bo',DS Orrtnt0 TOP Sni.E AT COSIRTIM I BIDDING . . The City of Dsmtoo, Tau (the "City") is offering fin sale Its f7,17$,000 Utility System Rocnoe Bonds, &r3n 1998 (the "Bonds"). A1WKF- x or BIDS , Scaled bids. plainly marked "Bid for Bonds", should be addrnsed to "Mayor and City Council, City of Lkmtom Texas", and del1sered W the City Secretary at City I Nil, 213 E, McKinney Street, Denton, Texas prior to I1'.00 AM, CST, m, the date of the bid opening, All bids must be submimed on the O(Ticial Bid Faun, xithout alteration oi intet)inestion, Dow oT' Tti.trlro%E on FACdxtILL Bidders mute submit SIGNED Official Bid Forms W David SWanich, First Southwest Company, 1700 Pacific Avenue, Suite Soo, Dallas, rats 73201, and submit their bid by Iclephone cc facsimile (fax) on the date of the We. Telephone bids will be accepted at (214) 953.4054, between 10:00 AM, CST and 1030 AM, CST. I'm bids must be receiud between 10.00 AM, CSI and 10:30 AM, CST, on the date of the We at (214) 9534050, anention: Rhonda Van lderstine, F'Int Soat h m nt Company will not he responsible for sub m ilt n g any bids receh ad after dte a bm a dead lkes, Pint 5ooh4nt Company assume no responsihihty or liability with rnpecl to any irregularities associated with the submission of bids if telephone or fix options are exercised. PLv r. Ax0 Tmit of Dm OrtStxG... I he bids for the Donds will be publicly opened and read In the City Council Chambers of the Pity Hall at 11 00 AM. CST, Tuesday, March 24. 0 f Aw,Tnn or Tim Bo%M.. , The Pity Council will Like "flan to award the Llonds (or reject all bids) N a meeting scheduled to corwcnc at 1100 AM, CST, on the date of the bid opening, and adopt an ordinance authorizing the Bonds and approving the Official Stalemonr (the "Ordinance" l. ' f THE BONDS r l , o Div tart ios The (kinds will be dialed March 13, 1998 (the "BonJ Date"). InIc" will accrue from the Band Date and will be • dur on Ikcember I, 1998, and rich June I and December I dwealler until the earlier of maturity or prior redemption, The Bonds s.A be hsued only in fully registered form In any Integral multiple of $3,000 for any one maturity. The Bonds will mohire on 111 Ikcrnthev I In each year m fallow.: I Bt.ATUR11' T' SC'l I EDL'LC Principal Principal Principal i" Year Amount Year Amount Year Amount . ' 1998 $ 60,000 2005 S 360.000 Ti 2S 360.000 0 • 1999 360.DDO 2006 360(100 2012 360,000 i 2(m 36o,M)o M 7 360,000 2013 353.000 1 2001 360.D00 2008 30,000 2014 355,000 2002 360,000 2009 360,000 2015 355000 2003 360,D(M 2010 360,000 2016 W.0Do 2004 360,0(10 2017 353,000 I r ?wx~C~ 32x e o . NOTICE OF SALE AND BIDDING INSTRL!CTIONS ON $7,175,000 CITY OF DENTON, TEXAS (Denton County) UTILITY S1 STEM RE1'ENT.'E BONDS, SERIES 1998 Sealed Bids Due Tuesday, March 24,1998,1111;00 AM, CST THESALE BO.MD50111A1D 1911 SALT AT COMPIM111 131110 NC... Ill, City of Dknta4 Texas (the 'C40) Is offering fur salt its $E 115,000 Utility Sy stem Res true Bonds, Scries 1998 (the "Bonds"k ADDRESS or BIDS Sealed bids, plainly marked "laid for Donds", should be addressed to "Mayor and City Council, City of lkmton, Texas% aid delivered to the City Secretary at C'hy Hall, 213 E. WKinney Street, Denton, Ttxm, prior to 11:00 ANt, CST, t on the dote orthe bid opening. All bids must be sul iri on the Official Bid For n, without alteration or inter lineation BIM a1' TIAMUNT OR FAMMILT Bidden must submit SIGNED Official Bid Forms to David h}rdanich, First Southwest C'ompmt), 1700 Pacific Avenue, Suite $00, liallm, Tons 75201, and submit their bid by telephone or facsimile (fax) on the date of the sale. f telephone bids w ill be accepted at (214) 953.4054, between 10,00 ANL CST and 10.30 AM, CST { Par bids must he IviceiveJ bcIMCM 1000 A.Nl. CST and 10.30 ANN, CST, on the date of the sale u (214) 931.4050, attention: 0 t Rhonda Van lderstine. First Southwest Company will nor be responsible for subwining any bids retch-ed IBer the she%a deadlines. first Southwest Company assumes no responsibility or liability with resped to any Irregularities associated with the submission of bids if telephone or far options arceNcm iscd, t PLA( E AND T nn OF Brn Or1:NIN0 The bids for the Bonds w ill be publicly opened and read in the City Council Chamber of the City I fall at I I 0 A\1, CST, Tuesday, March 24, 1998, A% AIM or 1117 BUNM The City Council will take action to award the Bonds (or rejai III bids) at I meeting scheduled to tuns ene at I 1110 AND. CS 1, on the date of fie bid opening, and adopt an ordinance authorizing the Bonds and approving the Official Statement (ihc "Clydimuice") THE BONDS Di wri jos The Donds w ifl be d;ded Nlurch 15, 1998 (the "Bond Date"). Interest will accrue from the Hand Date end will he . due on December 1. 1998. and cacti Jnae I and Dc"inher I thma0cr until the carlier or maturity or prior redemption. The Bonds will h IssucJ only in fully rcgi.icred forth in any Integral multiple of $5,000 for any one maturity. The Bonds will mature on I),ccmbcr I in each )car as rollm4s MATUR111l' SCIIEDL LE Principal Principal Principal Year Amount Year Amount Year Amount 1998 S 360,D0(I 2005 S 360,000 2011 S 360.000 0 • E 1999 360.(100 2006 )60,000 2012 )60,000 2000 360.000 2007 360,000 2013 355,(100 2001 3601000 2008 360,000 2014 355.'100 2002 360.00 2009 360.000 2015 )53,000 200) 360,000 2010 360,000 2016 355.00 I 204 360,000 2017 DSS,DO 1 ~tix1❑ 32XIo 0 aaalvarr 0 :alvarltsaa ' j I Bo0k-F.v1R1-0ST1 S1S1'FSI [be City intends to utilbe the Boolt•Fntry-Only System of The Dcposilory Trust csrapaay ("DI C"$ Sec "The Bonds and Bonds • Hook-I[niry -Onl) Sy stem" in the Official Staicmcnt. RFump[so%.. 1 he City reserves she right, at its option, to redeem Bonds hdsing stated maiurites on and after 1lccemser I, 20X19, in whole or In pal in principal amounts of S5,0W or any integral multipte thereof, on December I, 2008, or any dole therearer, at il,e par ratue fhercor plus accrued intom to the dale Owed for redemption. SI.RTIJ. BONDS OR S1Ithl BOMA AND TPR%l Bo%tK... Hiders may pmcide that all the Elands will he issued wk Serial (kinds radiating in accord with the Maturity Schedule shown abuse (Allemale 1) or as a combination of Scriul Braids and Terms Bonds (Allemnte 2), but a bid w 0th all Term Bonds is not permitted. S 1 Ahernare I Serial Bunks: Serial Bonds maturing on December 1, 1998 through TkcemK*T I, 2017. Alternate 2 • Snial Hands and Term Bands i, Serfn1 Bands maturing on Deccnnber I, 1998 through December I, 2011. and one or tern tern bunts consisting of the Ikremlxr I, 2012 through Tkremkr I, 2017 malur+ties with each term rnnsisting of two or more corowtithe sinking fund rcdemptians matching the annual priacipal amounts accumulated from the maturity schedule shorn Omit N11kNI tORI SI\Alvc" FPH7, . , If the successful bidder elects to alto the Maturity Schedule reflected uhosc and coned the principal amounts of the Serial Bonds maturing in the yrus 2012 through 2017 into "Term lion di", such "Ior in Ilaaids' shall be subject to mandatory redemption on December 1. 2012. or the First I threat) I ) nehl Toone ing the last maturity for Serial lk+nds, and annaally thercuflct on each Febraw) I3 until Ihe stated maturity for the Term Iksnds at the redemption prices of par Plus acrueJ interest to the done of redemption. t he principal amounts of the Term Hond9 to be redeemed on each mandahsry redemption dale shall be the principal amounts that would hate been due and poyahle in the Maturity Schedule ahawn abuse had no Lonkvsion to rents Monde occurred At least dainty (.10) days prior to each mandatory date, the Paying AgcntRegiArar shall Wheel by lot the Term Bands to he redeemed and cause a notice of rcdcmption to begis m in the manner prof idcd in IN Official Swememl. it the principal amount of the Term Bonds required to be redeemed pursuant to the operation of such mandatory redemption prm Wens may be reduced, at the option of ,)re Cdy, by the principal amount or the germ Bonds of the same maturio, which (i) shall ~i hose been acquired tw the City, with funds on dgoslt In du Inlerest and Sinking fund fur the Bonds which arc usailable fur mandatory rcdcmption of the Bunts in a prise not ceceOlIg the principal amount of sueh Term l plus accrued inlcresi to the date of rurehase and delisered to the Paying Agent'Regi:mar for cancellation or Oil shall base been tedermed pursuant ha the op0onsl redemption pr ONons end not thoovilore creellled against a mandator) redemption requirement. Psi i c AaF,S11K1OISIRIR I"he initial Paying AgenlRegi,trm shall he C'haw Bunk of Tesas, National Association, Dallas, Issas (sec"I he Bonds and Woes • Puy ing Agent,Rcgislrar" in the Official Slatrmcni) ~i SrnRrF.nF Pslgs:vr... Ibe Bonds are poyahle, tenth as to principal and interesC snhh from ant secured by a Oat lien on neck a pledge of the Net Rcs erocs of the Ihility S) sicm alto pay meal or mainlenrmee and operating csrcnws (sce "Ihe Bonds - Sccurity and Source of Pa)ment"t i . i I'urttnr details regardiOlt [he Ilonde are sea forth in Ihe OricIal Stalenicnt C0%DI I IONS OF 111E S, 11,E 11 PI OF Hun raw h I I AP S r KN 14 , , , 1 he Bonds w ill be sold in one hlmk on un "A II or %one" hush, and at a price or not less shut Ilie lr pa; 1 aIuc pins accrued )nwrcnt frurn the date of the I ton di lo the dole of dohs cry of Or IlonR II alders are ins ltd In name the ram s);d mtere.t to be h„mc he Ihe Itunds. prm Wc,f iI A each rlec hid 111 j,? be in n; ii ,uIt ltd,: of 18 uF I"r or 1 20 of I"1 unJ the ~ j no clTcdire ialoea rule must not c%ceed 1St.. the hrghesl rate biJ may not etcecd Ihe lowest rate hid by more tints 2°. in rate fnlercw rotes For maturities (in or after Ihecuri" 1. :M8 shall be striowred in ascending order such that For r.Kh succeeding mahuilh, roes shall be equal to or grealer Than the inloest rate far the malurity of the prrcedmg "ar No limilition Is impowd upon ° bidders as rr the masher of raies or chanpe% which ma) be uud All Bonds of one maturity mud bear one Find the same rare. No . hide insuIs rag SCpplcmental interest rates will he eonaidercd. )i I F - - 5 Y 0 32x 0 liamb~ am ' o ,n~rrarca ' B 151st has Aw ARn , , .1'he sale of the Bonds "ill be aaarded to the bidder making a bid that conforms to die specifications herein and "Itch produce the lu"nst True Interest cost rate to the City, The True Interest cost rate is that rule which, when used to ampule the total present Value As of the I)ated Date or all cl seniee payments on the Bonds on the basis or sembannual compounding, produces An amount equal to the sum ort a par Value of the Bands plus any premium bid (but not intercat accrued from the Date) Dale to the date of their dclistry) In the event or i bidder's emar In Interest cost rate caleulatiom, the Interest rater and premium. if Any. set forth In the ORcial Bid Form "ill be considered as the official bid. Gwn Fcrm Drrasr i . . A Cord Faith Deposit payable to the "coy of Lknion, laws", in the amount of $143,500 DO, Is required. Such Good Faith Ihposit sholl he a bank cleshiees check or cerlificd check. "hlch is to be retained uncashed by the City pending the Purchaser's compliance with the terms of the bid and the Notice of Sale and Bidding Instructions, The Good Faith Mpmil may l accompany the Official Bid Form or it may be submitted separately. If submined sparately, it shall be made available to the City prior to the opening of the bids, and shall be Accompanied by Instructions horn the bank on "hick drawn %hlch audo im its use as a Utiod Faith Ikpmsit by the Purchaser "ho shall he named in such insuuctions. The Good Falth Deposit of the Purchaser will be returned to the Purchaser upon payment for the Bonds. No In ereA"ill be allo"ed on the Good Faith Ilkpoo. In the event the Purchaser should rail or refuse to take up and pay for the Bonds in accordance "ith the bid, then said check shall be cashed and Accepted by the City tc full and complete liquidated damages The checks accompanying bids other than the "inning bid "ill be relumcd immediately after the bids ore opened, and on ass and of the Bonds has been made, DELIPERV OF THE BONDS AND ACCOMPANYING DOCUMENTS ' ('SIP Nt Now as. It is anticipated that CUSIP Identification numbers will appear on the Bonds, but r itber the failure to print or type ouch number on any Band nor any emar %ith respnt thereto shall constitute cause for a failure or rerusal by the Purchaser to accept de6cry, of and pay fur the Bonds In accordance with the Icons orthis Notice or sale and Bidding Instructions and the tens I or the OfTcial Bid Form. All e., :uses In relation to the printing or typing or CUSIP numbers on the Bonds shall be paid by the City pmt Wed. fiowcscr. that the CUSIP Sen Ice Bureau charge for the assignment of the numbers shall be the responsibility of and shall he paid for by die Purchaser. Dltn IRV or B(Nns . . Initial Iklitm "ill be oceumplished by the issuance of one Initial Bond (also called the "Bund" or either in typed or printed fun, in the aggregate pritwipul ahnount of 57.175,0110, payable in stated Installments to the Purchaser. signed by the Mayor and City Secretary, appmVed by the Atomcy General, and registered and manually slimed by the Comptroller or Public Accounts, Upon ddivm of the Initial Band. it shell he immediately canceled and one dcf nitive Bond for each malurity "ill be ropklcmd and detivered only to Cede & Co., and deposited "ith DIC in connection "ith D'fC"s Ilook-Fntq-(hJy System fklisery "ill be At die principal ollice crOx paying AlicroMel istrar. Payment for the Bonds must be uh;nie al inancdlaidly of ailahle funds for uncondnionat credit to the C'ily, or as other"ise directed by the City. The Purvilasior %011 be giten sic business dayi notice of the time fixed for delivery of the Bonds It Is anticipated that delivery of the Bsmd(s) can be made r on or aM+ut April 211, MR. and it Is undcrsnad and ogreed that the purchaser will aLcept delis cry and r iake pay mrnt for The Bonds by 100) A\I. - i) r, an April 28, 1998. or thereafter an the date the Dond Is tendered for delivery, up to and Including kit) 12, 1991. 11" for am reason the 0tv is unahlc io make deliwr) on or Wore Via) 12. 1998, The City shall immedi;aely contact the Purchases and I offer to allot the Pu% air to cilend ins offer for an adJ,'',ma. •clrty days. tribe Purchaser does nom elect to covil its olTcr within sis days thereafter, then its Goad Faith Ikposit "ill F. returned, arJ both the City and the Purchase shall he rcliestJ orally further ohii ration, In no civil shall the City he FiW, f or any damages by fvwn of its failure to deliver the Bondl presided such failure is due la circrmsl:onces bevnd the City's rcawnahle control. ( oNo o m it) DrI IsI Ra . The ubligaiiun oldie Purchaser to take up and pay file the Ronds is subject to the Purchav es receipt nV at rat tic legal opinion 0 kiXatl, rarkhurst & I liuton 1 I. P. Dallas Tesae Bond Counsel for the City ("[kind Counsel"). (b) the no-lit ig,ainn certificate, and (c) die certification at to the Official Slatement a8 as further described in the Official Statement, • I fn order h+prat idc the City u till mfomiatiun required io enable it to comply "ilh certain conditions of the Internal Res enue Cole or ' 19M rd,ning to the csempliot of nocrecl un the Bonds form the gross income or their ownen, The Purchaser "ill be required to complete. execute. and deiicer to the City ,in or More the 5th business day ,or to the delivery of the Bonds) s certification u to their 'tsvhe prig soh,Unhalh in the form and hi the rlTeet an,aclxd hereto or occomponying this Notice of Sale and Ridding In+trunions In the event the successful bidder will not rvoMr the Bonds for sale, such «ru8eare may be modiped In A manner approt rd by tic C'ill In no stint nth the City fail to dclioer the Bonds as a rnuh of the Initial Purchaser's Inability to tell a tulntAntixl amount orthe Bonds At a particular price prior to delhery. Ukh bldde, by submitting its bid, ignites to comili ' eseodi and dchicr such a certificate by the dule of Misery of Ile Ikmds, if its bid Is accepted by the City It "ill be the re,ponsihihl) oflhe Purchaser to institute such syndicate reporting requirements io make such;niesligution, or other"ise to ascertain Q J F tic fits necessary to enable it to make such ceninreation with reasonable certainly Any questions concerti"g such cenificalinn 1 should be directed to RrmJ Counsel. Iii kK~u 32 x~❑ " o • I C(1 A1. OmSwss.. t he Ilends arc on'cred when, as and if Issued, subjm( lu the oppruval of the Andmey Cnmcral of [he Slate of Icxas, IV iser) of and pay menl for the Bonds is subject to the rYcirl by the Purchaser of opinions of Bond C'ounscI. to the effect 0uu the Bonds are vnlid And binding obligations of the City and thus the interest on the Bonds %I I I be culuduble from gross Income rrn federal income tax purposes under exiging toes, subject to the matters described under "Iax hfutlers" herein, including the F ahcntatise minimum tax on corporations. t CIAltfu.AIION OF OF Fit 141. STATILMIUT . . At the time or pigment for and IARIA MIisery or the Bonds, the C'iI) ssill cxnvle raid I j dclir er to the Purchaser a certincate in the form set forth in the Onicial Statcrosenc (}wit IS TAX Exrsll"t 5t ATl'S. ..M any I I me before the Burials arc tendered for delivery, the Purhaar may a ithdraw its bid if the interest rmcked by prisale holders on obligations of the same type and character stall toe dcrlvcd to be Includable in gross income under present federal income tax laws, either by ruling of the Internal Rcsenue Sen ice ur I+y a decision of any federal court. or shall be dcOaresl taxable or he required to he liken into account in computing any federal income lases, by the terms of any federal Income lax law roocted subxqurnl la the date of this Notice of Sale and Bidding Instructions. GENERAL tl-,0 Ixl. Aol IsOk... First Southrccst Company is employed as Irinanclul Advisor to the City In conneclitm aiih the issuance of the Ifonds 'rte F'inassciul Adsi.sors fm for scnkes rendered with resrttt to the sale of the Bonds is conlingent orlon the issuance 11 and ddiscq of the Bonds. First SouthWcq Company ma} submit a bid for fie nonds ONLY lnd.pcndcnily or as u member of a s}nelewe urgsnlzedto submit ahid Grthe Itsmds. first Southwest Csknpan}, in itscaraclrs as Financial Adsi.ar, has MIM on the opinion of Bond Counsel and has nol scrined and does not asnmM any rc's)xm,sih[tily for the Inromudisat. covcmurts and tcprewniations contained in any it the legal documents with re_pect to the kderul income Us status or the Bunds, or the possible impact of soy presenC pending or future actions liken by Any IcgkIa:isc or judicial bssJies, In the mrmal course of businesk the financial Advi"r may from time to time sell imcsnnenl nxurirics lu the Ciiy for the Imcstrnenl of bond pnsc'ecds or wilier funds of the City uran the rcqucsl of the C'iry. Bt t r Sss LAk S. Ily submission of is hid, the Purchawr rcrreseuln that the sale orthe Ikmds in stoics other than Icxas will be made only Pdnuant Id exernptiuns from registration or, % here ncus,an, like Purchaer viii; register the [hinds in accordance with the ' securities fuss of the stiles in which the Bonds we offered or gild. t he City agrees to cooperate x iih the Purchaser, ut the Purtli written rcqucsl and expense. In tegiacring the BonJs err ubtaining an exemption from registration in any stare where such action is neceswrr}. Pnssided. bowner. than the City shall not be ohligated to execute a general or special consent to senlee orprocess in any suchjurisdiction Not Ax Urn k to Si I t.. this Notice of Sale and Bidding fnstricr ms does nol alone constitute nn offer to sell the Bonds, but is ` merely notice of the sale of the Bonds. the oficr to sell the Bonds s being made by means urthe Nulice of Sale and [lidding f Io,lmctions, the Official Bid Fenn and the 0111cial SlatemcAl. Pnrsre,tisc purchasers cc urged to carefully etamine the Officid Starcmen t i n deierm ins the i m c stmcnt quality of ilir I londs. Ism 4S1 t.Or Arnow,kts. Brat. the ('ity antlotputes tic issuance if aprrnimatcl) SIII,600010 IAJily System Rescnue 1lcfund'mg Bands within the nett 6-month pewid t RsiiN(,% 1 he pre,enlly ouhtsnding Utility 5y stem resenue Licht (ir the CO) is tared "A IN by Sfosd)'s Imeslors S:nice, foc. t'hlooYs"I and 'ANN by Smmdwd k Poor's Ii (iroup, a disisian of kikOrAs-11111 The City ulm, has issues aut,hmdmg sshich are r,deJ &ia' Iq ,1h¢Kf)'s and "AAA" by N&P ilirou..h insurance IN) carious eornmercial Insurance curnpvdce. Applicaouns For Co9trdct ratlnlrs on this issue hale been etude to NO hl s+dy's and Ski'. I he resuhs of their ddcnnim+lions will be r pros Ad as crnm as russrhlc 11`` r l~ Ili so mxt Bssxn Ixsl kxxs t. In the ascot the Ponds we quaLficd for nniniciral IMlld imnrrunce, and the I'urhasrr desires U purchase sash insurmee. the cost Ihererur hill be bald by the Purcha.~er, Any Foci It) be paid to the nning aganetes ns a result of said inurrsnst oil be s+ald h jIL It will be like responsih11ip oflhs 11oAutwr lo dixhise the cvl lcnce of insurance, Lis Icmis and the cord thereof w ilh respewt lb the reoffering of the Bonds. 'tilt 01 Ill I%I SI ill%ll.N1 Alb COxtnl 1011 'All" S'(' RI 1r 142.12. the ('it) bus prepared the accompanying Utlicial xlaternent and. 1`111 the Iiniird Purrsre of comrlsins with SiC Rule I!e2.12, dams such OpIcial Smicmcnt to be foal as of its dada within the Win ing of such Rule for the pugoose of fns law prim to bidding Io the N4 knnwkJge and belief of the ('ily, the • • Otpcial Sldlemcm c11mains information, including Iinancial Information or operuling daft corKCrting esen crony. enicrpriae, hind, ocanmrt, or peoum that is m,Aerial it, on csulu.nlon of the ofluing of the Sonde, the ['it) bas rod enlcred irdu nay preslous continuing drxlu+nre undertaking in a wrinen uaaruct or ogrmnent specified in SI.C' Rule [5c2.12tbX5Xi) and, necordingly, has 'i not fuikdlo eonsPly wish any such mldenaktng, Represudalions made and tofie mode by the City eunccmingthcabscnce ormutcrlnl misstntonumts and omissions in the OtTclul S1.0cmcnl arc addressed dwsshere to this Souse of Sole and [lidding Instructkons and in $ the t Klik al S1;ncmenl. Ire II , 2S)" 32X aoraar o F I The City will fumish to the purchaser, or Purcheurs, acting through a designated senior representative, in accordance with ins"Olons received from de Purchaser(s), within wvv'n (7) business days from the tote date an aggregate of t30 copies of the Of iclal Statement Including a like number of copies of any Sapplemcnt(s) reflecting interest rates and odser terms relating to ft Initial reorfering of the Bonds. The .ost or a reprinted OfOcial Statement, If the Purchaser(s) shall to elect, and the cost of any Ofndal Statement In excess of the number specilled shall be prepared and distributed at the cost of the Purchaser(s). The Purchaser(s) shall bu responsible for providing In writing de Initial reolTering prices and other terms, if any, to the Financial Advisor a by the close or the next business day after the award. Except as noted above, the City assum0s no responsibility or obligation for the distribution or delivery of any copies of the Official statement in correction with the oefering or reoncring of the subject securities, Cotitsvetvc BactoseRa AGREEMENT. . . The City will agree In the Ordinance to provide certain periodic Information and notices of material events In accordance with Securities and Exchange Commission Rule 130-12, as described In the OfTlclal J Statement under 'Continuing bisclosum of Information'. The Purchaser(s) obligation to accept and pay for Ot Bonds is , conditioned upon delivery to the Purchascr(s) or (thew) agent of a cenined copy of the Ordinance containing the agreement described under such heading. ADMIONAL COPIES OF NOTX & BID FOPM AND STATLxIM A limited number of additional copies of this Notice of Sale and Bidding Instructions. the OITKW Bid Fort and the Official Swtemenk as available over and above the normal mailing, may be obtained at the offices or rim Southwest company, Investment Bankers, 17W Pacific Avenus. Suite $00, Dallas, Texas 75201, Financial Advisor to the City. on the date of the sate, the City Councit will, In the Ordinance authorfAng the Issuance of the Bonds, confirm Its approval of the form and content of the OfIrcial Statement, and any addends. supplement or amendment iherdo, and authorim Its use in the reoffering of the Bonds by the Purchaser. JACK MILLER Mayor City of Benton, Texas ATTEST: JLNNIrf:R WAL7F:R.S City Secretary l Starch 10, 1993 f r e ' .T , tlix L .~x t 32 /mar IW -M. dft, ,,4, ~ , 'I r , o , BOND YEARS Floods AtcumuLted Bonds ALturln Amount Bond 1'eue Bond fare M1tNuring 1998 f 760,000 f 236.000 f 256,000 1998 1999 360,000 616,000 172,000 1999 :''W0 360,000 976.000 1,841.000 2000 2001 360,000 1,336.000 3,184.000 2001 ` 2002 360.000 1,696,000 4,880,000 2002 2003 760,000 2,056.000 6,936.000 2003 2004 WSW 2,416.000 9,352,000 ID04 2005 360,000 2,776 ow 12,128.000 2003 L 2006 360,000 3,136.000 15,26 COW 2006 2007 360,D00 3,496.000 18,760,000 2007 2008 360,000 3,856,000 22,616.000 2008 2009 760,000 4,216,D00 26,832000 2009 { 2010 36n non 4,576.000 )1,400.006 2010 2011 360.000 4,936,000 36,344,000 2011 2012 360,000 5196.000 41,640.000 2012 j 2013 755,000 3,577,444 47,217,444 201) 2014 335.000 3,932,444 53,149,889 2014 2015 333,000 6,287.444 $9,471,533 2013 2016 335,000 6,642,444 66,079.778 2016 2017 353,OW 6,997,444 73,077122 2017 AscrugeMafurity.. ...............10,18SYesn 1 tt 3 2, X i a 0 1 iI 1, ' I ■ OFFICIAL BID FORM Honorable Mayor and City Council Much 21,1998 C'ily of Denton, Tesan I Members of the City Council: d I . i I Reference is made to your Ofricial Statement and Notice of sale and Bidding Insuonlitms, dated March 10, 1998 of 57,173,000 CI I Y OF I3F.NT ON,'FEXAS U111,I fY SYSTEM RRkT NUE BONDS, SLRIES 1998, both of %hich constitute a pan hereof T I I For your Icgalty Issued Bonds, as described in said Notice of Sale and !lidding Imstnections and Olt clul Statement, we %ilt pay you I par and accrued Interest from date of issue to date of dclirery In us, plus a cash premium or S_ rot Bonds maturing and hearing Interest as follows: ?,a Principal In a•tat Prlndpol Interest Principal Intact I hlalioIt Amuunl Role Maluri _ AMMMI Roie Matwi Amount lu$c f I1'IN8 S 360000 UAW S 360,000 !4 12WIl S39,000 121IN9 360.000 !G 11,11% 360,000 % IM,12 360,000 SG I 12/1!Oi1 36nA00 7G 1211'07 SM,0(q !G 1213 3SI,M10 i 111,01 360.000 yG 111109 3601000 ^G 12/1,'14 355,0110 7G 12'1112 YA.vw !o 1111!19 360,Cas0 K 12,1115 331.('10 !G 12) 1103 360.000 !G 1211'10 360,000 !G 1211116 331,000 % I _ 1 121rUJ W.1410 !G 1211111 351,000 % I I Efonds mufurlnp on Ikcember I, ~ 998 through lh'cemher I, 201 I shall be Serial Ionds. As indrealcd below, the [lidJcr may bid one I or hen Iona bonds consisting of the Mc ember 1. 2012 Through Mxcrnber 1, 2017 maturities with each term consisting of two or e more cocsecuiI%c annual principal amounts accumulated from the maturity schedule show n abust. For those yeas %bich halt h'en cnlnhined IoW term hands, the principal am aunt sh onn in the Iah le ahose shall be the mandatory sl nk Ing fund redcnlpti(,n amounts { In such )cars escept that the amount shown In the )ev of the Icnu bond wounly dale shall mature in such year The tcmi bonds 1 orated arc as follows', I t Year of Maturity Wa c First Mandatory ' Principal Interest December 1 Redem lion Amount Rale I 5 oG r 5 as I 1)(111 ' IM1'RFtiT CUS f l I ' }h , I { 1A c arc has ing the !lands of iha follua inp maturities insured by a1 a ' premium off , bald vrem lum to be veld br the Purchaser. Any fees m be paid m the rating agencies m s , resutt of said ioRUance hill b~palypl !(_EIT, I ! the h.!iial Kind%shall he registered In the name of _ _ hich will, up an paymerd 1 for 0e IlunJs• he enneeled by the Paying Agcnt'Rcgslrar. The t3on-6 will than be teplocred in the name of C+3c h C'a MICi ralloership nominec). underthc Rook-Cnir)-Onl) S%vcm. I ,a t A hank cashier's chick or certified check of the Bank,-, in the amount of S 141,300• which rcprescnts oar Hand I'ailh Ikp(3stt lie aeachcd herclo) or Om heen made asnilablc to you prior to doe opening or this bid). and Is t 1 cuhmi[W in auo tdmlce with the Icrttn m set forth in the OlTicial Sbac"scm and Notice of Sale and Ridding Instructions I 't'e ngrcr to accept defhen ofthe Ponds mitiring the lia+k•f:nlry•(hd) 5)stcm through UIC and make pa)mrn1 for the lnitlallllmJ in `l in mcdinrcly mailuhle funds in tIx Corporate trust Imloom C'ha< Bark of Few. Nationnl Asvvialhm, Dallas, Temas, not later than IO.W ASI• ( llf. on April 28, 1998, or themana on tlrc dare the Bonds err tendered fix dc'Iism•, pursuant to the terms mi G+nh in the Notice or Sale mod lidding Instmcdons. II %ill be the oMiltadon of the purchaser or the Honds to complete the DIC 1 liglbil ) I puesi onnaire. I I I 25 y. 32x14 ! taramo• II ' • t fi I lid 1 he undersigned ag.rces to cocnplete, execute, and deliver to the Pity, at leavt sir business days prior to delivery of the Bond., a cvnircate relating to the "issue price" of the Bonds In the form and to the effect accompanying. the Notke of Sale and Bidding Instructions, with such change thereto as may he acceptable to the City. { N's ag.r v to provide In a riting the initial reoffering prices and other terms, if any, to the FInantlal Advisor by the close of the next t lows Ihess day after the award. I Respectfully suhmiued, I 1 ~ y 1 1 Bylf Authorised Representative I ~$EP TANCE c'I,AV5E I ( t (f the abuse and foregoing bid Is hereby in all things accepted by the City of Ekrotvn. I exas, wbject to and In accordance %ith the Notice of I Sale and Bidding In.truchlon., this the 20 day or March, 1998. I All FIST: I Mayor C ity of Ekroton. Texas City SttYCtary1 , I ~~I I I - 1 j~ I I , [r fl ~ , t1 as, a , r I f, I I I i r 2xlo 32x1❑ ~m INNER ~I rttltalerlw ' I I CERTIFICATE OF U'NDERNIi RITER I I'he ucdeYSigncJ hereby crnirirs as follows with rasped to the sale of $7,171,000 CITY OF DEN70N. TEXAS U71LIT5' SYSI'F,M REVENUE 110ND3, SERIES 1999 (the "Bonds'). I I I. The undersigned is the undUrxriler or the manager of the undcrwrilrn and sc!ling group (the "Underwriter") which has { + purchased the Bonds from the City of Denton, Texas (tha "Issuer"). f t I he undersigned has made a bone ride o5cring of the Bonds to the public. A I 3. The first price during the initial offering (expressed is i "yield") of each maturity of the Bonds at which a substantial amount I hereof (at least 10 percent of the principal amoun(or each maturity of the Bonds) has been said to the public is set forth below: 1i principal Principal I Amount Yearnf Issue Amount Year of Issue t Maturing Maturity' Price Maturing Maturity Price I S 360,000 1999 $ 3601(]!X1 2009 + 360,000 1999 360,1)00 2009 [ 1 36D.000 2000 360,00 2010 I I 360,000 200t 360,DOO 2011 360.(W 2002 360,000 2012 I ! 3611,(X10 2007 355,000 2013 360,M0 2004 M.000 2014 +1 1 360,1%X1 2(9)5 775,000 2013 ` I 360,M) 2006 753.(7(10 2016 1 - 1 360,0) 2007 355,(X10 2017 I 1 4. 1'or purpa.ws of this cerH„care, the term "public' dues not include (a) the undersigned, (b) members of the syndicate, if any, mamtged h) the undersigned, of (c) any bondhnuse, Srokers, dealers and similar pcrsoesor organisations acting in the capacity of undcrw ritcrt or w holemlers that ,re related to, or controlled by, or are acting on behalf of or as agents for the undersigned or mcmhers of any syndicate in which the undersigned Is participutinB in the sale Uf the Bonds I 3. 1 he ofRring price JescrikJ abos a reflects cumum markel price at the time 6f such sales. a , I 6 If any or all of the obligations cnnvlimling the BnnJs are tit be guar,utteed then the premium paid for such guarantee in an unt.nmt eya:J Ia S__ _ is a reusannbic amount pa; able solely fie the unnsrcr of credit risk for the puymcnt of deht scn ice on Ole Peels and Asks not include ary amount payable for o cost athet than such guarantee, a g., a eredil niting fee, I me I'ndcrwriter has represented Ihot the :eesent solve of the premium raw fur the guarantee for each 1 ohligotiun a+ntnuring the Bonds la which such premium Is properly allocated and which are insured thereby is less than the ! I pr;sont value of the interest re,tsimihl) expeared to he laced as a result or the insurance on each ohligntion ccimlituting the ! Iiond.. I he Pretniurn has been fetid ro a person which is nol cxen•.pt from federal income tasalian and which Is mot a user ar • t rrluteJ to the user or an) rroeveds ur the BonJe. In determining presehl value for Ihis purpose, (he )ield of the Bonds (dclannmed a Ith regard to the pas meet of the guarantee feel has been used as the discount rata j I 1 7. The undcrslgneJ understands dial the statements made herein will he relied upon by the Issuer in its effurt to comply with the comblinns i nprtcd by the lntcrnal Re+cnue Coe: of 1996 and by Bond Counsel In rendering heir opinion that the Interest an the Bonds is Avlodahlc front the gr.ss Income of the ossnen thereof . IF I \LrU I I it and D11 ! IVI RI D Ibis d,Iy of 1999, I (Name of Undcr+sthrt or Mannger) - rt t By ( I ITiOe) I I I 32x10 ~c..o o , 9vaer+. i 1 l UTFICLAL57,ATEMEN7 Rstlnp: gloody's: Applied For Dated glue! 10, T996 SM Applied For See ("0t her I oformat loo NEB' ISSUE - Book-Entry-Only Rail Ogg" be rel") in the opinion of Bond Counsel, inlernt on the Bonds will be excludable from pmts Income for federal income tar purposes under statutes, regulations, published rulinse and coup decisions existing on the date thereof object to the matters desmMd under "fax Matters" herein, Including the alternative minimum to on corporations. TILE BONDS W'ILLNOT BE DESIONATEDAS "QCALIF'IEDTAX•EXE,NPIOBLIOATIONS' FO RFMANCIALINSTITUTIONS 11,11S,ON CITY OF D6NTON, TEXAS (Deotoo Count)) l UTILIIV Sl'S1 NI REVENTE BONDS, SERIES 1998 Dated bate: Slarch 15, 1996 Pat: December I, as shown below PAfMooT TeRN5... Interest on the $1,117,000 City of Denton Texas, V61'.cy System Revenue Bonds, Scr;ca 041 (the -B"nolovi will accrue from March 15, 1991, (the "Dared Dote") and will be pay able June 1 and December 1 of each year commencing December 1, 1991, and will be calculated on the basis of a 360-day year consisting of twehe 30-day months. The definitive Bands %ill be Initially registered and dclixered only to Cede A Co., the nominee of nor Dcpmitory Trust Company ("DTC") punuant to the Book•Entry (hay Syslcm described herein. Beneficial nwnershtp of the Bonds may be acquired in denominations of 113,(100 or integral multiples thercor No physical Misery of the Bonds win be made to the owners thereof. Principal of, premium, if any, end Interest On the Binds will be payable by the Prying Agent'Registrar to Cede k Co., which will make distribution or the amounts so paid to the participating mcmbcrs or DTC fur subsequent payment to the beneficial ounmrs of the Bonds. See "The Bonds • Back-Entry-Only, E System" herein The initial Paying Agent'Registrar is Chagos Bank of Texas, National Association, Dallas, Texas (we "The Bonds" Paying AgentRegl strr' AtltioRin yoit Ix UAN(L . , the Bonds are looped pursuant to the general laws of the State of Texas, pwticutaAy Melee 1111, m seq., VA ICS, and an ordinance (the "Ordlnann") passed by the City Council, and are special obligationsof the City of Denton (the "City"), payable, both as to principat and Interest sokly from and soured by a AN lien on and pledge of the Nat Rnenues orthe Coy's Vu'lity S) ovm (the "S)stem"! T'he City hoe not toe enanted nor obnpted itself to pay the Bands from mooks rased or to be raised from laxation (see "the Ikmds • Authority for tssunce"). Ptkw,tsc Proceeds from the sale of the Bons will N used for extension :nd improsements to the System, the funding of a debt senice resent find, nd cos8 of issnance associated W{th the sele of the Bonds. M,ATt'R1T5'SCIIEDULE 1 Psk't or Price or Amaum gldturi Rate Ykld Amour, _hlatwiry Ratr Yield S 360,000 199a 11 360,000 2001 t 30,000 1999 360,000 2009 3011,000 7000 360,000 2010 P' 1 160,000 1001 360,000 2011 30.000 2002 360,000 2012 . ( 360,000 2003 M .1)(M) 2013 ' 16,0[10 2004 155,000 2011 360.000 2003 3$7,000 2015 360,000 2006 355,000 2016 360,000 2001 355,000 2011 (Accrued intents from glarch 15, 1991 to be added) r RrO.xtPilor OPTION The City resents the right, at lit option, to redcem bonds hming stated maturities on and after t Mcembe- 1, 2009. In whote or In pan In principal amounb of 55,000 at any integral multiple thereof, on December 1. 2001, or any j'' date thcreafler, it the parsalve thereor plus accrued inters si to the dare or redemption fste "The Bonds • Optional Redemptimt"), ff 4 { LtG ki,tT1' ..The fkmds are orte:td for Mik cry wben, n srd r issued Nod recessed by the Initial punhasegr) and subje.t to the • approving nplnion of the Attorney Ocnerol of Teas nd the Opinion or Met all, Parkhurst A Ilonsm LL. P., Bond Counsel. Dallas, Texas (see Appendix "Form if Dond Counsel's Opinlon") , Dt.t.Is itity , , It Is expected that the Bonds will be available for delivery through The Deposltary Trust Cc npany on April it, 1999 2.5 K10 32X10 0 No dealer. braler, aakamcn w other periaa fur bee" awharl:ed by dk Cfy w dk 0`4* xrlkn la ghv arty ig/orm &n w tO make ap' "pnxMad" wiser than 1hw eanfai"ed in this (Vkuf Stalemenf, and ✓ghen a made tuck wher Lryf~twt ON, erp"enmllont mml lmt k "fed t4ra" as hNing been aulhoeL-ed by de City w de L%kmr lkn Ihtt Ogkul Sukmenr dace "w eav111uk aA rffer NO ird Bweb in amp, /urLrdkNnn b 0* perim to whom It b mnla ;W b make MA offer hr swIl furLdkhon Cenafm ktlw"mkn utJwih kMn har kro obumedJrom de Coy and wher amwmi %AO are belkoed to be "Rabb but Or nor gmraraeedas m ,-rosy w mrNpIrleneet, and if nw to be cmubwd m a lepmAtntatim by de L'nder"rifen Any h✓wmwfon and eep"nlaru sf ap1mim km(A eonfahed a" embleo u clu"ga m4thmd swim. aed ender the delwy qr thk OffieW Smkmn t nor arty wb made k mridir daft, finder mu- efnvmrureu, cmak wry trpdkna'on dew Omm Am been no rhangr hr NOW Own gedk CIO' Of wkr make dernibed k"in time the abk hew ~ n LN COA'A'EC770N WITH THE OFFEAM of WE BONUS, THE UNDFRIi'RRTAS M4 T01'EA•AL.LOT OR EFFECT TRAN'54C710A'S A'19C H STRBIL ME OR MALATALN ME M4AKET PAICES OF T71E BONUS AT A LE+EL A801E TH4T R'NYCH mGHT OTHER tom PAEIAa IV THEOPENR4RKET SUCNSTAOWJhO,LFCOMMENCED•M4yBEb5CO.VMTTOATA:4TITME TA OLE OF CONTENTS OFFICIAL STATEMENT SUh1MARY ...........................3 TAXMATTERS.... ...36 I CITY ADMINISTR.ATION ...............................................4 OTHER INFORMATION. .,.....................3I . SFLE(7Fb ADbIITitATrn STArI 4 1.mcA. 3I CANSULTAMf AND ADh.vA.3...... . 4 RFG5TMT" AND QUALIFICATION OF DONUS Fm WE_ .........................................................3I INTRODUCTION S LwAL lwasimvm AND ELmvey To SEmE Pustic FuNDsNTEnAs....... 3A 3 LEGAL MATTTfu 38 THE BONDS....,,...,. 3 1 HE UTILITY S1'STCI1 Atmu~rrlctty of FtNA.NCtAi DATA AND (htAll 39 CONIWUWO DLUTASUUE OF Ira 41 NFOILNAI'10N.~..,.~.~•......•,. 1FLfFM 40 TABLE I • CusTDIAtm tansP~... 10 TABU 2 TFN LAII(7:3T EL . 39 CwAvcCAADvts htEOtrILTnLS~~N..•. 39 • Ffii1tIC s I Tau 3 • I IIS1DWAL STA113TKAL DATA ~ . 1 11 l FIxANCUL AirTSOIL ,....40 TABU 3 • EraxrrSALEl 14 16 APPENDICES o>:wtLtAL INFO1LAUTlim REOAADWO THE Cm TABLE I -Toe TiN %%ttx Cu ABLE I • ELFCTAfC RATES..... 17 KE"i.,.. B • IT FoehtoFSoDCan"sH,'sUtNION... C TABU 10•ATEx IL TE3 RAtFS..... 16 rOKM F FNDATNEAN SOPV N.._.... A 7AhtE9• WATFARATES........ • II The cake page hamf, this page, the oPPcndius included hcrcin end my ddendit supplement or &wndment hereto, DEBT INFORaMTION...~.---- ..........I9 TABIF. I I • UEAT SLaVK'E RFpL'txTMENTS .19 are pan of the CNiklal Statement } E FINANCIAL I2F0 Urumy NSVsT 20 i:M Cosimstn STAIWINf iR OPERATION]...~....•. .1,,.,... 20 f . TABU 13 COY xv*ANDFUNDBAiv%Ts ...............20 fA01E 14.C1n.ATM INVT.Stto:MS 22 '1'D r • SELFCTED PROVISIONS OF THE BO, OPWNANC'E.............._ , .23 i i r 2 (i fl - 26 x la 32XIb 1 tatwtsssr ' " O E , I I 1 r 'I OFFICIAL STATE MENT SUMMARY i This summary is subject in all rcspevv to the more complete Information and definitions contained or incorpontcd in this Official l Statement. The offering of the Bonds to potential in%eston is made only by meam or this entire Official Statcmcal. No pcnon b authorized to dcux:h this summary from this Official Statement or to otherwise use it without the entire Official Statement TittCsn.,..... The City of Denton Is a political subdivision and municipal curporation of the State, located iii in Denton County, Texas. The City coven approximately 61 square miles (see "Introduction r • Description of City"). Tut Bows... The Bonds are issued as $7,175,000 Utility System Revenue Bonds, Series 1996. The Bonds ` mature, or we subject to mandatory redemption prior to maturity, on December 1, 1998 through December 1, 2011(see 'The Bonds • Description of the Bonds"). PAVxitsT of I..N-glt r Interest on the Bonds accrues from March IS, 1998, and Is payable December 1, 1998, and each June 1 and December i thereafter until maturity or prior redemption (see "The Bonds • General" and "The Bonds • Optional Redemption') A(TttoRrn FOR Issti." The Bonds are issued pursuant to the general laws of the State, particularly Articles I111, el seq , VATCS, and an Ordinance passed by the City Council of the City (see "The Bonds " Authority for issuance"). Sect Rtn FOR 1111 "D5.,... The Bonds constitute special obligations of the City payabte, both as to principal end interest, solely from and secured by a first lien on and pledge or the Nd Revenues of the City's Utility System The City has not covenanted bar obligated Itself to pay the Bonds from monies raised or to be raked from tautloo (see "The Bands" Authority for Issuance"). RFamP1I0N PRo%Istuss....._...r The City reserves the right, at is option, to redc4m Bonds having stated maturities on and after December I, 2909, in whole of In pen In principal amounts of S$,000 or any integral multiple thereof on December I, 2001, or any date Ihvrcailer, at the par value thereof plus accrued Interest to the date of redemption. Additionally, the Bonds may be subject to mandatory redemption in the event the Initial purchaser elected to aggregate one or more I maturities as a Term Bond (sec "The Bonds • Mandatory Sinking Fund Redemption"). Tit Extstri xrx in the opinion of Bond Counsel, the interest on the Bonds will he excludahie from gross income for federal income tax purposes under existing law, subject to the matters dcscnTled under "Tax Matters" herein, including the Owmative minimum tat on corporations. Vs1 Or Bosn i,m crass Proceeds from the sale of the Bonds will be used for extension and improvements to the S)stem, the funding of a debt service reserve fund, and costs of Issuance associated with the sale of the Bonds. Rsusr;v,...... The presemly, outstanding Utility System revenue debt or the city Is rated 'A V by Moody'e Investors Service, Inc ('Moody'V) and W" by Standard A Poole Ralings Services, A Division of The McGrew-I Till Companies, Inc. The City also has issues outstanding which are need 'Au" by Moody's and "AAA" by SAP through insurance by various commercial insurance companies. Applications for contract ratings on the Refunding Bands f r and the Bonds have been made to Moody's and SAP (sec "Other Information Ratings") r , 0 PAI vu st Rtfoan,.........._ The Cit) has met deraullevl on Its hand& ruradditional Information regarding the City, please contact: IWhy Dubose David K. Medanich Assistant City Manage of Finance First Southwest Company city of Donlon or 1100 Pacific Avenue, Suite Soo r' • 211 E. N14'Imncy Street Dallas, Texrs 75201 Renton 1'',xu 76201 (214) 915-4000 (949)519.8218 i 5 1 25 x,~~ 32A] tom.. o i at~alr I~ CITY ADMINISTRATION EI.tc7Eo Orl7C1At.3 I Tertn City Council_ Expires ` Jack Miller May, 1998 f Mayor Tuline Brock May, 098 i Mayor Pro Tern Roni Beasley May, 1998 i r Councilmember 1 ) Mike Cochran May, 1999 Councilmember Neil Durance May, 1999 'I Councilmember Sandy Krisloferson May, 1999 Councilmember Cut Geri Young, Sr. May, 1999 Couocilmembcr S[L FCTao AoMl%lsTrLATt1 t STAFF Name Position Ted Rrnavides City Manager 111 Rick Svehla Deputy City Manager Kathy DuBcse Assistant City manager or Finance Howard Martin Assistant city manager or utilities MikeJee Assistant rity manager or Operations Jennifer K. Wallets City Secretary I~ Herbert L. Prouty City Aeorney ll ` C(MMANTS Certified Public Accountants. Woitle A Touche L L P. 1 1 J ' . .....,......,ran Bond Counsel womb, Texas MuCd4 ParkhuM A Ibrton L Dallas, Texas FinandolAdvisrx ....,.._TirsiSouth*U.1Comm r)atlat, Tnas Vo A 26 10 32XIO e Monona ' p eaearaeta OFFICIAL STATLMENT , RELATING TO l $7,175,000 CITY OF DENTON, TEXAS UTILITY SYSTEM REVENUE BONDS, SERIES 1998 INTRODVCTION f This Official Statement, which includes the Appendices hereto, provides certain Information regarding the issuance of $1,175,000 City of Denton. Texas Utility Sysrom Revenue lkmds, Series 1998 Capitalized terms used in this Official Sus enunt have the same meanings assigned to such terms in the Ordinance to be adopted on the dale of sale of the Bonds which will authorize the issuance or the Bonds, except as otherwise Ind;cated herein. There follows in this OfJicW Statement descriptions of the Bonds and eotaln information regarding the City and Its finances. All I descriptions of documents contained herein are only summaries and we qualified In their entirety by reference to each such document. Copies of such documents may be obtained from the City's Financial Advisor, First Southwest Company, Dallas, Texas. t DES('ai OF ore CITY . , , The City cot Denton, Texas Is a political subdivision located In Denton County operating IS a home-rule city under the laws of the Stale of Texas and it charter approved by the voters In 1959. The City operates under the CoinciUManager form of government where the Mayor and six Councilmoaben are elected for staggered two-year terms. The City Council furmulales operating policy for the City while the City Manager is the chief administrative officer. The City Is appruxlmalcly 61 square miles In area THE BONDS Drscwrr7 to5 nr cur Bows . the Bonds are dated March 13, 1998, and mature on December I In each of the years and In the amounts shown on the cover page hereof interest will be computed on the basis of a 360-dry year of twelve 30-day months, and will be payable on December I and June 1, commencing Docembcr I, 1998. The Bonds will be Issued only in fully registered form in any integral multiple of $5,000 for any one malurity. Principal of the Bonds will be payable to the registered owner at maturity upon prexntat'on at the designated ortire of the Paying AgentRcgistrar. Interest on the Bonds will be payable by chock, dated a of the b tatet pay mew date, and mailed by the Paying Agen Regbtrar to registered ow nen as shown on the records of the Paying AgeNRegistrar on the Record Date (see 'Record Date rot Interest Payment' herein), or by such other method, accepiAlc In the paying Agent1tegistrar, requested by, and ai the risk and expense of, the registered owner. If the r date for the payment of the principal of or Interest on the Bonds shall be a Saturday, Sunday, legal holiday, or day on which banking institutions in the city where the Paying AgentRegislrar 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 honking institutions are authorized to closet and payrnom on such date shall have the same force and ctrect as If made 6e ( the original dote payment was due. The City Intends to use a bootentry•anly system for the Bonds (see "Book-Entry-Only { Sysem"I. At 111tmiti nsr Ixst r, the Bonds are issued pursuant to the general Inws of the Stale of Texas, particularly Article 1111, of seq , VATCS, and the Ordinance. ' t Sit I'al t l' Ann 50n act OF PAf MW The Bonds are special obligations of the City payable, both m to principal and Interest . vilely Ilium and together wish certain outstanding msenue bonds of The City (the "Outstanding Parity Bonds') and my additional parity bonds which may he issued In the future, seared by a fiat lien on and pledge of the Nd Rntnnea of The Utility System alto E the payment of mainlenume and opmming expenses. Maintenance and operating expenses include eontrachtot payments whlch undct texas taws and their pruvlslons are established as operating expenses. The City has outstanding Outstanding Parity Bonds t seeured I,} and payable fnxn Net Revenues on parity with the Bonds, as follows, i I I ~ 25 x 10 32 x O i ea.rttaa . Daled Outstanding Date Debt P1 Issue Description 111,1188 S 115,000 Utility Syslcm Reveo,ue Bonds, Serics 1988 ]I M119 6,400,000 Utility System Revenue Bonds, Series 1989 311192 4,135,000 Utility System Revenue Bonds, Sena 1992 31/93 5,275,000 UtilitySyslem Rev, enuc Bonds, Series 1993 6'1+93 23,080,000 Utility System Revenue Refunding Bonds, Sala 1993-A 111 ` 611 r93 2,635,000 Utility System Revenue Refunding Bonds, Taxable Series 1993.9 5x1/96 2,675,000 Utility System Revenue Bonds, Series 1996 511/96 34.135,000 Utility System Revenue Refunding Bonds. Series 1996•A Total S 78,510,0(10 (I) As of March 1,1998, { The Bonds we not a charge upon any other Income or tnenun of the City and eball never constitute so Indebtedness or pledge of + the general credit or taxing powerr or the City. The Ordinance does not creale a lien or mortgage on the System, except the Net i Revenues, and any Judgment against the City me) not be enforced by levy and execution against any p r1wrty owned by the City. As additional security, a Reserve rund is required to N maintained In an amount at least equal to the average annual debt service requirements of the uutstanding Outstanding Peril) Bonds, the Bonds and any Additlonal Bonds Issued an a parity with the Bands. [ Any additional amount required to be accumulated in the fund by remson of the issuance of the Bonds will be funded from bond Proceeds In accordance with the provisions of the Ordinance (see "Setecied Prooslom of the Bond Ordinance') PLtoeto Rtetstts . , . All of the Net Rncnues of the 5y3tcm with the exception of those in excess of the amounts required to I establish and maintain the Revenue. Reserve and Intacst and Sinting runds are irrevocably pledgal for the payment of the Bonds and Interest thereon. The payment or the Bonds and the interest thereon shall constitute a first lien upon the No Revenues of the System Rvtts . , , The City has covenanted in the Ordinance that it will at all times charge and collect for services rendered by the System rates su>rcicrtl to pay all operating, mainlenance, replacement and improvement expenses, any other costs deductible in determining Net Revenues and to pay Interest on and the principal of the Parity Bonds and my Additional Bonds, and to establish and maintain the funds provided for In the Ordinance The City has further covenanled that. if the System shmId become legally liable for any 111 other (ndehtednesx, It will fix and maintain rales and collet charges for the services of the System sufficient to discharge such Indebtrdnes,- ONIONAL Rirroinlos The City reserves the right. at its option, to redeem Bonds having stated maturities on and oner Occembcr I, 2009, in whole or In part in principal amounts of 55,000 or any Integral multiple thereof, on December I, 2008, or any date Ihertaner, at the par value thacof plus accrued interest to the date of redemption, If less than all of the Bonds are to be " t redeemed, the City may select the maturities of Bonds to be redeemed. If Ins than all the Bonds or any maturity are In be redeemed, the Pay tng AgeatTlegistrar lot D rC while the Bonds arc In Boois tnlry-Only fo m) shall determine by lot the Bonds. or portions tbaepf, within such maturity to be redeemed. If a good for any portion of the principal qum thereon shall base been called for redermp6on and notice of such redemptiim shall have been given, such Bond (or the principal amount thaeorio be ' redeemed) shall become due and payable on such ralemption dale and Intense thereon shall cease to accrue from and aner the redemption date, provided funds for the payment of the redemption price and accrued interest thereon we held by the Paying AgcnVReglstrar on the redemption dale hl vsnxtoav Stsrtsc Ft %v Rrntvtrttos , Tn addition 14) being subject to optional redemption as provided above, should the Purchaser(s) select Altemate 2 in the Notice of Sale fa either the Bonds (a combination of Serial Bonds and Teem Bonds), the Tcrm Bonds are subject to mandatory slnlsing twnd redemption prior to maturity at a price of par plus accrued interest le the I relcmplinn dote from amounts required to be deposited In the Interest and Si41ng fund of such series with not more than two 11 term malurinics as so designated by the successful bidder as follows: s 1 be Bonds 2012 s 360,000 26111 S 355,OOD t 2013 355,000 2016 335,000 Y~J 2014 355,000 2017 35!,000 J Ills l~ 7.5 32x e • cilium t 0 f NOW I Of RrDaalrltON At least 30 days price to the date fixed for my redemption of Bonds or portions thereor prior to maturity a wrillen notice or such redemption shall be published once in a financial 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 Texas (Including, but not limited to, The Texas Bond Reporter). Such notice also shall he sent by the Paying AgentRegistrar by United States mail, first-class postage prepaid, not less than 30 Jays prior to the dale ( liked for any such redemption, to the registered owner of each Bond to be redeemed at its address as it appeared on the 45th day 4 prior to such redemption daze; provided, however, that the failure to send, mail, or receive such notice, or any defecl therein or In x. the sending or mailing thereof, shall not af'm the validity or etrectiveness of the prnceedings 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 crony Bonds. ADDI I IO%At. BONDS The City' may Issue additional res enue obligations payabte from the Net Revrnues %lilch together with the Pro icusly Outstanding Panty Bonds and the Bonds shall be equally and ratably rayed by a parity [ten an and pledge of the Net Revenues or the System, subject however, to complying with certain conditions in the Ordinance. See " Selected Provisions of Ilond Ordinance" for terns and conditions to be satisfied for the issuance of additional bonds, ff I BOrIM-E%1K1'-0NL1 ' SSstevt ..,The Depositary Trust Company ("OTC"k New York, New York, will act is securities I depository fur the Bonds. The Bonds will be issued m fully-registered securities registered In the name of Cede A Co. (OTC's 1 partnership nominee), One fully-registered certificate will be Issued for each maturity of the Bonds In the aggregule principal amount of each such maturity and will be deposited with DTC. DIC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Resent System, a "clearing corporation" within the meaning of the Ncw York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section I IA of the ( Securities Exchange Act of 1974. DTC holds securities that its participants ("Direct Participants") deposit with DTC. D1C also racilimics the .settlement among Participants of sauritits transactions, such as transfer and pledges, in deposited securities through electronic computerized book entry changes In Participants' accounts, thereby eliminating the need for physical movement of securities certifcales Direct Participants Include securtiesbrokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC Is awned by a number of its Dirm Participants and by the New York Stock i Exchange, Inc., the American Snsvk Exchange. Inc., and the National Association of Secuntits Dealers, Inc. Access to the DTC s)vtctn is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a cuOodisl relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules applicuhle to DIC and its Panieipmts aft on file with the Securities and Exchange Commission, Purchases of Bonds under the I)TC system must be made by or through DTC Participmts, which will receive a credit for such It purxhascs on DTC"s records. The ownership Interest clench actual purchaser of each Bond ("Bentsciat Owner") Is In turn to be f recorded on the Direct or Indirect Participants' records B.meficial Ow'ntrs will not receive wntlen confirmation from DTC of their purchase, but Beneficial Ownets are expected to receive wriren confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Director Indirect participant through which the Brneficial Owner entered Into the transaction transfers of ownership Interest In the Bonds ate to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Benefelal Owners will not recehe certificates representing their uw nrrship interests in the Bondi, excepl In theevenl that ale of the book-entry system described herela Is discontinued. To facilitate subsequent iransrcrs, all Banda deposited by Direct Pwilcipants with DTC ate registered in the name of DTCs 'f rortnership nominee. Cede A C'a, 1 he deposit of Bonds with DTC and their registration In the name of Cede A Co. effect no I({ change in bencrOal ownership. DIC has no knuwledge of the witial Beneficial Owners of the Bonds; OTC's records term onty the identity orhere Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. 'I he Participants will remain responsible for keeping account of their holdings on behalf of their customers. i • Cam cy once of notices and other communications by DfC to Direct Participants, by Direct Participants to Indirect Palle lparts. and by Direst PartlcIpants and Ind Ireel Part icipants to Benericlal Owners will be governed by arrogemtnu among them, subjtcl to nn) xlotulory or regulatory rcquiremenls m may he In ei7ect from rinse to time. i!I Redeinrtion notices shall be sent IoCede A Co. If less than alt or the Bonds within an Issue are being redeemed, DTC"a practice is In determine by lot the amount of the interest of each Direct panlcipml In such Issue lobe redeemed. Nciilicr DIC nor Cede A Co. will consent or late with respect to the Bonds Under its usual procedures, WC mails an r ornnibus Prosy to the City as soon as possible aver the Record Date (hmeinallcr dellned) The Omnibus Proxy asslgns Cede A 0 I Co's consenting or soling rights to those Direct Participants to whose accounts the Bonds are credited on the Record Date (identified in a listing attached to the Omnibus Pro%)). I t {I Aasaaae~ e ~I Principal and interest payments on the Bonds will be made to DTC. DTCo, practice is w credit Direct Participantd accounts on each payable dale In accordance with their respeslive holdings shown on DTC's records unless DTC has reason to believe that it will nut receive payment on such payable date. Payments by Participanu to Beneficial Owners will be invented by standing instructions and customary practices, as i^ the cast with securities held for the accounts of customers in bearer form or registered In "street name," and will be the responsibility of such Puticipaa and not of DTC, the Paying AgentRegistrar or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to , DTC is the responsibility of the City, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Benef slat Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the City. Under such circumstances, in the event that a successor securities depository is riot obtained, Bands are required to he printed and delivered. The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, Bonds will be printed and delivered Ure oJCerfaM Terms fn Other Seclfons ojthls Offiefal Sfarement In reading this Official Statement it should be, understood that while the Bonds are In the Book-Entry-Only System, references In other sections of this Ofnetal Statement to regisered owners ( 1 should be read to Include the person for which the Participant Icqubes an Intereq in the Bonds, but (1) ail rights of ownership f 1 must be exercised through DIC and the Book-Entry'-Only System, and (ii) except as described above, notices that are to be given to registered owners under the Ordinance % ill be given only to DTC, Information concerning DTC and the Book-Entry System has been obtained from DTC and is not guaranteed is to accuracy or completeness by, and Is riot to be construed is a representation by the City or the Purchasers lj PASixcACtNtlRtctsTRAR... The initial Paying Agent'Rcgistraz 3s Chase Bank otTuas, National Association, Ue11as, Texas. i I Tn the Ordinance. the City retains the right to replace the Paying AgenOtegistrar. The City covenants to maintain and provide a Paying Agent'Registnv at all times until the Bonds are duly paid and any successor Paying AgenAtSistrir shall be a commercial bank or trust company organized under the laws of the State of Texas or other entity duly qualified and legally ` authorised to sent as and perform the duties and services of Paying AgentRiegistru for the Bonds Upon any change In the Paying AgentRegistrar for the bonds, the City agrees to promptly cause a wrinen notice thereof !a be sent to each registered owner of the Bonds by United States mail, firstlass, postage rrepold, which notice shall also give the address of the new Paying I Agentlegistrat r TRWSrrR, E1,0106t AND RCGISTRATION ,..In the event the Bock•Untr)-Only System should be discontinued, the Bonds may he transferred and exchanged on the registration books of the Paying AgentTteghtrar only upon presentation and surrender r thereof to the Paying AgcntRegistrar and such transfer or exchange shall be without expense or sere Ice charge to the registered If owner, except fur any tax or other governmental charges required to be paid with respect to such registration, exchange and transfer. Bonds may be assigned by the execution of an assignment futm on the respective Bonds or by other Instrument of transfer and assignmenl acceptable In the Paying Agent'Registrar , New Bonds will be delivered by flit Paying AgentRegWrar, in lieu or the Bonds being transferred or exchanged, at the principal ofnce of the Paying AgcmReglsirar, or sent by United States mail, first class, postage prepaid, to the new fegfstcred nonce of his dcvignce. To the extent possible, new Bonds Issued In an eschange or transfer of Bonds will be delivered to the registered owner or assignee of the registered ewncr in not more than Orce business days after the receipt of the Bonds to be canceled, and the wrlncm Instrument of transfer or request for exchange I duly executed by the registered awns or his duly authorind agent, in form satisfactory to the Paying AgenOttgtstrar. New Bonds registered and delivered in on exchange or transfer shall he in any Integral multiple of 55.000 For any one maturity and for n a like aggregate principal amount as the bonds surrendered for exchange or transfer. See 'Houk•Entr)'-Only System" herein for a description of the system w be unfired l0 ally In regard to ownership and transferability of the Bonds. Neither the City nor O the Paying AgentRegistrar shall be required to transfer or exchange any Bond called for redemption, In whole or in pan, within e5 days of the date axed for redemption. provided, how ever, such limitation of trans&r shall not be applicable to an exchange by the regigcrcd owner of the uncalled balance of s Band. Rif ORD Dvrt FOR 14.1 1111P.51' PAtsriNt . . the record dale ('Record Date") for the Interest payable on the Bonds on any interest pay punt dale means the close of business on the 15th day of the preceding month, ' i ht the evrtd or a non-payment of Interest on a scheduled payment date, and for 50 days thereafter, a new record date for such % Iniercvt payment (a "Special Record Dale") will be irstahtished by the Paying AgcntRegistrar. If and when funds for the payment of such interest have been received from the City, Notice of the "Ial Record Date and of the scheduled payment date of the pall due Interest ("Special Payment Uate", which shalt be 15 days oner the Special Record Date) shall be sent It least five ! 01111,0 businevs days prior to the Special Reeved Dole by United Slates mail, first clays postage prepaid, to the address of eaxh Nulder of I 1 a bond appearing on the rcglsuation books of flat Paying Agentitegistreft al the close of businers on the last business day next lI preceding Ihetlate of mailing crouch notice. l i g it 1 I w Kaa 32X!0' e o . r memo B.wou01,n[n7' REatEDILa Eacept for the remedy of mandamus to enforce the City s covenants and obligations under the Ordinance, the Ordinance does not establish other remedies or specirically enumerate the Events of Default with respect to the Bonds. The Ordinance does not provide for a tnou to enforce the cm-enanb and obligations of the City. In no went will registered owners have the rlght to have the maturity of the Bonds accelerated a a remedy. The enforcementof the remedy of mandumm may he difficult and time consuming. No assurance can be given that a mandamus of other legal action to enforce a default under the r , Ordinance would be successful, Furthermore, the City Is eligible to seek relief front Its creditors under Chapter 9 of the us. Bwnkruptcy Codc, Although Chapter 9 provides for the recognition of a security Interest represented by a specifically pledged source of revenues, such provision is subject to judicial consrnictian Chapter 9 also includes an automatic atay provision that would prohibit, without Itvtkruptcy Court approval, the prosecution of any other legal action by aeditm or bondholders cram entity which r has sought protection under Chapter 9. Therefore. should the City avail itself of Chapter 9 protection from creditor; the ability to enforce any remedies under the Ordinance would be subject to the approval of the Bankruptcy Court (which could require that the t action be heard in Bankruptcy Court instead of ocher federal or state courtk and the Bankruptcy Code provides for brood discretionary powm of a Bankruptcy Court in administering any proceeding brought before it. The opinion of Bond Cotmsel will note that all opinions relative to the enforceability of the Ordinance and the Bonds us qualified with roped to the customary rights of debtors relative to their creditors. In addition, while the City has covenanted to secure the Bands by a first lien on the Nei Revenues, Bond Counsel will opine only that a valid and enforceable lien has been granted on die Net Revenues. Borsd Counsel hat net been requested to, and has not, rendered cry opinion a to the priority status of the pledge of the Net Revenues. Is 1 1 t I f J 9 t5 k ~0 32XIO • MigistIllitla o ~I , r~ THE UTILATV S1'MSt l The Utility System includes the City's entire existing electric, light and power system and the existing waterworks and sewer system, together with all future extensions, improvements, enlargements and additions thereto. 1 The Public L!alities Board.. . By City Charter, there has been created a Public Utilities Board (the "guard") composed of five members, appointed by the City Council with the City Manager and the Assistant City Manngcr of Utilities serving ar exofficto members of the Board without voting privileges. the Board serves the EXTarlmenl of Vail itics as a consulting, advisory and e. supem lsc y body The duties of the Board are summarized is follows: 1. Review of the Annual Utility Operating Budget and the transmission thereof to the City Council. 2. Review of recommended a expansion of, additions to, betterment of, at extensions to the Utility System; I b. incurring of debt; I c Issuonee of bonds, and d, establishment of rates and charges. I 3. Submission annually to Planning and Tuning Commission a lid or recommended capital Improvement which, in the opinion of the Board, should be consnrocied during the forthcoming five (S) year period. I { {i All actions of the Board are subject to fnat appros'al of the City Council. 1 ilanage mrnr ofdie 01h V 5)arrm . . The Utility 5y nom Is managed q adze Assistant C'.y Manager of Utilities is ho Is rtsponsible it) the City Manager The Utility System Is organized into three major "Ices. Electric, Watcr and Wastewater, and consists of appmximalcly 266 emp1nyecs In addition, within Vidity Adminlatratlon, there art various administrative staff, energy ' management , and Gnanclal administration responsibilities The Electric Utility Is composed of fiver main divisions, I Llectrlc Production, 2, Electric Distribution, E 3, Electric hietering'Subsiations'Communicmlons, and 1. Electrical Fnginrenng, t t rho W'atcr'W'avtvnvalertstilities are composed of fve main divisions, each of which Is headed by a Division Manager. They include !l fi ~I I. Water Production. 2 WaterWw1co'Bier Tlt~ d'emlcm 1. W'utcrM'sstcwatcr Engineering, d. W'wlew ate? 1 Tculmern IIlanl, Ltd S. Municipal I aboruhny'1.aviremmcntal Scmiver, f 'I he Utility System utihms the services of the City's Finance tkparimem flu billing, euslomer scmices, accounting, purchasing and l warehousing. The Utility Syslcm utiGxs the services of the Public Works Department for design of minor waler'sewer lines, ' easement andbr rlghtrof-way acquisition and Inspection of devcli>Mr•instatled water and sewer lines. The Utility System also ) A uWizcs variom dminisuaiivt departments of the City for its personnel, customer service and dnu processing needs 1 Tim Et Frlirlt Snsltxl rleaeral The City of Denton has owned and opctaled Its LTrxtdc System (the "L';lectrlc S)stcel for approximalcly 90 years w ilhout interruption. During this tins, the Llectric System has evistflawed a steady growth In customers and nulput, requiring periodicndditionstoplant anddiarlbutitmfacititles. I`4I "t i. SemkLe Area. . the Ikciric 5y item pruvkes electric service to )2,566 cualatners locmled in the City , In 1976, the Public Utility f Commission (PLIC) Issued Uunton a Cenifkale of Consmleno and Necessity (CLN) to some eloctrk, water and wastessaler to a y ISO square mile arse encompassing Milton's then oily boundaries, plus Its extrmtcnitorial jurlsdiLbon area (ETJ). The ETJ cenificxtion arcs extends nppro im icly Iwo miles beyond Motor's 1916 city boundaries or to a neighboring city's bosmda y. whichescr Is closest Denton it the exclusive prosider of etedrk, water and wadewmter services to the area included within the 1976 ? i Lit) boundary area with the exception of m small area where dual certification was granted to Texas Power and LI1111 Co. (now TU 10 f I~ 2S x 3 2x { o Metric Co3 or Demon County F.Iclric Co-0petAive due to their existing service to approximately IDO customers Dual end occas)onal triple ceification exists In the ET). As the City has annexed territory since 1976, the City has extended all utility service la the newly annexed ateas, and hm sexed all water and wastewater customers and over 931A of all electric customers The Cky has `ranied 1U Electric a franchise to serve In the areas where the Sure of Texas' Public (kility Comsnlsslon has granted TU Electric a Cciillcate of Convenience and Necessity. T~bt.a l • CY'alOxlitU , I The following ululation shows the average number of cumners 1997 through 1993 and the average charge per kilowatt hour Year Ended September 30, Average Number of Customerg; 1997 1996 1995 1994 1993 Residential 27,624 26,188 26,463 2!,122 24,468 Comm erelallndustdal 3,466 3,387 3,35) 3,216 3,139 Other 1,4% 1,320 1,274 I'm 449 Total Customers 32,586 31,60! 31,090 )0,361 28,0!6 i Average Charge Per K%hi Residential 7.86 7,57 7.590 1.72E 7.460 All Wer 6,19 6,12 6,100 6.260 6 050 The following tabulation pn,vides Information for fiscal year 1997 fur the Slavic System's to, iwitest custamen in terms of bo.h peak demand and annual revenues. I TAXI t 1 • TLa LAa(:F51 FLFL1aIC CLaTOMttU Annual Annual Peak kW kW'h Revenue Demand Unlversityof North Texas 84,416,412 S 5,227,237 11,149 Nicrbibt4'a4car 35,637,151 1,946,30) 1,380 Texas Woman's University 32.784,091 2,133,607 1,243 ! City of rknion 19,221,414 2,243,497 11,035 Tcua Pak )nc, 21,061,200 1,092,411 4,361 Denton Independent School District 16,678,487 1,189,994 9,881 Nnfon Regional Medical Center 11,929,937 165,001 2,987 Demon Stale School 11,902,4911 686,149 3,433 Victor Equipment 1. 1,183,410 626.651 2,841 Acme Brick 10,646,829 681,219 3,108 fatal 265,361,nll S 17,392,083 72,426 TvmF3•F ROS%IFS " 'I he I Icctric Sy Sleni s sales of energy. in k111, lo principal customer classes fat 1991 through 1993 were as follows: w , kWh gold (DOD's Csmined)Yem Ended September 30, 1997 1996 1993 1994 1993 Residential 712,372 3 Ili 295,631 11?,612 283,571 Commercial1ndustrinl 556,149 $31,297 519,021 312,823 494.167 Other 32,91% 36,191 39,!94 31,431 36,349 IotalSuits 947,177 91)6.099 164,233 140.167 814,081 s - II 25x10 32x x A 0 a>~~a i TAILit 4"LxtsflvGPamIASCrPLY4,\b1% araCtilxcirkartsitsIs + i Iknton receives apprnximatcly Mir its energy from the Texts Municipal Power Agency (1'hIPA) With the remaining enorgy from f ( 4 gas generation at its own plant (10.1 i!:); from other IMPA cities (15.2514); from hydroelectric units on nearby Lake Ray Rohcns ! i and Lake Lewl5xllle 2.91k and Cron economy energy purchases from other utilities in Texas I present production facilities of tit; City's Electric System consist of fire steam turbine generating units and Iwo hydroelectric units ck%ribed I% fullows: Number of Name Plate Installed Year Placed Type Units Capacity kW C•e act in Senice Stearn Turbine 5 Unit 1 12,650 x3,000 1953 (l. Ilnit 2 12.650 I),000 1955 Unit 3 22,000 21,000 1962 Unit4 61,162 60,000 1966 Unit 5 65,493 66,000 1973 Roberts Hydra 1 1,200 1,000 1991 LeisGsillellydro I 2,700 2.M 1991 1 177,843 192.000 All Ore atcam iwbine units uldhic natural gas as their primary bailer FUCI. Since 3anuary 1999. the City has been purchasing gas from Lone Star Gas Company, and its parent producing gas company. Enscrch Chas Company, at spot market prices. The City also huts access to energy supplies through sits contracts or other IMPA and'I MI'T' member eitics. line City has negotiated a five-year ri gas ConVacl with Lon" Starfins Compwiy. i he City has a cumraa w'nh Inwrch Gm Company to purchase up to 25,0(10 mcf elay under "spol" market price conditions, Presenl r .spot" Pits prices range (torn S1 40 to 52.05 per mop Lone Star Gas transports thls gas to lknlon or other plants designated by I Iknton for 5 .I1 to S 22; mcf depending on daily s ulunies transported. 1 he City is a memhcr of the Texas Municipal Pow.r Pool 1" l s,111111'), ishlch also includes the cities of Bryan, Garland. Greenville and the Brnrus tl"loic Power Conperatire, Inc. of Waco, Texas, each or which has its oisn production, trmsmisslon and distribution i facilities The City Is also a manber of the I,Iectrle Rellahility Counsel orTexm ("ERCOI"), the reglonal Reliability Coordinating Organlration for Pintric Poser Systems in Texas. The C'Iry has access to the IRCof IntraAate network or six math, inn cstor~ %ncd and acscrll public i)slenn through the I s,1111' members tnuismisslon system. "Ilia Will "contract prus ides that each member city shall pruvlde, through Ib own fallitles or through firm poiscr contacts, a tiVhility of at (cast IS"k grculer than Its projected system peak kind for each future yew, The cab of 1 MI'P fnc0111es necessary la rrm ide adequate ties between the mcmkrr are shoved by all punicipunls 11) "pooling" The resent capacity or their respedive fydcm% the cities can nperalc safely with conelderubly kss inslallcd wsene power supply, thereby effccling substtnllul InseetmcnT and upesating esnnomics. tither adraroagcs Include an adequate and dependable source of l(swar during periods of Individual emergency, during periods of scheduled unit maintenance, Ind the lnterchnnge of teamnny energy bctisern membor. lens 31Won/xr1 POILP Agl`M) . 1110 Cities of Minn. Iknlrn+. Outland and Giecnsihle, Texas (the "C'itics"), by concurrent 11 ordm:uicec dated July 1913. «cnled the fexas Municipal Poises Agency (the "Agency"). ajolet power agency sslthom taxing powet as a separaic municipal niriKiratien and political si,ldisislon of the Stale in accordance wadi Article 1433s. Vernon'% Texas fell Statutes. as wnended. The Agency is gosenoed M a hoard of biredo,s mode up of loo rcprewritalises from each city Ind is emrwered lo plan. Onance, acquire, etmstru t, (Msn, apend0 and maintain faLilitles to b used in the business of generation, u,wrmissior, and sale to o,ad exchange orckNWc eucrg) with the Cities and any prlsate uliMics which are Julot mcncn with the Agency of an electric generating Wild) hscnled w Rhin lose state or Texts l Iva h of the t Wes hap entered 11110 4111 identical poster Sales C'omtrat jibe "C'ontrat") wtds the Agency which nhligates the Agcoey in use tcaw+nahle chligrnce to pros ide a canstsnt and onintemtped supply or power and energy to rlta cities rapid, subject to cclaln , esccplivm, nhhgalcs the Cltks lu purchase from the Agent', if asailuble, all or nccir elcLutc energy requirements in excess of The ' j wvuuals generated by the C'itics'esisling municipal systems. Pursuanl to an amcndmeat to the Cordr"d, which b•twne eftedive nn I . Sepleniher 16. 1980, the Cities are aulhorUcd to etm,truci additional generating facilities, presided teat the rated capaily of soy Individual No lity, does mK exceed 3 megnwnrts ("SIA"k the combined Taled eap01,9110 ran such facil;tics ownid by one City do *l nil exceed 5 MW, and the fiuibrics are nid ruckd by lijiMle, cool, natural gas, oil, nuclcw Fuel, ot any purchased reels The C'nnlrad I i requites the Agency fit prepare annual budges, projMing its Annual System C'osls for the succeeding )car. Including debt ,nice rc41drements on Its hands, and to suhmil the same to the Cities, Based on these and other budgetary fads and tstimates, the Agency ~cls the rates and charges lu N paid by the Cities for the ensuing) eat + 2 i 1 II It l K Ec~ 32 X18 f I I . 0 I The City hat access to the following Interchanges: TMPP TMPA and its Ekcule Inlerconrtections: (l) TMPP I38KV North Interchange 60,1100 kva TMPM PAL Spencer Plant I38KV Interchange 100,000 kva i "IPA I38KV North lntorchange 10(1.000 kva 260.000 kvd2) s (I } Tcxa% sfunicipal Power Pool Texas Municipal Power Agency ("IN11W); TU Electric (2) 1MPA has capacity to fumish 652 Mva of power to a 138 kva transmission loop around the City of tknion from its 313 kv transmission line which Is tied to the Texas Utility trensmissiors grid. TMPA famisbo power la Iknton's 69 kv transmission system from the 138 kv transmission loop through two 100,000 kva tfarssfurmers. Donlan also takes delivery of pawn directly from IMPA's I l kv lines which provides additional capability for passer distributlon. Ihe contract runher pros ides that if at any time the amount of money' on deposit in the Agency"a Bond Fund Is less than the amount l then required to be on deposit therein without giving consideration W transient made from other than the Agency's Rocnue Fund or ( from bond proceeds, each of the Cities is unconditionally obligated to make a payment, the aggregate of whlch shall be the amount necessary to maintain the Agency's Bond Fund, Resent Fund and Contingency Fund, In Ihe required wwunt% provided that transfers may be made from the Reserve Fund to the Bond Fund rot fiat more than two consecutive calendar months without replenishment. Each of doe Ciroe portion of any such rayment (the "Percentage Share") shall be adjusted annually based on the pc"reenwge that each of the Citicf system load Iscan to the aggregate wim load of the four Cities, subject to certain qualifications. The 199E Pcrccmtage Shares whlch form the basis for the fiscal year 1997 billings to the Cities are' f City o r Bryan 21,70°4 City of Donlan 21.30"4 C'ity' of Garland 47 V,6 Cip(ifCtecnville 10. Total 100 Vi ( Each of the Cities unconditionally covenants In the Ur coral that Its Percentage Share of the pay ments to the Agency's Bund Fund, + Resent Fund and Contlogency Fund *111 be made, irrequired, and none of the Cities shall have the right of sct• rr, recoupment fir ]l counlcmlaim against anysuch paymrnls. All amounts payable by the City under the C'ontracl, including any amuunts payable pursuant to the contractual guarantee described I nbo%e, are cvpcnus of the Cky'1 Utility System and constitutes riot and superior Ilea on the grass tcvcnun of such System prior to Ihe plcdgt male on the Bonds, Under the Conlruct, the Cities roust approve any "Ntijct" Wore the Agency Is authorind to proceed with the financing, construction, tqulpnrnnt pwcwemenl and dcsclupmenl thereof Aner approval by the Cities, the Agency may proceed u It deems urprnpriutt Additionally, the Agency may make "System Ievempmenl and Reliability Expcndilures" as "Approved Projcds" for whiles nod purpose when muthorited by the Cities Certain espendituros for "Development Projects", as dcflntd In the Contract, muy For mode by the Agency without the apprus al crthe Cities. tip wmrJ prey'ortt . 1 he Agency s pow or supply source corsi;ns of (be Gibbons Crock Stearn I(Iecuic Station located in Grimes County, 'T'txro, and im:ludes a net 132 megawatt ('SIW") lignitefueled steam electric plant, reservulr, failmod spur, associated trjnvmis;lon fixtlitles, an adjacent surfxt mine and related proticnies and equipment ("Gibbons Crock"). The plant began commercial nperadan on Iklobcr 1, 198). 1'11 date Gibbons Creek's fiscal 1997 capacity and avaflabdity are 77,204 and 82 84I4 recpcoiscly the Agency's lignite mint Is adjacent to Its generating plant and is operated under contract by Navasota Mining c'amrnnv, Inc. f the Cities have apprused as "System Ikvelopment and Reliahllity Fxpendiluees", uansndssion facilities s.blob. In tonjuncUun with a conaln transmission agreement (doe "Fransmbslon Agreement") With TU Electric and an intercunnmlun agreement (the; "Interconncalon Agreement"l with I louston I ightIng A Puwcr Company (01 ID AP"k arc adequate to provide fig delivery of Agency power to the C'illcs llsese Sy.acm Iovelopmenl and Reliability Fxpmdrtures, iogedser with GibKwrrs C mk (and C't+man6l; Peak see . tong a: the Agency has an awnershlp mltrest M, in) are herelnaRcr relented to as "Aprrovtd Projects I wrurt pn wrr.Sufydy ,Srmnra At present rorcasled growth. the City K-lteves It has sufllcittu power supt ly rcu+urc:4 al ICs 3' 1 own plant and through the 1 MPA Contract to meet Its kqulrements to 2000 Ihe City continues to supply all power resources and Is studying options fox Rsturt energy supplies. !3 e i 7_, 10 32x 1 0 .l 040111oa Saks of F.vrrrr Capm,ify The four TMPA cities of Derton, Bryan. Garland, and Greenville have entered into firm power yaks agrecmenu with the cities or rarmersville, sane, and Bridgeport, Texas. 'the peak power requirements for these three power sales agmements combined with the proJated power Wes W the Brvos Electric Power Cooperative total 288 MW for 1997, The Power and energy soles will be made available from the foor ThIPA cities cnmbincd gas generation capacity of 9111IW and the TMPA II Gibbons Creek generative capacity of 452 MW, totaling 1,392 MW overall. The capacity and energy sales revenue Dom these sales is shared by the four "IPA cities In propottion to each cities share orexo.ss f capacity available for sales. Dcntan's share of the sales to Fetmersville is Presently 8 2751, to Bowle and Bridge" 12.535 and to - Brarm 1197% TABLE S • HISTORICAL STATt6TWAL DATA Yeat Ended Scptcmbr 30, Sales of kµ7: 1997 1996 1995 1994 1993 ReOcntial 312,521,499 318,604,382 295,631,000 289,611,710 283,$71,192 Commcrclal1ndustriol 556,149,093 551,291,075 529,021,000 $12,123,244 494,632,477 869,270,592 869,901,457 824,659,000 602,434,954 771,203,669 Public Street and flighway 7,142,000 6,954,439 6,873,000 4,631312 4,725,566 Other 25,763,956 29,243,410 32,721,000 33,100,672 31,137,551 Sub-Total 902,176,548 906,099,376 664,253,000 640,866938 114.086,716 Sales for Resole 10,181 12,48000 I D2,459,000 62,987,000 141,511,000 I k Total Sales 973,056,548 988,310,376 966,712,000 903,851938 955,604.786 1 logo and11naccounted 36,509,000 31,816,000 27,136,000 25,510,000 34,322,000 Total Kmh to Syslcm 1909,565,548 1.022,466,376 994,548,000 929,361,938 919,926,716 Loss and Unacmun,ed 3 6204 3.31!. 2,10'i 2,74:4 3.50% ` Aerate Customers. Residential 27,624 26,888 26,463 25,309 24,401 commcmiallndustrlal 3,466 31117 3,3$3 3,301 3,109 (hlvr 1,496 1,330 1,274 1,211 446 7uW 32,586 31,605 31,090 29,904 27,956 Peak Day row at Requiremen I 221,000 219,000 211,000 202,000 198,000 Present Plant Carocity 179,000 179,000 193,000 193,000 196,000 Annlsrls of 74eelric BillinjL I Resldemial ('aAomers: , Average Month } k , Vkh'C'u4tomer 94) 987 931 93) 920 i BillrcrC'ustnmct S 1411 S 74,71 S 70.69 S 1364 S 7151 Revenue per kWh S 009 S Dog S DDI S 0.01 S 0,07 ('ammcrclal1ndvatrial: ~ I ~I Average Monthly OkKcastomcr 13,396 12,196 13,149 12.919 13,495 0.111rcrC'ustumer S tD9.5) S 11441 S 7645) 1 79215 S 774111 . RevenueMIt%It S 0.06 S D.Db S 006 S 0.06 S 0,06 Urtro( ratinglncumc: RealdcntW S 24,567,000 S 24.507,000 f 22,446,000 S 22,406,000 S 20.996,000 Colnmcrcial Industrial 33,670,0(141 13,1013MW 31,512,000 31,66A.Dw 29,161,0(10 010 14,429,000 12,173,101 15,302,614 17,082,620 14,706,115 I f iimiA00 3 69,98L103 S 69,1211,614 S 71,154,620 S 64,170.171, i14) II 2.5 10 32nd 'K o PtntlUt RscltArw4,, , Under current Federal swats and regulations, the Electric System Is not subJeet to Federal regulation In the establishment of rates. The 1ssuanct of securities or the operation, maintenance or expansion of the Electric System, T'he City ` submits various reports to the Federal Energy Regulatory Commission ("FERC') and ulil'vrs lk FERC System of Accounts In maintaining its books of accounts and natords. Till WATER 5% STEM , ~.'ITte W atn System provides mail water smi c to all cusuimen located within the city limits, as w ell as wholesale water service of approximately 1.1 biGD to the Upper Trinity Reglonal Water District The water distribution rystem consists of 711 miles of water mains. 7 million Saflntis orground storage, and 4.36 miltiom gallons 6reles tied stutage the City Is In x compliance with all State and Federal water quality requirements. 'i Il An Supply The present municipal supplies an obtained primarily from surface sources, but underground sources arc available fix emergency and bn:k•up purposes the City has conservation storage rights In nearby Lewisville Reservoir which was constructed by the U.S. Corps err Engineers. This Reservoir contains a rota) of 436,000 "red of conservation storage The City hoktr the rights to 21,000 acre fed of storage, w ith the balance being held by the City of DOW ("Dallas") based on the safe )idd of 90 2 million gallons per day, the City rtcclves 4.34 million gallons per day in water rights from Lew Isvillt Reservoir l The City also has 207,896 acre rest of annual withdrawal rights from the Ray Roberts Reservoir (199,601 acre fed) lorated nine miles upstream Rom the l,ewio the Reservoir, Denton and Dallas have determined and agreed by contract that the salt) kid of Ray t Rnhttts Reservoir is 76 million gallons per day, and that Denton'i share is 2614 or 19.76 million gallons per day, and Dallas', share is 740 6 or 56 24 million gallons per day, Ru) Roberts Reservoir was cunxuucted by the U.5. Corps of Engineers with the Cities of Denton and Dallas being the local sponsors m+d it ponsibk 126'4 and 74%rcxpceiively) for r^payin, 50x4 of the estimated Iota! cast of 130 L000,O00 amortised over 30 yeast at 7.21"e inlcred, The conitui w ith the U.S. Corps or Engineers Farther provides that Denton and Dallas may delay repayment for 10 I )sus (to 1998) on 4814 of such obligation provided they use less that 524 of the safe )icld of the ryervolr. lemon's present obligation was re0nvrced in 1996 with revenue bonds and the 1997 debt payment was 13 million dollars . The NO future water supply pu)mcnt of 52,114,000 to the Corps of Engineers is due and pa)able on November 1, 1998 The reservoir Is presently full amt, therefore, Denton is receiving all its 10.3 MGD water requirements from lie rights in Lewlsville and Lake Ray Roberts Rcwnoln Il fknlon continues M maintain a raw water contract with the City of Dallas under which A is obligated to purcha~t at lead 700,000 to Y gallons rer du) Phis lie minimum contrail volume which Denton maintains in order to keep opera a longterm option to purchase [ addiiinnal water from Datlax In the futurd lice water contract with the City of Dallas is similar lathe contracts for retail andor I w hule4t w aier that Dallas supplies to eighteen (18) other North Ttxm municipalities. The City of Dallas wholesale wale? purchase ales to the City of Nihon is currently 0,4236 cents per LOW gallons. i licnion is furl wr working with the Upper 1 rinity Regional Water Distrki to secure 2.0 hIOD of raw water from the ('barman Rmti oir in Ddu County. Texas. I won maintains sod utilises Its ground wattt well x) stem as a contingency supply In the event of an unusual shortage or In an I emergency readoicsa (vcmlon due to a natural dk%socr which may disrupl the water Wtmem plant and'or Uammisslon *stem from i thew;utrlrcatnirntplunt Ilic eanibincd 21.62 SItiD or cuneod) available surraet wafer volume from Lewlaaillo Lake (4.86 hiGD Including wgui ewder ettiooq re+ums) snJ Ra) Roberts I At (19,76 W]D) alt surrrcknt to serve Mason's needs until approximately 2030 The City or lvew,,n hai conducted a long range water supply stud) Its determine the soarer requirements and supply alittnathe"a after 2030, 1 kmnii s retail and whnlesak w std xrlunse for 1997 neraged approximately 12,6 MGD. IPOhv 1 re,dnirel Pldrrr . The 1 knton water Ircalmeni plant b capable of orating 28.15 Mtlb, The historical madmum day was 23 g M(if) In 1991, t 'T he l isy of D kiflon hero compidcd the design for a 10 MGD watt treatment plant to be located ?rev Ray Roberts I ake Plans for comuodlon have been p istprmal pending expansion needs bested wholcurk water sales of approximately 2.1 MGD to Ole llprer 1'rlnn) regional Water Distrlct A 111 coax In 1998, bests upon the eomrld)on dale of thole water treatment plant located in "hem NiAwl fount). Ihmtun rmJecix using forocasW growth races, that it has suMclenl capacity In the existing 2875 MOD Wald heitrncm pion[ to inset Its mall cuslomer peak use requirement which was 22.0 MGD In 1991 until arpnnhnaiely 2005, . f 111w r lrimh Repro? d IlMer l oIrrd The C'Ity of imam, in cooperation with 32 other Denton County cites, towns and watt? s+iprh entities, on June 16, 1989. Weeted the crea0un of the Upper Trinity Regional Wairr D istrid (U I0'1)) Ihroagh enabling 0 S Slate 1 cglalathm, The U'I RW'Dys purpose 14 Io provide future now water supplier wholesale mane and madewater services to ewiticr primarily, but nn[ limited [o, Dentdt County. UDRW'l) Is controlled by a Nord of Dimlors representing the citles In the replan Additional Dir+uKS may M added when a city conUsets with the UTRWD for planing or wholesale water and w adcwalel aenice% The P I RW'1) will also plan, acquire (r do clop future rum warn supplies (it rtservoln for Its participating members I II 15 ttaeowats c Wholesale treulcd water sales to dm tipper Trinity Regional Water District began In June 1994. The current contract to preside heated water to the Upper Trinity Regional Water Distrid is on Imcrim contract which wih eau in May 1998 or sooner. The Upper Trinity Regional Water Distract water treatment plant has been completed and Denton is selling raw water to the Upper Trinity Regional Water District far treatment baud upon excess wadable capo<ity after sming Denton's custumers. 1 I TABL16 • W Atla LISACI (GALLO,x5) i Ascnge Maximum Year Day Day 1993 11,670,241 24,240,000 i 1994 11,031,917 20,307,000 I} 1993 11,876,691 22,750,000 1996 13,143,592 25,810,000 1997 12,631,382 24,758,001 I TABLL 7 • Top Us WAIERC'PSTONIM Annual t Consumption Name of Customer Gallons) Revenue Upper Trinity Regional Water District 132,900,000 S 749,201 University of North Texas 199,286,570 642,783 City of Denton 152.636,520 175,470 Texas Woman's University 148,020.080 437,329 IJCn1on Slate School 58;475,600 169,494 1,akevs'ood [',states Mobile Ilome Park. 49,218,800 143.681 Denton Independent School District 41,433,330 1$9,478 Pdcrbiil Molurs 41,343,350 122,612 Clayton I lame 40,061,000 117,133 Woodhill Apartments 32,866,700 99,119 1,502.264,170 S 2.837.620 lilt WMtawMlaSaSUM . Thewanewstetsystemprovideretailwastewatercollection and treatment unireto the citizens or Denton, a5 well ass [knlo two whoesale wastewater cus{omen, the Town of Corinth and the Upper Trinity Reglannt Water Distrid The collection system consists of approaimalcly 341 miles of gravity %mot%ater Imes, 11 miles of force mairs, wild 11 fill stations tl'drrrwaer lrravownr Phim , In 1994 M-mon completed g S9,300,000 expansion of its wastewater treatment plant. The plant Is now upehnloaad far treatment of up in 13 MGD, and Is designed to vine IJcnion up to a population of 110.000. The waxtewalcr sy stem is ell icienily operated and maintained, and Is in compliance w ilh all Slile and federal discharge permits. ' for City of 1)cnlo44 wastcwohcr treatment plant has received ftve year discharge permits rrom both the Texas Water Commission on C J J',muary 24, 1992 rind the I'nvironmenlal 14tnection Agenq on November 26 1991, 'Phase discharge permits Impose stringent nv limitiOuns on the rohovai of amnamla dahlorination, and sludge conditioning and ittainent, Demon's permit paramelcts for %Vrwuter trvalmcnl are cur*cnlly 10 milligrams per Her for Illochapical 0%)gcn L%mand, 15 milligrams per hicr for Total I li Suspended Solids, 3 millignuns per liter fur Ammonia and 3 milligwns pct Her for Dissuhed Oxygen Ilhn7esalf (brroeirrr Denton has contracts to treat wholesale lia•loAaret for the Town of Corinth and the Upper Trinity Regional Walcr DWrid, I'm t'M17 the wholesale treatment volume avctaged appruklmatcly $13,010 gallons per day. The Cily of j Iknton will trunsfcr approximately 123M)o gallons per day of dmcir treatment requirements to the Uppee ITinhy Regional Water Ilkiricl Plant In 19911 ('111111 RAIv% h Is the C'ily's polity to trvkw electric, lAalei and wartrwulA riles mm an annual bads to sssutt adequacy and equity , Independent conmhards are generally used every Sth )ear, with City surf completing the work in Mouse during the t nrterim Rate recommcndarlom are submitted by the -tall la the Public Utilities 11oard fin review and approval, wblch drat forwards • a recommendalkin to the City Council for final approval. fn date, the City Council has appnoed all rate recommendations of the Public Utilities [loard I i 1 16 1 it Its 32XIO • o , I TARLE 8 • EI.ICTAIC R1TIS (ImcTlvE OcTUBEB f, (997) ~ fteddrntlal { padlity Charge 7.73 Single phase 13.43 Three Phase Energy Charge (1) W'inkr 1 Summer Months of MAY through (Mober Months of November dtrouA Aruil UpIo3,000kWh S0,056I1k1bh Up to I,000kW'h SO0434AW'd Over3,000k%h $0D62IXWh over 1.000 Ohl, S0,0394IkW'h (1) I'lus 6,0200 energy core adjustment. Commenid I facility Charge 13.13 pcr munch (%InSIc p ase) $2020 per month (three phase) Demand (barge $9.00 per kW of demand (Ilrsr 20 kW not billed) (Minimum demand is 7054 of maximum monody demand for May through (mober. first 20 kW not billed ) Energy Charge (1) I Up to 2,300 kWh U613,lkW7, I Oher2,500kWh 50.D300hW'11 (her 6,000 kWh f0.0263 kWh I l II j lPlus 50.0200 energy cost adjustment TAB1.19 • W'ATLR FlVtS (EGTIC11a'I OC'TOM I, 1997) Relldenl sal Inside City Llmits OwldeCity Llmlu Facility Charge 3A^ meter f 9.33 per month $1 1.00 per month V meter 11.10 per month 13.10 pa month 111, meter 16 25 per month 18.65 per month ( 2' miler 18,10 per month 20 g0 per month ` Vatume maye Summer Winter Inside City b (Mq-0vtohes) AWL ember•April) i first 1 ,O(l0 gallons 2.60 per 1 p00 gallons per ,000 gallons n Newt 13,000 gallons 3.50 per 1,000 gallons 2,60 per 1,000 gal Ions Ovcr 30,000 gallons 4 33 par L OM gallons 2,60 per 1,000 Saltoms • Oualde C'i 1.ImIU First l 53.00 per 1,1700 gallt%s $3,00 per 1,000 gallons Neat M000 gallons 4.05 per 1,0(N) gallons 3.00 per 1,000 gallons Ovet 30,0(10 gallons 3.00 per 1,000 gallons 3.00 per 1,000 gallons 1 17 7.5 ~ 32 x~lj 1 ,maienBr I CcmmerelaI and Industrial (inllde City Lim Its) i Fatili!y Charge 5'4" meter $2020 per month 1 i" meter 22.20 pet month ~I 11 T meter 25.73 per month 2" meter 31.65 per month Volume Charge 2.17 per 1,000 gallons TABLF I0•k'.1ST[%AT[aRATF3(EFFt"l$t O(?0B[a 1. 1997) Resij_catjg) Commcrcia bduAdal Facility Charge 5620pcrmonth Facility Charge $16.20 per month I Volume Charge 2.37 pet 1,000galluns Volume Charge 3.01 perI,000ga11ons (III on 99% of average water consumption ((erased on 10,6ofmonthly mater consumption) up to 30,000 galluns during December through Febnwy) (Tnduswcl surcharge based on concentration of blochcmlcal oxygen demand and Imal suspended sotlds of e0luent) y Resideetlal Customer Outalde City Limits I f Fociiityawite 57.15 per month Minimum Billing ST 15 per month I Volume Charge $273 per 1,000 gallons Rapt It ulavon... Within its buundarks, the City has exclusive jiulsdioion over the elccuic. water and ascleaster s) stem rates 11 L ~I I~ II 11 iI li , armrtarto• DEBT INFO KNIAT ION I I TxII It I I• DENT SMWI REQCIRITIENTS f V 1 F'iscel 1 • Year Total %or j Fnded OutstandirgDebtttl Thls$7,115,000Imetu Outstanding Pdnclpal + 9130 Principal Interest Total Principal Interest Total Dcbl Retired 1945 S 5,380,000 S 4,718,327 S 10,098,327 S 10,098,327 1999 4,565,000 4,397,028 8,962,028 S 360,000 S 455,270 S 115,270 9,777,298 2000 4,260,000 4,128,346 8,388,346 360,000 354,97) 714,91) 9,103,319 2001 4,045,000 3,899,111 7,944,111 360,000 31),11) 693,71) 8,639,194 2002 4,00,000 3,684,012 7,689,012 360,000 316,453 676,45) 0.365,463 26,02'A 2003 4,030,000 3,462,390 7,492390 360,000 297,193 657,193 1,149,583 1 2004 4,020,000 3,235,360 7,253,360 360,000 277,973 637,93) 7,891,293 2005 4,035,000 )004,6]0 7,039,630 360,000 251,673 618,677 1,658,303 2006 4,025,000 2.711,105 6,803,105 360,000 239,417 599,41) 7,40),215 2007 4,040,000 2,3551574 6,595,574 360,000 220,1$3 $80,157 7,175,727 50124 ` MIS 4,335,000 2,317,165 1110206 360,000 200,593 $60,197 7,217,059 2(m 3.815,000 2,084,645 $,899,643 360,000 151,637 541,633 6,441,278 2010 3,685,000 1,8700568 5,553,668 760,000 162,37) 522,31) 61071,041 f 2011 1,865,000 1,710,910 3,37$,980 360,000 143,113 $03,11) 4,079,093 ` 2012 1,960,000 1,399,535 3,5S9,535 360,000 123,853 413,857 4,047,388 6930% 2013 2,(M,OW 1,4!2,241 7,542,245 J60,(00 104,39) 464,593 4,006,138 ' 2014 2,163,000 1,)59,043 3,524,043 335,000 05,466 440,466 3,964,509 2013 1,953,000 1,236,660 3,191,660 3$5,000 66,474 421,474 3,613,134 2016 1,655,000 1,125,225 2,783,225 355,0W 47,481 402,481 3,115,706 I 2017 1,7(41,000 1,026319 2,786,319 355,000 28,489 311,489 3,169,101 11,79% 2018 1,625,0(10 925,030 2,550.M 33S,OW 9,496 364,496 2,914,546 2019 1.730,0(11 824.00 2,534,400 1,534,400 2020 1,133,(00 117,450 2,532,450 2,552,430 2021 1,950,000 603.900 2,553,900 2,53),900 2022 2,070,0(10 483,300 2,353,300 2,553,)00 9229% 2023 2,2r11,0W 355,200 2,355,200 2,555,200 1 2024 2,335,000 219330 2,554,150 2,354,1$0 2025 2.485,000 7050 2,$59,350 2,359,530 I00 001S i S 13,840,000 S 55,182,1)9 S 139,172,179 S 11115,000 1 J,909,631 S 11,084,6)1 S 150,136,770 ra...a.a+ar ~s.•o~ mae®® aos®r aaasaaaa~r• i~ n (1) "Outstanding lkbt" dots not include lea r'purchase obligations. • (2) Aseragt lire of the issue • 10.185 years. Interest on the Ilonds has been calculated at the rate of 5.33% rot purpoua or illustration. 1'u3t n Br 1 Vwl 1 n 11IM It &sstle, , , the Clty has no voted but unissued revenue hinds, Avtli Ir,mn (sNuk%(T P RMM T BoSM.. The City anticlpales the Issuance oropproximately, 540,600,1100 utility System Resauw Refunding Dondassithin the neat 5-month period. t ivl i 19 F tti ~d 32x~ e r o FIN'AN'CIAL INFORMATION TARLIX 12 • UI It ITI SYSTEM CONbLNSf 0 STATIMM OF OrtaATIONS Fiscal Year Ended SeptemlN+ 30, C7rwii Mcitun 1997 1996 _ 199S 1994 1993 Fledric Service S 12,041116 S 69,333,190 S 6972,242 f 10,764,.730 f 64,504,126 1 a Weer and Sewtr Scf%Ice 24,590,121 21,326,261 13,061,452 21,602,717 20,357,S79 Interest Income 5,210,!34 1,092,643 2,544,193 3,731,522 4.118,061 Other Income 695,121 St1193 467,775 !21,197 443102 Total Revenues S 102 514.300 S 100,433,467 S 93.043,662 S 96,372,936 f 99.493.27! E"pyrug fuel and Punhased Pawtr f 46,742,473 S 44150.706 S 47,171134 1 150.110,693 S 41,691,990 Warr Punhased 71,227 10.290 11,212 79,729 12,794 Met ppendn`and Adeal nlsuetlveErpenscs19.467,679 17,062.925 15,150,762 14,469.324 11,952,163 ~I Total Iapcnecs S 6!,213179 f 63,193,921 S 63.703129 S 64.631.746 S 63,133,941 Nei Rev,nue Avathhle fair Debt hen In wd Other Lawful Purposes S 37130,921 S 34,939.346 S 31142,134 S 31,914,190 S 25,7!9,411 I r-rr rer~rara asrsrar_~ ass rrasassar I Iecuic C'ustomen 32,59! 31,605 31,090 29,904 17.956 WNice Cminmen 17,217 16.14! 16,450 16.250 15.177 W astcwam cuslomcrf 17,271 16,111 16,470 16,339 15,992 ll )1) Ovxs not include Internal utility transfcis, I T a9t t 11 CoYI rLACE AND Ff%a 0 s l1 4NCtS (1) Cmi:t3Avttn1Ra Annual of As l' ctarilrxipa ke4ulrements b) and Intcrc Requlrcmtnr~,1999.2021 S !.411,00! 9.30.97 Net Available for Dcbl Service . ~ • . 6,19 Times 111 . . n. iece . 3 7 Cutcrulenuf6larlmumdRequirementskb 9.3097 Net Available for M-M . S0Times I ' . ,70 Times I'tilily Sy stem Revenue Bonds to be CNlslaadin0 anet IseaarKe of the ponds %9L065.000 Interest and Sinking I'imd. as of lecetnhcr 31, 1997121 S 10,091,340 I kcvcne Fund, as of December 3I, 1991121 . S 419911162 1mcr era Fund, anorUttcmher3l, 1991121 S 250,(lq vlenuion and Rerlacetncal Fund, as or December 11 1997(2 ) . S 1.412100 111 I I } Invlodcs the Bonds. . 1.1) Unaudited. 1 , FIN of it[ PLO[ 1( it q Basis of Accounting the aecnnntinit policies nr the City amfurm to 1rnvYally aeeepted accounting principiea or the I' (Iosvmmrnhd Actmirling Ntnndauds Hoard tied program sLmdards a lopled by the (klsemment Finance 07ctts Aswxkalion of fie t'nikd Sialcs and Canada. The Clr(IA has awarded a certilicale of Achievement fit LAccknee In I Inancial keporling to the Uity or Iknion rof cash of the fiscal years ended September 30, 199J through Scptcinler 30, 1996, The C hy'ti cummt repowi has hn•n • suhmiilcd to GI OA to delermiee its eligibility rig another Certikile. ` the City has a1w seised the 010A'S award for D islingulshed Budget Prewnlathm rig its 19% annual orproptlation budget. 0 rfc'.Ch ing Us highest riling lo date the City has submitted its 1997 but l to the LIVOA to dctttmine its eligibility for mother ('crlirieute ('1 20 { I~ 10 32 X I O • ' ,rtsatrn • o V 7'he measurement focuses for the EnteIx Funds, Internal Serske Funds and Nrnex dahl T rpr pen c tuts Funds are Income dv1cnninalion and cost of sets ice, respestively. Accordingly, the accrud basis, whereby revenues and expenses are kientriied in the occounting period in which they are earned and Incurred and net Income, is utilized for these funds. The modified aarual basis, whereby rcsenucs are recognized when they become both measurable and available for use during the year and expenditures art recognized when the related fund liability Is Incurred, Is used for all other funds, I t. Budgetary Procedures As prescribed by City Charter the City Manager, al least 60 days prior to the beginning of each fiscal year, submits to (he City Council a proposed budget for the fiscal year beginning the following October I. The budget Includes proposed { + expenditures and revenues required to fund the expenditures. Following Council considerations, amendments and refinements a } { public hearing Is ordered and conducted for the purpose of obtaining taxpayer comments. The budget is finally approved and adopted by passage of an ordinance by the City Council prior to the beginning of the fiscal )ear. The budget Is adapted on a basis i consistent with generally acccpted accounting pdnciplet I hv►sr+tt:xts II Toe City of fkntun invests Its investable funds in Investmrnla outhorzed by Texas low In accordance with investment policies approved by the City Council of the City of Ilenron, Both state law and the City's investment policies are subject to change I Ltcu. Ixttasl►vta Urder Texas law, the City Is authorized to dm esl In (1) obligations of the United States or Its agencies and inxlrumentalitlim (2) dirm obligations of the State of Texas or its agencles and Instrumcntalitim tJ) collaerallzed mortgage obligationi Issued by a federal agency or Instrumcmta)ity of the Untied Stales the underlying security for which Is gusrmueed by an agency or ladrumemality tar (he United States. (q other obligations the principal of and Imcrest on which arc unoandidomilly guaranteed or insured by, or backed by the full faith and creditor, the Stare err Texas or the United states nr their respective agendas and inswmenulitics, obligations of pates ageri counties cities and other political subdivisdans of any slate rased as w nscsiment quality by a nationally recognized incemorp t rating firm not less than A or Its equivalent, (6) certiGcstes of deposit that are guara7(nd or insured by the Federal NWh Insurance Corporation or are secured as to prinvipal by obligations described in the l preceding clauses or in any other manner and amount provided by law for City deposits, (7) eenifkates of deposit and share eerificates Issued by a state (ir fedenl credit union domiciled in the State of Texas that are guaranteed or Insured by the Federal I Ilcposlt Insurance Corporatinn or the National Credit Union Share Insurance Fund, or are secured es to principal by obligations described In the clauses I I) thmugh (Sri or in any nthermanmx and amount prodded by law rot City deposits, (9) fully collateralized repurchwc agreements that have a donned urination dale, are fully secured by obligallons described in clause (1). and are ptac d through a rrimary gmemment securities dealer or a financial Inslitutlun doing business in the state or Texas, (9) bankers' acceptances u ith the remaining tern of 270 days err less, Ir the shwcrm obligations of the accepting bank up its parent arc rated it j lead A•1 or 11•1 or the equisalen( by at least line nationally recognized credit rating agency, (10) commercial paper that is ruled at li least A-1 or P•t or the equlsilent by either (p two notionnll) recognized credit rating agencles a (h) one nationally recognized credit sal Ing agency 11 the paper Is fully second by an Imxocahlc letterof credit Issued by &U 5 . or sate bank, (l1) no. toad money market mutual funds regulated by the Sccuritlcr and Fxchange Commission that have it dollar weighted average portfulio maturity of 90 days or lass and Include in their Investment objectit es the mainlenaoce ar s stable net axset value of $1 for each share, end (12) no- load mutual fund, registered with the Securities and FAthange Commisslon then have an avenge welghled maturity of less than No years; insects exclusisely In ubligations described In the preceding clauses; and are continuously ruled a% to investment quality by it least tune notionally recognized im esimem ruling firm or m0less than AAA or its equivalent. the Pity may imcst in such obligalluns dlnxnly err thnWgh gosemmem insestment puols that Invest solely in such obligations prat ided dint the punts are rased no lower than ANA or AAAm or an tquh dent by at least one nationally rccognizcxf rating sees ire. The ('it) is spedbcolly prohibited from Investing In, (1) obligations whose payment represents the coupon payments on the nutsLmding prmcipid halance of the underl) ing mortgngahacked warily collateral and pays no prladpaF, (2) ohllgminas whose raymcnt represcros the principal stream of cash Paw from the underlying mongnga•backed security and bean ms Interest, (1) + I a+n.ner,ilizeJ roortgnge obligations mm huse a staled feral maturity of greater than to )ears; and (4) cullaterallnd mortgage obligations tilt inleresl rule of which Is doermined by an Index that adjusts opposite to the changes do a inndet index. s Nv s:x t vts.xt 140,14 it.% under Texas Low, the( 11) is requlred to inked Its funds under written Investment policies that primarily cioph,nlze surely of principal and liquidily; that oddrees investment divmirication, )ield, maturity, and the quality and capahllity of iru cxnnenl management, and that Includes a lid of awwrized Investments for City funds, mmlmum dlm, able stated malurily of any inditldual imcstrnent acid the maximum asenge dollar•%righted maturity allowed for pooled rund groups All City funds molt he lme,ted tat a matmer cumldenl "lilt a fonually adopted "Inveslnlent Strategy Statement" that spec0call) addresses each funds Insesnnern, I'ach Inscstrnent Strategy Stawmcnt will describe its objeahet comeming, (I) suitability of Investment type, (2) • presenahun and safety of principal. 13) liquidity, (J) nlaArtability of each imestmen6 (d) diversification of the portfolio, and (6) ) icld l l1 c Cit) has ndoph•d an Inlestment Strelegy Statement than reherales the strategics objectiv es. 0 2t Ii i r i 25❑ 32x10 b mmuarae b r.c.anr i Under Texas low, City Imestments must be made "with judgment end care, undo prevailing circumstances, that a person of prudence, discretion, and Intelligence would exercise in the management of the person's own affairs, not for spnvlaflon but for investment, considering the probable safety of capital and the probable Income to be derived.' At least quarterly the investment Officers or the city shall submit an Investment report detailing: (1) the Investment position of the City, (2) vial all investment officers jointly prepared and signed the tcNr%, (3) the beginning market value, any additions and changes to market value and the ending value of each pooled fund group, (4) she book value and market value of each separately listed asset al the beginning and end of the reporting period, (5) the maturity date of each sepualely Invested asset, (6) the account or fund or pooled fund group for which each Individual Investtnenl was acquired, and (7) dse compliance of the Irv"- em portfolio as It relates to: (e) adopted Investment strategy statements and (b) sate law. No person may invest City funds without express women authority from the City Council Anotlso-w. Pamtstms Under Tern law the City is additionally required w annually m kv its adopted policies and strategies, (2) require any investment officers' pith personal business relationships or relatives with firms seeking to sell securities to the entity to disclose the relationship and file a statement with the Texas Ethics Commission and the City Council; (3) require the regiserrd principal of firms seeking to sell sccurirics to the City to: (a) receive and micw the City's Investment policy, (b) acknowledge that reasonable contruls and procedures have been implemented to preclude lmprtdrnt Invenment activities. and (e) deliver a written statement attesting to these requirement; (4) perform An annual audit of the management controls on Investments and adherence to the City's Investment policy. (5) provide specific Investment training for the Treasurer, Chief Pimwclal OfTicer and im"ent officers; (6) restrict reverse repurchase agreements to not more then 90 days and restrict the Investment of reverse repurchase agreement funds to no greater than the term of the reverse repurchase agreemenC (7) revtrlca the Investncnl In mutual funds in the aggregate to no more than 1014 of the City's monthly ascrage fund balance, excluding bond prmcetls and resents and other funds held for debt serv ice and further rodrlcl the Investment In non-money market mutual funds of any pinion of bond proceeds. reserves and funds held few debt service and to no more than I Plt of the entity's monthly average fund halance, excluding bond proceeds and reserves and other funds held for debt senlce, (1) require local government Ins". tnt pools to conform to The new disclosure, rating, net asset value, ) kid calculation, and advisory board requirement TAatt 14 • Cs. awt tvxsstsitrrs 11 As of September A 1997, The following pcrcenusgca of the City's invevtible funds were invested in the follouing categorles of Investments, I Gook Market Description Percent Value Value U. 5, federal Agency Coupon 24,5!: 31,462,503 31,307,901 I U.S. Federal Agency Discount 21.6% 36,631,333 36,179,305 V S. Treasury Securilies Coupon 4) 2% $3,468,741 $5,720,100 V.S Treuury Amortized Strip Bonds 23% 3,243,777 3,263,113 I j Texas Municipal Bonds 1,25 1,49$402 1,$01,350 1 1DO,0% S 128,3)2,763 S 121,174,345 As of such dale, the market value of such imestrrtcnt (as determined by the City by reference tr published quotations, &Aler bids, and cornpamble infornnUnn) war river IOU: of theh bask value No funds of the City are Invested In derivative securities, I.e., securities u hose rate of return is determined by rcrcrence to some other Instrument. Ind-%, rw commodity. II Aa c 1 22 I~ 7.5x10 32XIO t%mks = o <:IraTRD t ' I, I SELECTED PROVISIONS OF THE BOND ORDINANCE The City mill adopt an ordinance (the "Otdinance") authorizing the Bonds, selected provisions of which arc shoran below: I, I IM INI1fONS, As used in the Ordinance the following terms shall have the meanings act IoM below, unlc:c the text hereof j specifically indicates otherwise, i (a) The tams "City" and "issuer" sial I mean the city or Denton, in Denton County, Texas. (b) I'he term "City C'ounci!" or "Council" shall mean the governing body of the City. j (c) The term 'Bonds" shall mean collectively the Initial Bonds as defined and described in Section 2 of the Ordinance and all substitute bonds exchanged therefor, and all other substitute bonds and replacement bonds, issued pursuant to and as provided in the Ordinance. (d) The term "Parity Bonds" shall mean collectively (i) the outstanding City of Denton Utility System Rcvonue Refunding Bonds, Series 1987, authorized by ordinance passed on January 27, 1987 (the "Series 1987 Bonds"), (ii) the outstanding city or Denton Utility System Revennc Bonds, Series 1988, authorized by ordinance passed on August 2, 1988 (the "Series 1988 Bonds"), (iii) the outstanding City of Denton Utility System Revenue Bonds, Series 1989, authorized by ordinance passed on October 24. 1989 (the "Series 1989 Bot,ds"), (iv) the outstanding City of Denton Utility System Revenue Bands, Series 1991, authorized by ordinance passed on hfarch 3, 1992 (the "Series 1992 Bonds"), (v) the outstanding City of Denton Utility System Revenue Bands, Series 1993, authorized by ordinance passed on March 16, 1993 (the "Stiles 1993 Bonds"), (vi) the outstanding City of Denton Utility System Revenue Refunding Bonds, Series 1993•A, suthorlmd by ordinance passed on June 8, 1993 (the "Series 1993-A Buns'), (vii) the outstanding City of Denton Utility System Revenue Refunding Bonds, Taxable Series 1993.8, l authorized by ordinance passed on June 8. 1993 (the "Series 1993-B Bonds"), (vili) the outstanding City of Denton Utility Systcm Revenue Bands. Scriee 1996, authorized by an ordinance passed on May 7, IM, (ix) the outstanding City of Denton 1 Utility Systcm Revenue Refunding Bonds, Series 19%A, authorized by an ordinance passed on May 7, 1996, and (x) the Bonds. (c) the Icon "Additional Bonds" shall mean the additioaal parity revenue bonds which the Ciry reserves the right to issue In the future. in accordance with Section 23 of the Ordinance. fA the term "Systcm' shall mean (1) the City4 entire existing waterworks and sewer system and the City's entire existing I electric light and power xystcm, together with all future extensions. Improvements, enlargements, and additions thereto, and all replacements thcrenf, and 12) an7 other related fxilities, all or any part of the revenues or income from v~hich do, In the future, at the option of the City, and in accordance with law, become "Pledged Revenues" as hereinafter defined, provided that. notw ithslanding the foregoing. and to the extent now err hc•esfler authorized or permitted by law, the ictm System shall not mean any water, sewer. electric, err other facilities of any kind which we declared not to be a part of the System, and which are acgaked or constructed by the City with the proceeds from the issuance of "Speelsl 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 I scctucd by and payable from liens on and pledges of any other revenues, sources, or payments, including, but not limited to, speciat umtmcl res enues err payments received from any other Legal entity in contimlon with such facilities; and such revenues, w urea, or payments shall not he considered as o" constitute Gross Revenues of the System, unless and to the exlent otherwise provided in the oidin;mce or ordinances authoriting the Issuanceorsuch "Special Facilities Bonds". 'f fgl The terms "Gross Revenues of the System" and 'Gmss Revenues" shall mean all revenuer and income of every nature darivcd or tcceivcd by the City from the operation and ownership of the Systcm, inctuding the Interest income from the , +e imolowni or deposit of money in any r'unJ created by the Ordinance e (hl I he loins "Ncl Revenues of the Sy stem", and "Net Revenues" shall mean 0 Gross Revenues after deducting therefrom an emnunl equal to the current expenses of operation and maintenance of the Syslem, Including all salaries. )abut, materials, repairs, and evlcnsnurs nascssury to render efficient sen ice. prokideJ, however, that only such repairs and extensions, as in the)udgmcht { of t1,c C'lly Council. reasonably and fairly exercised by the adoption orappropriate resoludnns, are necessary to keep the system in operation and render adequate service to said Pity and the inhabitants thcrenf, or such is might be necessary to meet some pt,y vial accident or condition which would otherwise impair the fonds or Additional Bonds, shall Ill deducted in determining "Net kcvcnucs" Payments required to be made by the City for water supply or water fa,ilitics, scwar sersices or Sewer fieilitics. reel surph, and for the purchase of electric power, which payments under law constitute operation end maintenance ' "",mace of any part of the System, shalt consmule and M regarded as expenses or nperalion and maintenance of the Systcm under the Ordinance, Ocprmialion and amortisation shalt not constitute or be regarded as expenses of operation and mu i ni cmmce o f th e Sy sicrn i 23 'r' oG?ri1* r 32 mow s o .sterau , (i) The I met "Pledged Revenues" shall mean I') the Net Revenues, plus ' f (2) any additional revenues, income, or ouha resources which are expected to be asa ;able to the City on a regular per odic basis, including, without limitation. any grams, donations, or income received or to be received from the fi Uni ed States Govemmeni. or any other public or private source, whether pursuant to an agreement or cuberwise, ohik h in the future may, w the option of the City, be pledged to the payment of the Parity Bonds or Additional Bonds. j , (J) The temt "year" or 'fiscal year" shall mean the fiscal year used by the City in connection with the operation of she System (k) The term "Government OVt,otions' shall mean direct obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed ley the United States of America. which may be United States Treason obligations each as its State and Local Government Series, and which may be in book <ntry form. PLLDGE (a) The Bonds are "Additional Bonds" as permitted by Sections 24 and 25 of the ordinance passed on March )Q 1993, authorizing the City of Denton Refunding Bonds, Series 1983 (It "Series 1983 Bonds"); and it is hereby detcranined, declared, and resolved that all of the Parity Bonds (including the Bonds) are secured and payable equally and ratably on a parity, and that Sections 8 through 28, of the Ordinance are supplemental to and cumulative of Sections 1 through 21 of the aforesaid ordinance passed on March 10, 1983. with Sections 8 through 28 of the Ordinance being applicable to all of the Parity Bonds. (h) 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 Rercnues, and the Pledged Revenues are further pledged to the estabtishmtnt and maintenance of the Funds created by the 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 decd of trust on any real, personal, or mixed properties constituting the System. j j SY'STEisI FLfiB. 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 ell other funds of the City, a special fund to be entitled the "City of Denton Utility System Fund" (the "System Fund') All Gross Roenucs shall be credited to the System Fund immediale!) upon receipt, { unless otherw Ise provided in the Ordinance, All current expenses of operation and maintenance of the System shall be paid from such Gross Rn'enues credited to the Systcm Food as a Gras charge against same, Before making any deposits hereinaller 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 I sixth of the amount budgeted for the then current fiscal year for the current operation and maintenance expenses of the 5yvtem. 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 fur separate and apart from all other funds of the City, a separate fund to be entitled the 'City of Denton { i . t Utility System Revenue Bonds Interest trod Sinking Fund" (the "Interest and Si tking Fund") RESERVE. FUND. Ihere heretofore has been, and is hereby, created, and there shall be established and maintained at Chase I Bank of Texas, National Association, and hereafter, at the option of the City, established and maintained at any time at any national bank having a capital and surplus In excess of $23.000,000, 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 iulcrest on any Parity Bonds or Additional Bonds when and to the extent the amounts in the Interest and Sinking Fund atailable 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, I X IF NSNIN ANI) IIMPRON'Ll IF.NT FUND. There heretofore has been and is hereby created and there shall k esiahlkhed and maintained on the books of the City, and accounted for separate and apart from ail other funds of the City, a separate fund to i ' S t+e entldcd the "City of Ikntnn 1'tility System LVension and Improcni Fund" (the 'Exicnslnn and Improvement Fund'). [he L.etension and Improvement Fund shall be used f,r the purpose of paying the costs of improvements, enlargements. estunslons, additions. rcplaccmrnls, or otbcrcapiral « imndiwres related to the S)srem, or fur Pay 'mg the costs of unexpected or wt,rrrdman repair or replacements of the S)slem for which Systcm funds are not available, of for raying unexpected or exlranrdinan expenses of apcradnn and maintenance of the S) stem foe which System funds are not otherwise availuble, or for any other lawful purpose INil R(A NCY I UND. Ihere is hereby created and there shall be established and maintained on the books of the City, and I E aanunted for separate and ararl from all other funds of the City. a scrarate fund to be entitled the "City of Denton Thdity Systcm I.mcrgency Flmd" (the "I mergency fund"l. The Emergency Fund shall k used for the purpose of paying unexpected or li o exsraordiman expenses of rcfail, replacement, operation, and maintenance of the S)stcm for which neither Systcm Funds nor the j moneys in the Extension and Imptovement fund are available, Ihere wm deposited in the I.mergency Fund simultaneously with the delivery of the Series 1983 Bonds to the Initial purchasers thereof from lawfully, available funds of The ; ey the amount of 52500K). All mvestmcnt intefesl Income from the Pmcrgenq Fund shall be transferred to the S) stem fund as received. 24 I~ 3 2 X I O j V i I i b6M1SITS OF FLEXED RFVENilES. 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 the Ordinance and any ordinance authorizing the Issuance of Additional Bon& iNVFSTSFFNTS. Monty in any Fund established pursuant to the Ordinance or anv ordinance authorizing the issuance of p 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 invesrCd in Gavemment Obligations (as defined in Section A hercoo or obligations guaranteed or insured by the United States of America, %blob. 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 Cooperarkm Fe.:,•.al Home Loan Banks, I Government National Mortgage Association, United States Postal Service, Farmer, l1inw Administration, Federal Ffome Loan Storigage Association, Small Business Administration, Federal Housing Association, or Participation Certificates in the Federal Assets Financing Trui; 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 (ereept United States Treasury Obligations--State and Local Government Series investments held In buck entry form, which shall at all limn he valued at cool shall be valued in terns of current markrt value as of the Ian day of II each fiscal year. Unless otherwise set forth herein, all inlerest 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 of Additional Bonds consistent with the ordinance, resrati v cly. authorizi ng th air issuance. I UNDS SEC'URID. That money In all Funds created by the Ordinance, to the extent not invested, shall be secured in the 1 manner prescribed by law, t PRIORIIY OF DEPOSITS AND PAYMENTS FROM SYSTEM FUND. That the City shall make the deposits and payment from Pledged Revrnues in the System Fund when and as required by the Ordinance and any ordinance authorizing any Additional Bonds, and such deposits shall he made in the following manner and with the following Irrevocable priorities, ` respcctitrty, lint, to the Inicrest and Sinking Fund, when and in the amounts required by the Ordinance and any ordinance authorizing any Additional Bonds; l Second• to the Reserve Fund, when and in the amounts required by the Ordinance and any otdinance authorizing any Additional Bonds; and Third, to the Extension and Improvement Fund, when and as required by Section 21 or the Ordinance I N I I,RIIST AND SINKING FUND RF.QUIRLMENIS. 1'he 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 Band, and on of Wate the 25th day of racb month, the City shall cause to be deposited to the credit of the Interest and Sinking Fund, in approximalely equal monthly payments, amounts suflicicn6 together uilh any other funds on hand therein, to pay ell of the interest or principal and Interest coming due, including the principal amount or any Parity Bonds required to be tedeemed prior to maturity punuant to any i mand'awry, redemption requirements, uo the Parity Ifsmds and any Additional Bands on the next succeeding Interest payment d,ae Any moneys so deposited in the Interest and Sinking fund with respect to a mandatory redemption requirement, together w iih ctber tau ful ly available funds of the City, may be used by the City, to purchase, in advance of a mandalory redemption date and A a price nest excccdlng the rnncir'al Amount thereof plus accrued Interest thereon to the date of purchase. Parity Bonds • hich voutd he sul+joo to being chosen For mmilaron redemption on such mandatory redemption dale The Paving Agent shall , cancel any Parity Hood%so putclimcd. RIFsl kt'li I U%I) RI QI;WAII,NIS. Ihere is not on hand in the Rescue Fund an amount of money and Government Obligations whkh is in excess of S3,W),W) and which is at (cast equal to the average annual principal and Interest requirements of the outstanding Scries 1987 itonds, the %cries 1988 Bonds, the Series 1989 (fonds, the Scrin 1992 Bonds, the Series 1992 Gnnds, the Series 1997-A Bonds, the Tavahle Serics 1991.8 Rands. the Series 1996 Bonds and the cerics 1996A Bonds (the currcwt "Required Rcscne Amount") . Following the Issuance and delivery ofthe Initial Bonds the Required Reserve Amount d shall hccome and be an amount of money and Imestments equal to the average annual principal and interest requirements orall 0 the ouisronding Parity Itonds and Additional Bond.; pruv idcJ further, bourvcr, that the Required Reserve Amount shall never he Ics, than S1,p1(1,ttOQ if the maximum annual principal and Interest requirements on all outstanding Parity Bonds and Additional Bonds exceeds S1,W1,00n, Immediately alter the issuance and delivery or the Initial Bonds there shall be deposited to the credit orthe Resctve Fund, from the proceeds of the sate orbit Initial Bond, money sufimlent to cause the Rcscne ('and to contain an aggregate amount of money and investments equal to the Required Reserve Amount for all then outstanding Panty 23 A r', 32 X 4 J 'ADO" p rMmaro 1 1 Bonds. Auer the delivery of any future Additional Bonds the City shall cause the Rescue Fund to be Increased. If and to The cNieut necessary, so that such Fund rill contain an amount of mone7 and investments equal to the Required Reserve Amount Any increase in the Required Rcscne Amount may be funded from P1; dgel Rncnues, or from proceeds from the sale of any Additional Blinds, or any other available source or combination of sources. All or any par[ of the Required Reserve Amount not funded initially and immediately aner the delivery of any installment or issue of Additional Heads shall be funded, within not store than five years from the date of such dclisen. by deposits of Pledged Roenues In approximately equal monthly ~p installments on or before the 25th day of each month Principal amounts of the Parity Bonds and any Additional Bonds which I!! must be rc•Jevnned pursuant to any applicable mandatory redemption requirements shall be deemed to be maturing amounts of " principal for the purpose of calculating principal and lmcrest requircments on such bonds, when and so lung as the amount in the Reserve Fund is not less than the l iced Reserve Amount no deposits shall be made to the credit urthe Resene Ponds but when and if the Reserve Fund at any time contains less than the Required Rcsene Amnunt, then the City shall transfer Srom Pledged Revenuer in the System Fund, and deposit to the credit of the Rcscrve Fund, monthly on or before the 25th day of each month, a awn egua' Tu I' ch of the Required Reserve Amount tmtil the Reserve Fund is restored to iK Required Rescue Amount. The City specifically cus moats that when and so long as The Reim a Fund contains the Required Res.rse Amount, the City shall cause all amounts in excess of the Required Reserve Amount go be deposited to the credit of the Interest and Sinking Fund, FXILNSION AND IMPROVEMENT FIND Rr.Ql11R[,k*.Nrs, During each year. subject and suhordinae to making the required deposits to the credit of the Inlernt and Sinking Fund and the Reserve Fund, the City shall be required to deposit to the Ir credit of the Extension and Improvement Fund, from Pledged Revenues in the System Fund, on amount equal to R": of the "Adjusted Gross Rev roues of the system", u hich term is hereby dcfncd to mean the following: J the Gross Rex enues of the sy stem far such year aner deducting from such Gross Re, enuq an amount equal 1 i to the curtenT expenses of operation and maimennnce of the System for such year which are directly utuibutahle to fit all fuel costs retaicd Io the production of electric energy by the City and'or (H)the purchase of electric energy by the City. Addiional excess Plcdned Rocrwes may, at the option of the City Council, k deposited to the credit of the Impruvcrncni road us pcrmBted by Section 22 (b) hereof, but no such addilinnal deposit is required. All Inseshncnt hottest income from the I.xtcnion and Imprutemeni Fund shall he retained in and remain a pan orsuch Fund [it 141. ILM IFS, IXC'IAS P1 I Wi[ D RI'MM'F.S (a) If on any occasion there shall not he sufnciem Pledged Resenucs to make Ilia required dcposiu info the Interest and Sinking Fund or the Reserve fund, such dcfeiency shall be made up its soon as powble from the next available Pledged Resenucs. IFI sahjco to making the rcgaircd deposits as the credit or the various funds when and as required by the Ordinance or any E FFF ordinance outhoriAng the issuance of Additional Bonds, any surplus Pledged Revenues may be used b) the City for any lawful 14 i purpose. illl] f PAYAIFNI or PARI I Y 30N'DS AND ADDITIONAL BONDS, On or before luue I. 1991, and semiannually on or before ` ca.h June I and 11"cvNr I ihercancr whole any or the Parity Rands or Additional fonds are outstanding and unpaid the City IF ,hall make ouiluhle to the Puy ing Agents therefor, out of The Interest and Sinking fund, nr if necessary, out or the Rescue I'unJ, money suffcienl to pay, on each of such dales, the principal of and lntercsg on the Puny lords and Additional Bonds a the vane mlures and comes due or to tedccm Ile Pail) Blinds or Additional Bonds prior in maturity. either upon mundulory redeosptis n nr o1 the option or the City At the direction of the City the I'ay Ing Agents shall either deliver paid Purity Bonds and Muni, .it Bands. and any interest euuroni appertaining Ibereto, to the City or destroy ell paid Parity Bonds and Additional nx Bondi, and any enulxms nppertaining thereto, and furnish The C'ily wlth an appmprlateccnifscale of cancallationor dcsiracilon- i 1 . 01POSl IS tat Any Partly Bond ire Addllionat Pond shall be deemed to he paid, retired, and no longer outstanding j within the mrmm~g cf the UrJmanee when putmcnl of the principal of, rcdensptinn premium, if any, nn sueh Parity BonJ or 1 1Jdn-nil 11ond, plus inlere,l thelcon to the due date thcreoflaholier such due date be h) roson nr nmlurily, upon rcJempllon. a nr rlbsnJ scl cider IVI sh ill hsse ken made nr enuud fu he mute in arc'ordunce a ith die terms thrreuf Iindmling the gis lag of I JIM rcquitcd make of redomption or proskion for the proper gi0ng oraueh notme husing liken made). sn pit shall hale heen prnch'cd by irts%mahly dcpnsitmg wilh or mucking usailahle to a Paying Ag.ul thctcG,r, In trust and irresocahly %VI aside cxchwisey far such payment. III money suffcionl to make sueh payment 4,4 (2) Goscrnment Obligations wbieh malute as Irs principal and intend in such aniounlt and at such times as will insure the asuifabilily, witarut reirccomcnl, orsulTicivnl money la make such puyrnent and all neccssan and proret fees, eompens,tion. and expenses of such Paying Alert pertaining to the 0 • PaO.N DonJs and Adduianal Bonds with respect lu which sash deposit is made shall hale ken paid or the payment Thereof s ! pratWcJ flit w the satisfaction of such paying agent At sueh time as a Mond or Additional Mond shall k deemed to be paid hereunder. as uforesuiJ it shall no longer be secured by tt entitled go the benefilt or the Ordinance of a lien on and pledge of the s Pledged Resenucs, and shall he ""led to payment solely from such mane) M Govcrnmcot (shligalinns 26 li a o - t~ (b) Any moneys so deposit'? ith a paying agent may at the direction of the City also be In "sled in Gov emment Obligations, maturing in the amounts and limns as bereinbefore 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 and Additional Bands, the redemption premium, if any, and interest thereon, with resrod to uhich such money has been so deposited, shall be turned over lithe City or deposited as directed by the City ADDITIONAL. BONDS, (a) no 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 deliver additional parity revenue bonds (herein called "Additional Bonds"), In s accordance with law, in ary amounts, for any lawful purpose, including the refunding of any Parity Bonds or Additional Bonds, or other obligations. Such Additional Bonds, if and whm authorized, issued and delivered in accordance with the ordinance, t shall be pa):iNc from and secured by an irrevocable firs 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) f he principal of all Additional Bonds must be scheduled to be paid or mature on December I of they can in which such principal is scheduled to be paid or mature. FURTIIFR REQUIREMENTS FOR ADDITIONAL BONUS. Additional Bonds shall be issued only In accordance with the Ordinance, and no installment. Scrim or issue of Additional Bond; shall be Issued or delivered unless: i (a) The htay c r of the City and the City Secretary sign a written certificate to the effect that the City is not in default m to any covenant, condition, or obligation in connection wnh all then outstanding Parity Bonds and Additional Bonds, and the I ordinances authorizing same, and that the Interest and Sinking Fund and the Reserve Fund each contains the amount then required to he therein. (b) An indepcid:nt certified public accountant, or independent fun of certified public accountants, acting by and through a certified public accountant, signs a wrinen certificate to the Wicl that, in his or its opinion, during either the nni preceding fiscal year, or any twelve consecutive calendar month period am 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 (cast (111.23 times an amount equal in the average annual principal and interest requirements, and (ii) 1.10limn on amount equal lo 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 he outstanding after the delisery of the them proposed Additional Bonds, It is specifically provided, however, that in calculating the amount of Pledged Revenues liar the purposes of this subsection (b), if there has hen any increase in the rules or charges for services of the System whkh Is then In elTect, but which was not in effect during all or any part of the entire period for which the Pledged Revenues arc being calculated (hereinaller referred to as the "entire period") then the certified public accountant, or in lieu of the cerlified public accountant a firm of consulting engineers. shall determine and certify the amaant of Pledged Revem ies as being the total of (i) the actual Pledged Rescnucs for the entire roiled, plus (it) a sum equal to the aggregate amount by which the actual billings to customers of the System during the entire period would base been inercas`!d if such Increased rates or charges had been in efrcct 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 isregc!rod by Section 29berm t (d) All calcidalionsoraverage annual principal and interest require menu of any bonds made in connection with the issuance of , Y anv 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 ans other purpose under the Ordinance, principal amounts crony bonds which must be redeemed prior to r i nnurity p tsuonl lo any applicable mandulory redemption n quitimenls shill MC deemed W be maturing amounts of principal or such hoods. OLIN) -.RAL (OVINANIS Ibe City further cosenonis and agrees that in accordance with and to the extent required or I permitted by law lul Pedolit cc. It will faithfully retform at all timrs any and all covenarls, undertakings, stipulations, and proskions cmuained in true O tdimmce, and mh ordinance suthorirlrg the issuance of Additional Kinds, and in each and esary Parity Bond and Additional Bond, that it will promptly pay or cause to he paid the principal of and interest on every Parity Said and Addausmd Hand. on the dalee and in the places and manner prescribed in such ordinances and parity Fonds or Additional Bon& and that it will, at the times and In the manner proscribed. deposit or cause to he deposited the amounts required to N deprsimd into the Interest and Sinking Fund and the Rcsane Fund, and any holder of the Parity Fonds or Additional Bonds may 0 y; ( require the Cily, ill officials, and employees, to carry out, respect. to rnfurce The covenants and obligations of the ordinance. or FI~J I any ordinance authorizing the issuance of Additional Bondi, by all legal and equitable means, Including specifically, but without lim itaiion, the use and riling of mandamus pusceediags, in any court of competent jurisdiction, against the City. Its officials and employ res. 27 i i 'Oti f,,,,1 2 S s 10 3 2 x ~ ❑ a 0 craaapn 0 arru 1~ f (b) COWS I. ceal Authority. the City is a duly created and existing home rule city of the State of Teas, and is duly aathorind under the to"s of the State of Texas to create and issue the Parity Bonds and Additional Bonds; that all action on its parr fur the creation and issuance of the said obfigations has been or will be duly and effectircly taken, and that said obligations in the bands of the holders and a"ners thereof are and will be vai.J and enforceable special obligations of the Crl) in accordance with their terms. (c) itlc The City has at hill obtain Imxful 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 pate thereof, for the benefit of the holden and o"ners of the Pail) Bonds and Additionat Bands, against the claims a. d demands of all persons "homw c%ct, that it Is la"rul)y qualilied to pledge the Pledged Revenues to the payment of the Peril) Bonds and Additional )fp Ilonds in the manner prcscribed herein, and has lwxrully exercised such rights. fl➢. (d) Lieu the City will from time to time and before the same become delinquent pay and discharge all taxes, assessments, and t gasemmenlal charges, if an)'. "hich shalt be lasxfully imposed upon it, of the S)s(ens, that it"ill pay all lawful claims fur rents, I roy allies, labor, malerials, and supplies which if unpaid might by law become a lien or charge thereon, the lien or"hich would be prior to or interfere with the liens hereof, so That the r iariq of the liens granted hereunder shall he fully presened In the manner pruxided herein, and brat it "ill not create or sufrcr to be created any mechanic's, laborer's, materialman's, or other lien or charge n hich might or could he prior to the liens hereof, or do nr suffer any matter or thing whereby the liens hereof might or g could he impaired; provided, honescr. that no such tax, asses%r 1, or charge, and that no such claims which might bo used as the hisis of a mechanic's, laborers, materialnran's, or other lien or charge. shall be rsg,Aired to be paid so long as the validity of the same shall be contested in good faith by the C'it). W Orcration of a}steol;Nu rice Scntcc while the Parity Rtmdxor any Additional Bonds arc outstanding and unpaid the City ~E ) Omit conllnuously and cfticicntly Operate the S)ocnl, and shall maintain the System in goad condition, repair, and oorkinp order. all at rcawmah!c cost No free serlice of the System shall he allo"eJ. and should the City or arty of its agencies. g iostrumcnLJitics. Icswrs or crmcessionaires make use of the ufsices and facilities of the System, payment monthly of the standard retail price of the srnices pruvideJ shall he made by the City or any of iii agcucicx, ostrumentalilies• lessors, or eanerssiunnires out of funds from sources other than thr res cnues of the Sy stem, unless muds from surplus Pledged Revenues as rermitted by Section 22(h) hccol If (f) furtherI ncunrbrinct. Nhile the Parity Bonds or any Additional floods arc outstanding and unpaid, the City shall not additionally encumhet the Pledged Resrnues in any manner, except as Perr ined in the Ordinance in connection with Additional Bonds, unless said encumbrance is madejunior and sufaudinate in all respects to the liens. pledges, cuxenants, and agreements of the Ordinance and any ordinance authorizing the issuance of Additional Bonds; but the right of the City to issue resenue I Minds ra)nhle from a suhordimate lien on surplus Pledged Rescnues is sgccifcally rrcogutzed and retained, as permitted under Section 2Z(h) hcrcuf}_ fit Sale or I)i.Mrdol of Promrit. "bile the Parity Son,'- or any Additional Bonds are outstanding nod unri the City shall not sell. Corn cy, mortgage, encumber. Icase. or In an) mannv transfer lids lo, tit dedicale taathcr use. or aher"ise dispose oL the System or orrc signilicanl or sub+tanlial pan thereof: prosided that "henexer the Pity deems it necesram to dispose of any prorcnv machinery, fnnac+, or equlrmenL Of drdieate such progeny w other use, it may Jo w either when it has made S a,rungemenle to replace the same or proride suhslilutce therefor, or it is delerlnlned by resolution of the Co) Council that no /!!II such rcriaccmenl Or sut iWte is necessary. th) innrnmc ll t lie Cal, shall causc to be insured such Pans of the System as would usually be insured by corporations operating like pmpcrt es, , with a responsible insurance COMParq or companies, apaiml risks, accidents, or casualties against "hich aril to the elent insurance is uwail) carried h) corporations operating like properties, including, to the extent reawmahl) sa nhlainah1c, fire and exlended coeerage on urance. insurance against Jama':c by floods, and use and occup,mcy insurance. Public , huhdny and rtnrcrte damage M-rance also shall he carried unless the l'it' Altomey piles u written opln on ht the crft%t flint Q the. l its is not liahlc k,r claims. ahielt would be rrntctNA M such insurance All Insurance preolians shall he paid as an I exreme of trrerulion of the S% &M Al au) hoe while in,, contrmor engaged in eonsneclion "ork shall be fvih responsible Ibrrvfnr the t'ilt' sh;rll tun he rega rcJ to furry 'atmvanrc On the ss trek being cnnunrerrJ If the conlrnclor is required to carry ~ l a rrlr~plldle in car;aKC. All such poheies shall ha' Or Ch h- the in,pediim or the Hoon.,Wers and their rv gfeeef11ati1 Ca at all re:w~naFle lone. I'pnn lllc h.lrpcmug of any toss or daaragc cosercJ b) mwrancc from otte it more of said causes. the ( n) shall nnkc due read of logs and shall do all things neeessar) or desirable to cause the insuring companies to mike pa)mvnt in I~ 1 lull directly to the ('rly the rnaecds of in+urance covering such properly, mgoilct "ith in) other funds necesiry and 'nailahlc for soh purpose, shall be turd Grnhwuh by the ('it) for rerairing the progeny damaged or replacing the property dc,lroycd pr0ei,10. ho"escr. thu if said tr,eutance proceeds and Other funds are imuflieicnl kir such putpose, then said Q insurance proccc Js Penaining to the System shut' be derosbed in a sixciaf end separate (rust fund, al an ollicial deposihtn of the j lily, to be designiteJ the tnsurance Arcoun( The Insurance Accuunl shall be held unlit such time as other funds become '}S} asaitable which, logether "ith the Insurance Accuunl, will he su ff Lirnt to maAe the repairs or rep tic emu-no originally required. r 2A i I1~ 32 Io na.wu o . .;saeeas (2) The annual audit hereinaficr required may contain a section commenting on whether or not the City has complied with the tequfremcrtts 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 been paid. (i) Annual Budget and Rate Covenant. The City 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 for the ensuing fiscal year in sufficlent detail to indicate the probable Gross Revenues and Pledged Revenues for :vch fiscal year. The City shall fix. evlablish, maintain, and collect, such rates, charges, and fees for the use and availability of the Sysicm at all times as are necessary. (1) to produce Gross Revenues sufrcicm, 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 1.23 times the average annual principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds or 1.25 rimes the succeeding risen) year's principal and interest requirements of all then outstanding Parity Bonds and Additional Bonds 0) Records The City shall keep proper books of record and account In which full, true, proper, and correct envies will be made of all dealings, activities, and transactions relating to the System, the Pledged Revenues, and tk Funds created pursuant to the Ordinance, and all books, documer it, and vouchers relating thereto shall at all reasonable times be made available for Inspection II upon request of any Bondholder or citizen of the City. To the extent consistent with the provisions of the ordinance, the city I shall keep its books and records in a manner conforming to standard accounting practices as usually would be followed by i private corporations owning and operating a similar Systcm, with appropriate recognition being given to esseruial ditferences between municipal and corporate accounting practices. (k) Audits. After the close or each fiscal year while any of the Parity Boras or any Additional Bonds are outstanding, an audit will i made of the books and accounts relating to the System and the Pledged Revenues by an Independent certified public accountant or an independent rum of certified public accountants. As soon as practicable after the close or each such year, and I when said audit has been completed and made available to the City, a copy of such audit for the preceding year shall be mailed Il In the Municipal Advlsnry Council of Tcxav, 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 k open to the iaspeclion of the Bondholders and their agents and reprewitartves at all reasonable times. (1) GovcmmenialAlicncies. It will comply with all of the terms and conditions of any and all franchises, permits, and authorisations applicable to or necessary, with respecl 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, authorimtion, and other requirements applicable to or necessary with respect to the acquisition, construction, equipment, operation, and maintenance of the Sy stem. (m) No Coen itio . It will out operate, or grant any franchise or. to the exlcnl it legally may, permit the ocqufsilion, cons mtfion, or operation or, any facilities which would be in competition with tk System, and to the extent that it legally may, the City will prohibit any such curnpeting facilities. (n) No Arbitreee. The City covenants to and with the purchasers of the Parity Bonds and any Additional Bonds that no use will he made of the proceeds of any of such bonds at any time throughout the tern or any of such bonds vrlf ich, if such use had ken reasonably expected on the date of delivery of any of such bonds to and payment therefor by the purchasers, would have caused any or such bonds to k arbitroge bonds within the meaning of Section 149 of the Internal Revenue Code of 1996, as amended i (the 'Cndc"). or any regulations or rulings pertaining thcrelu; and by this covenant the City is obligated to comply with the , i requirements orthe aforesaid Code and all applicable and pertinent Mpartrnent of the Treasury regulations relating to arbitrage Kinds. The (city further covenants that the proceeds of all such bonds will not otherwise be used directly or indirectly so as to r comssc all it on) part or such bonds to he or become arbitrage Cxmds w inhin live meaning or the aforesaid Code, or any regulailons J 1{ pzflaiM1iig lhcrcw, W11cl!k1l NT fill' ORDINANCE. (a) the holders or owners of Parity Bonds and Additional Ninds aggregating In principal amount !Is, if the aggregate principal amount of then outstanding Parity Wends and Additional Bonds shall have the right from I time to ti to to uppnne any amendment to the Grdinance whicfi may be deemed necessary or doimble by the ('try, provided, h(wcvct, that nothing heroin nmlained shall permit or he construed to permit the amendment of the terms and conditions in the t),jinance or in 11he 1':atty Binds or Additional Binds so as to. (11 Make any change in the maturity of the outstanding Parity Bonds or Additional bonds; ' i (2) Reduce the rare of inlcresl borne by any or the outstanding Parity Bonds or Additional Ionds; 13) Reduce the amount of the principal payablcon the outstandingParity Bondvor Additional Wmds; 1 29 I l 0 32 x I 0 • o (4) hltdify the terms of payment of principal of or interest on the outstanding Parity Bonds or Additional Bonds, or impose any conditions with respect to such payment; a ; 151 Alleel the rights of the holders or owners of less Than all of the Parity Bonds and Additional Bonds then ~11::► outstanding: (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 Ordinance under this Section, the City shall cause notice or the Imposed amendment to be published in a financial publication of general circulation in rho City of New York, Ni York, once during cacti calendar wick for at least two successive calendar wicks. Such notice shall briefly set forib the nature of the proposed amendment and shnll state that a copy thereof is on file at the prmcipat office of the Paling Agents fir inspoetion by all holders or ownersorParity Bonds and Additional Bonds. Such publication is not required, however, if notice in writing Is given to each , f holder or owner of Parity Bonds and Additional Bnnds. ' f I (c) W'hcnevcr at any time not less than thirty days, and eiihin 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 ere:wenl by the holders or owners of at (cast 510; in aggregate principal amount of all Parity Bonds and Additional Bonds then outdanding, which Instrument or inswments shall refer to the proposed amendment described in said notice and which specifically consent to and approve such amendment in subsianlially the form or the copy thereof on Me with the Pay ing Agents, The Oly Council msy pass the amendatory ordinance t ` in substantially the same form, 1I If (dl Upon the passage of any amendatory ordinance pursuant to the prutlsions of this Section. the Ordinance shall M deemed to be amended in accordance with such amendatory ordinance, and the respectike rights. dative, and olsligatl(1ns under the Ordinance of the City, and all the holders of comers o1 then outstanding Parity Bonds and Additional Bonds and all future Parity Bonds and Additional Bonds shatl rherealler be determined, exercised, and enforced hereunder, subject in all respects to such amendments. r lc) Any consent given by the holder or owner of a Purity Bond or Additional Bond pursumu to the pros isione of this Section shall be irrek ocable for a period of six months from the date of the first publication of the notice provided for in this Section. and shall be conclosi%c and binding upon all ruiurc holders or oviii of the same Purity Bond or Additional Bond during such period Such consent may he revoked at any Time trier six months from the dnte of the first publication of such notice by the holder or owner who gave such consent. or by a successor in title, b) filing notice thereof with the paying agent and the City, i, hul such revocation shatl not be effective if the holders or owners of 510. in aggregate principal umount of the then outstanding i Purity floods and Additional Bonds as in this Section dclined have, prior to the attempted revocation, consented to, and approved the amendment. Ifi for the purpose of tlds Section, the fait of the holding of Parity Bonds or Additional Bonds which are In Meares. coupr.n Ibrm. by any bondholder and the amount and numbers ol'such hearer Parity Bonds or Additional Wends and the dale of p,cir holding same, may he pro%cJ by the anlitluvit urthe person claiming to he such holder or owner, or by a certillcafe execulcd by + any trust company. bank. hunker, or any other depository wherescr simAcd showing that at the date therein mentioned such person hod nn deposit w iih such trust company, hank, hanker, or other depository, the Parity Words end Additional Bonds descrihed in such certificate. the City may conclusively assume that such ownership continues until wrilten m>tiee to the conlrary k served upon the Cil), the ownership or all relimcred Parry Bonds and Additional Rends shall he docrinlnrd from the registration bvmks keel by the registrar therefor I1 A1v11G1 11 M( 111 111 (s, LOSE SIItLI(ti. OR I» SIkt7111) BUNlyS (n1 kcnlncemcnl Ikunds, ht the event any s r . sal.lending Baud is daaioged, fnaolated, lo,t, stolen. of destmveJ, the PA)ing Agent Registrar shall ca Ise it, he prinlcd. , eswtacd, end delivered, a new bond ordre sumc pnndpal amount, maturity. rind interest rule, as the damateJ. ii lost. rhden. or dadroy cd Pond, 4m npleeemew for Mich Bond in the nwnner hocinallet pr(,iiJcd I ii Ih) ~zrllia ur rc Rs locemc )I IIond~ Appbc,o inn for lephn•na'm of dwnagcd. inuhluted, lust. slvden. (it d9stm5 ed Bonds 4oll he n ,c M 1110 reti,lcn) nn ovr Oicrad to the I',icinp 4LrcM Registrar. lot even cwc of Ions, ihefi, or dcslrmlion vJ a luanl, the regidcrcd ask met sprk ing or a rerlavcment bond shall furnish to the Issuer and to the Paying Agent.Registrar smb I i sauiry i r ind0nm Ry as may be required h) them io rake each of them birmlccr from nny loss or Jamnge w ith respei lbewto. It Sd d 114'. irr every cese (it loss, thell. or dcstriiomn of n Ilondthe rcgn,tocil tnvncr shall furnish Lf the Issuer and to the Pay imp sgdn RoloWr i cvidenve to their saosfrcrion (1(1119 Ions, theft Pr dvstrneoon of such Mond. as the case may he. In even rust of 0 p darn,rge of murdalion of a Ilund. the regi,toed invncr shall suncndet to the Paying 4gentRegi.lrur for cancellation the Bcmd so damaged or mutitiled 1 30 10 .32 X I am ~m r 0 • o I (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 continuing In the payment of the principal of, redemption premium, if any, or interest cn 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 o replacement Bond, provided security, or indemnity is furnished as above provided In this Section. i (d) Char¢e for Issuine Re INcirnent Bonds. Prior to the issuance of any replacement bond, the Paying AgentArgistrar shall 11 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 fail that any Bond Is last, stolen, or destroyed shall constitute a umtractual 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 nditled to all the bcn fits of the Ordinance equally and proportionately with any and all other Bonds duly issued under the Ordinance. (c) Authority for Issuine Replacement Bonds. In accordance with Section 6 of Vemnn's Ann. Tex. Civ. SC Art, i A-6, this I Section of the Ordinance shall constitute authority for the Issuance of pay such replacement bond without necessity of further action by the governing body of the Issuer or any other body or Mor, and the duty of the replacement of such bonds is hereby authorized and Imposed upon the Paying Agent'Registrar, and the Paying AgenitRegistrar shall authenticate and deliver such Bonds in the fsxm and manner and with the effeet, as provided in Section 6(d) critic Ordinance for Bonds issued in conversion I and exchange for other Bonds. COVPNANTS REGAROINO TAX-EXEMPTION. The Issuer covenants to refrain from any action which would adversely I ; atTecC and to take such action to ensure, the treatment of the Bonds as obligations described in swion 107 of the Code, the ( interest on which is not includable in the "gross income" of the holder for purposes of federal income taxation. In furtherance thereof, the Issuer covenants as follows: (a) to take any action to assure that no more than 10 percent of the proceeds of the Bonds (less amounts deposited to a reserve fund, if any) arc used for any "private business use'. as defined in section 141(6)(6) of the Cade or, if more than 10 percent of the proceeds ore so used, that amounts, whether or not received by the Issuer, with respect to such private business use, do not, under the terms of the Ordinance or any underlyirg arrangement, directly or indirectly, secure or provide for the payment of l mare than 10 percent of the debt service on the Bonds, in contravention of section 141(bx2) ar the Code, (b) to take any action to assure that in the event that the "private business use' described In subsection (a) hercor exceeds S e percent of the proceeds or the Bonds (less amounts deposited Into a reserve fund, if an)) then the amount in excess of S percent is used for a "private business use" which is 'related' and not *disproportionate", within the meaning of section 141tbx3) of the Code, to the governmental use, i t (c) to take any action to assure that no amount which is greater than the lesser of Sf.000.000, or d percent of the proceeds of the 11 Bonds (leis amounts deposited into a reserve fund, if any( Is directly or Indirectly used to finance loans to persons, other than stale or local governmental units, in conttmen ion of section 141(c) of the Code; (d) to refrain from taking any action which wouldotheruise result in the Bonds being treated as "private activity bonds" within the meaning o f section 141(b) of the Code, (c) to refrain from taking any action that would result in the Bonds being "federally guaranteed" within the meaning or sectlnn { 14thh)nftK Code. f r 'a ( 1n to refrain from using any potion of the proceeds or the Bonds, directly or indirectly, to acquire or to replace funds which were used directly err indir"ll), to acquire imrstment Properly (as defined in section I itt(w) of the code) which produces a t • mulerially higher yield twit the term of the ESimds, other than imsstment property acquired pith l I (I I rmcecds of the Bonds ins esicd For a reasonable lcmpor try period of 3 years or less until such proceeds are needed for the purpose for which the Bonds are issued. (21 amounts invested in a bona fide debt senice fund, within the meaning of section 1.146-I(b) ofthr Treasury Regulations, and 1 i (If amounts dcpasiled in any reasonably required reverse or replacement fund to the extent such amounts do not vowed 10 percent of the stated principal amount (or, in the case uric discount, the issue price) of the Certificates; 4 f ~ I ~ r K 10 32 X Q a,,vaaaa r - " o I . 1 E~ (g) la otherst ise restrict the use of the proceeds of the Bonds or amounts treated m proceeds of the Bonds, as may be nci so that the Bonds do not otheritise contravene the requirements of section 149 of the Code (relating to arbitrage), Section 149(g) + of the Code (relating to hedge hinds), and, to the extent applicable, section 149(d) of the Code (relating to advance refundings); 4 and (h) to pay to the Vniled Slates of America at feast once during each fivo-year period (beginning on the date of dcliten of the 1 Bonds) an amount that is at least equal to 90 percent of the "Excess I'amings", stithin the nteaning of section 148(1) of the Code I and to pay to the United States of Americ& net later that 60 days after the Bonds hoot been paid in full, 100 pereeal of the I s amount then required to be paid as a result of Excess Earnings under sectinn 148(q of the Code. I'or purposes of the foregoing (a) and (b), the Issuer unders6aAs that the term "proceeds" includes "disposition pix"els" as Mined in the 'treasury Regulations and, in the case of Now, ing bonds, transferred proceeds (if an) ) and proceeds of the refunded bonds expended prior to The date of issuance of the Bonds. It is the understanding of the issuer that the cosenants it contained herein Are intended to assure compliance uirh the Code and any regulations or rulings promulgated by the U.S. ! S i Department of the Treasury pursuant thereto. In the event that regulations or rulings are nerearlu r promulgated tshich modify, or 1) t expand prooisions of the Code, its applicable to the Bonds, the Issue tsill not be regv.acd to comply %ith any cotenant contained herein to the eslent that such failure to comply. in the opinion or no ionally-recognised bond counsel" still not adtersely affect the exemption from federal income taxation or interest on the Bonds ul,l, "ction 103 of the Code. In the event that regulations or rulings are hercafler promulgated tshkh impose Additional requirements ithich are applicable to the Bonds, the issuer agrees to comply with the additional requirements to the exlenl nccomry, in the opinion of n,,tionally-recognised bond counsel, to prescn a the ilxemptiun from fevleral income taxation of interest on the Bends under action 103 clothe Code. In order to focMutic compliance %iih the aKite eooenant (h), a "Rebate lurid" is hereby established by the lssder for the sole benefit of the United Stales of America and such fund shell not be subject to the claim of any other person, including without limihtlion, the cutters of the Ccrlif cotes. The Rebate fund is estahlished for the additional purpose of compliance with Section f 149 of the Code. } INI I REST EARNINGS ON BON I) PRO( LIDS. Imcrest earnings darned from the intesiment of proceeds from the sale of the Initial Bond, other than proceeds deposited In the Interest and Sinking fund and the Rescrte Fund, shall be used along with other ataitahh proceeds for improt ing the System: presided that After complclion of the hnproscmcnts if any of such interest earnings remain on hand, such interest earnings shall be deposited in the Interest and Sinking fund. It is further prooidcd. hostctcr, that Any interest earnings on Fund proceeds %bich are required to be rehired to the Lrniled Stales of America pursuant fu the C'us cnunls Regarding Tax-Exc+nptiun herein so as to prevent the Bonds from being arbitrage Kinds shall be so rebated and nor considered ris i ocresi comings for the pusposcs cf the Oribr oacie i ' r C'US100Y. API'RO('AT, AND RI'OISIRMION OF BONDS; BOND C'OUNSI.L'S OT'TNION. ClrS1P NUMBIAS I'RLA,41Blr, AND INSI"RAN( 'L, the Nlayor of the Ir,ucr is hereby authorised to hale control of each Initial Bond issued t hcretlnJcr and all necessary record. and proceedings pertaining to each Initial Bons, pending its delocry and its inttstigation, exunio.&co. ,md appros at by the Aitorne) General of the Slate of Tex"-,, and its regisnallon by the Comptroller of Public lcaounts of Bit Sine of texas, I iron regi4rutiun of each Initial Bond said Comptroller of Public Accounts For a deputy dssigo-.r,eJ in striting to ael for said 01111 ollar) shall manually sign the C ompuollces Registration Ccrlifiaale on such Inllial Itond. and the seal of said Compteoller shall he impressed, or placed in facsimile, on such Initial Band, the approsing legal ipmion nl the lscuci s Nand Counsel and the assigned ('USIP numhers wmy, at the option of the Issuer, be printed on each Initial Bond on wry Tfnnds issued and delisereJ in consersion or and eschange or replacement of any Bond, but neither shall have any Igtl elI'ed, and shalt be solely for the enmeniente And infonnalion of the regisleted ounces of the Bonds. I'he preamFle to I the' Ordmamc is hereby adopted And made a pan hereof for pit purpow% If insurance is nhtained on any of The floods, the ts' 'u rc,pctllte 1rIiGA1 !lend and all other }Sands shill hear on Appntpdnlc legend cnnecming insurance no pros Vdcd Fy the insurer x11 I. tit list 1111. I'OSOS. 1 he Initial Bond i:r herab) sold and shall be dclitcred to L r cash he the pat ' aluc thereof and ncerued iusdrea thereon to dale of Jelo v), plot a pruulum of S _ Et Is heul,y olht'rd1 . rel. doerodnrJ, and declared that the initial fond has Men ud,l at public sale to the bidder offering the b nest url n r,l, alter melting st°alcd bids punmu=t to an Goleta Nolke of Sale nod Bidding Inslrutnnns And 011 icial Slartmcnt !ahal prrpared and d,lrolo J to unnvokin with the sale of the Iriitial Bid Said Ollicial "Wieo t it sale .n,d Iikkllnp In,irndions and OI(icial 5rdement. and an) addenda, xapplemcnl. ar umsmtmcnt Ihento hate Kom ,Ind are ht ch) apprised by the Issuer, and flair ow in the otlorand sale of the hinds is henehy anprmcd It is further to lieially loun.1 dal.nunued, and declared Ihid the statements and reprtseni,Itions comalneJ in said ( )Iricinl Notice of Sale and f,`ruclal Slatemenl'o nut and comet to All mucrlul respnels DI(' R1 (,Is IRA I fuN. The lhmds nitialk shall be issued Loot dctiserrd in smh manner that no physical diuribulion or the Hand, uitl he trade to the public, And the Ilapasilnry bust <.bmparn CO C.'1. Neu York. Neu York, Initialb, still act as Jepns'onrn fir the Nand,. 1) I(' has represented (bit it is a Imt'ocd purrose lrusl cornpan} h)carpuruleJ under the Iuus of the State of Neu York, A member of the I ed,r l Reserve Syslem, a "clearing avporalien" itilhin the nleaning of the Ncu York 71 li ~ » ~C1 32X~[I Ab. o ~ niufer I Unifurm Commercial Code, and a "clearing agency" registered under Section 17A of the federal Securities Exchange Act of 1934, as amended, and the Issuer accepts, but In no way verifies, such representations. The Initial Bond authorized by the Ordinance shall be delivered to and registered in the name Df the Purchaser. >iawever, it is a condition of delivery and sale dint the Purchaser, immediately after such delivery, shall cause the Paying Agent'Registrar, u provided for in the Ordinance, to cancel said initial Bond and detiver in exchange therefor a substitute Bond fur each maturity of such Initial Bond, with each such substitute Bond to be registered In the name of CEDE S CO., the nominee of DTC, and it shall be the duty of the Paying II AgenCRegistrar to lake such action. It Is expected that DTC will hold the Bonds on behalf of the Purchaser and/or the DTC Participants, as darned and described in the Official Statement referred to and approved In Section 33 hercof (the "DTC Participants"). So long as each Bond Is registered In the name of CEDE 9 CO., the Paying Agealtegistrar shall treat and deal with DTC in all respects the same as if it were tht actual and beneficial owner thereof. It is expected that DTC will maintain a book entry svstem which will identify beneficial ownership of the Bonds by DTC Participants In integ:al amounts of S5,Olltl, with transfers of awncrship being effected on the records of DTC and the DTC Participants pursuant to rules and regulations established by them, and that the substitute Bonds initially deposited with DTC shall be immobilized and not be further exchanged rot substitute Bonds except as hereinafter provided. The Issuer is not responsible or liable for any functions of DTC. - oil] not be responsible for paying any fen or charges with respect to its services, will not be responsible or liable for maintaining, supmising, or rc0coing the records of DTC or the DTC Paticipants, or protecting any interests or rights of the beneficial owners of the Bonds, It shall be the duty of the Purchaser and the DTC Participants to make all arrangements with DIC to establish this book-entry system, the bmeficial ownership of the Bonds, and the method of paying the fees and charges s of DTC. 'the Issuer does hot represent, nor does it in any way covenant that the initial book-entry system established with DTC will be maintained In the future, the Issuer resenes the right and option at any time in the future, in its sole discretion, to f wmminate the DTC (CEDE k CO,) book-entry only registration requirement described above, and to permit the Bonds to be (1 regi,lered in the name of any owner. If the issuer exercises its right and option to terminate such requirement, it shall give written notice of such Ictminalinn to the Paying Agent'Registrar and to DTC, and thereafter the Paying AgentRegistrar shall, upon presentation and proper request, register any Band in any name as provided for In the Ordinance. Notwithstanding the initial establishment of the foregoing boukentry system with DTC, if for any reason any of the originally delivered substitute I Donds is duly filed with the Paying AgentRegistrar with proper request for transfer and substitution, an provided for in the Ordinance, substitute Bonds will be duly delivered as prof ided in the Ordinance, and there will be no assurance or representation that any bookentry system will be maintained for such Bonds. I COhtl'LIANCE mrl1 RULE 150-12 (a) Annual Rctwrts. (i) The Issue shall provide annually to each NMISIR and any SID, within six months after the end of each fiscal year ending In or after 1996, financial information and operating data with 0 re,peci to the Issuer of the general type included in the final OlTicial Statement authorized by Section 33 of the Ordinance, being li the information described in Ell,ibitA herc(o. Any financial statements so to be provided shall be (t) prepared in accordance with the accounting principles described In Exhibit herrle, or such other accounting principles as the Issuer may be required to employ from time to time pursuant to state law or regulation, and (2) audited, if the Issuer commissions an audit of such statements and the audit is completed within the period during which they must be pruvlded. if the audit of such financial statements is not complete within such period. then the Issuer shall provide unaudited financial statements by the required time and will provide audited financial sadements for the applicable fiscal year to each NP-MS IR and any SID, when and if the audit report on such statements become available ' I l Jut if the Issuer changes ill fiscal year, h will notify each NMI SIX and any SID of the change (and of the date of the new fiscal l )cat end) print lo the next date by which the Issuer otherw is: would be requlred to provide financial information and operating claim pursuant to this Section. The financial Information and operating data to be provided pursuant In this Section may be set forth in full In one or more documents or may be included by specific reference to any document (Including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NBI61SIR and any SID or filed with the SI;C, sx. ? I Ili) Material Lv en(ND(icez 1'1ht Issuer shall notify any SID and eitber ash NMISIR or the MSRB, Ina timely mrnner, or any of the rolluw ing n eats with tespcd to the Bonds, if such sent is malaria) w (thin the meaning or the federal securities laws: r 1 Frincipal and intees+t payment ddinquendn; 2. Non-poymcnlrelarcddctiuhs; a 1 ,1. Unscheduled drausondcblmmiceresenestellectingfinancial diKcu!ties; I t f 4. Umcheduteddrams oncreditenhancementsreflecting fin.wialdifficullies; ! 5. Substitution of credit or liquidity raiders, or (heir failure to perform; A L' 'J1 6. Adverse lax opirlnms or events affecting the lax-exempt status of d+e Bonds, 7, hiodifieations to rights of holden of the Bands; 33 I ?h~~Q 32 x~C~ r 0 alarm • a % f4 g. Bond calls; 9. Dcfeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds; and If. Rating changes. e The Issuer shall notify any SID and either each NRMSIR or the AISRB, in a timely manner, of any failure by the Issuer io provide financial Information or operating data in accordance with subsection (a) of this Section by the time required by such subsection, (c) t imitations Disclaimer, and Amendments, (i) The Issuer shall be obligated to obsene and perform the covenants specified in this Section for so long as, but only rot so long as, the Issuer remains an 'obligated person' with respect to the Bonds A ithin the meaning of the Rule, except thal the ksuer in any event will give the notice required by Subsection (b) hereof 111 err any Bond calls and defcasance that cause the Issuer to no longer be such an 'obligated person". (ii) The provisions of this Scut ion are fur the sole benefit of the registered eu ners and bcarfrcial ovs tiers of the Bonds, and nothing in this Sat ion, express err implied, shall give any banerit or any Icgal or equitable right, remedy, or claim fl hereunder to any other person. The Issuer undertakes to provide only the financial Information, operating data, financiat statements, and notices which it has rxpressly agreed to provide pursuant to this Section and does not herehy undertake to provide any other information that may be rclcsant or material to a complete prescnlation of the Issuer's G~ Financial results, condition, or prospects or hereby undertake to update any information provided In accordance with t this Section or otherrise, except as expressly provided herein, The Issuer does not make any ieprescmmion or e ur W-ry ccnecming such information or itsukfulness to a decisinn lo invest in or sell Bonds at any future date. (iii) UNDI. R NO CiRCUSISTAN'CTS SIIALL'ME ISSUER BE LIABLE TO LIFE REGISI FRED OWNER OR BF.NE11C'IAL. UN'NERCFANY BOND Oil ANY On ILA PERSON. IN CONTRACT OR TORT, FUR DAMAGES RLS111 ING IN %WOLE OR IN PART I RUM ANY WIFACH BY 111E I5SL1R. 'HIES III,R NI:GLIGLNT OR NI IIIOUF TAUL.T ON I IS OART,Of ANY L(M NAN I SPECII'If~1) IN THIS SLC'TION, BUT EYERY RIGIIT AND Rri Nlf:DS' ll I' ANY SU('I PfIRSUN IN CON] RACT OR 1 OR 1, FOR OR ON ACCOUNT OF ANY SUCH DREA( 'll SHALL BE LLht1TED TOAN ACTION FOR MANDAMUS OR SPECIFIC I'MORMANCE. (k) No default by the Issuer in ol,sering or performing its obligations under this Section shall comprise a breach of or default under the Ordinance for purposes of an) other rruvision of the Ordinance. Nothing in Oils Section is i intended or shall act to disclaim, Mai e, or otheruise limit the duties of the Issuer under federal and state securities laa s. (x) The prmislnas of this Section may be amended by the )suer from time to time to adapt to changed cireomatances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or t)pe of operations Of the I?giwr, but only if (I) the provisions of this Section. as so amended. Mould have permitted an underwriter la purchase or sell t 1 r Bonds in the primary offering of the Bonds in compliance with the Rule, liking into account any amendments or imerprctutuns of the kule since such offering av well as such changed eimumslances and (2) either (a) the registered owners of a ma)ority in aggregate principal amount fur any gtealcr amount required by any other prusisioa of the Ordinance that auihorircs such an ` amendment) of the nutslanding Rondo consent to such amcddmcnt or (b) a person that is tmaff hated with the Issuer (such as { nalionully rccognifed bond cuunvll determined that such amendment will not maletiall) impair the interest of Ore wgislereJ ` oows and beneficial owners of the Bonds, If the Issuer so amends the provivions or this Section. It shall include with any t" anicnJed Financial information or oper fang data next prosiJaJ in accordance with subsection (a) of thlg Section an exrlanation, r in m irative form, of the reason rot the amendment and of the impact of any change in the type of Financial information or opcraNng dale so pros idcd. the Iswct moy also amcnJ M repeal the prig isions of this continuing disclosure agreement if the !f ' M I' ameuds or rercals the arplkcabte ProO,ion of the Rule or a court of Final jurisdiction cMCrsjudgmenl that such provisions of the Rule sic ins nhd. but only if and to the evtcnl thin the pros liking or this sentence would not present an undvmriter from I,notulty purcbaring of wll!ng Dondv in the prinutry oflcring ofthc Dodds. ( i idi Dclinawnl As ti •d in Oils Swion. tha kdluNing lennshave the meanings avtibcd to such h•nns Ik out f N1Skf1" meets the kfunielpal S"urmo Ruleniuking Board. 1 j r "N'k\tclk" means each rer4n whom the SI,C of its staff has determined to be a nulionaBy recognized municipal I7 e srcurides information repository within the meaning of the Rule from time hr time. 'Rote' means SIC Rule IM-12, as amendeJ from time la, time t yty I ~f I ~ 34 ?5 1❑ 32 xI ❑ o , I "SEC" means the United States Securities and Exchange Commission. "SID, mans any person designated by the State of Texas or an autiwritnl ftwimenl. officer, or agency thereof as, and determined by the SEC or W staff to be, a state information depository within the meaning of the Rule from time to time I. f URI HER PROCEDURES. The Mayor of the Issuer, the City Secretary of the Issuer, and all other officers, employees, and { agents or the Issuer, and each of them, shall be and they we hereby expressly authoHted, empawered, and directed from time to + time and at any time to do and perform all suO"and things and to execute, acknowledge, and deliver In the rame and under the corporate scat and on behalf of the Issuer all such instruments, whether or M herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Bond Ordinance, the Bonds, the sate of the Bonds, and the Notice of Sale and Official Statement; and the Director of finance of the City shall cause the expenses of issuance of the Bonds to be paid from the proceeds of safe of the Inhial Bond or from other Is%fully available funds of the Issuer. to 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 newtheles be valid and sufficient for all purposes the same as if such oRcef had remained in office until such delivery. i. t l j i I t f M 25 x❑ 32x RAIIIIIIE& aeetaa o TAX MATTERS ortxnav On She date of initial delivery of the Bonds, NICCSIl, Paruburst &I lotion L,L.P., Dulls, Texas, Mond Counsel. will 1 render its opinion that In accordance with statutes, regulations, pubtishod rulings and court daislons exlsting on the date thereof, (t) ! itnerest on the Bonds for federal income tax purposes will be excludable from the "gross Income" of the holden ihn'eof and (2) the Bonds will not be treated as "prkate actoiry bonds" the htterust on which would be included as an alternative minimum tax preference hem under section f7(&X5) of the Inicmal Revenue Code of 1986 (the "Code"). Except as slated above, Bund Counsel 1l ! will repress no opinion as to any other federal, state or local lax consequeric s of the purchoee, ownership or disposition of the s' Bonds. See Appendix c • Form of opinion of Bond Counsel, In rendering its opinion Mind Counsel will rely upon (el the Cit)'s no-arbinage cenificate and (b) covenants of the City with respe t to arhitroge, the applicutian of the proceeds to be received from the issuance and sale of the Bonds and certain other manes, failure of the City to comply with these representations or covenants could cause the Interest on the Bonds to become Includable in grass ` Income retroactively to the day if issuance of the Bonds. I The law upon which fond Counsel has based its opinion Is subject to change by the Congress and to subsequent judicial and adminimratise interpretation by the courts and the Department of the I-rcmury There can h no assurance that such law or the interpretation thereof will not be changed In a mannerw hich would adversely alTW the tax treatment of the purchase, ownership or d i sposition of the lands f rnr;RU, f x(bx1F. Tll AKm\YtVG TRCAtxfF:3T OF Oatctxxt li'tit [ DIKOI']Y, , . The initial public olering price to be paid for ~ one or more maturities of the Bonds (the "Original Issue Discount Bonds") mey be less than Ilse principal amount thereof. In such event the difference K*I%ecn (i) the amount payable ad the maturity of each Original Issue Discount Bond, and (ii) the Initial Offering price to the public of such Original Issue Discount bond would amrtltute anginal issue discount with respect to such original Issue Discount Bond in Me hands of anv owner who has purchased such Original Issue Discount Band in the initial public offering of the Bonds, Under « Wing taw, such initial owner is entitled to exclude from gross income (as defined In section 61 of the Codc) an amount of income with respect to such Original Issue Discount Bond equal to that portion of the amount of such original issue discount allocable to the period that such Original Issue Discount Bond continues to be owned by such owner, For a discussion of certain collateral federal tax consequences. see discussion set forth below. In the rent of Use redemption, sale or other taxable disposition of such Original Issue Discount Bond prior to state) maturity, however, the amount realised by such owner in excess of the basis of such Original Issue Discount Bond In the hands of such owner rm(justed upward by Me portion of the original Issue discount allocable to the period for whlch such original Issue Discount Bond was held by such initial owner) it includable in gross Income. Under existing law, the original Issue di wcurn on each Original Issue Discount Bond is accrued daily to the stated maturity thereof lin amounts calculated as described Wow for each six-month period ending on the dale Warr dse semiannual anniversary doles of the data of the Doads and ratably within each such six-month period) and the accrued amount is edged to an initial owners basis for such Ohlginal Issue Discount Bond for purrous of determining the amount of gain or loss recognlied by such owner upon the redcmptmn, sale or nUrer disixrsitiun thereof. the amount to he added To basis for each accrual period Is equal to (a) the sum of the A issue nice and the amount n£ original issue doenunt accr od to prior NtWs multiplied by the y lcld to %ruled maturity (detatrsined oa the basis of eumpaunding at the (lase of each 3ttma1 period and properly adjusted for the length of the accrual period) lac (b) the amounts ray able as current Interest during such acetuul period nn such Bond. The fcder0 income tax consequences of the purchase, ownership, reskmrtion, sale or other disposition or original Issue 1)ienrunt Bonds which arc mr purchased in The initial offering at the initial offering price may be detetminod according to rules which diner .v from those deer ibmd ab+sw e. All owners of Original Issue likiwnl Bonds should consult their ow n tat ads Isois w 1rM "pat o the ) deletmination r ~r federal, state and 10,31 income tax ,urroscs of the treatment or interest accrued upon redemption, sale or other f s 1 ` dort+stion orsoeh fhigina) Tssuc Discount Bonds and with resrcet to the federal, state, heal and fimign tax consequences arrive ! rurelixw owncrshir,rcdarnplion.mleorotherdisposdionorsuchOriginal lssucI)iscuuntBonds, 76 i ~I w 10 32 x 1b s tt.araatn o COLLATERAL FEDEaAL ISMIE TAS COVSE01.'ISCES The following discussion is a wnmary of certain eollalcral federal ( income tar conseque. ces resulting from the purchase, ownership or disposition of the Bonds This discussion is baud on existing 1l statutes, rcgulallons, published rulings and court decisions, all of which are subject to change or modification, retroactively, The following discussion Is applicable to inveslum other than those who are subject to spedd provisions of the Code, such u financial Institution-, property and casualty insurance companies, life Insurance companies, Individual recipients of Social Security or f Railroad Retirement benefas, owners of an Interest in a FASIT, individual claiming and tamed Income -relit, certain 5 corporations s with Subchapter C earninals and profits and taxpayers who may be deemed to have incurred or continued Indebtedness to purchase tax-exempt obligations INVESTORS, INCLUDING THOSE WHO ARE SUBXCT TO SPLCIAL PROVISIONS OF THE CODE SHs1LT D CONSULT 11IEIR OWN TAX ADVISORS AS TO 71IE TAX TRFATMENT %MCH MAY BE ANTICIPATED TO kESULT FROM 111E PURCILASE, OWNERSHIP AND DISPOSITION OF TAX-FXFMPT OBLIGATIONS BEFORE DETEMIiNINO MIETIfER TO PURCtMF.1'1IE BONDS. 111 Inw est on the Bonds will be inclodahte as an edjusonent fa "adjusted earnings and profit+ to calculate the altemstlve minimum out imposed on corporations by section 55 of the Code. Section SS of the Code imposes a tat equal to 20 percent for corporations, or 26 percent Wr honcorporale taspayers (28 percent for taxable income exceeding S175.000> of the taxpo)ces "dtcrnatfvt minimum uxable income." if the amount of such alternative minimum tax Is greater than the taxpayers regular income ta% fa die taxable) cc, Interest on the Bonds Is Inc Iudabk In the'shcmative minimum taxable income" of a corporation (othes than a regulated investment f company or a real estate Investment vest) rot purposes of determining the ermironmemW lax Imposed by section 59A of the Coda Section 59A of the Code imposes on a corporation an ttvironmental tax. In addition to any other Income tax imposd by the Cude, equal to 0,12 percent of the excess of the modifies alternative minimum taxable Income of such corporation for the taxable )'ear over $2,000.0w. Inicresl on the Bonds may be subject to the "branch profits tax" imposed by section 881 or the Code on the effedivehytonnecled earnings and profits of a foreign corporation doing business in the United States V` Under section 6012 of the Coda holders of tm-exempt obligations, such m the Bonds, may be required to disclose Interest received or xcrucd during exfi taxable year on their returns of federal income taxation, Section 1176 of the Code provides for ordinary income tax treatment of gain rccognilcd upon the disposition of a tax-e.(empt ' obligation, such as the Bonds. if such obligation was acquired at a "market disem'nt" and if the fixed maturity of such obligation is equal lo. or exceeds, one year from the dde or issue. Such treatment applies to "market discount bands' to the extent such gain does rled discount is Ignored. and exceed the accrued marled dirounl of such bonds; although for this purpose a de minimis torment ofma + A'markd discount bond" Is one wfiicb Is acquired by the holder at a purchase price which Is less than the stated redemption price at maturity or, in the case of a bond issued at an original Issue discount, the 'revised Issue price" (it, the issue price plus accrued original lssut discount). the 'accrued marled discount" Is the amount which bean the same ratio to the market discount as the , number or do) 9 during which the holder holds the obligation bean to the number of days between the acquisition date and the final ' maturity date. STAtr. LocAL Axo Fotsrtev TAus... Investors sbould consult their own tax advisor coneendng the tax implications of the purchase, ownership or disposition of the r1onds under applicable soak or local laws, Foreign Investors should also consuh their own tax ad0virs regarding the sex consequences unique to Investors who an nor U700 States persons. j" G~ S • e ' i f 17 1 I 2 5x~~ 32X C7 0 • o OTNER INFORMATION RATINGS The prescmly outstanding Utiliy System revenue debt i f the City Is rated "A I" by hfoody'a and 'A+' by S&P, The City also has issues outstanding which toe rated'Aaa' by ltloody's and 'AAA" by S&P through insurance by various commercial insurance companies. Applicwlio nb for connact ratings on this issue have been made in Moody's and S&P. An esplanation of the significance of such ratings may be obtained from the ctxmrany furnishing the rating. lOe ratings rcfied only the resrttlive news oC such organizations and the City makes no representAiun as to the appropriateness of the faringv. There is nr asssannce that such ratings will continue for any gas er period of time or that they %ill not he revised dou nwarJ or %ithdraun entirely by either or Kith f of such rating companies, if in the Judgment of cithn or both companies, circumstance so inerrant. Any such doA nu and revision or i u ithJraw'al of such rating, or chh-s of them, may has a in ad%rise effect on the market price of the [fends IAI IG.AT tow li II is the opinion of the City Ssait that there is no pending litigation Against Ik City that would hove a materia.' adverse financial i impact upon the City or its opcralions, R rt,1 sTlullow A,n QC AtltIC 4I1G% at Hoops Foli S,ku 1 be sale of the Hands has not hrn regislered under the Federal Securities All of 1933, as amended, in reliance upon the evempi ion i provided thereunder by Secton 3(a; T)', and the bonds have not been qualified under the Securities Acl of lcvas in reliance upon IF vatisssas exemptions conlained therein. nor hart the Bonds Mn qualified under lbe securities acts of any Jurtsdioion The City assumes no tesponsibilit) for qualifcati in or the Hinds under the securities laws of any }urisdictiun F which the bonds may k sold, l msstgncel, plcJgcd, hyP-lthecatcd m' of rruiu transferred. lOis diwiaimer if responsihility for lualificulion for We or other } disposition of the [lends shall nit be cuns;rucd as an interpretation of any kind u ith regard to the avai ability of any exemption from { i securities tegislralion provisions. F 1.F C At. I M LS1 SI F.? 1 S AND El IGIRI I IT t 1 o StCI'kt. PI RI ll Fl ,ns I AT I'A AS Section 9 of the Pond Procedure Act provides that the bonds "shall constitute neguliable instrvrncmt, and we investment sctmrities gnvemed by Chapter A. f even trnirorm Cranmricial Code, nutu ithstanding any pro, ishms of law' (it court decision to the contrary, i and we legal and authorized ins estments for bwIs, sax ings hanks, trust comranies, building and loan association, savings and loan association, insurance comranic% fiduciarie, and trustees, and ror the sinking fund or cilie, Inuns, v illage, school districts, and whet poluical bubdMsions or public agencies if the State of Texas". The Winds are eligible to secure dcpnits of any rublic funds of the suite. its agencies and political suhdoislons, and sic tegal security for Illi deposits to the evtcnl of their market slue. No j review by the City has ken made or the taus in drier states In deter-nine whether the fronds are legal ircestmeini for various h institutlnns in thorn stmcY Ltt;m %tx'rlFRS , the £'ity a ill rumish a complete Iranwnpt of procceduip had incident to the authorirniom and issuwhe if the llonds. inclvding the unquahficd approving legal opinion of the Amnmey Beneral of I cvas apprnv ing the lnilial Bonds wed to the clTecl that the HomJb xe I valid and Ic•gully hinding nbligallons uFthe City- and hosed upon « amin,•airn of such iranscripl orpruce:ding, the approving legal orinism if Bond Cooorel, ti hie clTeet and to the clfeci that the imcresl in the IkmJs will be escludablc from groxs Income of the owncrb ill the Ilinds for fedcrul income tan rurp,ws, subjvrl to Ape m,mc-m dcwrikd under "fax planers" herein. including ilne alierannsv minimum tux in corp!ruinr.s. 1 hecustsman dosing rapers, including It cenificnte to the erred that no litigation of any rs, ri his riven f lcd or is then prndmg to restroin the islli and delis cp if the Bond, or w hieh would alTdl the Provision made ha their pq nwil or severity, it in am miner que,,tumtng tie vahdd) of wid ITonJs will 01w be furnished Mind Coumcl was nod , reqursrcJ ra puticgiare, and did not take part in the preparation of the oniciai Statement. and such firm has not assumed any rv,p ails ihty with resped 1110M) ur undcd.den n&renJcntly to vrnfy any if the Infonnotion cunlaned Ihercin, evccpt that in its capaaty as hind Coun.cl, wuh [inn fire To icweJ the mfunnution under the eaptiima "flan of I'immcing." "fk Ponde (eveerl firr the Vnlornimion under the subcaptinn Took•Fntgd7nly S)stcm"I. "Ius Minos." wiJ the autmiplioni A egal hfaiiera" and "Legal lmectmcnts and I ligibilily In Socrpe Public Lends In Texas" and such fen h or the opinion that the information describing tk Hands and rn w is of law contained under such captions in all milted ads re4vos otturatdy will fairly refoct The prey isirns thereof 1 he Iceal fee to be paid Nind C'ounwl for sexIces rendered in connection with the Issuance of the Ponds Is conlingent on the sale + 3 and dchi cry of rte Pandv ilia h•gal opinion w itl accompany the Ilonds dipssued u ith D T C• or mill he printed on the bonds in the o , tt ocntorthe discontiummve of dk lks!k•I'. ntry-Only bystcm. I] R K' 0 3210 M " 0 sattaaRRS o 1 1714ma9 " Al'71IMIC'ITV of FINAWLAL D M AND OTHER t% DR44TION The financial data and other information contained herein have been obtained from the City's records, audited financial statements and other sources which are believed W be reliable. There hi no guarantee that "of the assumptions or estimates contained herein will k realized. All of the summaries of the statutes, documents and resolutions contained in this Official Statement are made r, subject to all of the provisions of such statutes, documents and resolutions. new summaries do not purport to be complete ` statements of such provisions and reference is made to such documents fur furhn information. Reference Is made in original , ` documents in all nnM-ti CON T l%t tsO Dm LOStRE OF INFUMIATION to the Ordinance, the ('pry' has made the following agreement for the benefit of the holden end beneficial uwmen of the Bonds (see { "Selected Provisions of the Bond Ordinance"), lbw City b required to obsent the agreement for so long as it remains obligated to 1 advance furvds to pay the Bonds. Under the agreement, the City rill be obligated to provide certain updated financial eurtnation and operating data annual;y, and timely notice of specified material events, W certain information vendors. This information will be available to securities broken and others who subwn''he to receive the information from the vendors ANNI At RrPosis ...lira City will provide certain updated finara:lat infortaion and operating data to certain information vendor annually. The information to be updated includes all quantitative financial information and operating data with resped to the City of die gcneml type included In this Official Statement under the captions "The Cltilit; System", "Debt Senice Requirements" and "financial information", as rell"d in Tables numbered I through 14, imlusim and in Appendix B. The City will update and provide Denis information within six months after the end of each fiscal year ending in or after 1996. The City mill provide the updated information to each nationally recognized municipal securities information reposRory' ("NRM5BV) mid to any slate information dcpusitory ('SID") &A is designated by the Stale of fnw and approved by the State of Texas and approved by the slag' of the United States Securities and Exchange Commission (the "SEC'), - the City may provide updated Information in full text or may ir:orporaic by reference certain other publicly available document,, as permitted by SEC Rule M2-12 . The updated information will include audited financial statements, if the City commissions an audit and it Is completed by the required time. If audited financial staterrwnts are not available by the required time, the City will provide audited financial slalctnents ahem and if the audit report becomes available. Any such financial statements will be prepared in accordance with the accounting principles described in Appendix B or such other accounting principles as the City may be required 0 to employ from time to time pursuant to state lain or regulation. The Pity Trent fiscal year end is September 70, Accordingly, it must preside updated information by Manh 31 in each )ear. unless the City changes its fiscal) car. If the City changes its fiscal year, It % ill notify cub NRMSIR and any SID of the change. S1+ts.Rt:u. Ev FNT NrrN FS... ibe City w111 also provle tirnsly notkesof certain events W certain information vendors. 1'hc City % ill prom ide notice of any or the following nenb with respect to the Bonds, if such event is material to a dmislon to purchase nr sell 1kn4s: (I I principal and inicrest payment delinquencies', (2) non-pa) ment related defaults; (3) unscheduled drags on den sets Ice (S m"Clri x mlleciing financial dinicuhia; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (d) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tar opinions or events af&cting the taxtyempt lIII st.mus of the Bonds: (7) mMificutions to rights of holden or the Bonds; (N) Bond calls; (9) defeasarwim (10) release, substitution, or sale of proNrty sccuti i; repayment of the Bonds; and (11) rating changes. Neither the Bonds nor the Ordinance make any pros Non for credit enhnnccmnu, or enhancement liquidity. In addition, the City will provide timely not ice or any failure by the City to provilc ~nfomwtion, data or financial statements in mccordance with its agreement described abuvr under "Annual RepurW The Dry will provide each notice dcscrihnf in this paragraph to any SID and to either each NRMSIR ar die Municipal Securities Rul iti.Lng Bi1jrJ(" SfSRd") " S As'AitA01[ I Ix OF INIOR%IMON I9O+I NRNISM kND SID... The City has agrctd to provide the foregoing Information only to NRMSiRs and any MD. the infunmuion will ht av ailable to hoims or Bonds only if the holders comply a ith the pmxcdures and pay 11x charges established by such information t end,ms cr ohtaim the Information through securities broken who do so. I he Municipal AdOwr) Council of Texas has Men dosignaleJ by the State of terms and approved by the SEC staff as s qualified SID. The address of the Municipal Advisory Council Is 600 West Nth Street, P. 0. Box 2177, Awflit, Texas 76766- 177, and Its telephone number is M AI'"947. I,rsu rAUONS AND kM1AD+IFV1s , The City has agreed to update Information and to provide norkes Of materiel nents only u do aribrd alNna The City has not agreed W pan We rather Information that try bv: rclevara Ministerial W a compldc presentaf ion of 0 its inancidl results of operrtiunc condition, or prospnis or agreed to update any Information"Is presided. except a described Rho C. The City makes no wri cscotation or want) CWtming such Information or COMM1111 Us ILVefulnesy In a decision to ime,t In or sell Ikmds at any future data The City disclaims any contractual or tort liability rot damages resulting In whole ot in par 1 )9 I ' - 2fi K ~a 32X~[I • o ' ~ao~rna from any breach of its continuing disclosure agmment or from any statement made pursuant to its agreement. although holden of rfond, may seek it w rit of mandamus to eompid the City to comply with its agreement. The City may amend its continuing disclosure agreement to adapt to changed clrcumslanees that arise from it change in legal Ii requirement,, a change in law, or a change In the identity, nature. stators, ar t; Lw ~f ,.perit6ons of the City, if (1) the agreement, as amended, would bare permitted an underwrite to purchase or sell Bonds In the offering described hoein In compliance with the Rule, taking Into account any amendments or interpretations of the Rule to the dale of such amendment, as well as changed Fj circumstances, and (2) either (a) the holden of a m4mity in aggregate principal amount of the outstanding Bonds consent or to the 1`I{ amendment or (b) any person unaffiliated with the City (such v nationally recognised bond oounseq determines that the amendment will not materially Impair the interests of the holden and beneficial owners of the Bonds, If the City so amends the agreement, it has agreed to Include with the neat financial information and operating data provided In accordance with its agrrement described abase under "Annual Reports" an explanation, In narrative form, of the reaiom s for the amendment and of the impact of any change in the Is N of f naneial information and operating data so prm ided. tt COx1PL1!LVCI x II'll PRIOR UYOLRTAMNO... The City has complied In all material respects with all continuing disclosure l~ agreements made by it In accordance with SEC Rule 150.12, t I FLxA~CIAL AovLOR i t First Southwest Company Is employed v Financial Advisor to the City in connection with the issuance of the Bonds. The 1if Financial Advisor's fee for %oniccs rendered with respect to the We of the Bonds Is contingent upon the Issuance end delivery of the Bends. First Southwest Company may submit a bid for the Bonds, either Independently or as a member of a ayndicue !f i f j organized to submit a bid for the Bonds. First Southwest Company, in its capacity as Financial Advisor, his relied on the opinion of Bond Counsel and has not verified and does not assume any fespnosibiiity for the Information, covenants and representations contained In any of the legal documents with respect to the federal Income tat status of the Bonds, or ibe possible Impact of any present, pending et future actions taken by any Itglslative or judiclal bodies. In the normal course of business, the Financial Advisor may from time to time sell investment securities to the Chy for the Investmenl of bond proceeds or other funds nr the City upon the request of the City. CERI1TICA11ON OF 111E OM IL STATLNLVT B At Use time of payment for and delivery of the Bonds, the City will famish a certificate, executed by proper offcerx, acting In i~ their official capacity, to the effect that to the best of their knowledge and beliet (a) the descriptions and stalemenis of or pcnaining 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 Bald bonds and flit acceptance of the best bid therefor, and on the date of the delivery, were and are true mid correct in all material rLV. nis; (h( in.eofar as the Coy and its affairs, including its financial alTain, are concerned, such Official Statement did not and does not contain an untrue stulement of a material fact or omit to state a malcrial fact required to be stated therein or necessary to make the statements therein. in the light of the circumstances under ij 1V which they were made, not mlSleadingi (c) insofar as the descriptimns and stalcment,, including financial darn of or pertaining to emit:cs, other than the City, and their eslivitiCs contained in such Official Statement are concerned, such Nalements and date hate bccn obtained from sources which the City hclies es to be reliable and the City has no reason to Believe that they are untrue In any material respect and (d) there has bccn no material adverse change in the financial condition of the City since the date of the Iasi audited I'mancial statements ofthe City The Ordinance authorising the Issuance or the Bonds will also approve the form and eoatent of this Official Statcnnent and any addenda, supplement or amendment therclo, and authorise its further use in the reoffering of the Bonds by the Purchaser. f i I JACK B1I11FR Motor • City of Maim Tc%a3 Al"1151': h I JE(NNII'LR WAIAI:RS City Secretary jt ! "s Ao 3: `W, 32x Q p I MINIM I' APPF\UIS A GENERAL moRMAMN' REGARDING THE MY I Amsrlno DENTON I ■ Forl Worths ■Dsnas i++ I Paso i A Austin ■ ■ Houst San Antonlo a I • • i i 17 x to . 3zxlo 0 THIS PACE LE Pr BLANK INTENTIONALLY i lit { Ili lit, 2 5x10 32X d s ata*" o Wes. l ocatioN The City of Denton Is situated in the northern portion of the Dollas'Port Worth Consolida'td Sufis ical Area (CMSA) the City is orfi6ally a part of the Dallns'Fort Warth metropln, and b situated at the apex of a triangle based by D}ullas (38 miles to r the southeast) and Fort Worth (36 mile to the sauthwnt). The City has csttllent access to and from all parts of the area 1 Etovowi , Denton is in the midst of a rich agricultural and IiveRock area; the hub city of Tna1 new "Land of Lukee region, which provides Denton and neighboring cities with abundant water for municipal, indusuial and recreational purposes; One of the three major university centers In Texas; I I be home of Jiversi reed ind ustrial Interests, The site of the Nation's first underground Control Center of the Office of Emergency Planning and Office of civil and Defens. ` Mobilimlion; one orthe key cities In the economically significant DallmConsclidaled lvicuopulitan Area Rr(rNi UF.v1.t.bpxtC.YtS . , Recent events should have a positive effeci on local economic conditions. The 12t sales tax to reduce property tax took effect In January, 1994. Sales tax receipts grew from $11,105,821 at September 30, 1996. to 512,139,976 at September 30, 1997. • Intcmational Isotopes, Inc„ a radioisotope manufacturer recently purchased an 80,000 square foul building previously occupied by Union Camp. In addition, the company (s constructing two new buildings (valued at appruximately $5 ! million) near the intersection of Woodrow Lane and Spencer Road. The new buildings will be the first to mcupy the 1 North Texas Research Center. Ancillary operations, such as pharmaceudcal companies and medical equipment sill manufacturers are npected to follow. The company will manufacture radioisotopes to be used in nuclear medicine diagnostics and therapeutics • pint financial Resources completed constmcilon of a new ofice facility on Kimberly Street. The new facility is : 111500 square feel and valuedat approximately $98700. e Morrison Sif ;ng completed a 7,500 square foot office expansion, valued at approximalely 5525,000, at their facility located on past Prairie S1rect and Bell Avenue. i • Ucvdopments at Denton Municipal Alrp m In Ocluber 1997, Nebrig & Associates relocated its aircraft brokerage finer from Wins Loves Field to their new hangar and offices at Denton Municipal Airporl. The airport's newesl development p-cjnt, Ilangar 10 flying Museum Is under construction and will open this summer. The museum has storage, display and ace facilites. Ezell Aviation assumed the full senice ISO (Fixed Uric Operations) at the r airport on May I, 1997. The Liell's have ostensive developmenl plans, which include remodeling and expansion of . , }I d,eir current facility to rruvide o pilot's lounge and restaurant. In addition, the Fiell's will consumer a new hangar for their warbird restoration operation. I Ilor(MI btanufac(aring, Tnc. moved into their new 39,960 square foot office and manufacturing facility located al 2200 Worthington. This new building is Phase One of a two-phase project planned by the company as It expands irs s operations in Demon. ' • New Armvncnt Complexes, Waterford at Spencer Oaks on Spencer Road 1278,000 square feet) i i • Hat 1 ricks Rullcr I ksctcy kink opened in September, 1997. The facility is 60,000 square fed and includes a rlnk, pro %hop. and concession stand. 'rhe new facility, located on Ma)hiil Road. F valued at arprovimalely 51,931,400, t • I lobby Lobby an Oklahoma City based retail crafts chain renovated 62,030 square feet of a building vacated by Wal Merl wh.u they constructed their new superstore. The arprnximae value of the Ilabhy Lobby renovation woes S12QINN1. 't I a Ikmlan Community I lospaal began a $6 million expansion that will Include facilities far operating moms and rccov cry areas, the expansion will be completed In Fall 1998. >r✓] I • Columbia Medical Center began cunstructilm on a $74 million, 186-bed hospital (272,(1(10 square fed) IcKaled on 1.35 I a,l at May hill Road, The new medical center will have a full-.ia rvice tmegency center the Ilcart Center of Denton w ill he local^.d In the new facility offering open heal surgery, coronary angloplasty, cardiac eaihderiration, cardiac rchabilitation, and patient and family s3rport groups. Also planned Is tsecupational medicine vpeclahrlng in injun A•I 1 Ili 2.5 10 32 X ❑ i ~~raaaata management. prevention medicine, and health suncillaoce and the Woman's pavilion spcclalianp in obstetrics, gynecology and pediatrics 0 Skyfah constructed a 22,300 square foot commercial metal manufacturing facility, valued at approximately $711,000. The new facility is located at 9070 FM 2181. a Locke W'holeule Suppliers moves! Into 32,000 Mua.•e fen of the building vacated by Wal Mart in May, 1997 when they construcred their new superstore a The Family Doctors built a nesv 11.300 square foot otiice facility on Teasley Lane valued at approximately l~ S I,100.000. a Teas hlotor Speed wayi The 1,200-3cre speed" sy complex has a 1.3 mile oval track and seating capacity of 163.1100 The facility cost approximately $100 million to construct. The speedmay`s m,ugural races mere held April 6 with the Coca-Cola 300 NASCAR Busch Series on April 5th and the Texas 500 NASCAR Winston Cup Race on April 6th. I a Anderson SIcrchandiscrs The new assemblyJwnrchoum facility (248,000 square feet) for the distribution of books, r music and % ideotepes opened in April, 1997. the building is valued at 53.6 million and employs approximately 300. a Denton County is nearing completion of construction on the new 181,000 square fad courthouse located at 1450 Fast i McKinney Street. the new facility' Includes 10 courtrooms, five district courts, iwa county criminal courts and one ~F mataory probate tour(, A IMtoom holding Jail mill occupy over I LO00 square feet of basement space The total If project cost is estimated at S 18,9 million Completion of the project is scheduled for March, 1998. a 17cntun County Juvenile Detention Facility expansion mill add an additional 72 bads to the current facility. A standardised pod configuration of 12 bedrooms per pod has been utiliicJ throughout the facility. Each pod also has its own shnmer, passive ddyroom and classroom, When the projost is completed in March,1998, the facility will have s total of 48 pre-adjudicated ju%cnile beds, 48 post-adjudicated jusenile beds and support facilities such as ilsitafon areas a Inicl Corporation plans a build a $1.3 billion new advanced logic computer chip-manufacturing center on 532 acres at Alliance. The Gtcility initially "III empouy 800, with the potential to groin its work.force to more than 5,300 people. , The plaul will he one of the must modern and sophisticated chip manufaeturing centers In the world. l a Rich Music. a full line musts store, mosed into their new facility located at 264 South 1.33 East in July,1997. the i 10.000 square foot building includes approximately 3,30(1 square feet of tenant space that is leased by Sit Speedy Priming, The facility I%vnluedat5438,015, a Adios Carpet broke ground an a new 15,0011 square fad facility located at 3f%l8 South 1.35 F►sl in Septemher.M97, l'he project is valued at 5490.(1(10 r a Iscst Westcm will locale their new 70-room motel at the inierscetion of 1.33 North and (lniver,ity Drive (behind e Cracker laurel). the total desclnpmeni mill include restaurant pad sites and other uses, Construction is scheduled to begin in carly 1998. 1 ' Lr uxrtxno sxo poll ts4utx GAtxs. , .louring Fiscal Year 198188, the City and the C'hontber of Commerce, in content brought 1 at,iut the expansion of the DulluT4;rl W'ortf. Commercial Trade Lrroc. This expansion was granted by the Slate Railnmd C'ommissiuo and "ill allow for greatly reduced slilpping costs In the Demon area f entno has Holed a consistent populatiim iacrk:ww and a steady monomie growth In N last four decades. I'mori%al fnfulation totals from lt. S. Census tovonls are' I I 1940 Census -11,192 1930 ('metre • 21,343 , 1960 Census - 26,944 • 1970 Census-39.874 • • 1980 Census • 49,079 1990 Census • 66 270 A•2 i~ 2 5x ~f] 32XIO 0 PAWL" I~ •sa>•isew 'the City's ascension toward a top rung on Texas' economic ladder is anrbuted partly to the steady influences of governmental activity which includes the) tat-bq•ytar expansion of the two Stato-supported universities, and partly because of such environmental r factors at its location in a dch agricultural region, some oil and gas prejuclion in the northwest section of Denton County, its I 1 inclusion in the ballas'Tott Worth hletroplex, its proximity to three of Texa3largest reservoirs (Lake Texoms is only 40 miles from j Dentonk its excellent highway and transportation facilitin, its mild climate. and the less tangible but Influential aspects of social, cultural and education advantages that hone prompted professional workers to choose Denton as a place of residence , Ivtn starxr R^nR[ United Copper Indusuie: will constw a new 420.000 square foot Integrated copper building wire plant and contiguous casting copper rod mill on a 90 acre she at U.S. 380 and Geesling Road along the eastern perimeter of Denton, Texas. The new Denton plant will produce the type of copper wire used in both non-residential and residential eonsttuctian. The i facilitywill also embrace a natioi,al disinbution center and the U.S. corporate offices of United Capper Industries. the projected l investment for building and equipment within the first year is $35.40 million United Copper plans to hire 260 people In the first )car and 800+ by year ten. . The project will serve as the flagship for a proposed first-class Industrial complex, The new industrial park u ill bc developed by the Trammell Crow Company. Construction will commence by Aptil,1998 with equipment to be installed and ready to begin operations by )anusry.1999. International Isotopes, inc. will construct a new biomedical complex in the new 500-acn North Texas Research park developed by NW Really and located between Woodrow lan,t. Bill S. Loop 288 In Denton. The complex will include its recently compiticd 27,000 square foot administration and reKarch and development facility, as well as its new 40,000 square foot radioisotope production facility on 21,6 acres. An additional 0 acres of land in the North Texas Research Center have been designated for the establishment of specialized pharmaceutical eompani.s, radiopharmacits and related senice companies for the ( ultimate manufacture, packaging and prompt distn'burlon to hospitals, clinics Brad research institutions. 1 _ The company is expected to create approximately 100 jobs within two )can with an annuol c„rmwed production of $200 LLL million. The project will establish Denton ass leader in the biomedical field. i ExtM.osxtrS1/L#,WK road . , . A plrntiful supply of skilled labor Is available to Industry in the Denton area The "pension of I lartzelf Manufacturing, the Anderson Merchandises, the addition of WA-Alan Superstore and the Lvwx's Stmt played a large part in maintaining the City's economy. The economic effect of the new Alliance Airport in Union and Tarrant Counties should provide future armomic expansion opponunitia. Alliance Airport is located 13 miles south of Denton on the Interstate Highway S)r'em 35 - Wcst Lmploymcnt figures for Denton County are is fullows: Average Annual 1997 1996 1995 1994 1993 1992 Cis ilian Labor Force 200,432 211,508 201,243 188,24) 180,309 171,583 i IDial Lmplo)ment 213,108 203,333 194,239 180,415 172,869 168,144 Total Unemployment $,221 5,973 1,006 7,828 7,440 8,841 , Percent Unemployment 2.4O% 2 80% 3.50!4 4,2O% 4.10#4 I &wnc benton County Workforce Centre. f~ vl i A'3 1 } 2.5 x ❑ 32XIO a d,awrarma . o ~I tSDI'slRa AND BCSl%r.M SIaJDr Cmpfoyen Approximate Number of Er,plo)er Nmription Emtoyces { Unheo'ity of Nortls Texas Education Facility 5,500 Denton State School MIIMR Faciliy 2,100 PocingEllctrunics Military Electronics 1,900 f Iknton Independent School District City School System 1,649 Texas Woman's University Tducation Facility 1,300 Pctcrbili Diesel Trucks 1,000 (city of Dcntun Municipality 1,000 f I ' Denton County' Municipality 925 1111 ' Columbia Medical Center IlospHall :11ealth. Care 950 Victor Equipmcnico, Welding Equipincin 675 Donlon Common ity h ospi tat I losp italA Ieal th Cue Soo Andrew Corporation Micruwase Antenna Manufacturing 490 Sally Reaut) Supply Reauty Supplies 395 hh'A:R"CMarket ingRResearch Telephone Suney,'hlarketing 364 General Telephone Electric Telephone Utility 276 Russell-Ncwmun hlaaufxturing Company Lingcrie Manufxteiring 150 r 1051en'5, Inc Class Rings 250 y rest Suite Bank I'inanciel Institution 250 Anderson Merchandisers Packaging"A"arrhouse 200 Morrison MI l l imp 11our'Gnsin Mill 200 Acme Brick Brlckrrile Manufacturer 190 fknion Publishing Company Newspapers 190 retra Pak Asertic Packaging 164 Radissin hotel and Eagte Point Gulf Course Ilotel,'GulfCourse 150 Triniq Industries, Inc. Fabricated Plate 125 I Iarvell Manufacturing Custom Plastic Injection lsloiding IN) Turbo Refrigeration therms[ Storagolcemnken III &vrc-c City of fknlon C'h:miber of Commence Cconnmic [kselupmeM Office, Cot c 41 ioN... lknton is the home of the it ersity of North Tom, roundel in 1990, and Texas Woman's Unircnity, founded in !Bl 1901 ({}}tt The Iwo unisersitics base a combined enrolimnit of appruvimately 34.000 !dudeno. and more than 6.900 faculty mcmhtts, i? Arprosiamlci) 2109) eludents arc enrolled in ca-cducalional Unlscrsity of North I'csm, This Unversity his a larger enrollment ~A Viso the combined enrollment of &wbcm Mcihodit 1'nismiq id Uallm Texas (hrklian University in Fort Worth, and Rice 1!niscrsit) at Iloueon. lexas Woman's Urdi, ni has an apprmimute enrollment or9,750, which Includes the Winton, Dallas and • housion kXwions, , the Uniscrsdy ul' Nonh 'Inns campus comprises a land wea of more than 4110 Dace valued in cvcv of $150 million. Me I l'mN •rsih embraces tight neadcmic units of colleges and schcx ls, and ulTm Ilachclofs degrees In 66 Gclds, bhushds dcgrccs in 113 Ig areas and Ikxtoml programs we in 45 dixiplines. icvas Wimrn s I miscrsity, a major Sate•eurportcd le,khing and resewch inhinilicm, is the Nalirni s largest unisenily fit carmen. - M ith approximaivly IJ00 faculty mcmhers, 91s percent of whom hold the Ikseloral degree or other appnsprime lerminal d~gtce In their field, 111l l stresses small daces, personal ,mention, and execlknce In leaching. lhrrugh its lot schools and eollegm I %W11 Weis pognams leading to du lixiscloes degree in 77 major was. the hlaslefs in 72 Gciek and the thsc9oral degree n 42 areas or spttialirafinn. Science research programs are eondtwted In chemistr), biology, physics, netrition, lexhlem, Ixnse mkroradioline u,d other rclatel Gelds A•4 I Ci I _ 25 X la 32 x~q e ' art1~'1 , 'iY{a9a1O ' North Central 'I'rvas College, established in 1924, opened a Technical Vocational Center in the Dwain sees ofrving Associate Ihgrces In Occupational Therapy Assistance. Criminal Jusiia, Mid-Management Training and Micro Computer Applications NC [C specialires in training geared directly to business and Industry needs I Approximately 12,788 students are enrolled in the Denton Ir lependent School District (DISD) for ;be 1997.98 school year. ! Students attend 16 schools, Including 1D elementary schools sgrades K-6), Iwo middle schools (7.8), Iwo high schools (9.14 one early childhood center and one alternative school, DISD offers classes at each school and at the Instructional center for 111 slidems Nho experience learning disabilities or handicaps Counselors, speech and language specialist. psychologists, and reading and diagnostic consultants are available for all grade levels In 1997, there were 327 high school graduate In Denton, of I which user 70'K have gone on to attend two- and four-year college and universities DISD boast a low dropout rate of only 1.7% rot the 1996.97 school )ear. The district is accredited by the Texas Education Agency and the Southern Association of Colleges and Schools from kindergarten through high school. Only 82 school districts have tamed than distinction on both the elementary and secondary Icsels. DISD students consistently exceed both state and national averages In list scores. An emphasis upon basic skills has helped students with academic. fine arts, vocatinnal and athtatic honors In district, state and national competitions. Amon Sune Schad . tl Is it,, of Amcrka's most modem and progressive educational Institutions. This Stato-suliponed eduacinnal institution fur mentally handicapped Texas residents is located on a 200-acrt site paid for by Denton citirens. he-wril facilities include 47 dormitories (including outreach dams) which accommodate more than 1,188 students, s buildings for physically handicapped children with a capacity of 6011, and a 32-hed acute hospital with supporting facilities such as X-ray, r laborraWry, dental, and pharmaceutical. In addition to these buildings, there is a modern adminlsmion building, an academic 111 building, a large laumby, a maintenance shop and a warehouse, The School hat I staff of 2,100, with an annual payroll in excess of S 18,0011,000. Af, all '1 t.it af... , Northw estcm Anton County is erne of the more di smilied agricultural areas In Texas With snit typo ranging from rich Flack to deep sandy loam, and good, soft artesian water, h is Ideal for diversified farsnirg and 1isssicxkPrincipal crops are cam, wheat, oils, hay grain sorghums and peanuts lkef cattle, sMep, chickens and turkeys contribute a substantial and steed) income etcry yr;xr to the farmers and ranchers of the County. A very significant concentration or valuable world champnm bursas and horse ranches, located immediately to the north and east of the City's corporate boundaries, provide it pruspcious economic resource For the City and area, products signifcanl to the economy are horses, beef, eggs ,wheal, grain sorghums, has, and nursery crops Ik%%SNA1iiiox.., litmun Is located only 20 mile northeast of the Dalian-Fort Worth International Airport, This facility began opcrulions in January, 1974, It Is the largest airport in (he United States, second largni in the world, and represents in Imcs:mcm in excess eFS700sm,000 In 1996 a record 38million passengers and more than 834,000 U.S. Ions of cargo Iraveleal to and ibrough DI N' Airport. In 19116, DFW opened their new cad runway, Increasing landing capacity at DT'W by $0 percent, the Iycnton MunkirAl Airport uses I full instrument landing system. The runway is 6,000 rect by 130 feel with plans to exlerd ( it an additional 1,30) feel. Isilos Lose Field, ran Worth Meacham rdcld, and the Alliance Airport are also located In close Pros im it) to [lie 01) Menton offers cumenicnt nccess to a well.developed and sophisticated regional transportation system. Amon Is located It the intersection of 1"o major trmepurtmion routes, U.S. Interstate highways 33F, and 33W, mi span the Dallas-Fart Worth v wore kdittn area Signific.mt economic deselopment is expected to continue u t-33 acmes ass major transportation link for o1crnanonat trade rcluted to NAFTA. 1.33 prut ides a north-south transportation ruule and U S. Ifighway 380 provides an east- _t west Iransportminc rouic, U.S, lllghaays 77 and 717 also sent lenten. • Ilia Kans;o City Southern Railroad and the Union Pacific Railroad pnnide daily scrsir: to Anton. Full stitching facinies arc _ s utail,ihle, providing direct access to ell ma)m markets across the nation Creyhoundrfrailwgs sme Anton through Dallas and Oklahoma( it) , Motor freight in Denton is included in the DT'W commercial trade rune and h screed by major Freight carriers. B o mm; I litre arc Light banks In the City Hank of America Texas N.A Hank CMe, Texas, N A.... First Stoic Bank of Icvm . Farmers A Merchants State this I he Pilot Point National Bank , PruvIdcnt Hank . Texas (lank Ouawl) F'cdcud Rank. I 16mk (fie constructed a new 4,000 square fsxu branch at the Golde, Triangle Mall, Texas Bank replaced its nrlglnat building on l IrnlsvO) Drive with a new 2,300 square ton branch, NatloneBank cliental I new branch on I.33 Fast In the Albertwn's grocery 0 , f shire J I A•3 2r)A10 32XIO 4D~1 o , aoara.. J Gkow111IHS1C'FS C'ky Stele ri.ww Building Permits o' Water Sewer El"Vie Unemplnymera Unernplo7mcnt Ii + Year Ccenmercial Residential TAW Customer Cusuturs customers Rates Rates 1993 f 30,620,964 129,285,720 f 39,106,614 17,817 15,942 17,956 6201% 7.00'16 1994 30,714353 33,793,717 64,110,070 16,250 16,331 200 6.000.16 64tr5 ' 1995 14.360,423 36330,111 50,x91,240 16,430 16.470 71,090 4.W6 6.11r54 1996 58,729,540 35,.186,711 9016,287 16,850 16,887 ?1,605 3.50% 9.wli 1991 41,085,721 50.784,468 91,170,195 17,288 17,272 32380 2.40!; 4 (1) NcwComtrustiouOnly. Mrote4l..., Denton has two hospitals Motors Regional Medical Center and BCA Ikntmt Community I lospitat with a combined total or 343 beds and 325 doctor. R(r kt.(tuly Lake Ray Roberts, located approximately Smiles northeast of the Ciq's corporate boundary on the Elm Fork of the Trinity River, I.s a major water colt" ation and flood control facility of more than 799,600 acre-fort of storage whlch provides an abundance 6 parks and other water and ovldoor related necrcali0nal facilities Major park fxilities on lake Ray Ro"'Acre completed in the fall of 1996, Nearby Lake Lew k%ille, one of North Texas' largest lakes. Is one of Teas' moot popular recreation I areas, lake Lewisville has a shore line of 183 miles located entirely In Denton County. We tewisville attracts over 3,cM10.000 v isikus to its shores annually the uppn reaches of the Lake we only about 3 miles east of the Iknion City Limits, while the dam Is 11 ~ 13 miles from downtown Cientun. Grapevine bake. another tege body of water mated by the U,S. Army Coq,s of Engineer-, b Iocutcd in Iknion and 1arranl Counties the dam is 23 miles Gum Dentim. RiVks and rocrcaticnal areas abound on the shores or I ake Ray Robert-, bake Lewlsvilfe and Grapevine Lakes [coaling, fishing. hunting, swimming and all water spurts are the favorite recreational panimes at the lake%'Ahick, because or this area's ravurable climate, are in use the )eat round. E(uvomw Kk%m%o 11x folluwing data win taken from Sales and hlarkeiing hfanagxme n 1996 Suncy or Bu) 'Ing power, dined August 1991, it ':of population Whose Age lc i® 19-24 24.80'. 1 25.34 17W I tk M-49 19.6(1°: $0 and Ovnr 18.000, Households 28,00 Msdian Household EfTwive Buying Income S 26,018 Total 1. frectisc!IuyingIncome S 974,429,000 3, of I fous<holds by I BI Croup 522000 • $34,9'M 21.40"4 r ' 535,000 - $19,999 15.30'16 fv , W' oandOvcr 22111'16 i4u)ing Powcrlndcv 0.0299 • Retail Sales $ 969,124 food 124,796 I'ating and Drinking 91,406 General Merchandise 131,351 Furnitute-Ilameturn ishings-Appliance% 38,747 Automotive 340,595 A•6 ~Q 32x~n 75 x 0 , I i . smawatw . i rr , i i. c ~ .V l °P Erp DLK g Jt EXCERPTS FROM HIE CITY OF DENTON, TEXAS ANNUAL MANCIAL REPORT For the Year Ended September 10. 1991 T'he Information contained in this Appendix consists of excerpts from the City of Urtan, Texas Annual Financial Report for the Year Ended September 70, 1997, snd Is not Intended to be a complete statement of the City s financial condition. Rdeteace Is made to the - complete Repnn rot further informulon, r l I I rr' . yJN 1 / I jv 1 tii 25 x10 32X~a O dOi~ ~1S1S L' I~ MIS PACE LEFT BLANK INTLNTIOYALLY f' I j I x c 32XIO I e a~a 0 *Rome ,I i Deloitte & Touche «P City Center Tower a Telephone i817) 3673300 Suite 2930 301 Commerce Street [ fort Worth, Taxes 76102 f. INDEPENDENT AUDITORS' REPORT The Honorable Mayor an/. Members of the of the City Council City of Denton, Texas We have audited the accom} anying general purpose financial statements of City of Denton. Texas t ("City"). as of September 30, 1997, and for the year then ended, listed in the foregoing table of t contents. new general purpo -e financial statements are the responsibility of the management of the City. our responsibility Is to exsress An opinion on these general purpose financial statements based on our audit. We conducted our audit in Accordance with generally accepted auditing sundards and the standards applicable to financial audits coastal red In Government Auditing Srandmdr issued by the Comptroller ` General of the United Stites. Those standards require that we plan and perform the audit to obtain 1 reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit Includes examining, on a test basis, evidence supporting the amounts and I disclosures in the general purpose financial statements. An audit also includes assessing the ` accounting principles used and significant estimates made by management, as well As evaluating the overall financial statement presentation. We belie a that our audit provides a reasonable basis for our opinion In our opinion, such general purpose financial statements present fairly, in ail material respects, the financial position of the City at September 30, 1997, and slit results of its operations and the cash (lows of its proprietary fund types for the )ear then ended in conformity with generally accepted accounting principles, Our audit was conducted for the purpose of forming an opinion on the general purpose fnancial e statements taken is a whole. The combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents, are presented for the purpose of additional analysis And art not a required pan of the general purpose financial statements of the City. These financial statements and schedules are also the responsibility of the management 0f the City. Such additional informstion has been subjected to the auditing procedures applied in our audit of the 1 general purpose financial statements and, in our opinion, is fairly sated in all material respects when considered in relation to the general purpose financial statements taken as a whole, 1 DeloittrTtwche TAvtsu 1 InternatlDnal 1 - 75 r• ~ 32do zv..ra 0 t~ I~ The statistical data on pages 113.150 art presented for the purpose of additional analysis and Is not a required part of the general purpose financial statements of the City. Such additional information has not been subjected to the auditing procedures applied In our audit of the general purpose financial statemems and, accordingly, we express no opinion on it. `I In accordance with Government Auditing Standards, we have also issued our reportdmed January 9, 1998, on our consideration of the City's internal control over financial reporting and our tests of its compliance wirh certain provisions of laws, regulations, contracts, and grants. LLI* January 9, 1998 { h I~ -261c] 32X atttttiltei 1 a -CITY OF UNION, TEXAS 1. E i. IR. i i 3 CamprMCndve Annul FlnanOW Maport a14 25 x./ 32xl~ I CITY OF DENTON, TEXAS f COMBINED BALANCE SHEET • ALL FUND TYPES AND ACCOUNT GROUPS f SEPTEMBER 30, 1997 r Odwrtvma oral Fund 7rou ASSETIAND OTHER DMI Gordis; Sp1m11 Aevaii Debt Service Capital Propcta Cash and aleppeitl (Note 21 f 317,147 1 662,260 162).323 1 1,003,440 1 ' Invaetri Mole 21 7.167,417 717.615 11,771 10,017.511 ! Recaly i tnel of 411c*s cas for unconubboasb Taxes 1,042,19 S Accounts Undded v41dy asMH Accrued intarast 45,031 13,521 160 109.150 Other 676,369 143,517 1,047 79,090 Due Ircm other fuMe Note 111 421,941 41,361 IS2,00 Due lrem other /ovirnmii 571,901 19,1011 Morcham iN inventory Pnprd items - Dolornd bond uwii forts - 1 Aestricled assets y` Cash and depoeitf Mw 21 !li Invaerritri (Note 21 Accrued Interest( ` Accounts receirebh 0u1 from ether funds Adwcos to other funds ~x I Fixed 191811 W. where aophcebll, 7 of occumulated depuciii INote 31 r r • Amounl avnleble in Debt Iii Fund Amount to be ptoPded lot rengmeM 'i of mn6 term liabilities Total Aorate Anal Other Di in 110,411,561 12169,261 6425,009 612,150,641 ICenhnurdl • The actomplny,n6 notes Id 6nii statements Ors an retii pan of this swomM1. • I 11 ,6. Combrahenslve Annual linai Aiii {1 1 r 2ix~ 32X o tlWt~tlll - f CITY OF DENTON, TEXAS Fduol" fwd Togs propdatwv Fund Types Typo Account Group4 (Memorandum OrOyl Ttuet lod General Fixed General 1.17 September 30, Sopteewet 10. eeeeee" 2nterpdee Internal SaNce Agency Assets Toms LJoblit of 1117 1111 1 201, 703 1 211,121 17,1!!,557 1 1 1 1,115,551 1 11 011,110 2,211,123 143,674 21,106,077 23,126.151 ( 1,041,185 1.0 14,160 I S.005.1131 17 1.005,335 1,071,9114 fI 6.775,310 1.776,340 5,562,sa4 I•. Moso 115,131 1,062,287 t,9o131f 11125.161 12,087 7.631 2,063,003 1,40/,071 32S 340 2111337 1,16 1114 12.113,122 f • 861,016 197,871 ` 711,411 2,017,319 2,004,734 2,701,354 V 1,174 1.174 113,3Ss 1,131,716 - - 1,139,796 1,221,226 111713,3111 140370 5423,721 3,913,101 56,531,614 1,634,177 106,413,711 67,361.751 S 345.257 345,297 357,012 r 1,161,745 - 1,166,746 ' 1,102,77! 3,711,734 2,711,784 4,131,761 / 111,115,115 7,124,711 - 111 ,64,621 308.133.112 21T,f64,21J . { 504,76 104,760 942,117 , r 30,131.190 HAM M 21,273,100 !I uar,sa3.352 /1a,975.n4 S3107,1u 1111,w4.n1 131,341,36 1501,246,441 1401354.411 - Commhonsivo Annual Financlal Rtbort j 25 x 32x~Q 0 , vwaltnu . I~ II CITY OF DENTON, TEXAS COMBINED BALANCE SHEET • ALL FUND TYPES AND ACCOUNT GROUPS ICominued) 1~ { SEPTEMBER 30, 1997 ` f Govemrrental Fund Types LlA01Lft1[S. E01.111Y AND OVISIt C11110IT6 0►nerer Special Ibanue Debt SerNce Capital Projects - lJobilwac Atti payable and seemed lis litlse 41,635,211 1 716.760 1 f 1.577.510 111 Ratoi payable 46 62,241 Aeeumuteted unpaid compensated absences 111,1014 4) 061 61,113 Payable from tostricted assets Aoicounts payable end sectued 8xpan4es 1i nape payable , Accrued Interest Rawnve and gametal obligation border pevable, currant (Note 41 Accrued interest Due to other funds (Note 111 1,032.013 5,901 3,0115 270,733 ,j Other liabilities 19,145 'i AdvanCes from other funds Deferred revenues 69,181 311.141 211.100 43.171 Leaess payable (Notes 4 and 51 Oanaral obligation bands payable (Note 41 CM4,41tes of Obligation (Rota 41 Ravanw bonds payable (not of bond discount) INcts 4) Claims payable INole 91 66 Now payable ;141 Landf0l eloture'peelclosure taste (Nets 131 t Total 1.41iIlities If,101, 430 11,121,450 1320146 91,103,110 (Cembnuedl The accompanying metes to linanud statements errs on integral pan of this statement. •t Comptshansles Annual Financial Report 77 ~I z x 10 32 xiC] s » vivo" t CITY OF DENTON, TEXAS Fduci4ry Fund 7ots11 hopnel" Fund Tyoos Too4 Acdount Groups IMemersndum 0mlyl ter. Trot sad Comed Food Goners; Long lapbm6er 10, 9epLmbu 30, IMerpm Informal 0eMCe Agency At4ete Term Lisbtbos 1997 1111 ! 7,171,564 !1,615, 171 01.1991752 6 1 1 16.7 1 10,130,146 • 62111 10,141 L 760.111 11,935 1,715,101 4.574,953 4,426.491 1,116,424 - 1,156$07 1,164,311 t 196,109 19,0.109 142,051 1 41,601 1.696616 I'lof.970 1,010,419 6,019441 6,011,661 6,001,132 21491 21,491 12,174 394,1)1 146,312 1,160.464 11,016101 . 29$45 2,441 1,711,714 3,111,714 031,719 619,411 147,999 11,270 - 16270 119,004 1 430171 71,900 24,217.999 14,711,730 11140,141 , r 7,111,064 1,346,029 1,160,104 11,001,291 12.114,541 16510,001 71,110,001 11,190,001 1.01),02) 1,017,017 1.126,401 1 p' " 31,141.IO3 31,241,201 31,313.611 S I 1.434320 1.424$30 1$00$61 , 1140.401.110 14 341,101 13.696797 1 031441,150 1116003,416 1107.621170 Comor4hsntlr6 Annual Fimvelml Ile0on I - M, - w shells 32xfrj 4 e 11.,6.. o , .dR06Mld 1 CITY OF DENTON, TEXAS `j COMBINED BALANCE SHEET • ALL FUND TYPES AND ACCOUNT GPOUPS ICdnduded! SEPTEMBER 30, 1997 I1 Govunmantal FUM Typu 111 UAUY S, EQUITY AND OTHER CREDITS OanuH Soed,al Rave%* Debt junta Capital Projects Funl ERUlty , ~ Contributed capitol • Im, tyhera applical of accumalatad dopeaclahenl ( l 1 1 Investment In general fixed 11tela INote 11 - Ratalmd urNnge • k ] I Aatansd lot bend ratirament NOW 4) Roomed for taptal prolactf 1l Raeemod lot fleet foolfcemant Mterved for le MflH rabrtmant 1 Ratervsd lot debt fabremtnt 1 Raurvad fat dumpster Rolacemant Rautvad far fall sublGratlon a! Ruarved far working eomul Ruerved fat emargancy Ptlerved fat *1111 lavost Ruervad for.n frtnrvc tuft linanaino . Reamed fm conbngamy Raolrved foe lutufa ala,me Reserved lot cepbtd construcben r Ruarvad for sulhon»d upfnd'uunt unruu+ad fund bolsncu . Roomed lop debt sunca 501,710 1 P Ruined top amumbta"ol 113.111 5711,511 112,102 it ' Ruernd for csp~tM Drepob /17/,62i r r Unrasofvad • 006iona!ad for eubuluent years' atpnndaural 111,741 . U Meegnated 6 171.506 491270 lapel Elvily End Other Crldib 7,776,417 1,013111 701.740 10,117,117 { 1 Total Gabilitiss. ElWly f i' • and 0011p Cradds 110A12067 12.Lri.2f1 172s.D07 112,ifi0,111 O • .et• Tna actomDanpn6 natM le fmMC,1 e!atemenH art an mtagfM pM of Inl tlallm/nt 4 E CanpraN/mNl Annual Pinenc;al Repoli ~ ~ i 32 x 1 0 A allt.ms , o , I CITY OF DENTON, TEXAS Fdueiary fund Totali !•topetary Fund Typal Types AecauM Groups (Mamarvdum ONyl awes Trust and 04nard Food Garrarll Lano- fapumeat 30. 6aptamD4r 30, Entarp2so Inwhal S$PAC0 A9aney Awn Term UWbed 1117 1116 1 14,073,477 69,110,656 1 15216,133 4 16,231,310 I. 111601,121 111904,12t 101,561,744 12,643.145 12,441145 12,402,9 s7 16.348.143 140.370 15,439.013 17.440,230 • 5.416.310 6,416.380 5,471,013 1 ^ 650.975 650,175 451.975 111 317,100 367,100 307,100 76.000 76.000 71,000 SSAS0.000 11.350000 45,931,000 2,301.000 2.309 ,00. 2,1141' wo 9,719,000 6.776,000 6.314.000 760,000 730.000 350.000 2,000.000 2.000,000 1.670.000 700,000 100,W 4,104,797 4,104,717 3,130,631 1,OSO,D00 1,050,D0o r 13000 13,000 13,000 so 700472 6343,470 (2,142.141 52,349,406 1 304,760 612.117 2.041,355 1,169,733 t 1374,I2S 7,602,073 . 144.744 1".744 7,444 7,441,223 7,628,626 }i7,111,N3 16,221,473 1,444 111,604,111 322,243,013 111.430,109 6308.702,792 12n,57f.174 13,107,116 1171604.121 111,311,350 1500.24f.") 1401.364,613 r~ea CarnprMlnllvf 4nnu11 Flnanltill RaptM i 2 5x10 32X10 r , 6 0 r o ~n • aro11o1ES I CITY OF DENTON, TEXAS COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN fUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 OW MnmH,Kd fund TYa64 06,va Cored R6r4nw 0621 Sw~a C6rnd P.Rrct4 REYENUES tun $11,437,370 4610141 14.707.011 0 U,I;"m ww Rant! 571,642 F,wo"* 1rn 0.592094 FAm 1M IoArR'/M 1,141.012 f7 Fin to t«vicn 1,372,120 726,223 1+twm rnv f 640.111 62,504 49 645.761 1mv04rr,nmMld 511,154 2692.070 67711 cem„a,uw,t Maedlrvpw 4121S1 114,117 115.117 547,911 Tod Rrrrer6 11.So1, 791 4143.475 1.541.760 1,000142 EXKNDRURRS ~ G"81 ou..,nnvnl 1.774.107 2214,201 K44t 6drtr 14 947,747 111 $to h4Se IT" 6,016.011 2 4SO ~ I"lad,reF41,n 7110.621 711146 ~i cwnw 1014l 112416 114.251 1120.209 r4 Ode nmt6 • pmn w rdFrryrl 1.112417 t j IMRw1 " Isd t volt 1.277.600 Il I Led 1EApn,01,66 27.254.616 5 019.167 4.106.027 6 620,709 EXCESS 0 REVENUES OYEP IVNDEN EXPENDITURES 1744.2701 13711!21 1157.244 14.1591571 OTHER ArRANCI/IO SOURCES 7USEO ,.!R 'J PrarM el I>y.14rm 4641 4.700.000 , • Oawm" 44a2w4 m 7.025.50! 217.074 120 .611 2.!92,072 e 1 N.M,4 Hr+624.6 mau It 10.4501 1426.4011 IS921 Ted OIFW Fi mvimj 6e 6 Wm) 1.727.052 Die. 2741 Its 647 1',092090 OC6SS OF AMMIES MID OTHER SOURCES MR 01UNDEN EXPENDITURES AND OTHER USES 671,177 I571, 2281 1177.4072 7,112,417 FUND SAIARCE • Oeaba, 1 1.100,406 1,561,015 512,}07 1,156111 FURD RAIANCE • Irc14m64, 16 1 7.111.427 11,071,115 4 $04,710 110.111,1!7 1111 4444444snoeo44us~r I ~ ~t Tn4 ve4ent4n rMC nrt44 tr tinned el4rwewm4 rr n rnp,r rtn r2 1n4 4en4m4n1 ! Com011hen/ir1 Anou41 Pinlncid ReDott f 7 7 >~ICJ 32XID e • o -CITY OF DENTON, TEXAS T.N. rdu wv Fwd cmw w'Bwn ONr1 TV" YM Ended / rm s1o o 31, 1117 swtv'60 70, 1160 5I 1 024.97IJ40 121,613.1/1 471]142 171,870 6,611.164 0.007.244 1.80,01! 1.174.050 2.101.00 1.141.307 1.149 973 1,176.071 3 .341,112 7.048.071 21.321 21,711 24,126 1,050,331 2.123,111 1r 21.331 41.143611 10.410,1,17 31210 12.028, 20s 11.650,214 15.311.20 is 1s1,717 6.040,405 6,364314 I. 3,091677 3.341,122 7,107,019 CM 034 1531.417 3, S41 Us , 1.373.408 1.471.449 1 37180 At 197,49S 42.676.13 1 18 14M 10 711.1871 !3.111.470 . t 4 700 000 2 1.000 1.135.015 1 841.29) 0,730,001 1138,8711 _ 1104.445 3$13814 ]1901 2.02443 671,144 78.21 17 Oil 311 , 10.448,000 1 1.144 611,610001 W017,344 07.07-rwEenelve dnn. ♦I e:n pn ri 3l 0•^~H 2 xlt~ 32XIO asses" o , I CITY OF DENTON, TEXAS j COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES • BUDGET AND ACTUAL { GENERAL, SPECIAL REVENUE RECREATION, POLICE CONFISCATION, AND EMILY FOWLER LIBRARY FUNDS, AND DEBT SERVICE FUNDS IBUDGET BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 General Fund Variance ` Favofo le 1{ Budget Actual lUnfavonble) REVENUES: IIt s Takes 118,761,576 119,497,320 / 735.744 Licenses and permits 417,510 521,642 104,032 1111111 Franchise fees 8,242,268 8,592,694 11,649,6721 Fines and forfeitures 1,709,960 1.849,082 139,122 t Fees for services 1,205,219 1,372,826 167,607 Interest revenue 720,000 680,619 139,3811 Intergovernmental 630,952 581,654 09,0981 Miscellaneous 595,506 412,359 1183,1471 b Total Revenues 32,283,089 31,508,396 1774,6931 Fr*r 1, EXPENDITURES, cunent • C~ General Government 9011,841 8,604,186 407,555 Public safety 14,881,532 14,851,911 29,621 i Public works 5,132,893 4,895,139 237,754 Parkf and recreation 3,025,683 21979,336 48,347 Capital outlay 637,713 $65305 82,406 Debt service • 1111 Print paf rebrernent - Interest and uscaf charges Total Eapanditures 32,689,662 31.885 977 803,685 r, EXCESS OF REVENUES OVER (UNDERI EXPENDITURES 1408,5731 (317,511) 28,992 OTHER FINANCING SOURCES IUSESI Operaung ransfers in 2,999.962 3,026,502 25,640 Operating transfers leutl 11,303,450) 11,303,4501 Total Olf,ar FinanGng Sources Mail 1,696,512 1,722,051 25,560 EXCESS OF REVENUES AND OTHER SOURCES OVER IUNDER) EXPENDITURES AND OTHER USES 1,289,939 1,344,471 54,832 FUND BALANCE - October 1 6,000,209 8,861,363 861,154 ' FUND BALANCE • September 30 1 1,290,t1e 1 5205,1134 1 916,686 I The accomdanying notes to financial ststements are an integral part of this statement l 12 Comorsherolve Annual Financial Report - ! r 25 X I~ 32x d w. 6 , tttaeam~ ' p • V -maalamia t CITY OF DENTON, TEXAS l' M { Special Revenue Recreation, Police Confiscation, and Emily Fowler Library Funds Debt Service Fund var4ACe Valiant! Favorable Favorabte Budget Actual (Unfavorable) Budget Actual lunfavorable) j 1 f 1 04,393,086 $4,393,068 6 698,431 671,466 (26.9651 8,000 16,977 10.917 489 489 51,750 79,356 27,608 131,109 155,192 23,483 756.181 707,601 11,620 4,524,197 4,548,769 23,912 0 39,965 30,928 1,037 26,400 26,400 605,778 805,892 (11y { 116,735 49,361 79,349 51 3,651172 3,532.417 114,665 1.422,273 1,473,608 46,687 790,878 694.207 96,671 5,079,645 4.906,023 173,622 7 Y (34,6971 73,594 100,291 ;554,148) 1357,2541 197,494 ~ 1 • 16,104 16,704 179,041 179, 847 1 143,3171 01117) 1x,000 143.317) 115,6131 27,704 179,847 179,847 (78,0141 57,981 136,995 1374,9011 11. 197,494 r (26,0201 152,745 178,785 1428,9761 882,167 1,111,41 . JV !1104,0341 1210,726 1314,760 t 1803,176) 1 601,760 11,306,638 ! 1 Comprehensive Annual Financial Report li br ~~j x 10 32X I0 +Ialoalan o II ~ CITY OF DENTON, TEXAS { COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS • i , ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 e Pioi;p*tary Fund Types 1 Entarprlsa Warml Service OPERATING REVENUES: EMCtric service / 77,0{1,616 f Water service 14,700,321 r Watuweter Iervks 1.659.607 t Charges ler goods and services 1,566,768 7,094537 t 11 Premiums 5,574,730 Mraanansous 176.403 1,616 TOW Opentln9 Revem+ss 104.303,605 17.671.013 OPEAATING EXPEN 1M Purchased power 39,945,001 Fuel 6,797,316 Pwcna$4 of weer 77,227 j Selerrs and wages 11,901.079 691,261 Materials and fOPp1i16 1,862.379 3,013,712 1019080fince and repave 3.510,166 23.140 oeaeeiatlon 7,117,167 1.56 6.009 nuraneo 4,104,704 1 ~ Adminovetwe cost 1.166,272 IE j CIOBuff (post closure coat 111.764 Musa Beneous 5.332017 193,271 f Total Operating Expenses 04,101,269 11.481.767 Operating Income 11.476.630 1,119,216 1 NONOPERATINO REVENUES IEXPENSE/f: j ' Interest revenue 6.720 241111. 666,116 J Intresl espenes and (,seal merges IS, 776.900) 1100.1061 Otner 1.633.210 316,426 Total Pow"or Ling Revenues IE■Densnl 1,926.066 11112,746 , Income tefore Operating Translerl 21.003.305 2.071062 ~I OPERATING TRANSFEAS IN IOUTIr OoeiHmg trarof»e n 45,16/ • Operaling trarrefere lout) t3, 196.2191 1163.6241 Total Operating Transte" r3 ,/06,203I 1101.3501 I li Nat Ineama 17.007,016 1,163,006 Add. Oepraoienon of Filed Pestle occurred wan Conrrnbulod Coonar 1,666,023 $76,006 a I I Inersue w Ra14,ned Earnin09 11,111,03/ 2,131,702 RETAINED EAANINGS - October 1 134.151.006 12,670.316 IIMAINED EARNINGS • faptembar $0 4153,124.036 0111,07/.011 1n$ accompanying note to (.mescal 11111manU are am iraagral part of th'i f itemint. 111 . 14 . i Comwithanslve Annual Fins, clsl Report - 1 f it 7K~ 32x~❑ .r+rs, rat', 0 j w I CITY OF DENTON, TEXAS mw IMdma4ndurn Only) { Year Ended lI 6{ptomo6r 30, 1167 6wt4mbor $0, 1666 1 S 1 72,041,516 1 61,633,110 I 14,700,$21 16,626 666 6666601 1,067,666 14,661,216 11417.117 6,674,760 4,610,474 180.169 120,606 111,064,006 113,006626 i 30,945,007 41,466061 6.717 266 6,981,645 77,227 60.290 12,609,340 12,1 t6,697 6,776,001 6,450,622 { 3.634,721 4.012,660 0,052,110 1412,740 e 4,104,704 3,636,667 6,161,272 1,465,707 113,764 264.302 6, 216, 201 5.066.606 ' 96,261.063 96.646494 20,116,156 16.161.031 6.316,002 0,006,366 1 16,621,0911 17, 601,0461 1,640,706 176110 2,409,412 11.319.0981 23,076.267 14,641.133 46.161 14,141,1131 10061141 _ 14,104.6451 1601.1141 16170.622 13,933,110 2.241 ,011 2,104.936 21,211,641 10.031.054 I ,I f 147,630411 131.612.317..1 6169,042,062 6147,630,411 f ~ I J • t9 Comor6A6nsiv6 Annu61 Fimmo;91 Ibaom 25 to 32XIO o • CITY OF DENTON, TEXA. 1F COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED SEPTEMBER 30. 1997 r Proprietary Fund Typos Enterprise Intetnd Service {{f cash flows Irom pperating actlvhtes, J} Cash received from customers x10,647,124 616.316.619 511 Cash paid to employees for servxas (67,092,399i 1702,4011 Cash paid to suppliers 114,249,1221 117112,1601 i Net ash provided by operstiana 29,616,503 1,441,066 f9 Cash taws from nonaphel financing aetlvhlel Contributions to F4er Roolaamom Fund 1299,0961 Operating Iranslers out to other Funds 13,996,2601 1101,3551 t po,im l payment on ang.term advances loom other lunch 11.060.0001 Payment rsesived on long-term adva"o to other funds 1,050.000 Contributions to others Proceeds loom others 246.966 33.359 Not ash lused larl nonaphe fihaneing activhles *041,4211 !74,9971 '~k . Cash flows from iii and related rositcong Activities proceeds received from eontnlwted capital 406,416 Poinevel payments on revenue bonds and cox ieeres of obligation IS 90111 (394.6411 Interest end fiscal charges 16,927,9671 (99.641) Procesda loom issw of revenue bonds and certificates of obligation Proceeds from Nsua of holes payable Primeval garments on notes payable 137 ,1661 111 Primeval payments under capital 11054 o4ligafion 136.095 x49.0041 Acourv,on amid construction of liked Natoli III 7611l 12.290.5741 jf Proceeds from Role of fixed assets 213,061 Not cash (used forl cuphal and rattled financing activities 121,269, 606. 12.646.6101 l Cash flaws from investing oodvhAl [l i Proceeds from silt and matutmes if investmont securities 106,105.476 9.766,641 Purchase of investment sail It14,111,20M (1403,7021 i . Interest ractirad on imvestmemis 6,66S 040 600.777 r Nei ash provided by !wed furl Investing activhias 12.630,6111 645,666 Not inerasn Ideeassel m cash And sun 401Jwaients 1,676.795 1137,2571 r~ Cash end ash eguivetente • October 1 4,309,261 964.762 t Cash and ash eeuivalent$ • September, 30 a 6,908,054 1 451.491 111{ lContmnuedl 11 t r Tme accompsnnng Motu to Imhenca11r11amanta are an mle2rel Pon at this statamarnL • • ComorMarl AnhuN flnandial Report ( ! law 2S t, J 32x d p l CITY OF DENTON, TEXAS- Totals S IMsmorendum Onfyl `S Year Ended Saptember 30, T991 September $0. 1 $126,163,"3 $107,069,270 (57,764,1001 156,700,162) 127,422.0721 122,001,3301 30,956.571 27,142,771 1 (299,0961 (107,1771 { 14,104,6451 1901,1141 11,060,0001 11,060,0001 1,050,000 1,060,000 10249) {rr 270,326 105.751 1 14,124,4117 (989,682) 406,464 251,153 16,704,430) 15,000,414) 15,02 7,6241 17,007, 2201 ",26o.000 ( 202 260 1324561 (13,005,0021 193,179) 1227,0341 112.04 9,3M 113, 310, 9371 213,067 113.097 (27,107,4861 114,541,9621 114,664,017 $7,111,210 +I+ 1122914,965) 1107,923,7071 ' . 1 6,376,827 $,99t,609 (1,1$5.1267 110,620.1111 f 1,130,547 (009 694) ` 6,391.011 207,595 4 1,$17,857 1 6.211,011 { _ - Comorenentive Annual Finsmellif Afton ?5 K 10 32x14 ~a iaraaa o , I CITY OF DENTON, TEXAS COMBINED STATEMENT OF CASH FLOWS All PROPRIETARY FUND TYPES ICOncludedl {j FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 Enterprise Internal Service i i Reconciliation of Proprlelery Fund Operating Income to Not Cash k Provided by Operating Activities t Operating income 119,478,639 11,189,218 Adjuatmentr Depreciation expense 7,187,167 1,865,009 III Loss (Gehl on sale of fixed asset 18,888) 638 Clot urelPoofclosure expense 118.764 3{ Decrease Ilncreasel in receivables (2,301,517) 18,177 ~13L Decrease Ilncreasel in due from other funds 8,772,134 2,504,362 Decrease (lncreasel in inventories 219,077 1322.457) Decrease (lncreasel in prepaid items 1.838 179.747 1! Increase IDeefoi in accounts payable 3,989,119 1,131,495 Increase IDecressef in teases payable t l l , Increase IDecreate) in accumulated unpaid compensated absences 32,837 111,141) Increase Decrease) in due to other funds 1,973.855) 13.803,5131 Increase Macressel in clams payable 11,506,4551 Total adjustments 10,038,664 251,852 Not cash provided by operating activities $29,515403 a 1,441,068 ' Supplemil l Schedule of Noncah Capital and Related Financing Acbvltfes i 3 NompN Iarvity during the year corsisted of eon[tibuted capital from contractors and developers for the Enterprlse Funds and this I rte nal Service Funds in the amount of 11,325,802 and $573154, respectively III The accompanying rotes to hmamcial elatements are an integrat pert of this statement. J110 l~ l I. Comveheno+va Annual Financier Report I o , M ,era~a f CITY OF DENTON, TEXAS t i _ Totals 1 (MemofaMum Orgy) Year Ended l' September 30, 1997 September 30, 1996 IZ0,66S,4SS 118,161,031 9,052,176 8,412,740 1810501 6,401 r 118,764 264,302 I 12,185,3401 939,197 111 11,276,496 19,988,4621 1101,3601 619,237 181,583 1161,8831 6,120.814 1411,4141 112,3141 21,696 86,791 111,877,3681 10,162, 152,624 l 11,608,4651 1771,6201 t 10,290,716 9,911,747 130,956,671 126,142,771 ,CMS ~ 1 ~ I 1! I t _ - COmprenameira Anmod ►in►,eiel aaport 1r I 32xld i CITY OF DENTON, TEXAS Cl (I ~ l11! r~ I1 ll, f; Comonhsnfiw Annuli Fansndst Mood A rrt~oa. 0 l q i I 1 i f ' CITY OF DENTON, TEXAS NOTES TO FINANCIAL STATEMENTS S FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 i l 111 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Denton I'the City') was incorporated September 26, 1866, The City operates as a Home Rule City, under a Council-Manager form of government end provides the following services as authorized by Its Charter: public safety (police and fire), public works, parks and recreation, I electric, water and wastewater utilities, solid waste, and general administrative services. The City s a municipal corporation governed by an elected mayor and six-member council. The City receives funding from state and federal government sources and must comply with the requirements of these funding source entities. However, the City is not Included in any other governmental 'reporting entity,' as defined in pronouncements by the Governmental Accounting Standards Board 1'GASS'I Statement No. 14, 'The Reporting Entity,' since Council members are tlected by the public and have decision-making authority, the authority to levy taxes, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments, The Governmental Accounting "andsrds Board IGASBI is the accepted standard titling body for establishing governmental accounting and financial reporting principles. The 4 lollowing is a summary of the more significant policies: A. Reporting Entity The City is governed by an elected mayor and six-member council. As required by generally accepted accounting principles, these financial statements present the City khe primary govemmentl and its component units, which are entities for which the government is considered to be financially w r accountable, Blended component units, although legally separate entities, are, in substance, part of the City's operations and to data from these unit are combined with data of the primary government. A discretely presented component unit, on the other hand, Is reported in a separate column in the combined financial statements to emphasize it is legally separate from the City, ' The City had no discretely presented component units at September 30, 1997. At September 30, 1998, the Denton Economic Development Board was considered to be a blended component unit of the City. As funding for the Board failed to pets in a public election, the Board was dissolved. 8, Fund Accounting • The accounts of the City are maintained on the basis of funds or account groups, each of which is considered a separate accounting entity. The operations of each fund are summarized by providing a Separate set of self•balaneing accounta which comprise its assets, liabilities, fund equity, revenues. expenses and expenditures. The following funds and account groups are used by the City, l -21 - 32 X I 0 i i~ Notes, City of Denton IContlnued) September 30, 1997 Governmental Fund Types Genera/ Fund- The General 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 costs, the fixed charges and the capital improvement costs that ere not paid through other funds, Sp rclal Revenue Funds- The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or majorcii ital projects) that ere legally restricted io expenditures for specified purposes. These funds include the grants from the Department of Housing and Urban Development (Community Development Block Grant) and from the Texas Criminal Justice Division, Department of Education, the recreation fund and miscellaneous other revenues, Debt Servka Fund- (lei The Debt Service Fund accounts for the payment of principal and interest on general long-term liabilities, paid primarily by taxes levied by the City, and for the payment of principal and interest on capital teases in the governmental fund types. Caplfa/ Projects Funds- 1! t~ j The Capital Projects Funds account for the acquisition of capital facilities being financed from 1 ` bond proceeds, contributed capital, or transfers from other funds, other than those recorded in the 1 f Enterprise Funds and the Internal Service Funds. 1' I + Proprietary Fund Typos f Enterprise Funds. The Enterprise Funds are used to account for operations that are financed and operated in a h manner similar to private business enterprises where the intent of the governing body is that the costs lexpenses, including depreciation) of providing Moods or services to the general public on a continuing r } , ' basis be financed or recovered primarily through user charges. These funds include the Electric, Water S 1 and Wastewater Utility Systems (Utility System) and the Solid lyaste operations. Informal 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 f include the Fleet Services Fund {vehicle maintenance), the Warehouse Fund, the Motor Pool Fund, and ` the Risk Retention Fund, r 1 25"10 32 10 o i o t Notes, City of Denton (Continued) September 30, 1997 Fiduciary Fund Typos t 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 organisations, other governments, andror other funds. These Include the Expendable Trust Fund and Agency Funds. The Expendable Trust Fund is accounted for in essentially the same manner as Governmental Fund Types, The Expendable Trust Fund is comprised of several trust funds of varied purpose, Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The Agency Funds Include the Payroll Fund, the Delerred Compensation Fund and other miscellaneous funds, General Fixed Assets Account Group The General Fixed Assets Account Group represents a summery of the fixed assets of the City, Il other than assets of the Proprietary Funds. Capital outlays in funds other than Proprietary Fund Type are recorded as expenditures of those funds at the time of purchase and subsequently recorded for control purposes in the General Fixed Assets Account Group. General long•Tertn ltabilidos Account Group 0 The General Long-Term Liabilities Account Group represents a summary of the longterm liabilities of the City paid principally by taxes levied by the City, This account group does not Include long-term debt accounted for In the Proprietary Fund Types. f C, Ill of Accounting 1 The accrual bills-The Proprietary Fund Types are accounted for on a flow of economic resources measurement focus, Accordingly, the accrual basis, whereby revenues and expenses ere identified in the accounting period in which they are earned and incurred and net income is determined, is utilised for these funds. The City applies all GASB pronouncements as well as the Financial Accounting Standaros Board pronouncements issued on or before November 30, 1989, unless these pronouncements conflict or contradict GASB pronouncements. Moditted accrual bails-The Governmental Fund Types are accounted for on a flow of financial ( resources measurement focus. Accordingly, the modified accrual basis Is used for these funds and i the Agency Funds. Modifications In the accrual basis for these funds Include the following: I , Revenues ere 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. Property tax revenue is recognized Independently of receivables in the fiscal vest for which taxes have been levied, provided they become available. Available means than due. of past due and receivable during the current period, collected within the current period or expected to be collected soon enough thereafter to be used to pay fabllitles 0 of the current period. Such time thereafter should not exceed 60 days. Revenue sources o 0 l from licenses, finite and forfeitures, service charges and other miscellaneous revenues are ! recognized is the cash Is received. tYI I 1I 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, and vacation and sick leave, which off recorded when payable from current available resources. 23 3 101 4 o r Notes, City of Denton (Continued) September 30, 1997 Ii 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 year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. r D. Budgets and Budgetary Accounting ` The City Council follows these procedures as prescribed by City Charter, In establishing the budgets reflected in the financial statements: 1. At least sixty days prior to the beginning of each fiscal year, the City Manager submits to the l City Council a proposed budget for the fiscal year beginning on the following October 1. The operating budget Includes proposed expenditures and the means of financing them. 2, Public hearings are conducted prior to the adoption of the budget in order to obtain taxpayer comments, 3. The annual budget adopted by the City Council covers the General Fund, Special Revenue{ Fund (Recreation Fund, Police Confiscation Fund, and Emily Fowler Library Fund only), the Debt Service Fund, the Enterprise Funds, and Internal Service Funds lexcept for the Risk Retention fundl, The budget is legally enacted by the City Council through passage of an ordinance prior to the beginning of the fiscal year. The gtneral purpose financial statements { reflect the legal level of control, which is at the appropriation level by function activity within an Individual fund as approvtd by City Council. 4. The City Charter provides that the City Manager has the authority to transfer any 1 unencumbered appropriation balances from one appropriation to another within a single function (office, department or sgencyl, City Council approval is not required at this level, ( I The Charter also provides that within the last three months of the fiscal year the City Manager most have City Council approval of any transfer of unencumbered appropriation balances or portions thereof between functions as well as any increases in fund appropriations. Individual amendments were not material in relation to the original appropriations which were amended, All budgets are adopted on a basis consistent with generally accepted accounting principles except that for the Governmentat Fund Types, Proprietary Fund Types, and the budgeted Special Revenue funds encumbrances are treated as budgeted expenditures in the year of commitment to purchase and lot the Proprietary Fund Types depreciation expense is not budgeted, All unexpended appropriations at fiscal year end lapse to the appropriate fund balance except for those of the multi•yeer grants andlor projects, Encumbered appropriations are carried forward to the succeeding year. There were no supplemental appropriations necessary during the year, A reconciliation of revenues and expenditures on the budgetary bash to revenues and 4 expenditures on the modified accrual bass for Governmental Fund Types is as follows, M f i 24 . a ~r 2fi r 10 32X10 seems amosion " O r O Te~relte Notes, City of Denton (Continued) September 30, 1997 l General Specal Revenue r Fund Funds Revenues and Other 6ourcec Budgetary bass 134,633,898 1 783,505 Other Special Revenue Recration Funds unbudgeted 41,781 All other Special Revenue Funds 4,111,763 Revenues and other sources on modified accrual basis 34,633,898 4,936,549 1 Expenditures and Other Useer 1 9udgetary bass 33,189,427 756,832 r Other Special Revenue Recreation Funds unbudgeted 1,671 1 All other Special Revenue Funds 4,707,172 111 Encumbrances Inetf 366,539 Expenditures and other woes on modified accrual bass 33,SS8,068 5,466,775 Revenuss and other sources over lunderl expenditures and other uses on modified accrual boils 1 975,832 1 1629,2981 F. Cash and Investments ' For the purposes of the "Statement of Cash Flows," the City considers Investments with maturities of under 90 days at acquisition to be cash and cash equivalents, Investments are carried at cost which approximates market value except for Investments In the deferred compensation plan which are carried at market value. Interest earned on Investments is recorded In the lundr in which the Investments are recorded. F. Unbilled Recefvab'es The City accrues amounts for utility services provided in September, but not billed at w ! September 30, 1997. r G, In-,entorles inventories are valued at the lower of cost or marker, Cost is determined using a moving average method, No inventories exist In the governmental fund types. r Fi, Fixed Assets i fnterpdse and Interne! So vin Funds. 0 ' Fixed assets are recorded at cost, including net Interest during the Construction period. Contributed property is recorded it fair market value at the date of contribution, Depreciation is ! recorded on each class of depreciable property utilising the straight-line method over the estimated / useful lives of the assets. 25 ~5x 10 32x10 ' p Notes, City of Denton (Continued) September 30, 1997 Estimated useful fives are as follows: j Useful We Fixed Asset cYurel ENTfMAYS[ R/NDS i twh* System GenerN asset Structures so { i Equipment 5 20 4 Ontribvipon assets Structures 50 Equipment 20 33 iransmiu,on assets Equipment 20 33 111 internal combustion assets structures 50 4k Equipment 13 - 20 Steam power assets structures 5D Equ~mment 20 is Wolfe e44 Waste Wolof System sttuctures so water and wastewster mains 20 33 Equipment 10 20 Furniture and fixtures 10 waxy Storage A.ght 40 100 I{I so64 Wide Veh,ciea and equipment 10 INUMNAf SERVICE FUNDS Vehicles and equipment 1 10 Renewals and betterments of property and equipment ere capitalized. whereas normal repairs and maintenance are charged to expense es incurred, General fired Assets. O General fixed assets are recorded as expenditures in the General, Special Revenue or Capital ( i Projects Funds when acquired, Such assets are capitalized at cost in the General Fixed Assets Account Group. Significant gifts or contnbut4ns of assets are recorded in the General Fixed Assets Account Group at the fair market value at the date of acquisition. Public domain (infrostructurel general fixed assets consisting of streets, curbs, sidewalks, gutters and drainage Systems, era capitalized along with other generet fixed assets, No depreciation is provided on general fixed assets. S 1, Properly To% Revenues Property taxes attach as an enforceable lien on property as of January 1. ?axes 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, 24 p~ 32x❑ tee. p axu~ l Notes, City of Denton (Continued) September 30, 1997 k The City records revenue from current property taxes in the year in which bills are measurable 1 and available. An allowance is provided for delinquent taxes not expected to be collected in the future. r At September 30, 1997, the City had a tax margin of 01.97 per $100 valuation based upon a maximum ad valorem tax of $2.50 per $100 valuation Imposed by Texas Constitutional law. Additional revenues upto $42,746,874 Could be raised per year based on the current year's assessed value of $2,169,892,097 before the limit Is reached, J, Compensated Absences t The City allows employees to accumulate unused vacation up to forty days. Upon termination, any accumulated vacation time will be paid to an employee. Generally, sick leave is not paid upon termination except for firemen and policemen. Firemen end policemen accumulate unused sick leave up to a maximum of 90 days. All other employees era paid only upon Illness while In the employ of l' the City. 1 As of September 30, 1997, the liability for accrued vacation leave and accrued sick leave is approximately 14,574,953. The amounts applicable to the Enterprise Funds (1760,811) and Internal Service Funds (426,9351 have been recorded In those funds, and the amount applicable to other funds ($3,785,207) his been recorded In the General Long-Term Account Group. The amount expected to be paid from current available financial resources Is not significant. L• K. Comparative Data Comparative totals for the prior year have been presented in the accompanying general { purpose financial statements in order to provide on understanding of changes in the City's financial position and operations. However, comparative data (presentation of prior year amounts by fund type) In each of the statements have not been included, since their incluslon would make the combined statements unduly complex and difficult to read. In certain cases, the amounts previously reported in 1996 have been reclassified In order to 1 conform to the 1997 presentation. 1. 'Memorandum Only' Total Columns M 1 r Total columns on the combined statements are Captioned as 'memorandum only' to indicate I that they are presented only to facilitate ansfys4. Dots in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting I principles. This presentation does not represent a consolidation, Imterfund el minations have not been made in the aggregation of this data, i p '~olP 1 Ell 75 r 10 32XlCl r • (1 Notes, City of Denton (Continued) September 30, 1997 (2) CASH AND INVESTMENTS 1r In order to facilitate effective cash management practices, the operating cash of all funds, I I except for the deferred compensation fund, are pooled into common accounts for the purpose of I increasing income through combined Investment activities. At year and, the carrying amount of the City's deposits was $12,873,280, and the bank balance was 11,970,691. Federal depository insurance or the fair value of collateral held by the City's agent In the City's name exceed in total the City's bank deposits at year-end. I The investments of the deferred compensation fund are held separately from those of other City funds by an outside trustee appointed by the City, Statutes authorize the City to invest in obligations of the U.S. Treasury, U.S. agencies, repurchase agreements, investment pools, investment grade rated securities, and fully cg1taterallzed cent fiestas of deposit. The investments reported st September 30, 1997 were similar to those held ( during the fiscal year. At September 30, 1997, the City's investments (U.S, Treasury and Agency Securities and Municipal Securities) were Insured or registered or the securities were held by the City or its agent in the City's name. As of September 30, 1997, the City's investments were as follows, ri Category I Par Cost Market Value ' l U.S. Treasury Securities 1 68,136,006 1 59,247,000 1 58,735,008 1 S8,98S,98S U.S. Agency Securities 68,345,460 68,816,000 68,345,460 68,387,210 11 j MunicipalSecurit4s 1,499,402 11500,000 1,499.402 11501,350 ! Total Securities 128,579,888 129,722,000 128,579,868 128,674,545 I , Deferred Compenution I! Investment$ 3,510,973 3,510,973 Total $128,679,868 $129.722,000 $132,090,841 1132,389,618 t i II! 1 J10 I l 25 x 10 32XIO 1 • I I O 0 . I I I f Notes, City of Denton 1Continuedl September 30, 1997 { l 131 FIXED ASSETS Genwaf Fixed Assets- General fisted assets balances and transactions for the year ended September 30, 1997, are I summarized below: I Balance Balance October 1, Transfers/ TransterN September 30, 1996 Additions Deductions 1997 i Lind 4 5,275,689 1 178,438 1 1 5,454,127 Buildings 18,744,389 1,849,782 20,694,161 Strolls 61,832144 3,438,086 65,270,630 Machinery and eduipment and other Improvements 12,602,798 5,013,328 1381,3911 17,255,735 Constructloninprooress 10,106,344 8,191,238 18,288,4021 10,029,176 Tota1 9108,561,744 118,672,870 IIB,629,7931 4116,804,621 Investment in General fired A,ws From bond issues 4 79,123,606 9 9,122,658 118,268,4031 9 76,978,060 From current revenue 11,651,572 8,177,679 {36113901 19,387,761 89,676,177 17,300,437 (8,829,7931 99,345,621 From contributions 18,666,667 1,372,433 20,259,000 t Toth 1108,661,744 116,672,810 118,629,793) 1118,604,611 t t r i ~ YF, I +e~ 2 5Ix i0 32XI~ s • o _raanN t~ Notes, City of Denton IContinuedl, i 1 September 30, 1997 General Fired Assets by function and activity as of September 30, 1997 are summarised as follows: Mich,cwl and r 01hp Total land suild,np4 suHt1 Irnprer40n41110 GENERAL COVEiWMENT: Parka 1 1,674,761 12,412100 1 6,611,214 6 61,744,747 la9al 102,214 3,202 100.012 Mwrnp4l Caul 21,1117 1,240 Human Impure l 67,176 57,171 l CMO17ASE0 1.111,262 242204 too 462 41,411 Facility MaMpamont 10,062,1se 2.eD0,115 7,512,144 141.407 Llbr4ry 4,029,0110 111.121 2,114, 411 South s,anchtibary 11111,672 1,225,101 771,172 1144mnI40 1104112 111262 InapaNipnl 41.411 41.461 Main l so It 2.146 2,141 Total 6aMrd Govammant 21,140,111 1.271,611 15,111.622 1.176217 Itl" wORRI: ! Tran.e Enl,nahn6 2,121,164 25,701 411.521 2.217.332 { IMOneann6 141010 141.120 , Co4o Enrercomant 14.610 14,11110 11 $1,1414 11,711611 6000 66.752.166 6,721 1lr0a1 /Mlrpin/'OroM6a 2,161,415 2.700 1.110,116 24.112 Avporl 11,2110.602 171,421 150.110 1,211,111 1.014.196 t .'3 EnNronm4mu H4al+h 141r,41111 2.000 2,000 Aromsl ConlrW 411,512 111,10! 24.160 7olot Pubhe wak4 177.27Lh12 1 118,411 1 1,210.216 les,11i 66.641.091 ~o I' - - x 10 zxlo ' i .eesllePY 0 valesel ' Notes, City of Denton (Continued} $eptemW 30, 1997 fS + l M.cn.a/vly, and o0•e t _ Total Land Pullfinee 61(1111 41ytoanunb ( leonumodl I /WANG(: t Mews Admin/treuen 1 40,171 ! I ),117 1 ! JJAe7 Customot 11M c4 1 ! 1,111 134,!!1 l hroMsinl 53,111 13i44 Intunel AWII 11,713 13,712 6udat 1,164 1.164 Troeeury 38.177 36,177 ( Accountirq 66,484 61,114 Municipal Count Clarke 41.411 48,411 Tee 12,271 13,376 AdMNstlauw some" 12,61 03,111 IMolme9oa some 1s 441,641 446,441 tow FwnM we,ue 7~y143 601,403 F.11 AdmNs,leuee 131,117 131,167 hrs O"Polone 3.154,00 2 :77.631 330,603 1 No Iteyonban 111131 13,I33 "r/4"v Med,cal 161,713 111,713 ►olul 3,800,073 414,401 21305,119 towpu30e e04ty 611481011 3,218033 3.630,16+ ' tanotmetlon In 10066,111 10,026,171 l . TOTAL 1111,604,031 16,16MP 120,104.111 16,370,430 111.264.739 V~ 1 ( , f o 0 ?yx 1.0 32x11 11nae1ar ' 0 Raasraa6a I , Notes, Crty of Denton (Continued) 1 September 30, 1997 ~ V Changes In general fixed assets by function and activity for the fiscal year ended September 30, 1997 are summarized as follows: Oanlral Gfn1rN role A61111 Tranafarar Arad Al/ata 104016 Ad Ums OVducoons !12047 I{ t e'ADW doymilMr. Park/ 6 1.554.721 1 111,162 1 117. sell 1 5.174.761 ! k j Upo1 41461 21,716 107,214 1 i Munelpd court 11.111 10,475 76,657 1`!!` Nunun lluourdaa 61,501 11,6201 67,579 if CMOIMSIO 1,034.721 11,227 11001 1,119,211 lllff ' Facility Monapamont 10,264,261 667,711 10.!17,151 Library 2.151, 202 152.414 174, 6641 4.019.050 South 4rancb tlbrafy 700,570 1.217,053 1.691.677 Planrunoto 116.715 1,161 111.7x2 Impooconl 47,911 10 40.441 Malnstroll 2,146 3,144 rl Total Gamfol oawmm401 16,161,300 2412,431 1140,1601 11.140,674 illJ1 A'tlk/C WORks: y ~f Tralfia In9maannp 21617,111 104.04 3,721,644 Ino"of1mp 171.917 177 111.1001 14!,110 llll if Cads Infortriminl 14.150 14.160 ( j ' straau 64,710,101 3.407,810 51.761616 I Strut sw0ay.m0mfrtnap1 3.111,110 111.151 1140.6011 3,161,411 y Aryan 1.111.1/2 71,10 17,4011 9,360,101 I/ f" Invie0~1alHoWlPrSomm 3,000 3,000 1111 Anmd Canual 411,152 411,951 • Total PubNa WaN 184,512,112 11,110.044 11116, M) 613,111,461 I l y 22 h + - 25 32X ICS imik~ Ism a o Y i Notes, City of Denton (Continued) September 30, 1997 t ' r Wn4•al General Furs Auata Trandaar find Assets 1011196 Addidcru Deductions 640197 "Oft", am fNAUCf: Anance Adminiwation 1 31,617 1 6.761 1 - 1 40,471 r Cutweelp Service 146,506 )20,6/31 136,995 1 1_ ►urth"Mo 11,146 11,1N Internal AWt 19,713 13,717 lud7et 1.166 1.164 714auty 40A77 11001 31,S17 Acaount;n6 66,114 66.614 i Municipal Court Clau 51.611 17,5005 41,411 tam 11,275 12,175 i+ Adlninietntira 6eMcu 15,111 11,1001 67,191 t Information 64Mnt 413,263 76,771 446,641 Trial Fuunee 660,114 45,174 121,7171 601,S1S PUAX Will Ru Adminiftrr4oo 1271167 126,197 I- Fu Operations 3,155,640 7,466 11,1221 1,164,064 File Freventon 13137 11,132 [nNr6eneT Medical 151,712 1 161,712 foce4 1463,663 1,176.510 2,100,071 1 Teal W►5c fafet7 1,114,244 1,141.671 16,2121 6,241,691 CowNt6on In hegFers .10.101.344 6,111,236 11,166,4011 10,026,171 t TOTAL 110.561,744 $10,672,970 111,626,7171 61 t i.604,8111 r I I 1 r 0 32XIO i e • o } j Notes, City of Denton (Continued) September 30, 1997 Construction in progress is comporrd of the following, Flo, jeC[ E.pendpd to Aearoan anon Seatetr~er 7D. 199, Cemmltled CIS Computer Syaam 1 1,214,304 4 1,235,167 6 48,34t Awl to Trod 17.000 14,100 72,100 Park Contrgebon 305.000 300,119 4.1at J City Hall Renovation 2,066,229 1,765,715 300,524 E Public Saltty Aadio 76,409 76,409 l Public Laty Computer System 1,314,543 1,228.750 65,793 Upgrade Existing Parke • Photo 1 $00,000 212.062 87,131 Phoenix Perk Expaneon 25,000 10.075 14,125 q Goa Colter Park Maher Path 40,000 21.745 11.255 IE MVAC Unit al Library g: 663 55,146 37,131 MLA Brick Raper ►.040 7,146 114 South Lokis Park Conte has 1.049,270 1,019,270 Crtt-wds Computer Upor•de 1,335,317 1,151.121 113.226 Teaslq landscaping 71,121 71,114 7 1 Street and uidge • J Elm 314,576 95937 "19,139 Locust 1,155,313 563,391 571,912 FM 2499 R,ght-ol-Wsy AopuinUon 20.000 11,559 1,441 Mov%h 11 22,000 392 21,606 MovfJl at Cooper Creak Bridge 20,000 2.696 17,304 WrRoweteet loop Orange 1!.110 12.142 37,466 SdawWS 750.000 34135 713,665 0►TICOM 75,711 75.711 Canal and Parkway Turn 35,000 14,072 201121 KM90M 6iode6MoTtmi m 15.000 12,504 2.406 Redo Curb Med-ens to OTC 11,144 252 13.391 b3S at M000,11i Traffic S~gnal SS 200 24,625 AS76 277 at Collins Signal Comical 11,000 612 17,311 1 Mcgnney at Mayhll Traffic Signal 34,500 7.149 27,351 U.S. 317 at 435 lmpraverrenu 2S,300 943 24,357 ultianMisr SidewalkConneeyon 21,761 14.115 8.153 CMAQ• 14914 Drive Turn Lana 22,277 1,311 12,116 i} Orange Study • Pectin Crook 43.910 41,910 T/71 LoMmara Asphalt Overlay MUD Moto 10,450 Coronado, Many. Mrnpo. Collier 117,000 101,694 15,306 W el Mart Right of Way 21,219 16,410 4.399 ISO loan Turn Signal MOM 596 16.414 URan Mi6ar3061hhdge Wage 11,371 13,377 OMC Parking lot SS, 140 37,077 21,763 Was Strait Culven 330.000 114,165 145.023 101i Dren a Cp. Irltpreve. • Phan 1 1!,000 35,241 32,751 College and Yin Orange 20,000 13,1 11 6,982 I 1 Traffic Sgnals • Phase 1 191,000 101, got 11,191 loop 231 Sypasl R,ghoot Way 325,000 7.165 317,635 r[ Motbnpham tMmga to Audral 260.000 32,506 221,114 h, Akre. Strad Construction 100,000 39,363 60.627 Flow Arta Repaving and Concrete 240.000 198150 71,150 • Cood Semaaan Drainage 100,000 53,291 46.702 , Jim Chnst411ndg4 51,000 32,170 25.030 Anaaal T•m Lariat • Photo 7 11 T,D00 14,137 11111 Averme0 200,000 5.177 114,121 Avsnus a Modifications 290,000 4,160 21S.140 Cooper! ranch Chii 21,000 1,702 23.211 Entr snu Mart 50,000 4,123 45,077 Hrltrew O,enge 1SOW 12,215 2.705 Rabonson Drive Orange 406,71! 200,1S2 306,566 'll 1l Saari aslival Right n o Or Wk of iyav 23.000 1,011 11.166 Sharman Sdewalk 77,000 16,111 L402 l03 Sate Wool Culven $0.000 Wits 14,142 Street and Mdge - Photo 1 453,000 245 451,735 S to set Hrprovvm4nt Fund 9S5,933 599.720 355,113 I s4ewerkslkaweva• photo t 143,000 4,117 137,173 1 South Pt in9 lot City Mad Writ 21,516 13,033 9,414 Perking (peat AT South Sranch 11,101 17,401 700 Civic Comer Sndgo 100,000 1,576 11,414 swill all $doa Ilk1 11 000 44 449 9.652 Teal ass 6i5-610.621 Ito 026179 ati 1515®~ a 41" 2 5 1~ 32X 10 aoeasr i ! Notes. City of Denton (Continued) ff September 30, 1997 l " Entarpnse and lntemal Sarvke Funds- Fixed assets of these funds are as follows! September &I l 1997 1990 l U47ty Systern- Land and land rights ! 1,926,498 ! 1,858,227 Water storage rights 87,715,402 67,715,402 Electric plant and equipment 107,455,420 101603,321 Water plant and equipment 49,905,378 46,723,364 Wastewater plant and equipment 55,494,168 52,729,722 282,496,864 272,628,036 ( Less • Allowance for depreciation (112,109,142) (106,017,9091 170,387,722 166,610,127 Construction in progress 4,618,397 4,749,191 ` Total fixed assets • Utility Systam !175,006,119 !171,359,318 Solid Waste- Land and land rights ! 6,602,834 ! 8,598,378 r Vehicles and equipment 2,194,661 1,848,331 t 8.797.495 8,244,709 r less • Ahowsnce for depreciation (2,604,099) (2,438,4311 _ 11 6,193,396 S1805,778 Construction in progress 137,058 Total fixed assets • Sold Waste ! 6,193,398 ! 5,942,630 Internet Service. Land and land rights ! 183,806 ! 183,806 Vehicles and other assets 18,725,412 17,534,732 f 18.909,218 17,718,538 Less - Allowance for depreciation (11,780.422) 111,550,8771 7,128,796 8,167,861 Total fixed assets • Intsmal Service i 7,128,706 ! 81187_,661 _ i i 35 - -r 25 la 32 x~d Imp e , I! Notes, City of Denton IContinuedl September 30, 1997 C } I! II 141 LONG-TERM LIABILITIES Long-term liabilities transactions for the year ended September 30, 1997, are summarized as follows: Balance It Retired Balance at ~ October 1, and September 30, 1995 Issued Tronsfened 1997 Oemrd Long•Term UebBidlis GeneralObligabon bonds 6 22,320,623 1 4,700,000 ! 2,732,864 1 24,287,959 Certificates of Obngatlon 4,087,780 799,596 3,268,184 Obligations under capital leases 8,635 8,535. t Accumulated unpaid compensated absences 3,658,409 126,798 3,785,207 Totd9enera7kng-rermiabilli 30,055,547 4,826,798 3,540,995 31,341,350 hoprNrary fund Typos Utility System revenue bonds 89,270,000 5,379,999 83,890,001 11!11 General Obligation: k General Obligation Bonds 86,655 15,755 72,900 General Obligation Bonds: ~f Iptedged by Soad Waste reverIU00 $02,262 71,381 430,871 Certificates of Obligation 10,207,220 835,450 9,371,770 Obligations under capital relies 111,449 63,179 28,270 Accumulated unpaid compensated absences 768,050 21,696 789,746 Note payable 31,273,659 32,456 31,241,203 Tore/propdtraryfund rypes 132,221,285 21,696 6,418,220 125,824.161 0 Total long-term llabllitles $162,276,832 1 4,848,494 1 9,9S91215 $157,166,111 I 'I ?~xIQ 32x~❑ Seem e . o NRIMS City of Denton 1Continued Notes, 1 ~ September 30, 1997 r Genera/ Bonded Debt- General bonded debt at September 30, 1997, is comprised of the following: r Amount ` Outstanding at 1 Interest Rate Fiscal Original Amount September 30, Bonded Debt Mue Oaa Maturity of Issue 1997 ( General Obligation Refunding 7.70 to 8.00 1985 2004 85,171,730 11,436,730 General Obligation 6.40 to 9.40 1987 2007 1,225,000 350,000 General Obligation 6.50 to 9.50 1988 1998 1,075,000 200,000 General Obligation 9.00 to 9.50 1989 1999 1,265,000 390,000 GeneralObligaton 5.55 to 8.50 1992 2012 2,630,000 2,300,000 General Obligation 4.65 to 7.50 1993 2013 2,975,000 2,400,000 1 General Obligation Refunding 3.00 to SAO 1993 2009 13,315,000 9,000,000 i General Obligation Refunding 5.75 to 6.50 1995 2015 1,610,000 1,530,000 General Obligation SAO to 7.40 1995 2016 2,515,000 2,485,000 j General Obligation 5.00 to 7.00 1997 2017 4.700,000 4,700,000 Total General Obligation Bonds 36.481,730 24,791,730 Certificates of Obligation 6.00 to 9.00 1987 2007 150,000 25,000 Certificates of Obligation 8.60 to 9.60 1989 1999 1,155,000 100,000 Certificates of Obligation 6.00 to 9.00 1989 1999 1,550,000 350,000 Certificates of Obligation 4.40 to 7.40 1992 2007 1,325.000 490,000 Certificates of Obligation 4.20 to 5.30 1993 2003 1,450,000 500,000 Certificates of Obligation 4.40 to 7.40 1994 2014 2,705,000 2,285,000 j Certificates of Obligation 4.30 to 7.30 1994 2005 3,220,000 210801000 Certificates of Obligation 515 to 8.25 1995 2015 2,000,000 1,945,000 Certificates of OVgation 5,00 to 7.00 1996 2016 5,190,000 4,864,954 Total Other General Bonded Debt 18,745,000 12,639,954 Total General Bonded Debt 155226,730 137,431,684 S Proceeds of general bonded debt 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. The general ~lbtigationf are coltateiallted by the full faith and credit of the City and, primarily, payable from prl,perty taxes, f In prior years, the City deceased general obligation bonds by placing the proceeds of new r bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. • Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the City's financial statements. On September 30. 1997, $6,325,000 of bonds considered delessed are 0 +1 ` still outstanding. I t •77• f I' 32X10 1 Notes, City of Denton fContinuedl September 30, 1997 Raywrw Omits- Revenue bond debt at September 30, 1997, is comprised of the following issues: Ik amount Outstananpat d Interest Rate Final Original Amount September 30, Revenue Bonds i%I Issue Date Maturity of issue 1997 Utility System 6.75 to 9.75 1988 2008 1 3,500,000 1 350,001 j Utility System 6,DO to 9.00 1989 2009 20,000,000 7,400,000 Utility System 5.80 to 8,75 1992 2014 4,500,000 4,265,000 Utility System 5. DO to 7.50 1993 2013 6,575,000 6,600,000 Utility System Refunding 2.50 to 5.40 1993 2009 27,085,000 24,840,000 ~I Utility System Refunding 3.55 to 6.75 1993 2007 6,045,000 3,290,000 Utility System Refunding 5.30 to 7.80 1996 2024 36,610,000 35,395,000 Utility System 5.30 to 7.40 1996 2016 2,750,000 2,750,000 1106,96S.000 183, 890,001 The City has the option to retire at par all or a portion of the bonds prior to maturity on or after December 1, 1993, The revenue bonds are collateralized by the revenue of the Utility System and the various special funds establish-d by the bond ordinance. The ordinance provides that the revenue of the [ System Is to be use I first id pay operating and maintenance expenses of the System and second to establish and mainftin 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 J 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 I ordinance as of September 30, 1997: rr W Interest and Sinking Fund 110,098,340 Reserve Fund 4,991,862 e Emergency Fund 250,000 Extension and Improvement Fund 4,482,300 419.822.502 i 7 x,is 32XIO s . c I i I Notes, City of Denton (Continued) September 30, 1997 fAssets in these accounts consists of cash and U.S. government securities. Related liabilities and retained earnings are as follows: Payable from restricted assets- Accrued interest 4 1,631,157 Revenue bonds payable, current 5,380,000 Retained earnings reserved for bond retirement 12.811.345 319.822.502 In addition, the City has established a reserve fund to pay for General Obligation bonds pledged by Solid Waste revenues of $367,100, In prior years, the City defeased revenue bonds by placing the proceeds of new bonds in an Irrevocable trust to provide for an future debt service payments on the old bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the City's financial r statements. On September 30, 1997, $17,465,000 of bonds considered defeased are still outstanding. Note Payable- In 1980 the City and the City of Dallas contracted with the Corp of Engineers for the construction and development of Ray Roberts Reservoir in Denton County. In contracts with the Corp of Engineers, the City will pay for twenty-six (26%) per cent of the estimated water storage rights of the reservoir. Water obtained from the Reservoir will be pro rata on the basis of each city's proportional share of total construction cost. The closing of the dam was completed in 1987 with water being available from the Reservoir in 1989. The City's estimated total cost of water storage rights at September 30, 1997, was $67,465,336. Of this amount, the future use currently estimated at $28.94302 at September 30, 1997 is financed by the Corp of Engineers. No principal or Interest payment with respect to this storage for future water supply Is required to be made during the first ten 1101 years following the date the project Is operational for water supply purposes unless all or a portion of such storage Is used for purposes of withdrawal of water from or transfer of water Into Ray Roberts Reservoir during this period. When any portion of the storage for I future water supply is used, the amount of the pro;ect investment cost allocated thereto, plus interest lr applicable to such portion as provided, will be due and payable on the date of the first Use of such ponion, The said amount due shall be paid within the life of the project and not to exceed fifty (501 consecutive annual payments. r The City is also responsible for twenly-six (26%) per cent of the cost of any major capital S replacement facilities required. The City will also be required to pay the Corp twenty-six (26%1 per cent of the annual experienced operation and maintenance costs for specific water supply facilities at the Reservoir. t I Aggregate ma urhies of the long-term debt (principal and interest) for the years subsequent to September 30, 1997, are as follows: I j l L Il i k In 32xla i 0 r~ . fD I# Notes, City of Denton (Continued) September 30, 1997 ` r Bonds I General Fiscal Year Obligations Ftevenue Notes Payable Capital Leases Total 1 1998 1 6,307,993 a 10,098,327 a 2,030,253 $16,299 1 18,452,872 1999 5,691,416 8,962,028 2,008,306 15,499 56,677,251 2000 5,301,090 8,386,346 2,009,308 15,697,744 j 2001 4,930,340 7,944,181 2,008,308 14,882,829 2002 4,409,944 7,689,013 2,008,308 14,107,265 2003.2007 15,809,169 35,185.759 10,041,540 61,037,488 2008-2012 9,280,700 25,242,994 10,041,540 44,565,234 20132017 5,293,662 15,827,491 10,041,540 31,162,693 I 20182022 12,764,100 10,041.540 - 22,805,640 2023 2048 7,668,900 52,483,952 60,152,852 I4 Total principal 57,024,334 139,772,139 102,713,597 31,796 299541,868 !r and Interest Less applicable Interest 19,592,6501 55,687,138i 171,472,39<I 13,5281 1146,950,7101 Tout principal 1 37,43$,884 1 83,890,001 a 31,241,203 $26,210 4 152,591,158 bonds AuthorUed and unissued- General obligations bonds authorized but unissued as of September 30, 1997, amounted to I i 122,657,000. When issued, the proceeds will be allocated to the applicable Capital Projects Funds. 1 151 LEASES w ;Y leases payable represent the remaining principal amounts payable under lease purchase agreements for the acquisition of vehicles, copier equipment, computer hardware and other equipment. These leases are recorded as capital leases. The vehicles, copier equipment and the r landfill vehicles are recorded in the Proprietary Fund Types. Remaining requirements, including interest, under these leases are as follows: • (1 ti ~k I~ 40 . I 32 X i pky,iF~7+J 0 I I 1 r Notes, City of Denton (Continuedl September 30, 1997 Proprietary Year Fund Types 1998 $ 16,299 l 1999 15,499 31,798 f Less • Applicable Interest (3,528) Net Present Value 11 28,270 ~s i 161 PENSION PLANS Taxes Municipal Retirement Plan: f Man Description- The city provides pension benefits for all of its full-time employees (except firefighters) through a nontraditional, joint contributory, defined contribution plan in the state-wide Texas Municipal Retirement System ITMRS), one of over 688 administered by TMRS, an agentmultiple- employer public employee retirement system. It is the opinion of the WAS management that the plans in TMRS are substantially defined contribution plans, but they have elected to provide additional voluntary disclosure to help foster a better understanding of some of the nontraditional characteristics of the plan. Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the city-financed monetary credits, with interest. At the date the plan began, the city granted monetary credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee, with Interest, prior to establishment of the plan, Monetary credits for service since the plan began are a percent 1200%) of the employee's accumulated contributions. In addition, the city can grant as often as annually another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when ( added to the employee's accumulated contributions end the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if the current employee contribution rate and city matching percent had always been In existence and if the employee's salary had always been the average of his salary in the last three vests that ere one year t afore the effective date. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employer-financed monetary credits with interest were used to purchase an annuity. Members can retire at ages 60 and above with ten or more years of service or with 25 years ) 11{ of service regardless of age. The plan also provides death and disability benefits. A member is vested after ten years, but he must leave his accumulated contributions in the plan. 11 0 member withdraws his own money, he is not entitled to the empioyet-financed monetary credits, even if he was vested. The plan provisions are adopted by the governing body of the city, within the options available in the state statutes governing WAS and within the actuarial constraints also in the statutes. Q • ConMDufions- The contribution rate for the employees is 6%, and the city matching percent is currently + 200%, both as adopted by the governing body of the city. Under the state law governing WAS, the Il city contribution rate is annually determined by the actuary. This rate consists of the normal cost e1 .9.1i 32X I '~rtalexraf " O I ' i . it i Notes, City of Denton (Continued) i September 30, 1997 contribution rate and the prior service contribution rate, both of which are calculated to be a level percent of payroll from year to year, The normal cost contribution rate finances the currently accruing monetary credits due to the city matching percent, which are the obligation of the city as of an tt employee's retirement date, not at the time the employee's contributions are made, The normal cost contribution rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the city to each employee at the time his retirement becomes effective. The prior service contribution rate amortizes the unfunded actuarial liability over the remainder of the plan's 25-year amortization period, When the city periodically adopts updated service credits and Increases in annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-year period. Currently, the unfunded actuarial liability is being amortized over the 25•vear period which began January, 1997. The unit credit actuarial cost method is used for determining the city contribution rate. Contributions are made monthly by both the employees and the city. Since the city needs to know its contribution rate in advance to budget for it, there is a one-year lag between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. r The city's total payroll in fiscal year 1997 was $32,872,635 and the city's contributions were based on a payroll of $26,432,624. Both the city and the covered employees made the required actuarially determined contributions, amounting to $4,238,305 (9.26;5 of covered payroll for the months in 1996, 7,14% or $461,246 city-contributed normal cost plus employee-contributed normal i cost of $379,837 and 2.12% or 1136,998 to amortize the unfunded actuarial liability, and $0.01 % 1 for the months in calendar year 1997, 7.60% or $1,558,269 city. contributed normal cost plus employee-contribvted normal cost of $1,207,710 and 2.41 SL or $494,245 to amortize the unfunded actuarial liability). The city adopted Changes in the plan since the previous actuarial valuation, which had the effect of increasing the city's contribution rate for 1997 by 0.04% of payroll. There were ~p no related-party transactions. funding Sfafus and Progress- Even though the substance of the city's plan is not to provide a defined benefit in some form, some additional voluntary disclosure is appropriate due to the nontraditional nature of the defined contribution plan which had an initial unfunded pension benefit obligation due to the monetary credits `F granted by the city for services rendered before the plan began and which can have additions to the unfunded pension benefit obligation through the periodic adoption of increases in benefit credits and benefits, Statement No, 5 of the Governmental Accounting Standards Board 1GAS8 51 defines pension benefir obligation P. a standardized disclosure measure of the actuarial present value of pension benefits, ao;c,ted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of public employee pension plans, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among public employee pension plans. The pension benefit obligation shown below is similar in nature to the standardized disclosure measure required by GASB 5 Ior defined benefit plans except that there is no need to project salary increases since the benefit credits earned for service to date a,e not dependent upon future salaries. The calculations were made as part of the annual actuarial valuation as of December 31, 1996. Because of the money-purchase nature of the plan, the interest rate assumption, currently 8.0% per year, does not have as much impact on the results as it does for a defined benefit plan. Market value of assets is not determined for each city's plan, but the market value of assets for TMRS as a whole was 102.1% of book value as of December 31, 1996. a!. ~t 32 X El e , ' o I l Notes, City of Denton (Continued) September 30, 1997 Pension Benefit Obligation Annuitants currently receiving benefits ! 3,714,146 Terminated employees 5,699,346 Current employees Accumulated employee contributions including allocated invested esntings 16,827,061 Employer-financed vested 25,977,259 { Employer-financed nonvested 3,676.519 Total 65,594,331 Net Assets Avaltable for benefits, at look Vslue 42,912,363 Unfunded Pension Benefit Obligation $12,681,969 ! The book value of assets is amortized cost for bonds and original cost for short-term securities and stocks. The actuarial assumptions used to compute the actuarially determined city contribution rate are the same as those used to compute the pension benefit obligation. The numbers above reflect the adoption of changes in the plan since the previous actuarial valuation, which had the effect of increasing the pension benefit obligation by $168.866. 7'ien0 lnfoartriation Ten Year Kirtorlcat Trend information Year December 31, Deeember 31, December 31, December 31, December 31, Ended 1987 lose 1988 1990 1991 Net Assets Available for benefits $11,643,689 lit4,146,080 110.633,1 t4 119,345,511 121,960,635 I Pension Benefit Obligation 1113,665,302 115,639,047 119,310,318 122,636,840 124,945,432 Percentage Funded 851% $5.0% 86.1% 63,8% 88.1% Unfunded Pension Benefit ( Obligation 1 2,021,613 1 2,492,067 If 2,666,204 1 3,191,329 $ 2,978,796 l Annual Covered Payroll $18,536,030 118,148,919 110,947,616 121,120,168 121,443,097 " - Unfunded Pension Benefit Obigstian as a Percentage of Covered Payforl 12.2% 13 7% 14.2% 15.1% 13.9% f City Contnbuton to WAS 1 625,976 $ 968,006 $ 1,020,272 1 1,071,835 It 1,156,035 I Average City Rate 50% 5.3% 5.4% 5.1% 6.4% 1 i "V6, x 10 32XIO s s Notes, City of Denton (Continued) I September 30, 1997 EE Tan Year Historical Trend Information Icontinuedl Year December 31, December 31, December 31, December 31, December 31, Ended 1932 1993 1994 1995 1996 Net Assets Available for Benefits 125,071,409 $28,658,450 $32,534,014 $37,689,286 $42,912,363 Pension Benefit Obligation $28,911,481 137,299.424 $42,764,413 $49,160,519 $55,594,331 Percentage Funded 86.7% 77.4% 76.08% 76.67% 77.19% Unfunded Pension Benefit Obligation s 3,840,072 $8,440,974 $10,230,399 $11,471,233 $12,681.968 1 Annual Covered Payfetl $21.896,750 $23.601,21B 123,820,705 $26,353.340 818,432,624 Unfunded Pension Benefit Obligation of a Percentage of Covered Payroll 17,5% 35.9% 42.9% 43.5% 48,0% City Conbibutlon to TMRS 1 1,146.207 $1,611,637 $1,902.093 $2.417.415 12650,758 Average City Rate 5.2% 6.9% 8.0% 9.2% 10.03% Fireman's Relief and Retirement Plan: The City provides pension benefits for all Civil Service employees of the Fire Department 1 through a defined contribution plan, The 9oard of Trustees of the Denton Fireman's Relief and Retirement Fund is the administrator for the pension plan. The Pension plan I$ not Considered a part of the City of Denton entity. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Fire employees are required to become a member as a condition of employment. An employee becomes fully vested after 20 years of credited service. I City contributions for, and interest forfeited by, employees who leave employment before vesting are .1 redistributed to plan participants. 1 The City's total Fire Department ponion of payroll in fiscal year 1997 was $4,759,088, The City made the required contribution (9.0% for 1996 and 1997) amount,tg +o $428,317. The covered employees made the required contribution (10% for 1996 and 1997) amounting to $475,909. Both E sources contributed $904,226 in total. * 17) DEFERRED COMPENSATION PLAN The City oilers is employees a deferred compensation plan created in accordance with Internal 1 Revenue Code Seaion 457. The plan, available to all permanent City employees, permits them to defer, until future years, up to 25% of annual grass earnings not to enceed $7,500 The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. r All amounts of compensation deferred under the plan, all property and rights purchased with l h r those amounts, and all income attributable to those amounts, property, or rights are (until paid or Q • made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plaml, subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creddon of the City ' in an amount equal to the fair market value of the deferred account for each participant. Investments (primarily cash and cash equivalents) in the deferred compensalion plan are recorded at market value. I I -tit. I _ ■ra ewsaoar c 1 t Notes, City of Denton (Continued) September 30. 1997 j ~ It Is the opinion of the City's legal counsel that the City has no liability for kisses under the plan but does have the duty of due care that would be required of an ordinary prudent Investor. The management of the City believes that it is unlikely that It will use the assets to satisfy the claims of general creditors at this time. 18) SELFdNSURANCE PLAN The City has established a self-insurance plan for workers' compensation benefits and general f Lability. Accrued claims payable include provisions for claims reported and claims incurred but not reported. The provisions for reported claims is determined by estimating the amount which will ultimately be paid each claimant. The provision for claims incurred but not yet reported Is estimated SS based on the City's experience. 1. The costs associated with the self-insurance plan are reported as interfund transactions. Accordingly, they are treated at operating revenues of the Internal Service Risk Retention Fund and operating expenditures texpenses) of the other funds. r Workers' Compensation and General Llablity Insurance ` It is the policy of the City of Denton not to purchase commercial insurance foh Workers' B Compensation claims. Commercial liability insurance coverage Is purchased for public officials, alrport, emergency medical services, and after-school action site programs at Denis and Martin Luther King, Jr. Recreation Centers. The City reports liabilities when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. Liabilities include an amount for claims that have been Incurred but not reported. Because actual claims liabilities depend on such complex factors as Inflation, changes in legal doctrines and damage awards, the process used In computing claims liability does not necessarily result in an exact amount. Claims liabilities are reevaluated periodieatly to take into consideration settlement of claims, new claims and other factors. As of September 30, 1997, the estimated value of these liabilities was $1,005,927, Changes in balances of claims liabilities during fiscal year 1997 were as follows: ) i l i f 2 x d 32xI❑ ALL " • 0 ovra I) Notes, City of Denton (Continued) September 30. 1997 ( 1t ~ Claims Liability Claims and Claims Liability I € Beginning of Change in Claims End of 11 Fiscal Year Estimates Payments Fiscal Year E Workers' f Compensation 1997 $ 294,392 4 380,689 $369.154 1 305,927 1996 344,583 268,559 318,750 294,392 General Liability 1997 62.220,000 411.232,2541 $287,746 $ 700.000 1996 2,912.490 1281.592) 410,898 2,220.000 1} Employee f Insurance 111 fff 1997 $ 11,100 $ 11,100 1996 11,100 11,100 (t On September 30, 1997, the City of Denton held $4,117,797 in the Risk Retention Fund for j payment of claims. There were no significant reductions in insurance coverage froin coverage in the prior r year and the amount of settlements did not exceed insurance coverage in the current year or in any of the past three fiscal years. I~ 19) COMMITMENTS AND CONTINGENCIES i ~I Agreement with TMPA• In 1976, the City, along with the cities of Bryan, Greenville and Garland, Texas ithe'Cities") entered into a Power Sales Contract with the Texas Municipal Power Agency ITMPAI. TMPA was # j 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 iii 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 ( t future power and energy requirements in excess of the amounts generaled by their systems from TMPA at prices intended to cover operating costs and retirement of debt, to the event that revenues are insufficient to cover all costs and retire the outstanding debt, each of the Cities has guaranteed i a portion of the unpaid debt based, generally, upon its pro rata shirt of the energy delivered to consumers in the prior operating year. As of September 30, 1997, total TMPA debt outstanding was approximately $1,318,814,000 and the City's percentage is approximately 2',16. In the opinion of management, the possibility of a material payment in the near future under this guarantee is remote in that TMPA is generating operating profits and assets exceed liabilities. TMPA operates a 452 megawatt fignile•fueled generating plant, in 1996, TMPA switched to ` an external source of lignite to reduce costs. Should TMPA be dissolved, each City would be entitled to an undivided interest in the property. .46• 3 2 t o , Notes, City of Denton (Continuedl f September 30, 1997 Selected financial statement information of TMPA is as follows: September 30. (Unaudited) 1997 _ 1996 {000'sl (000's) ff Operating Revenues { 164,105 8 169,655 t' Operating Expenses 88,665 106,423 Operating Income (Loss) 75,440 63,232 Other Nonoperating (Uses) 180,959) 182,424) Current Assets 53,905 68.540 Total Assets 1,475,948 1,522,731 Long-Term Debt 1,316,814 1,301,205 Total Liabilities 1,444,469 1,485,899 L Total Equity 31,479 36,835 Agreement with the City of Ded'es- During 1985, the City entered Into an agreement with the City of Danss which provides for { the purchase of a minimum of 500,000 gallonslday of untreated water from the City of Dallas from Lake Lewisville. This contract will be effective for 30 years. { LlugaUon- [ Various claims and lawsuits are pending against the City. In the opinion of City management f 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, 1997, W'I l I 2fixiC~ 32 x~~' WOMAN COMMON p Notes, City of Denton IContinuedl September 30, 1997 (101 SEGMENT INFORMATION FOR ENTERPRISE FUNDS r Segment Information for the year girded September 30, 1997, was as follows: ` Utility System Solid Waste Fund Total Operating Revenues 1 97,333,766 17,050,129 4104,383,895 Depreciation 7,023,873 163,294 7,187,167 !f Operating Income 17,639,938 1,836,701 19,476,639 of Operating Transfers In i Operating Transfers Out 3,937,209 59,080 3,996,289 { Net Income 13,684,095 3,322,921 17,007,016 F { Current Capital Contributions: y i In aid of construction 1,732,289 1,732,289! Accounts Receivable: Accounts receivable, gruss 14,000,996 14,000,996 Allowance for uncohectibtes 7,027,012 7,027,012 Accounts receivable, net, unrestricted 5,005,238 5,005,238 Accounts receivable, net, restricted 1,968,746 1,968,746 Propeny, Plant and Equipment Additions 9,868,628 552,786 10,421,614 Total Assets 292,796,566 15,506,826 308,303,392 Net Working Capital t 09,753 11006,568 9,086.321 [ r Bonds Payable 83,890,001 8,456,616 92,346,617 Notes Payable 31,219,934 21,269 31,241,203 Total Equity 163,617,889 4,281,623 167,899,512 I~ .41• I~ 2r~ x 10 32xII) ..r r r . O :ate,~at. I Irt 1 Notes, City of Denton IContlnued) September 30, 1997 J1 1) INDIVIDUAL FUND DISCLOSURES Indivjdual fund disclosures as of and for the year ended September 30, 1997, are as follows: { Interfund Receivables and Parables: t Mterfund tMerfund Advances to Advances from Fund Receivables Payables Other Funds Other Funds General Fund $ 421,941 $1,032,032 1 4 Special Revenue Funds: Comrdunlty Development Block Grant 690 Recreation Crimrrw Justice • ' Library Other 49,388 5,211 1 Debt Service 2,055 Capital Project funds: Airport Improvement General Projects 215.000 134,976 Street Improvement Construction Projects Other Copitsl Projects 517,450 14044 f Enterprise Funds 1 Utility System 319,608 331,387 3,781,784 3,000,000 II Solid Waste 5.540 62,585 781,184 Internal Service Funds: Warehouse 9 662 143 026 Feet Services 31356 I Motor pool 201,775 Risk Retention y" Trust and Agency Funds: 7 r Expendable Trust . I Agency • Payroll Total $1,650,464 $1,860.464 13,781,784 13,76084 ( ( j r 'x 10 32XId ME MR& sraaaea 3 , t~ Notes, City of Denton (Continued) September 30, 1997 (12) CONTRIBUTED CAPITAL fIf During fiscal year 1996.1997, contributed capital changed by the following amounts Fnterwisa tntemal Swvica Funds Funds 111 Utility System Total Motor Pool 6epirning balance • October 1 $14,209,112 $1,012,196 Contributions (rom customers 406,481 673.65d Contributions from developers 1,225,802 Depreciation o'865,924) 075.0961 $14,075,477 11,210,658 (t) The Working Capital fund had no activity In contributed capital e year ended September 30, 1997, ll i13i CLOSURE AND POSTCLOSURE CARE COST E~ State and federal laws and regulations require the City to place a final cover on its Mal ill Road landfill site upon closure and to perform Certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only upon anticipated closure, the City reports a portion of these costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The 01,424,320 reported as landfill closure and postclosure care liability at September 30, 1997, represents the cumulative amount incurred to date based on the use of 94.2% of the estimated capacity of the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of $87,196 as the remaining f estimated capacity Is filled. These amounts are based on what it would cost to perform e11 closure and postclosure pre in 1997. The City expects to use the remaining capacity in the landfill in the I! year 1998. Actual cost may fluctuate due to inflation, changes in technology, or changes in ` regulations. 11 The Solid Waste fund has provided for a reserve of retained earnings of $650,975 at September 30, 1997 and anticipates increasing the reserve in future periods as the closure and • postclosure activities are carried out. , i .50' I~ i 2.5-x 32x10 • ;tee. f APPENDIX C FOILM OF BOND COUNSEL'S OPIMON ' i E_ { L l r tM~ ; r f I jv 25 x 10 32x~1~ • ' o I~ 1~ f LI {II I! 11115 PACE U n BLANK INTENTIONALLY ~I (I . ? i X to 32XIO i r' t1 tea" , o uk ur ncr! MCCALL, PARK HURST a HORTON L.L P. GOO CONGRESS AVENUE 717 NORTH HARW000 700 N ST MARY'S STREET 1250 ONE AMEPICAN CENTER NINTH rLOOR 1225 ONE RIVERNALA PtA_E AUSTIN. TEX45 7a701 3248 DALLAS. TEXAS 75201 0507 SAN ANTONIO. TEXAS 745205-0501 1r.t..a.a V2 -'MJS S tt.a r..o.a 2+ ,l`IY200 ta,.t..O.l 60 22!,400 - " r.r L.N !'a.`C6' r.o w.1a H4 l!I itto c.u.uf 2.0 is! 2964 I CITY OF DENTON UTILITY SYSTEM REVENUE BOND SERIES 1998, DATED MARCH 13,1998, IN THE PRINCIPAL AMOUNT OF $7,173,000 AS BOND COUNSEL for the City of Denton, in Denton County, 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 principat amount thereof payable in installments due on December 1 in each of the years 1998 through 2017, 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 pre- payment or redemption, of each installment of principal, at the rates per annum for each maturity set forth in the Initial Bad with intmesl, calculmod on the basis of a 360-day year composed of mch a )04ay months, payable on December 1, 1999, and semiannually on each June I and December I thereafter, and with the then outstanding t principal of the Initial Bad being subject to prepayment or redemption, u a whale, or in part, prior to scheduled maturity, at the option of the Issuer, on December 1, 2008, or on arryy dale whatsoevor thereafter, in accordance with the tame and conditions stated on the face of the Initial Bond. The Initial Bond may, at the roqueg of the registered ewmer, be transfcrrod and converted into, and/or exchanged for, fully registered bonds, without interest coupons, in the denomination of $3,000 or any integral multiple of $3,000, and such bonds again may be transferred and/or exchanged, all subject to the conditions staled and in the maruar provided in the Ordinance authorising the issuance of the initial Bond (the "Bond Ordinance"), with any such bonds whkh are registered outhenticatod, and del6crod in aeccxdx= with the Bond Ordinance being hereinafter called "Definitive Bonds". WE HAVE EXAMINED the applicable and pwincnl provisiau of the Constitution and laws of the State of Texas, and hint examined and relied upon a transcript ofcer ifiod proceedings of the Issuer and other portirarut hstruments fumisfad by the Issuer relating to the authorisation of the Initial Bond and Dcrmithe Bonds and the issuance and dclintry, of the Initial Bond, including the executed Initial Bond and a printed specimen of the form for Dcfiniuse Bonds initially made available by the Issuer for completion and exchange for the Initial Bond; and we have examined and relied upon the Issuer's Federal Tax Cortificate, of even date herewith. BASED ON SAID EXAMINATION, IT IS OUR OPINION that the Initial Bond and Definitive Bonds have been duly author ised, and that the Initial Bond has been duly issued and dcli•rcred, all in accordance with law, and that, except as may be limited by laws relating to bankruptcy, roorganiration, 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 conslitute valid and legally r binding special obligations of the Issuer, secured by and payable, together with other bonds, from a first lien on . ! and pledge of the "Plolged Revenues", which include initially the "Net Revenues of the System" as such terms arc dcftnod in the Band Ordinance, with the System consisting of the City s entire combined Aalcrworks, sewer, p r and electric light anj power system. t 1 In 32 X . r v 0 • o THE ISSUER has resen od the right, subject to the restrictions 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 Plodgcd Revenues. TH E 1 SSUER also has reserved the right, subject to the restrictions slated in the Bond Ordinance, to amend the Bond Ordinance with the approval of the hoiden or owners of fifty-one percent in principal amount of all outstanding bonds which are soured by and payable from a first lien on and pledge of the Pkdgod j 4 Revtnucs. I { THE REGISTERED OWNERS of the Initial Bond and the Definitive Bonds shall never have the right I l to demand payment of the principal thcroofor interest thaoon out of any funds raised or to be raised by taxation, or from arty source whatsoever other than specified in the Bond Ordinance. IN OUR OPINION, except as discussed belay, the interest on the Initial Bond and the Definitive Bonds (collectively, the "Bonds") is excludable from the gross ine me of the owners for federal income lax purposes under the statutes, regulations, published rulings, and court docisions existing on the dale of this opinions. We are further of the opinion that the Bonds are not "pri vale activity bonds" and that, accordingly, interest on the Bads will not be sncludod as an individual or caporale altern alive minimum tax prelercrsce item under section 37(ax5) orher Internal Revalue Codc of 1986 (the "Code"). In expressing the aforementioned opinions, we have rcliod on, and assume oompiiwwc by dso tssua -Aitk certain representations and covenants regarding the use and investment of the proceeds or dse Initial Bond 'ry'e call your attention to the fad that failure by the Issuer to t comply with such representations and covenants may cause the interest on the Bonds to become includable in gross income retroactively to the date of issuance of the Bonds, WE CALL YOUR ATTENTION TO THE FACT that the interest on tax-exempt obligations, such as t the Initial Bond and the Dcrmitive Bonds, is (a) Included in a corporation's alternative minimum taxable income J i for psyyosa of dcturnining the alternative minimum tax imposed on corporations by section 35 of the Code, (b) ( f subject to the branch profits tax imposed on foreign corporations byseclion 884 of the code, and (c) included in the passive invcsu=l income of an S corporation and subject to thew imposed by section 1375 of the Codc. EXCEPT AS STATED ABOVE, we express no opinion as to any federal, state, or local tax consequences of acquiring, carrying, owning, or disposing of the initial Bond and the Deli Bonds. WE HAVE ACTED AS BOND COUNSEL for the Issuer for the sole purpose of rendering an opinion with raped to the legality and validityof lhcbmils described above under the Con.:titution and laws of the Slate or 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 invesligalcd or verified, any records, data, or other material relating to the financial condition or capabilities of the Issuer, and ! ` have not assumed arty rapensibility with rapeci thereto. We have relied solely on certificates furnished by the f I Issuer with respect to the adequacy of the "Pledged Revenues". Respectfully, JV' (I II 2 I~ r< 25x10 32XIO o Agenda No. Agenda item - AGENDA INFORMATION SHEET Date 3 = II AGENDA DATE: March 24, 1998 I DEPARTMENT: Finance I ACNI: Kathy DuBose I SUBJECT: Receive a report from the Denton Black Chamber of Commerce regarding a request to amend their 1997.98 Hotel Occupancy Tax Budget, hold a discussion and give staff direction. BACKGROUND The City Council had approved the allocation of $5,000 to the Denton Black Chamber of Commerce to host ajazz festival in 1996-97. Due to unforeseen circumstances, the Black Chamber was unable to hold the event resulting in unspent funding. The Black Chamber contacted the City to determine how and if the unspent 1996-97 funding could be spent. Staff researched this issue and advised the Black Chamber that the unspent revenue would need to be returned to the City or a revised 1997.98 budget, that included the unspent prior year money, would need to be approved by City Council. The attached letter from the Black Chamber indicates that they are submitting a revised 1997-98 budget to host two events in 1997.98 rather than one. One event, a Gospel Music Festival, has occurred the other planned event is a Jazz Festival. PRIOR ACTION/REVIEW (Council, Boards. Commissions! City Council has previously approved al997.98 allocation to the Black Chamber in the amount of $6,000. FISCAL INFOR 1ATION i If approved, the 1997.98 Black Chamber budget will include $5,000 in unspent 1996.97 funding and $6,000 in 1997.98 funding. There would be no change in the amount of funding disbursed this fiscal year. r. Respectfully submitt Jon rtun , i Dire or of M nagement and Budget 0 Prepared by: 1 c Prewitt Tax Specialist - 25)A0 32x10 '1 • DENTON Denfon 1~~uc~t Chamber of Commerce Post Office 8,3x 51026 a Donlon, Texas 76206 (617) 3833324 February 20, 1998 M9 K1XVIEKdtWK 11 2995 Qa40aaarAwd310,4dj Mr. Jon Fortune Budget Director- City of Denton 3 Aft E 4tar"S 215 E. Mckinney St. C6! man Denton, Texas 76201 EmmraC.30w, Re- Changes In Festival Plans for Black Chamber sa.ernt of Commerce '%drk%CAea, Dear Mr. Fortune zatamirman We were slated to have our Jazz festival during the surnnxr of 1997 `Jkn ihrpi TdV;a or In the fall in the Campus neater again. However, due to the rlrtmmr, inability to obtain a date at the Campus, we looked for an opportunity to have a concert in the Fred Moon Park. 47anet Cunn'4'am' The Fred Moore Park was undergoing construction and the weather Swdary in October made it difficult to follow through with that date. We had Cana 7tlmu advertised the fact that we would have a Gospel Music Festival la,lumantarran during the month of February in celebration of Black History Month end chose to focus our efforts on that endeavor after we saw that we ,fd L 90, could not have the October festival as planned M'"A When I realized that we would not have the October festival I r k, notified you of that fact end asked if we would reed to return the funds or if we could use them the next year to fut d the summer or pJ~ Ib fall festival. I was told that a legal opinion needed to be given and b r we were eventually told that we would need to submit a revised budget to be approved by City Council. We were also told that we could not receive any further installments until the Council approved the revised budget. i ( Q iJ r We have used the money we had on hand to fund our Gospel Music Festival and are still awaiting the final Installment. Although the 2 funds were approved for a jazz concert, since we did not receive any further funds we used on hand funds for one music concert vs. • the other. I hope this does not cause any complications for us or for FINANCE the City. Enclosed please rind the requested infarmatton. let us know if you have any additional questions. I-OQ behalf of the members, to r P'A~~ I 4n E. `Baines, Chmn, ton Black Chamber OkV x 10 5 10 32 X s 0 Worksheetl 1 ( (fl Donlon Black Chamber of Commerce 2-0 13udpel of Cash Recelpts and Dlsbursemenls For Year Ending September 30,199_k__ INAC _ - - Unaudiled ` Annual Bud et Cash-Beginning ReceE ts. occupancy Tax 11000.00 Inleresl Income 0.00 Total Recelpts 11000.00 Disbursemenls: Salaries _ 0.00 General ex nse 230.00 catch all for unexpected expense Direclors Relmb. Expense 150.00 relmb, for other than mllea e Pa rol Taxes 0.00 Health I: surance 0.00 Uabi iry Insurance 0.00 Tre nin 6 Travel 230.00 training of new volunteers and Mileage Equipment 15oo.00 a ul . needed for event Office& rppies 75.00 tablets envelopes etc, Telephone 18o.0o telephone charges and other media utilizatio Aud,t 0.00 _ Prinlin 550.00 brochures and flyers Postaga - 90.00 as noted Advertising 460.00 air time and other articles Convention Promotion 0.00 Towlsm Promotion 7500,00 payment for drawl card Brochures 0.00 n: , J 0 Total Disbursement 10965.00 Excess of Recei tsr D+sbursements 35.00 Cash-Eodl _ 35.00 1 Pell Cash I Cash In Bank - o Total Cash 35,00 I 3 - - 2,5 x 10 32XI[I 0 0 ~~ww Agenda No Z G!1_ Agenda Item._ _,,J7-- AGENDA INFORMATION SHEET nate__,~2~rqy_ AGENDA DATE: March 24, 1998 DEPARTMENT: Parks and Recreation DepaRmad ACM: Michael W. kz 349-7924 SUBJECT Receive a report, hold discussion and give staff direction regarding the adoption of a new master plan for Civt^ Center Park. BACKGROUND In March 1997, the City Council authorized a contract with the firm of Ford, Powell and Carson to develop a new master plan for Civic Center Park. The plan will guide the renovation of Denton's most significant park for the next 10 to IS yearn. A committee of citizens and City staff advised the consuPAnts throughout the planning process that included the solicitation of public comment through a series of articles in the Denton Record-Chronicle and s public review of three plan options. The proposed final master plan, based on the "Lake Scheme", received broad citizen support. Boone Powell, of Ford, Powell and Carson will present the plan to the City Council at the work session on March 20. ESTIMATED SCHEDULE OF PROJECT Should the City Council so direct, staff can prepare an ordinance for approval of the Civic Center Park Master Plan at a future regular session. PRIOR ACTION/REVIEW The Parks and Recreation Board has recommended approval of the proposed Master Plan. FISCAL INFORMATION No funding for implementation of the master plan is required at this time. EXHIBITS • Proposed Civic CcnterPark Master Plan (under separate cover) E Submitted by: , i Ed Hodney, Dv' ect ✓1 Parks and Recreation Department c: Michael W. kz, Assistant City Manager of Operations P•ae t 25x~~~ 32 x~❑ 0 ( ( X10 ! 41C C t 10 ex k Ik- ( ;j 1 ( t C ( s ( c c ( I ~ C I Denton Civic Center Park C ( FF INTRODUCTION On March 18, 1997 The City of Denton Parks r and Recreation Department commissioned Ford Powell and Carson, of San Antonio, Texas to devel. op a master plan for the Civic Center Park, The major charges given to Ford Powell and Carson were to develop concepts to Incorporate the existing O'Neil Ford structures, as well as the other existing structures on the site, into a cohesive landscape that utilized both open and enclosed spaces, devel- opeei primary entries Into the park, reorganized and provided adequate parking, and provide areas for major park events that could be held In all con. ditions, This plan will plot a course that will guide 1 the park Into the next century. This report will Illus• trate the master plan and summarize the process by which the plan was developed, It will document the results of meetings, and planning sessions, as well ( as the Input and support given to the process by those involved. Ford, Powell and Carson studied how the park developed and grew from its Inception in the 1920's through Its addition of the O'Neil Ford civic U: structures, to its present state today. As the master planning process proceeded, numerous issues fac• ing the park were documented and studied. These Issues can be categorized Into five major areas: Drainage; unification and organization of the exist- Ing structures as they relate to the green space of the park; both vehicular and pedestrian circulation, landscape development; and finally creating dis• . tinct and diverse areas of the park that will accom• Yew of Perk 19 30't modate a variety of events of all types and sizes, ! 1 • r ~ 3 ~ • • JVO r ( Ford, Powell,and Carson, ( ArchNefs and Planners C C 25 x 10 32x10 0 ro,~11,11011 0 ,,A"R _ f ( DESIGN PROCESS ( The development of the master plan for the Denton Civic Center Park was a col- laborative effort including Ford Powell and Carson, Park and Recreation staff ( and the citizens of Denton, At all phases of the design process, meetings were held to gather ideas and input from the various groups, This information was ( compiled. developed and integrated into the master plan (See appendix for meeting notes). l Survey and Analysis t The desgn process was divided into phases, at the end of which meetings were j ( held to discuss the findings, solutions, or alternatives developed At these ( meetings decisions and directions were adopted as the planning developed. Pecan trek ( The first part of the process was the site analysis. The analysis phase started with a group of meetings In Denton with Parks and Recreation staff, various City ( of Denton departments, and with the Civic Center Park citizens advisory group. ( At the conclusion of these meetings the park was photographed and docu• ( mented to identify existing conditions and areas that would impact the master plan ( The first impression of the park is the impact of the drainage channels that ( run through the site Pecan and North Pecan Creek, which were once free•fiow• ing creeks, cross the site and have been "improved" by being lined with con- Tr~'cal Edge Gnaron crete and channelized. These concrete scars divide the park and keep the north s and south halves from being a unified whole. The park is being encroached upon from all directions, Building additions, park- ing and other structures have pushed Into the park, taking away from the nat- ural green and open space (See Negative Space diagram). There also is a lack , s r t of a strong, defined edge to the park. As one looks across the site the edges ( bleed into the surrounding landscape causing the park to lose definition. The ( result of these intrusions is a tight space and a park that feels smaller than it Parking Encroaching on Park ` actually is. In order to emphasize the park and the existing open areas, the edges will need to be defined, which will also give the park a better appearance from the street At the present time the park does not have great appeal from ll the street. 140?4 r4 A if The surrounding proper ty adjacent to the park is mainly residential and com- r mercial. The south and east edges consist of small businesses and a strip shop- ping center. The north and west edges are defined by single- and multifamily 0 Q housing. There is a close proximity to the municipal areas and buildings, such Typical threes as the county ccurt house, in the downtown area southwest of the park. 4 Existing Vegelatlon Large groups of trees are dispersed throughout the site. Although some are ( mature and in good condition they are sporadically arranged and do not Ford, Powell,and Carson, ( ArchItecls and Planners ( i } 25 x O 32x a • :vma!ww ' a t t Denton Civic Center Park c c c i SITECONTEx- r i PEDESTRIAN ACCESS AW i i I k Slte Context a, VISUAL ANALYSIS C • tea' ~ .rPn.,~• , , Ysd Malys4 5 Ford, Powell,and Carson, AnAltects and Plannets ( ?.G) 32 X 0 D x~rxaaaiax - I C i Denton Civic Center Park C enhance or shape the open areas. A large area of mature cedar elm trees is ( located south of Pecan Creek near the community garden. Street trees along I, t the edges of the park are mainly live oaks, but the only concentration is along t the southeastern edge of the park along Bell Avenue. The garden areas ;.y Y between the City Hall and the Civic Center are attractive, but need to be rede- fined, replanted, and enlarged. 01 areas of the park have a lack of color and • ' t garden areas. 'st Ji, r rs ~ ;JW Pedestrian Circulation i In the present condition it is hard to walk across the site because of insufficient walkways and bridges. The drainage channels split the park and make it diffi' ,4, , el cult to travel from the north half of the site to the south. The pedestrian circu• L y y i lation throughout the park site needs to be improved. No sidewalks exist sur- U : e fl a■ . rounding the park, which makes it inconvenient to use the park for walking or jogging. The trails that do exist are of an Insufficient width for park service Existing Vegetation vehicles. A strong off-site connection to TWU and the downtown area needs to be emphasized. There Is a lot of pedestrian traffic In the area, and 9 should be encouraged to be brought into the park. Site Utilities a From discussions with pa-k and rocreation staff it was determined that the site utilities are outdated and not uniformly designed throughout the site. The ird- gation system needs to be abandoned and a completely new system should be designed and installed. The electrical feeds to the park, although relatively new, are intrusive and will be greatly disrupted with the regrading necessary to . f carry out the drainage improvements called for in the Pecan Creek master plan. County Building Existing Site Circulation The former Denton County ]ail Building occupies a site In the park owned by the County of Denton. The building has an negative Impact on the park, due to its location and Intrusive nature. If the city of Denton could take control of this structure, it could house city functions, or it could be demolished to allow space for the park to expand. The additional park land could be used for expanding the community gardens, expanding parking, or adding an additional perfor• mance area. ' Pecan Creek Drainage Master Plan The Pecan Creek Drainage Master Plan was prepared and presented to the City of Denton in December of 1996. This report which was prepared by Teague, Nall, and Perkins brought to the forefront the serious drainage Issues that would Impact the park. The drainage channels would need to be enlarged, thus frc9at ve Space emphasizing the problems existing on the park. g O Preliminary schemes The second phase of the design process was a two-day design charette in Ford, Powell,and Carson, Denton, during which three scenarios for design alternatives were developed Architects and Planners f ~ . ~I r 1❑ 32x ❑ Sol i' i and tested During these mec' n;x the drainage issues werr, a major concein, and m fact became the central factor in the development of the ihuee schemes Ai the proposed Pecan CreeF, drainage master plan. the existing drainage channels would be significantly widened This could have a serious effect on the park The existing problems of separation and visua' distraction might be even more exaggerated Th's s;tu,ition caused the drainage issues to be the d~sbnguishablc feature of all the solutions The three scenarios mcluded a scheme that mcorpoiated a series of sma!I ponds at the bottom e1 the than nel, a scheme that included a We that would fill the channel with water, and a scheme that buried the flood charnel in underground box culvert After the charette the three schemes were developed further The Small Pond scheme The first scheme was based on a spetch O'Ned Ford drew while working on the site plan for the City Hall budding The creeks would be formed mto shallow T-f f 3' ~J~r• r ~p e0ax' ~~~it I 1 t 1 I 'Rtfze~ ~ ~ r . IL i .j _ S /r ~ r r ago J f Li ~ N , - J 1 rJ f~rI'rr.ell.ar'I 1ar;9r f~ C pools by small check dams inserted into the bottom cd the stream channel The dams would be constructed to a profile that would allow floods to periodically (lean out the pools of silt and other debris Oakland Street would be closed to through ti Pic This would allow the park to Oiltze public land west of Oakland Strcct Tlus lard would be used as parking. and with the insertion of a few traf- I c sievnng devices the threat of pedestrians crossing fast-moving vehicular fralhc could tic reduced An entrance to the I~brary would be provided, using the southern half of Oakland as a drive and parking area The northein half of Oakland would be I nl,cd to Congress to divert traffic to the downtown area In addd!on the County Budding would be removed and the com -+unity garden and faiVjng e=handed The lake scheme rl,e serorid scheme solved the drainage issues by creating a lake out of the dra nagc r hannek containing Pccan and North Pccan ueck, With the use of a till' 4. r r / ~ n It VA Iq e Vill V { -~l' f c Pr r,r it a!~ 1 (irzn, I V _ f= :_Lti_1lS L2ft c darn containing leaf gates the channels could be shaped to form a lake that m tunes of flood could carry the expanded waters In a flood event the gales would open allowing the flood water to pass through, thus utilizing the design width of the channel. This would remove the impact of the two Large drainage channels in the park and turn them into a unifying element The water surface of the lake would be at an elevation close to the ground surface of the park and would not visually divide the space In fact, the lake would unify the build- ings and spaces by linking them with a common element In this scheme Dakland Avenue would be kept open, yet at a reduced width to slow traffic sig n,ficantly With the speed of the traffic reduced the parking to the west of Oakland Avenue could be safely ulihzed with crosswalks and signals The coun- ty building is shoe+n removed When the city takes control of this building it could be dernol~shed to allow the expansion of the park. This area could he used for expanded parking and also could be used to provide an all weather event area The area gamed could also be used for expanding the community r -r7 Zi.-- I ~ e I ky.. r 1`1 °r. -1 Cl ft u , f i a ,a,, 1 ; x•. 7~ .r d ~ +,r~nr s i { 1 T .I.x e 0 c C Denton Civic Center Park garden and providing an enlarged and, articulated entry to the gardens. i Underground Scheme ( The third scheme was the most radical scheme. It proposed burying the drainage channels in box culvert and allowing the flood waters to pass t under the park. A water element would be included in the scheme, but it ( would not be the natural element that existed before. The creeks would be replaced by a fountain or pool at the center of the park. In addition to developing the three schemes, characteristics of desirable park elements were selected from photographs of great parks from around ri the wor g ld. The feeling and character of these places should be captured and brought Into the Chic Center park where ever possible. KrocNer-Ver Museum, Netherlands Development of the schemes Although all the schemes would have a positive Impact on the park, the Lake Scheme stood out as the most desirable for a number of reasons. The Small Pond Scheme did not adequately take into consideration the Immense impact of the present-day drainage requirements. The proposed channel would still divide the park, and the ponds would be isolated at the bottom of the channels. It would be hard to develop the land near the ponds, since r these improvements or plantings would be in the floodway and would impede the flow of the flood water as well as be susceptible to damage from the w,-ter. The land adjacent to the floodway would also be hard to use because of the steep grade required for the channel. While the 1 Underground Scheme would add significant space to the park, as well as tie I the park together visually and physically, it would be an expensive solution. This scheme is also the hardest scheme to complete in phases. It would be difficult to improve the park until the drainage system was in place, which would have to be sequenced with the entire Pecan Creek drainage improve. meats below the park. It is not known what the time frame for these improve- Berkley Square, London ments wilt be. Aker the altematve schemes were presented, the Parks and Recreation Department, the Citizens Advisory Group, and the public held discussions v and reached a consensus that the Lake Scheme would be chosen and devel• oped further. f' ~S The Gmal phase of the design process was the design development phase. The Lake Scheme was developed further, with emphasis on the areas high- Middleton Garden, South Carolina lighted to be of concern by the parks department and the advisory group. 0 At this stage the park standards were compiled and refined The revised 10 plan along with the standards, were presented and approved at the Design Development meeting Ford, Powelt,and Carson, Architects end Planners C 25 0 32XI❑ {r C FORD POWFLL & CARSON 1 Q-HrIrT<& :w: t*i'iL&6(b6o'k,44k4u;'Lgl L: A h, + ~A &'L CIE d ULM Art 1 :I,l iy~a . ` y • A11.. rj `-Lr I h?{; 0~~I .1 epa, yj r Y ' to ~t ~ b . MI H I. I 'I; 11 r i la } ~ + of ~ iA. I ~ ~ r Ala,` ~4 or f ~ I ' 1 1 I1, 1' 1 ~I _ ip • YClil.fC ll !W o ~~ii✓liL. _ R I n.w CEvTOY CIVIC CE14TEP PAPK MASTER PLAN IL 4v e 0 T91"3 t ( Denton Civic Center Park MASTER PLAN 1 The goal of the master plan was to develop a plan that would rejuve- nate and energize Civic Center Park. The park would become the clear t destination poirt for the community in the downtown area, while ben- t efitting from the population density created by the arts district, uni- mot" versities, and the County Courthouse square. The master plan address- a es the various functions of the park, from intimate family outings to large festivals attended by thousands of people. It is this wide range i of users that provides a unique challenge to the park and provides the t necessity to organize and unify the space, This realignment is neces. + sary in order to reach the most efficient use of the limited area while enhancing the physical beauty of the park, NP ~ 1 h+ 4m Enlarging and defining natural areas 1 green spite The natural areas of the park have been encroached upon by building «Tf additions, parking lots, and other structures as the park has devel- oped. It is necessary to move these more intrusive functions of the t park to the edges In erder to maximize and enhance the open areas at r its center. Although it is impossible to move the existing buildings, other structures and activities can be relocated to a better location in Meaeow relation to the existing buildings. This density will actually link the structures together and enhance their relationship to the park, thus using them as an asset to define the open areas and provide an edge l to the park. The park appears smaller than it is p,imarily because its open spaces are divided among a number of different areas with obstacles dividing them. We propose removing the tennis tour is near " 4i' ( the Senior Center, moving the existing amphitheater stage to the east, t v c~ ` { and removing much of the parking from the interior of the park and r ) relocating it along the edges or on adjacent sites This would allow farge meadows to be formed In the interior that could be further P; ` + ( shaped by plantings of trees In dense groupings to form wooded ( areas. O ! i P Oefining edges The park appears smaller due to the lack of defined edges. These weak edges fail to enclose the park, which allows the space to bleed j ( into the surrounding properties. The planting of street trees, building x of low walls or fences in selected locations, as well as the Increased ( density at the perimeter of the park due to the relocation of the Inte- ® 9 rior functions, will help define this edge, This will not only help the flM'Ou'd 12 interior of the park, but will provide a more attractive view from the ( street and surrounding areas. To raise their Importance, the perime- ( Ford, Powell,and Carson, Architects and Planners t , ,f; 1)1.) 32X 10 0 onu+te 0 9enton Civic Center Park C t YPIC - t Section at Street Edge l 71 r (i s. c i Sectu a+ P!aygrou~d ParOg ter streets should be made to feel more like boulevards and park- ways. Not only should street trees be planted r;n the park , but trees " should be planted on the opposite side of the street as well, where r ever possible Solving drainage issues while enhancing cite park The greatest challenge facing the park, and possibly the issue with tho largest impact, is the drainage Two creeks converge on the CMc Center Park site, Pecan and North Pecan Creek. The creeks drain a significant vatershed, and although they are relatively small in aver- O age water tic*, in flood stage they are dangerousto people and prop. 13 ( ( erty throughout thu park and the downtown area. While the existing I dra'lrage channels are a visual eyesore and are detrimental to the park by dividing the north and South portions, the proposed widen- Ford, Powell,and Carson, Archifecfs and Planners f Mai l 0 ,ten , C ' Denton Civic Center Park ( ing of these water courses would greatly impact the park, While it Is i necessary to provide the floodway of the necessary size, it is the rec- ommendation or the master plan and of the advisory board to create a i ( lake in this area, which would not have the effector dividing the park. With the use of a leaf dam to control the water level, the dam could be S opened during flood events to let the water pass unobstructed. This Y t would utilize the full channel width without causing a negative impact ( on the park. The water level of the lake would be closer to the ground t plane of the park, which would actually link the different areas with a i common element, The depth of the lake would vary between a maxi- k j t mum depth of seven or eight fat near the dam tojust s few feet at the C upstream edges. 'uL s t Increasing parking while removing portions from the park Although parking is a necessary and important aspedto the park, it is as important that it be located in the appropriate areas. The parking terrace at tRmry C should be convenient artd accessible to all buildings and areas of the ( park, but should not Intrude Into the natural areas of the park, it Is . • ( necessary to keep and expand the parking at the edges of the site and remove it from the internal areas, it is possible to expand the parking t at the pool and senior center areas without affecting the adjacent nat. ( urai areas . The head in parking along Bell Avenue>dll be removed t because of safety issues, which will allow additional lots to be added ; t / r •"+l t or expanded along the eastern edge of the site. The largest parking v } Improvements will be located along Oakland Avenue, along the westernr G ` ro 0 t edge or the park near the Library and Women's building. A major amount or the existing parking at these locations will be lost due to drainage improvements, and it is our recommendation that only a few accessible and short-term spaces be left east of Oakland, The parking a will be replaced on adjacent land across Oakland, already partially owned by the Parks Department and supplemented with additional land acquisition. The speed of traffic on Oakland Avenue will be greatly S~ reduced The width of the street will be narrowed to two lanes of tral-' A fic, large crosswalks added and possibly a pedestrian activated traffic signal added to assist people crossing This reduced traffic speed will Newpokrg and entry allow the parking across the street to be used safely by all people. A small service area north of the women's building will remain to allow service vehicles' access to the rear of the building. The service areas will be paved with a grasscrete•like material to snow occasional traffic while keeping a natural appearance.Wlth the completion of the master p plan, a total of eighty parking spaces will be added to the park 14 Develop and organize circulation system Texture and variety will be added to the circulation systern to the park. r A hierarchy of path width and material will be introduced to dist'ngulsh Ford, Poweil,and Carson, ( Archllects and Planners C ( 5t',C,,r. 0J 32 X I ❑ o a I Denton Civic Center Park ~ It f ( between major and minor paths. A dark color material, such as asphalt, y, ( should be used for paths In the more natural areas of the park to reduce glare and to allow the ti ail to blend in with the natural land- {y a'r ( scape. At entries and other ceremonial areas, brick pavers should be ;1-4 r t' used to highlight these areas and develop a relationship with the ;i ( buildings on the site, Paths throughout the park will be asphalt with i t steel edging to provide a maintainable edge. The major circulation t spines will be nine feet wide, while the smaller paths will be five feet i wide. The wider walks would support small park vehicles, such as small pick-up trucks or carts, but othertraffic would be discouraged. Bridges on these major circulation spines should have a width of ten feet These bridges would have load requirements that would allow the small carts and pick-ups, but would not allow larger vehicles to cross. pe Removable bollards shoal be placed at these bridges to regulate traf- fic, The bridge across the leaf dam would have a narrower width, pos- sibly six feet. The smaller, informal trails will be five feet wide crushed r. ( stone with metal edging These stone paths will be used In garden t areas and other areas requiring a smaller state. The perimeter of the park will be encircled by a system of five fool wide concrete sidewalks Envy at ben ane Mcmm~ey c to match the city standard sidewalks they are adjoining, Land Acquisition J Links to greater Denton The physical area of the park should be increased by the acquisition of additional property to the west of the park across Oakland Avenue. > This additional land could be used for relocated parking that was i moved to provide more open space in the actual park. The park should also be visually extended by developing green beltsthat reach Into the city to draw people into the park. Am opportunity to develop these cor• ridors is along the creeks both upstream and downstream. As the drainage channels are rebuilt, they should be designed with extending the parklike feel into the adjacent areas of Denton. Trails and planting \ wry... . should be inducted in these plans so the space is not just a concrete + { wasteland, but actually an inviting link to the park. Downstream from the park is an opportunity to develop an area with a more urban feel, like the River Walk in San Antonio. This green belt system will connect k':~ the Civic Center Park with the Rails to Tra41s system and the Municipal annex to the south With the flooding issue under control, the areas south of the park could be developed in a denser fabric while main- w r.. taming the natural feel of the river. Buildings and structures could be built in close proximity to the creeks which could house restaurants O and shops in an more urban context Another addition that would pos. Pecan (reek South 0 Park 15 itively impact the park, is the acquisition of the county building. If the city could take control of this structure, the master plan and the advl• sory committee recommends that R be demolished to provide an Ford, Powell,and Carson, Architects and Planners i f itY" 1 rl , r / O ( Denton Ci lc {enter Park { f C t c _ t i t Sect;on at Parking Collector 'IF WIN • J % ),g j ( Sedron a, Major Entry ( ( ( Ford, Powell,and CAFSOM, ( Archlfects ind Plennen f R 2ri 10 32XIO 0 0 dMYdY l Denton Civic Cenler Park ( expanded area for the park. With the county building removed, the ( community garden could be enlarged and given a better, more articu- lated entry. As well, parking would be expanded with the development ( of a multi-purpose plaza. This plaza would be used for an event plaza and gathering space in all weather conditions. This plaza will serve as ( a 40 spaces parking area, when not in use as a festival plaza. - < ( Spaces for sculpture x ' rA x Large and significant pieces of art should be located at major entries into the park and at areas around public buildings. Art should be selected in a thoughtful and deliberate manner. The collection would l grow gradually to Incorporate quality and important pieces of well- known regional and national artists. An arts committee should be i formed to develop a list of desired artists to guide donations and acquisitions in a direction that would be beneficial to the park r Spaces for events and festivals ( The master plan has been developed to provide a variety of diverse areas for people to gather. Small Intimate areas for small groups or plc- Small IROVmance Stage lure taking should be developed. One area that would accommodate ( smaller gatherings is a small structure that could be built in the ( expanded community garden. This structure should be an intimate ( space on a placid pond in the garden. Intermediate site groups could Af r gather either on the expanded library south terrace overlooking the t'+ ( lake, or on the south bank of the lake at the new small amphitheater ( and informal stage. Larger groups or concerts could be held in the ( relocated amphitheater. The new orientation will provide a greater area for viewers, as well as more convenient access to the stage, The ( ground plane would be slightly reshaped to provide the proper sight r ~A lines and distinguish the theater from the surrounding areas. For even r ti larger festivals, all of the previous areas would be used In addition to the areas for larger stages. The north meadow will hold a large stage " during major events in the park. This stage area will be able to be ser- viced from Withers Street to allow the truck traffic to be restricted from { the park, The multifunction area that replaced the county building could also hold a major stage. This would be a hard-surfaced area that { would be used for parking most days, but could be converted to an all. i weather event area during festivals Concrete or brick pavers could be used In a pattern that would allow people to use the parking without f the designation of stripes, and provide an attractive surface that f would feel like a plaza rather than a parking lot A medium to dark color 17 should be used in the parking areas to reduce ti,e glare and to conceal any oil drips from the cars. All event areas are planned to have direct access to either a parking lot or an adjacent street, therefore reducing Ford, Powell,and Carson, Architects and Planners ( M 2h~ 32x 1 • 0 nav Denton Civic Cente, Park c the need for private service vehicles related to the festivals to be dn- ven In the park. 011 Garden areas Native planting that Is easily maintained should be used throughout the ( park. Thought should be taken to develop a plan to provide bloom suc- ra mat cession and seasonal color across the park at all times of the year, pos. t sibly through leaf color. Small plantings of flowering plants could be used to highlight entries and significant places throughout the park. The large garden area will be developed as a botanical center that will ~+rx educate the community to the possibilities of native plants and other t species that will thrive in the Denton area, as well as an area to exhib- it exotic plants that have been adapted to grow In the Denton area. The existing Girl Scout Cabin should be transformed into a garden center i that will provide information and possibly seed or other garden items. ' l A small shelter will be located In a picturesque setting in the large gar. ( den to provide an intimate gathering place for small functions or as a backdrop for wedding photographs and other pictures A variety of `:ft,. Y' grasses should be used throughout the park. To add texture and a earl- Entry at Gry Hall t ety of color, different grasses should be used at different locations; one type should be used In the sunny high-traffic areas in the mead. ows, another type of grass should be used In the partial sun and shade r areas surrounding the meadows. and ground covers should be used In the deep shade areas in the large grouping of trees Planting should be selected from plants list provided for the Denton area including ground covers, perennials, wildflowers, shrubs, trees, and grasses list- ed in the appendix to this report, Emphasizing of City Hill The ;mpad and presence of the City Hail building needs to be height- ened first, the front trellis of the original design needs to be added to the existing structure. This, along with the clearing of a few trees, which would allow the building to be seen from the street. A more dis• tioguished Identification sign needs to be constructed at the street l edge, and the Christmas tree needs to be relocated to a more appro. priate location. The drainage of the courtyard needs to be corrected. The elevation of the courtyard should be raised a few inches and the brick pavers should be reset. The Improvements to the courtyard, along with the addition of more appropriate furniture, will make it a • more active space, 18 it Is the master plan's goal to shape and adivate the existing park to bring It to a level that will make it the premier park lot the city of Denton. Ford, Powell,and Carson, I ArchifeNs and Planners C ' h ?h x 32X 40WA39M p rawe~ara _ i ( Denton Civic Center Park ( ( I ( 4 j i ( r lli nn • f t 1 i ( Section Through Meadow r ` Seam' at lake i Ford. Powell,nnd Cation, Archifeefs and P/inners 0 a..wxea 0 C Denton Civic Center Park ` t PARK STANDARDS c c ' Lighting The lighting for the Denton Civic Center Park should be used to provide , . security and add a visual texture to the park. Different lighting will be incor- porated into the design of the park to provide a variety of scale and fight i quality as the use and context of the different sections of the park change. Colors of these fixtures, as well as other park furniture, will be in a range ` I• ` of a bluish-gray color often used by O'Neil Ford. These colors tompliment to the golden dun color of the El Ford brick used In the City Hall and Civic Center Buildings. See color range samples Included In the appendix to this report~~~ Parking Lot Lighting : A standard "shoe box' fixture should be used in i parking lots where brighter uniform light levels are required. A high tutoH type design should be chosen to eliminate the glare in the park. The fixture ( should be in a blue-gray (the lightest value in the blue-gray range of tol• ors) painted finish, and house a metal halide lamp. l`~ L' ( rL t Pedestn'an Path UgntStandards : Lighting along paths and throughout the n1.s o tt"'2u. end .L' park should be a free-standing pole fixture with an acrylic W stabilized globe. The light cast should be at a level to see the faces and basic char. acieristics of people as they approach. The standard should be a cast alu• minum fixture in a dark blue-gray finish ( the darkest value in the blue-gray range of colors). Ornamental Fixture : At park entries and points of interest, a special dec. orative punched metal fixture should be used. These fixtures, based on y designs created by regional craftspersons which were often used by O'Neil Ford, would provide a strong relationship between the park and its strut. tyres. The punched metal diffuser adds sparkle as well as throws light Into M the trees and onto the ground • Light Bollards : In park areas where a finer scale is required, a small light bollard should be used Such areas would include gardens, entries, and s.. gathering and seau'ng areas along paths. These fixtures will cast light on the ground, highlighting the immediate vicinity around the fixture. These cast aluminum free-standing bollards should be In the typical I l fin. h. free UgnGnq is * r tree Lighting : At entries and areas requiring a greater focus, tree uplight• 20 ing should be used this lighting of the tree canopy will provide a spatial presence in the park at night. Free-mounted, bullet-type fixtures should be Ford, Powell,and Carson, Architects and Planners C i "A~ ;;.i1❑ 32XIO i s 0 i C , Denton Civic Center Park used in the trees to provide a uniform tight quality that is not easily dam- aged .•r ~ff . i Seasonal ClghGng : To ensure a festive and seasonal park environment, a r, '~f~ 4;:~; - scheme for Christmas lighting should be developed. A few specimen trees = d' r~6 I i in the center of the park, along a major path or water feature should be i highlighted. Concealed electrical boxes should be supplied at these Iota- tions. f i Walkways and Paths. « A number of different path materials and sixes should be used throughout the park to provide a hierarchy and scale to the circulation system. Location t of the individual path and traffic flow will determine the type of cooslruc- kuana l;gtueg tion used. Crushed stone, asphalt, concrete, and brick pavers will be used to delineate the various types of walkways. Entry /Plaza : Brick or concrete pavers will be used at major entries or t plaza areas These pavers will provide a visual connection between the tA buildings and the park while providing an elegant entry to the park. l ` MaforPoth: A nine foot wide asphalt path with steel edging will be used at the major circulation spines in the park. These paths will be constructed to 00, hold large traffic flows as well as small carts which provide service to the park. II c.Minor Path: A five foot wide asphalt path with steel edging will be used on r---t pathways throughout the park with average traffic flows. The dark color of Garden Pam the asphalt will blend into the landscape and provide a more parklike atmos- phere. r~• Minor rrali: A live foot wide crushed stone path with steel edging is to be used on pathways with lower traffic flows. These paths will add a variety and ' texture to the path system and allowa hierarchy of use to be established in 0 the park. The color of the crushed stone should be gray to graylsh pink, L consisting of limestone screenings or crushed granite. The crushed stone ~R! will be compacted to allow for handicapped. accessible traffic J Garden Path : A lour foot wide crushed stone path with steel edging. This S'.00 r path will be used in gardens and other informal, low-traffic areas. The color, 0 material, and construction of these paths will be similar to the minor trails,"0' P' 0 0 Sidewalks : Five foot wide concrete sidewalks will be used along existing 21 streets at the perimeter of the park. r Ford, Powell,and Carson, Archttects end PJMners r fob , , f ~ 2-li 32x111 4 O i It Denton Civic Center Park C C li C ~ I t t Major Path { a t 41 i Varies Vadess ` E-itry r Plaza 22 Ford, Powell,and Carson, Atchltecti and Plaaneta r r G 0 32 n MERL. om.rsnr O C ( Denton Civic {enter Park ( C Site Furniture Park furniture will consist of classic designs that will evoke a naturalistic parklike feel, while relating to the historical O'Neil Ford designed build- ings throughout the park site. High quality furniture should be used to ( insure the durability of the pieces as well as to keep maintenance to a min- imum. These pieces should be used throughout the park, along trails, paths, and at activity dusters. / r 1/1, 114 Benches : Two types of benches will be used In the park: a six-foot Iong + metal strap bench and a six-foot long teak bench. The metal bench is 1r formed from one-piece straps that make a seating surface that is comfort- able and dries quickly. The metal will have a powder coated finish to match beta Strap Bench j the other site amenities, such as the light standards and other furniture, { These benches will be used throughout the park along trails and activity areas. The teak benches will have a clear protective finish and n;tl be placed In the garden areas and other locations that require a more naturalistic look, i Drinking Founlabn: A cast aluminum or cast iron freeze resistant fixture t with a solid bronze bowl. An accessible fixture should be used near all activity areas and at certain seating and picnic clusters throughout the - park. The fountains should be finished in the typical dark range of the blue-gray finish to match the other site furnishings. Trash Receptacles : The trash receptacles will coordinate with the metal Teak Bench i strap benches. A metal strap frame will house a solid container and should be placed near all activity areas and dusters of other site furnishings. Water Edge The edge condition along the lake should provide a variety of textures and experience to the park while maintaining a stable and safe transition between the land adjacent to the lake and the water level, It is possible that $f . _ the water may fluctuate slightly during times of flood and drought, there- lore edges must be developed to take into account the mim water eleva- tion change at the bank. 14go Neural Wetland Edge : This edge condition w! 11 provide the most flexibili- ty in maintaining an attractive y+xter edge during times of changing water levels. Water loving plants will be held behind steel edging at the water Trash Coraairner and Water kuraam • edge. The plants will drape over the edge to conceal the edge, These areas will occur near bridges and areas where people will have an opportunity to 23 0 • experience these areas on solid structures which project into the plant material. Another place they will occur is at the upstream edges of the take ' where the water level variation will have the greatest Impact. These areas Ford, Powell,and (arson, Archllects and Planners FFIZ- .2 32XIO - o 0 MNIMM ( Denton Civic Center Park f I ( C will help control the amount of access people have to the water's edge. ( Grass Edge: The grass edge will occur in controlled locations where the water level variation Is moderate. Gentle slopes will be developed in order ( to hold soil and allow a safe approach to the water. These lower sloped areas of the channel will allow for areas that can be used for picnics and Or%44 0'! AM - t sunning. Hard Edge : In areas where people will garb, r, hard edges can be provid- ed to allow vistas over the lake. The library terrace and the small pedor• mance area on the south bank are areas that a hard surfaced area could be used with a retaining wall to project into the lake. As the water level $arural wnland Edge ( rises and lowers these edges will not be affected. Wayfinding Slgnage Typical park signage and wayfinding should be developed in a style that ( will have a strong relationship to the existing buildings on the site as well ( as site amenities throughout the park. The signs should be constructed of porcelain enamet coated metal pancls with a background field In the medi- 1-iKRr.M I+r~aa um range blue-gray of the O'Neil Ford range of colors (see appendix from ' ( range of colors). Thin teat should be white, all capital letters In a Roman Style font. These signs should be used throughout the park to provide information and direction, Informational Signage locational and event signage should be located at all major park entries, Grass Edge These free-standing signs should relate to the existing buildings and site amenities. They should provide maps and Information of major park fea- tures and publicity of upcoming events in the park. Park and event Infor. mation should be on removable fiberglass panels so information can be easily up&ed In addition, areas should be included where event promo- tional information can be posted. Planting I Gardens ' Native trees, shrubs and geoundcovers should be used throughout the park. Pianl material, shape and color should be considered to offer seasonal inter- esis in the park at all times of the year. The type and species of plant malerk al considered , for example, trees, shrubs or groundcovers, should relate to the scale and spatial relationships of the different use areas in the park. Hard Edge i o 0 ,Meadow. it large open space of grass with a strong defined edge of large 24 y shade trees should be considered. The chace of grass should be able to ( withstand high pedestrian traffic and exposure to the sun. ( Ford, Powell,and Carson, ( Atehlfects and Phnners tD n -now" r C C Denton Civic Center Park C I Wooded areas Ornamental trees and shade•tolerani grasses should be used - ( to enhance the existing tree canopy. Pruning and fertilizing existing trees is BANK ( recommended to prolong the health of trees and to allow partial sunlight onto TKEAT X ~a the woodland's floor Io estatsh a healthy field of grass, ( Botanical Gardens A detailed landscape should be developed to educate the Typical Signage i community to the possiMlilies of native planes, exotic plants and aquatic plants that thrive in the Denton area The landscape palette should combine orna- mental trees, shrubs, groundcovers and seasonal color beds which offer con- tiguous color in the garden. Also, the existing Carl Scout Cabin is recommended ( to be transformed into a educational garden center to support the garden. A pond should be introduced in the garden to add the tranquil qualities of water and to provide a focal point in the garden. A structure located on the pond's edge is also recommended to proke a picturesque gathering space. ( Park Entries and Park Peraneleo All entries into the park should be land- scaped with a combination of ornamental trees, flowering shrubs, groundcov- ( ers and seasonal color beds to define and enhance the sense of arrival, The ` ( park's perimeter streelscape should consist of large shade trees Installed r every th;rty to forty feet to establish a strong spatial edge. roman Sryre Fait All plan) materials shalt be selected from Denlan's approved planting list (see appende). Due to the presence of mature plant materials, it is recommended that the following installed plant size should be considered. I Plant Type Recommended Plant Size Shade trees 4% 6" caliper, ball and burlapped or containerized. Ornamental Trees 12'•14' ht,, 7'• 8' spread, ball and burlr,pped or containerized large Shrubs 15 gallon container, Medium Shrubs S gallon contairw Small Shrubs 2.3 gallon container Goundcovers 1 gallon container TO Seed or Sod Seasonal Color 4" pots Plant spacing is based on individual specks Plant quality should meet the 25 slandards as per the American Standards of Nursery Stock . Seedng rates for grass should meet the accepted landscape practices for the selected species. Ford, Powell,and Corson, Archway ind Plannem 32 X I o C C Denton Civic Center Park . C bridge, ! Structures ( All bridges and structures built in the park should have a strong rotation. ship to the existing structures in the park. The bridge on the Congress _ Avenue axis should be reconstructed using as much of the selvaged WPA material as possible, The additional material should match or coord'nate with the red stone u Is feasible. Retaining wells and other constructions in the landscape should try to match the feel of the existing structures. The new bridge and shade structure In the gardens should be of a scale and rd texture that relates to Its Immediate area. WI N#$ The utlities throughout the park will need to be coordinated and developed to provide a quality and flexible system that will serve the park's needs well Bridge at commwvty gardens into the future, The existing irrigation system should be abandoned, h Is recommended to develop an updated irrlgatlon loop system around the perimeter of the park. The bop system shall provide the flexibility In main- talning and expanding, u required to meet the needs of the park. ( Separate watering cycles for turf and planting bed areas are recommended ( to meet the water requirements for each plant type. Also the controller(s) should be located for ease of dally use and maintenance. Electrical discon. netts should be located at activity areas as well as in areas that will serve park festivals and events. Care should be taken to select these fixtures and place them In locations that, while accessible, see not Intrusive to the park. Locations for the event stages have been selected for easy servicing from adjacent parking areas and streets, eliminating the need for trucks and ter• vice vehicles traveling through the park. , i F y 28 Ford, Ill Carm, ~ ArcllJtecfe end Plonnori c j 2i,x~ 32XId 0 ,;rear 0 C . Denton Civic Center Park C I~ C Phasing / Implementation r f i Traditionally, Denton has sold general obligation bonds to fund major capital improve- ments in its parks. The complete implementation of the Civic Center Park Master Plan will require continued public funding in future capital improvements programs as well. However, the scope and unique elements of the plan are expected to inspire private sec- tor underwriting of the costs for several of the new features, Grants from public agen- cies and non-proft foundations may also be available to augment Derton's fnandal resources. Regardless of the funding mix, the construction of all the proposed improvements unit occur in phases over several years. AJI cost are present day costs, therefore inflation must be considered in addition to these numbers, depending on the time frame of con- struction. Five distinct development phases are suggested to guide funding decisions: t Coaplele currently landed improvements • Funds are presently available for several l improvements, including a new pedestrian bridge between the library and the south end of the park, playground and picnic improvements in the northeast corner of tho park, a new restroom building behind the swimming pool, walks and limited parking improve- ments near the Senior Center. Approximately $166,000 has been budgeted for these improvements t 1 r Oam arxd lake Area • Construct the leaf gate dam, lake, additional bridges, South Bank Stage, Library Reading Deck, and related walks, Estimated cost $2,300,000, I North PartArea• Complete the Sculpture Plua, new Amphitheater, Great Meadow,walks, parking and landscaping in the area north and west of the lake. Estimated cost. 51,,00,000 South Pans Area • Acquire and remove the Denton County Building, construct rtw Gty Hall and Civic Center parking areas, construct new Gardens, walks and landscaping in the area south of the lake. Estimated cost, $1,204,000•. 0 Oakknd Street • Acquire land and construct street and parking improvements along Oakland Street in the area west of the lake. Estimated cost: $955,000. It Is suggested that the Dam and Lake be Implemented as the ml phase of deveiopmenl. The remaining phases can be accomplished in any sequence desired by the city, depend- ing on the resources available. However, the land acqulsition related io IN Oakland Street phase may take several years to complete, requiring that construction of Ife siren 27 and parking lots be delayed until the last phase or the plan. 'Amount Ones not ft)k a cost &Y acquis/l ar and demo on of the exlstmg Dmion Cavrrry Budd~g Ford, Powell,and Carson, Architects and Planners 32 x~~ s S 0 l ~ C , ( Denton Civic Center Park C l t Cost Estimate l The following is an est'imale of development costs associated with the implementation ( of The Denton Civic Center Park Master Plan. Development costs were estimated for l each of the three master plan schemes, Costs were divided Into and analyzed by the lollowing eight categories; Land Acquisition, Demolition, Earthwork I Drainage, Paving I Sidewalks, Site features I Amenities, Site Utilities, Landscape Materials and Major { Water Feature, These costs include a ten percent contingency, but do not consider the impact of Inflation, as it is not known in what time frame the project will be executed. ( land Acquisition 5390,000,00' ( Demolition $193,600,00 l Earthwork I Drainage $227,800.00 ( Paving I Sidewalks $637,700.00 Site Features I Amenities $798,900.00 ( Site Utilities $1,208,30000 i Landscape Materials $630,100.00 Dam and Lake $1,300,000.00 Subtotal; $5,386,400.00 10% contingency $538,600.00 Total $5,925,000.00 * fhe final Master Plan was based on the Lake Scheme, with a few additional features that were added from the other schemes, The firs) plan, The Small Pond scheme, had devel- opment costs ($5.8 million). The second plan, The lake scheme, had the lowest devel- opment costs (55 5 million). The third plan, The Underground scheme had the highest development costs (57.4 million), Land Acquis; ion and the cost associated with the Major Water Feature were the major cost variances between the schemes, 'Amount does not include cost for acquisition and demolition of the existing Denton • County Building. r A 28 Ford, Powelf,and Larson, l Archlteclt end Plinnert l law ¢ ` I 10 32X1111 s #mom Denton Civic Center Park C C' C' • c ( t Appendix tC' t. ( Chronology t Plant lists t Color Samples ( ( Meeting Minutes ( Acknowledgments ( ( ( ( t , t ' r l i ~ ZQ t ( t Ford, Powell,and Carson, ( ArchItecla ina P/innert r € ~',r,x ~ 32x ~ • r • I" Denton Civic Center Park f' C: C C C ( Chronology c c February S, 1997 Ford, Powell and Carson selected as Architect for j Denton Civic Center Park Master Plan. ( March 18, 4997 Contract for the Master Plan executed, ( April 17.19, 1997 Analysis meetings with Park advlsory committee, City of Denton and Parks and Recreation staff, C We 2.3, 1997 Design charette in Denton. C lune 30, 1997 Schematic Design presentation. ( December 1, 1997 Committee meeting to finalize seiect;on of prefaced ( scheme. ( January 15 1998 Design Development presentation. March 24, 1998 Final presentation of Denton Civic Center Park Master Plan. .r Y fa 30 Ford, Powell,and Carson, c Amblietft and Plinrtert l - 25 x 1 32x10 0 ~ l Denton Civic Center Park c c c ( ( Plant Lists i Vines and Groundcovers ( Bigrwia capreolata Crossvine Campsis radicans Trumpet Vine t Oryopteris erythrosora Autumn Fern Gelsemlum sempervirens Carolina Jessamine Lonicera sempervirens Coral Honeysuckle tonicerajaponica'Halliana' Hall's Honeysuckle Oenothera speciosa Pink Evening Primrose Parthenocissus quinquefolia Virginia Creeper ` Prunus rivularis Creek Plum Thelypleris normalls 'Hood Fern ( Perennials Achillea m*eUium Yarrow Ca%rhoe involucrata Wnecup Coreopsis lanceolma Golden Wave Echinacea purpurea Purple Conelli ( Gaillarda pulchella Indian Blanket lris sp Iris Uatrias mucronata Gayleather t lupnus texensis Texas Bluebonnet • ( lythrum salicaria Purple loosestrife Melampodium cinereum Blackfoot Daisy Mentha sp, Mlnt Monarda listulosa See Balm Hemerocallis sp Daylify Ratibida columnaris Mexkan Hat • Rudbeckia hirta Black-eyed Susan • Ruellia twittoniana Mexkan PeMa 31 Salvia farinacea Meaty Blue Sage ( Salvia greggl Cherry Sage Verbena elegant &%poll Hardy Verbena Ford, Pewell,and Larson, ArcA/leels and Punnet r 7ri x ICl 32 x1~ ,xxx+xx~ U C _ - I { Denton Civic Center Park c Berberis thunbergl Hose Glow Barberry ( Forsythia x Intermedia Forsythia Ilex cornuta'burfordii' Burford Holly Ilex cofnuta'Nellie Stevens' Nellie Stevens Holly Lantana horrida Texas Lantana c Leucophyllum kutescens Cenizo ( Malvavlscus drummondl Turk's Cap ( Nandina dorrestica'nana' Dwarf Nandina Rosa banksia Lady Banks Rose Rosmarinus olficinaGs Rosemary I t gnayep(a1 Trees l ( Cercis canadensis'texensis' Texas Redbud C Ilex deddua kmale Possumhaw Holly Ilex vomitoria Yaupon Holly ( Runiperus ashel Mountain Cedar ( Lagerstroemia x fauriei Natchez Crepemyrtle Myrica cer'la Wax Myrtle Prunus mexlcana Mexcan Plum ( Rhus glabra Smooth Sumac ( Sophora Anis Eve's Necklace t Ungnadia speciosa Mexican Buckeye Shade Tree Carya illinolnensis Pecan Pistachia chinensis Chinese Pislachio Quercus Miformis Escarpment Live Oak r Quercus macrocarpa Burr Oak Quercus muhlenbergil Chinquapin Oak Quer" texana Texas Red Oak Sapindus saponarfa Western Soapberry Ulmus parvifolls Lacebark Elm • 32 • t Ford, Powell,and Carson, ( Atchlreas and Planners l 2~i X 10 32XID o C Denton Civic Center Park C C C l ` Color Samples t The following Is a sample of the approved mld•range color for The Denton Civic Center Park, For the tight and dark range, colors of the same hue and ( chrome should be selected, In slightly lighter and darker values.These col. ors can also be identified by the Munsell color-order system. ( ! i + llgbl rime color. Munsell I OB 612 Ml0 range color, Munsell 108 512 Dark range color Munsell 108 412 i , t t ( l 1 33 Ford, Poweff,and Carson, AtehIlecll ae0 P onum 10 32XIQ o C , C Denton Civic Center Perk r c r c Meeting Minutes { I Following are meeting minutes from the various meetings Involving the planning process. t l { { ( l t C r i ( ` 34 r 40 ( ford, Powell,and Grson, vtrcAitecls ind Plonners t - - 2.j K'10 32 x~~. aapgea>o Y,p C C Denton Civic Center Park f MEETING MINUTES DM, 21 April. 1991 Satmo Jknton. Tcxu ( n:vM Denton Civic Cenier Park M„aq Denton Parks and Recreation ( Matter Plan Department: Ed HodneJ, Ricky Pasty, Kathy Mosby (Recreation), ( Randy Penenon, Nona Muncie FORD ( PFORDL P" No 63201 (horticulturist),JanetSimpson raw Yb.1q d n.d Pwvu a C~" tidal arw (La(sura Senicee Supt.), Myra ( R CARSON ,,,y,e1r, 01 *Ium%WaMIrms.w ftj Aodrrson(Civic Center "M w r u.Nn w W*d Wear a n Superviso). Yet#" Milam ( WMMeWt n.a M w w.m (Leisure Services Manage. Civic and.Srn)oh Ceaterij Bob Taknrr, Loealne McGregor (public ( lnformstion} Ford, Powell, and Carron: ( Boone Powell, Cullen Coltrane, Jim Shelton civic Cantu Park Matter Plan MeeilnE with Parks and Reercadoa Depwneal Staff 11 April 1991 ( 10:00 AM C Ed Hodnty opened the martin' with an introduction of tM archltectural Icon and wted the purpose of & proJea u the creation of a motor plan for the Civic Center Park for the next 23 "in, The propose of this meeting was for the team to meet the pule rtad and gather Information obom their needs and desires tot the ( park. ( Boone Powell asked the pparks and rearcatic-i staff what their vision was for the ( park. What did they see in a park that would have a eharscier tsar would reflect Denlotet hUtoda character while netting twMards to the futon grownlh of Denton. I Urrtind McGreggan a Would tike to we some recognition of the Nrtorie Issues of the park, with regard to 'Quake tawtt' a Ilviving black aemmuolty that wan tw#A in S 1M 20's 10 emus room for the park. ■ The addition of a botanical garden would held draw mart people to the park tot a eon divert activity and Wittily the park u a whole, IM 10%tU a eAas04, Me I Its to c0iovlo sued to A* A*" fie fllW ~ • 1V1".1Ltl,a ti11'a4L' IPAxf I 35 r Ford, Powell,and Carson, Atehileirtil and Plennert ( ~ >i 10 as x I n i ~ r Denton Civic Center Park r' C' II w I a The plan must consider the ucheoiotleel comcme of tM pa& A wagon ( wheel and glassware mere found on the bank or the creel behind the Civic Center Building. ( It was laer discovered that the site was once the site of a wagon build h# tompsny) ( Bob Tkkner. ( ■ The Civic Center path should be the primary foul point of Demon. It is the special event tenter that should be capable or supporting a large Group of people for any number of events. The Arts Festival draws 40,000 to ( 50,000 people over It three day event The maximum attendance is probably 20,000 a day. ■ The park should respect its history, from Quakenown through O'Neil ford w present, but should also take adventage of modern techaelogy. ( Teresa Milam: ■ The Park needs to be organised to better use the open spaces for the large ( event. The buildings now seem to encroach on the park and twill be C wore if they Deed to expand. ■ Accessibility needs to be improved in the park especially the Senior Centet and the CWic Cemer building. The senion have a hard time ( p+Mnl and getting to the senior center. Other caw of she park am had to get to and therefore ooh as used. l ■ The ampbhhexet needs to be addressed. It is tws very uuful in its pnsem loatiotl Myra Anderson: r a The amphitheater needs to be convened into an entertainment center, pow'bly even with the ability or being covered for certain events. Is needs to be located In a bener location that works in conjunction with other areas For example during au its% who then an more than one suits operating at a Gme, there must be some sound upsratIn a The creek areas Deed to be lastly utilised. In oe present they we wasted area thm seem to divide the park A feature IS.e San Monies river walls would be wonderful. Vith better paving and planing sMs arts could be used by a peat tatmber of "It for sty number of events. a Security and oil& landsespe lighting would Improve and entatsce she park The park would be afar and be able to hold events for longer hour ououghwut the day. a The restroom faeilities mutt be improved. The existing facilities must be 1CaD POmTtt a CAkW. 0< - i A tar cv. a WON to Ammi, Inv MM ~ ~ !I ti►n1~114 111^KatC dAXt JV l Ford, Powell,and Carson, Architects in0 Planners In 321❑ p Denton Civic Center Park ( ® a ( renovated and expanded. t ■ Civic Center needs to function better with retated omdoor event$ ( Janet Simpson: a for evenu taking place between the Civic Center and City Halt it now' seems that the back door to the Auditorium provides the ruin access to the actual park. Bob Tickatr: ■ Access for vendors and unites for the fcttivats Is different. The park t.. needs In washer acct" for suppon vehicles to protm sensitive areas of ( the put and control access. ( Janet Simpson: ( ■ The park Was always been a recreation ceotar, but now sect the needs changing to a more urban park With the special events, more plazas and 1 other hardscape areas we needed to support the large population in it ( mort orgaeWud manner, especially if any of the bm'Idtngs on the site expand even greater. ■ The creek ateaa need to be recottfigtaed along with the present ( arophldmta to make better use of the space as well as tie all the diverse activity are" together bens, Lorrelae McGregor. ■ 7M park seems to lack a main unifying element. The space seems to be ( rut up Into linle pieces that do not relate to each other. Noon Muncie: The landscape of the park nerds to be improved The use of native plants and disease rnissam material must be an Lesponam put of desiarsing a lutdscape that will thrive with little mimenV49. i ■ More color and froVwe tied to be introduced throughotd due park with special attention to bloom Meessio4 in order to have constant cola dvougbout the year winter and sutomar, ■ Tbt City Han Courtyard Is an Lmporunt space that oetds own anetttiors Deter testing and lighting need to be added to It u well u throughout the put roan lcwsu / CAL W. MC t 4 1131 er ewrrre Win to AAWA& T" 111111 7 w1wil" R~1r1 37 -Ford, Powell,and Carson, Arrh1lerlr and Planners 7 10 32X Cl t O 1 Denton Civic Center Park c C a The wasoral garden sltould N e.panded, possilik with the use of ( interpretive aspects to invoduct people to plants tbst grow in Denton as well n organic techniques for a ahenative to traditional gardening. Randy Petterson, 1 ' ■ The park is aught between a conflict of uses. The large events in March through September seem io wear down the park and its vegetation. Most people seem to congregate in the dude, wbere h is the harden to grow durable plant material that will stand up a the abuse. I lrrig lion system needs improvement. Modem Technology needs so be used throughout the park to improve its function vd to reduce maintenance needs ( ■ The park needs better access into all areas. Tbere are not any organized paths for service vehicles to use.Tbe brick paths an a problem, anal if are going to be continued, they need to be detailed better, ■ People seem so be drown down to the wear la the creeks, even if their presew cooditioa Is would be great if the water could be trusted into an one rather than the problem they am now. l Kathy Mosby: a A better path and trait system is needed for the entire parr h it eavemtly difficult to travel througb the park. The addition of another bridge by the Civic Center as well as a path around the entire perimeter of sbe park is needed. ■ Mort packing is needed dtrouglavi tin. pack especially a the nosh of the ( Pool eyes. TWV parking overlaps with the park on the pmts to tM noM. ■ Need to diversify the use at the amphithenet, possibly in a beaee locatioo the sage could be used foe a greater number of events Ricky Party: a The Park needs a grater Identify in the community. Al present Olen is no powtom senor of entry, and vimWly DO «nmonial space. a nere needs to be a Vales connatioa to dn. dowmtowo va.Chic events J shalt happen oa the dowotowo square or the tourOmse land need to be connected to the park The City Hall has no presence from the arras to draw people In. Hickory Strtel Is becoming an arts cort{dot, possibly a similar development could uke place to canned sisal park with An rep of downtown. I roan. roeeLL l GasOM. AS 1171 [n* ■fu.w • W nne.w. lr Tm tqq ~ • }Ia1X l:M . r 1 aa}wa (rSX) Jh a "R I Ford, Powell,And Carton, Architecft ono Plienets 25 K I CJ 32 x El 0 ,a~na h C t Denton Civic Center Park C I Lame portions of the park in no xing used. eten during the large e t feristls. becauu of poor sccest. TM creek areas arc under utilized zed l need to be transformed into more usable space. ( a The spaces and feelings of the park need to be recovered. Right now the open areu seem to be kh over spaces between the buildings. These areas need to be tnrofmsned into spaces vitb bener organitation throughout am park, With better infrastructure. there will be more areas for plans and ter aces and other outdoor spaces for people to gather in as well as more green space. Randy Pettereoa: ( ■ The City owns land on the other tide of parkway that may be usable for parking. IWO Petty: a The a! page In the park needs to be Imp road. It needs to be designed and toordinsted w link the park mgeeber. It must be visible. W yet t discrete. t Ed Hodsp: a The Master Pian must reflect the cotrtmunity use today and IQ 20 years into the future. The pat shoWd reflect the history and the affection of Dentoo's community. 1 s The park is not wItudud to work. All activities in the park will probably ( toy, so a mxpnisatiou of sparer Is needed to provide better utilisation ( and more Inventive st"m to all area of the park. ( ■ The park needs to have a balance between the more urban indoor room and open more park like space. Then must also be a balonee between ( format and Informal spas. s A beast use of the creels and the wsier must be developed.The buvty of the put must be maintained and enhanced Mugh a awn diverse plan ( for the park. The tree canopy seeds to be preserved and supplementet a The Chrie Censer Pak needs to be tratsformed Imo the v FbpWp Park' of the community. RlgM new then 6'no desijiet for the park' and to fully reach our goals for a better Denton not must be developed and Implemented. u: Rkky Petry Boost Powtll Cullen Coluaor FORD Ptta'!tl a dNOI me va tars c.T+ m a. ImC rear reset 0 0 0 31W.""ne0,310 39 t Ford, Powell,and Carson, i ArcAlfecft ens Planners ( G ` b vi' / 4 l 0 wnrsar o a,soorw C Denton C;vic Center Park C ( MEETING MINUTES e (o.. ]I AP61, 1991 t. . Denion• Texas f ny,e Donlon Civic Center Perk a...a.s Ciqet Denton V }(odney ( Master Plan (PARDy Ricky Petty (PARD) Rick Svehls (City Managers ( FORD of icel het Simpson (PARR). ( POWELL P.'MN. 63201 David Salmon (EnsineerinO Bob CARSON r■ ww.y a s.. a.m a Co n ~.~r d ft Ticker (PARDk P3. Non ( CARSON na~+e r,w+ k y~,11011 rw`.e (water/ waste wster~, Ea Poole bm s at Unow w t o " n (Library) ( ""e'e r.rne r ry Ford. Powell, and Carson: Boone Powell, Cullen Coltnns, C, Jim Shehnn ( Civic Center Park Master Plan Mating with Various City of Denwo Deptrimeau C 11 Apr0 1991 C 12:00 PM { Ed Hodnty opened the meeting with an intmdueCaa of the a cb seetunl team C Banc Powell naked the City ttaff what their vision wu for the park %Nw did C they we In a park slut would have a chancier that would reflect Dewoki s historic C chancier wtu'le setting standards for the (vane powth of Denton. ( Eva Poole: ■ Puking is a major concern for the Library. During major events at the park, the library her to shut down normal operations dut to lack of puking. What puking then is shared *fib the women's building and the ( uses eddies. at ce"A times during she toroth. ( a ru library needs to take advantage of fu outdone spates. If the courtyard and other areas so the bark of sba h'brary were developed into more unable space, certain (erections of she h'brary could move outside the help relieve some of the pressure. a 'flu au(s envy seems to be bidden from the seat oxi;cu and views Into the sculpture guden could help "a she f w. of the bulking Into more usable spae, Wan "ILL a Cnaadt, DIC Nis Cwwwr AwwAk 0 f for f&M eral N . ( s ~rx..n rt • N 40 r ( Ford, Powell,and Carson, r Archlrecls ind P/lnners i 32 X 1 O 0 , ratas■r • p rrn%eaw i f I Denton Civic Center Park v I , ( Doi III Salmon: ( a 11 it important to maintain the integriny of the floodway throughout the ( park. ( ■ Access into the park by both vehicular and pedestrian traffic nerds w be ( Improved. The entry low the Civic Center puking km should rwt Interfere with tM intersection of BeB and McKinney. Pedestrian crosswalks treed to be improved on all tides of the park and especially at the corners. l ■ The head in parking needs to be removed along Bet avenue. ( Rick Svahla: ■ The park needs to become swore than it tat, it needs w be the real facet point of the entire city, ( ■ Large events in the park will continue to draw people to the site. Efforts l must be trade to help organism of the evenu w stage then fewOom without having a detrimental effect on the park I The Park contauu many important bWldigL One bm'ldiag this does not belong w the city it the eounry buil&q betwaa the City Hall and the l Civic Center. It mum be detemilned if this should tomew a building or sMtild It be removed to provide space fat other Part fnnetkono. Tae city ( will have the oppommlty to acquire the building in the future. ■ There is also a possibility w acquire more land adjacent to the pak The C ciry already owns a smart parcel of land across Oakland Sum from the library. Then could be an opportunity to close Oakland street at that location and enlarges the park a If more parking could be crated off stte, more of the parking on site could be removed or n•allouted to increase Irmo area at providt area for more puk•file oc$vities. ■ We should use the wermeru club a1 an Usti, since ttey bow jug abates ( everyone and have wortsm throughem the city. ■ The emk tau is a central issue in rte psrk Tbert are some me* drainage issues that aced to be addressed, lots also the dniruge ate S Deed to be devctoped into a major suet to the perk i Ed Hadasyt s The ram major issue Is the tonstruetion at a new bridge In the pa& There is $100,000 in bond money that hu been allocated to construct a 1 roan rdweu a aasaa ere IM RAIR c~MN Me so Am," Two wal tlVlaa7r rtmwn nNn 41 ' t Ford, Powell,and Carson, Architeds iod Plinners y a 32, • 9 t Denton Civic Center Park bridge somev here in the part. The bridge nerds to be completA b) live beginning of the an and jau festival neat spring. ■ The citizens of Demon feel that the part shauid be a major foal point. ( Issues of the playground and parking need to be addressed. The public likes the unique feature the playground at the south lakes park has become. Bob Tkkuer. C ■ Parking is not an impomam issue as k Is perceived during she major events because they have suened a shuttle bus between TWU and the park during major events. People just seem so want to park sdjsecm to where they are going. ■ Wish the construction of a better path and uan qzem It will be easier to travel throughout the puktTheo hopefully people will be willing to walk a lisle farsher to their destination std parkins will seem to be improved. During all but the largest events theta is usually puldog svallable at one venue or another because they uualhy do sas have evmta oeeurnng all at the same time. L { : Ricky Petty { Boone Powell { Cullen Cohraae 1 ~I { 1. >t 1 C I J lna0 IOtvasl a GaaOm, It ~ ~ ` r... saxa srvttaaatrau 42 I Ford, Powell,and Carson; ArtAlletfs end Plenners C x,la 32x11 NN,N o C { Denton Civic Center Park i C C I MEETING MINUTES ( D. 21 April. 1997 wa Renton, ievf ' I hwa Denton Civic Center Park AIW414 FA Rodney (PARR), Ricky Petty Maur Pian (PARRY. Herbert Holl ( Denton ( Arts Council) . Fred Panalon ( FORD t+w.e w 632111 (Denton Record. Cluonicle), Sue FORD Endres ( Council or Denton POWELL Carden Clubs).Roni Beasley & CARSON n ae...e v l.f r...n'ftC=6 w wr Denton City Council Memba), era.. r rw..r ~ ti San Hawley (Denton Arts C ~Nl4wr ".AWN r r..o. Courxily Euline Brock ( Denton ~ ( City Council Memba), Martha Len Nelson (Womens Club), Annie Burrouyhr (Pack Board ( Member), Janie McLeod (PARR), Bob Tickner (PARR), ( Jane Jenkins (Economic Development) Ford, Powell, and Canon: Boone Powell, Wet Coltrane, ( Jim Sbeltoo ( Civic Ceuta Park Mater Plan Meeting with Citizens Advisory Group 17 April 1991 7:00 PM Ed Hodney opened the auetina with an introduction of the archttecrural tam. Boone Powell asked the City tuff what tbelt vision was for the park. What did ( they sat is a park tlut would lave a chaneter that would reflect Denton's historic charsaa *We setti q standards for the Ewan growtb of Denton. Fred Paeenaat ■ The Park should be the center of the cone r%4. In "Banta of We yeas ( park alwU be a great ampbithater that could neat 400 • S00 people, h r ( would be Vital: if the amphitheater could be located in the middle of tk crock like the theater in San Antonio oat the river Wak n The downtown area of Denton needs to be eonnecud to the civk center and 1 park and to tk north to the campus of Texas Womens C011e1e. 1040 P061 l a CAIaoK et ( t tsewe !wet to { Amn4. !row feral a . :iwx«u nex4 43 Ford; Powell,and Carson, r Architects and Punnets i - - -r ?r x~ 32X~~ ~ a:ssonr 0 satutaar C Denton Civic Center Park C C ( ■ The acoustics of the Civic Censer building need to be improved The r ( lighting and the utilities throughout the park need to be upgraded. Real Bcaslry,' ( + The Civic Center turf; should be more connect,d w every ti), life for the people of Denwn.':here should be more walking trails and Lher activities that dram people seen the park. f Jane Jeaklns: + The park should have more green areas and blooming plants to and to the ( phys;cal beauty of the park. possibly even a Botanical garden could be included In the park. ( Sue Endres: ( ■ The park needs more amenities that will attract families to the park ( Ed Hadney: a The park is used vWtty for larger Organized events , we need to create some tmalles more Intimate spaxs that east be wed t, !=act group or people such as families. ( ■ The pak needs more diverse uses. At the present time the park has little at ( no curb appeal. No one is drawn into the park by Its sheer presence. Euiloe Starlet ■ The Civic Center Park needs to be a wtiBed and harmonious place that nu together. All of she varied actvities that occur in the park need to Was. Mass. but the park map keep In natural look ■ More walking trails and connecting paths need to be developed to link she different areas of the pule. C ■ The park mug rcrtaia low maime ame with the use of tativa plan i and thinner deign. The ploygmund also needs to be more natural kwtaehg. Sarab H+wkyt y i ■ There should be a lace for eommsril an in she p >Y perk in hot n ttrategk plan should be developed to acquire art. S l 111ttrce, a Ina rtoix~ Tw rleta 0 . i ` rIa1YN4 OAX1 as Ford, Powell,and Carson, Archifecff inn Noma x; ;M 1"✓, 25 K10 3 2 X I O 0 i C Denton Civic Center Park ( I Boont Powcll: ■ 71,e acquisition and placement of an should be a slow and deliberate process. This will inslve a more diverse and more thoughtful collection. Martha Len Ne-son: ■ The pall would be better off if the gardens wen expanded into more of a bounieal gardem. { ■ Then should be mom of the picnic groupings, that occur At the corner of Oakland and Nithem, throughout the part;. ( Euliae Brock: ■ The Cite Hall Blt7ding needs to have more of a presence on the site. It disappears into its. Vets. Parkins will also become an Issue during major events at the pads. ( Fred Parmesan: ( ■ Possibly she city east move their vehicles dw{ng majot events. That would ite up a number of spates In the civic center parking tai ■ The was In the park need to be easier to use. Not only do they need to be connected to more areas. they need to be constructed out of a material that ( Is euy to use and maintain. They need to be mom uxs Gienft. Wine Brack ■ Not only do the sidewallu need to be Improved ib the park, but then needs C to be a cos; lecture with a Is roved walkway to the downtown arms. ( is There may want to be a diversity of walk sturro e, depending on use, Concmta, asphalk earthed limestone, etc. Amok Burroughs: a The park needs to be filled with more cola and plane. Ali arm of the r park should be btautilial, bm will need to be pruteeted for dta lugs. crowds t thu jatar for cermin events. C No tap danelal do to petwlu) Hsrberl Hall: • ■ An Interpretive walk &I Includes the history of Quakertown should be addsd to she park, FM tgw'Ca a [AAWN. rte ' t IH rn1 [awn area n aw Anu~MTnY Mlq 7 :Ia176410 ITAM 45 I jV_ slrxit« Ford, Powell,and Corson, f Atehilecfs ind Planners r 32X 6M MEMO== 0 atttsa.. , o x+roasrsr Denton Civic Center Park ( I ' ( 6 A amphitAener like s.mphony pave in Austin would be a great addition to the park. Ed Hodory: t I ■ Need to address the SW scout cubic ( * Thc Maner Plan needs to include s scope for the neat 33 years. Also the t,. issues or& county buildinj need to be +ddrased. ( C ~ C' "Ricky Petry ( Boone Powers Cullen Coltrane C C` C ' C C C C C ' r FORD PONLL+ C.Aa+011, r4 1171 to cgftwr +uua to An" ter HM 3le-W i tY 1 sivi»,.n tact 48 Ford, Powell,and Carson, Arehirects and P/Anners 25 x10 32XId 0 .art.are. 0 { Denton Civic Center Park ( MEETING MINUTES ( f. ar 11 April. 1997 L. . Denton. Texas ( s,, Denton Civic Center Park AA nee Eve Poole (Libmrl) Master Plan Ford. Powell. and Ctrson: Boone Powell. 1im Shehon FORD POWELL dlzol & CARSON Mh r V baths aJ aA7a ,nb n n - l iw,4Ml W hl ~ as M.ap. Civic Center Park Master Plan Meeting with Library Director C 17 April 1997 410 PM Boone Powell s crud the meeting by taking Ma Foote so descn'be the problems with Ow current library and any asw that need to be fiuthel enhanced ■ The Library needs to be expanded In the present state then h Jug net p enough apace to bold at the material tad activities tut need to occur in L to library. a Abow 1700 people visli the Library a day, with a sutf of about 11 people. a The service arras of the library are outdated and very small. The stag parking lot is also used by City Hall suit I t ■ The play art u the wet it used tremendously, but constant supervision is needed, t ■ The courtyard area and the other area to the wvth adjacent b the creeks E need to be developed ima spare the library can use, The paving seeds to be redone sod a limp needs to be added to improve access from du bbrary. Item boob security blues coWd be addresaed this WA woWd ( graty belp is spue restraints of the library. Thera is a largo problem * : ( wIA bear mar the chimney, and oar the large dead we, t The entry needs to be enhanced. Ms. Poole feels it is hard to tee t7s entry ( from the street and therefore the sculprura tour is not Used very { 6eautoeyShe Wribs it would be great if them: wits a way to make this a more useable specs, widwA detracting from the arehitecrure, t ( 000 "1911 A faal0u. W 1171 to c. law a. A■wM, i.s 7{111 Q I W116w141 ` usvu nAxr 47 E E ( Fora, Powell,and Cason, ( Archlfecfs apd Pbnaers 'Ar 10 32XIO Read! BE ete~tits , i ( Denton Civic Center Park ( ( 4 1 ( ( ■ Perking is always a problem, especially during the I&I.- er_:rtf at the porL The lot is shared with the women's club and there are conflicts of use at cena:n times during the day. ■ The removal of the garden from the interior suium spacc could help ( alleviate some or the space constraints fat the Library. If the atrium Is t ured Into reading or suck area the floc should be kept at the lower level in order net w detract from the original design. As with the atrium, the expareion and renovatioo of the library needs to be carefully studied. ( If the city of Demon rants to continue honoring the legacy of ONcil Ford and hie architecture it must preserve the existing spaces without covering at destroying the original design. No is not to try that the balldinse can not be renhovated or expanded to meet the necds of today, but rather the process must be thoughtfully done. cc,Itioky Perry I Boone Powell Cullen Coltrane C I ( trove VOweut a uasaK on: M so 4 ?Mtaro, • ' i ~ f~a • • 1 71 Na►i7M i 7 rrsaiw pxxl ~8 j ford; Powell,and Carson, Areh/leels ind Planners 25, ~ 10 32 x~❑ e aaaam , p ~ mfwaltw . t ( Denton Civic Center Park c ( METING MINUTES ( o« 22 April. 1991 wm Demon. Tests ( h" Denson Civic Center Part: AM .j Martha Len Nchon (women's Muter Plan Club), Ford, Powell, and Canon: ( 1 ORD / q • w 63201 Boone Powell, Jim Shehon POWELL Cullen Coltrane ( pan time) 7M IMIO.'ry i /sl MA a WV nr.,e wv ( R CARSON ( wrar+a Y:r ww11• eu Inr w:M be• r V wMrw N r,.a Wb "w ( YwaJMI} RIfN e N rrMVr, ( Civic Center Park Masser Plan ( Meeting with Women's Ch+b Representative l i April 1991 ( $:DO PM InBltAeta with 1~d and if she head any specific el that no den to be pant any Pro lems ( addressed. ( ■ The women's building is used by two women's dubs dtat use the building ' ( for a number of various evenu. ( a The building is also milled by private groups to house parties and reeept3ona. The building can hold about ISO people Aanding, but ku for ( a served dinner. The functions us about 90% private to 109 for women club events. ( ■ The womens dub holds book reviews about once a month, the aaendlime ( Is approximately 120. I The Building if In we probably 75% of days. a Parking is a problem at peak Wiles and when then are other events ( ouuning to stn park. ( a The club would like to have mom outdoor span adjacent to the building ( for outalde activities. The City has not allowed them to expand because of the tainting density in do park no well as their location in the flood plain l ~ a: Ricky I m ( Boone Powell ( Cullen Coltrane ( r~ososowau a aasoK a+c i 104 am cot saws ( M ate. 1st spat liart7►17N - ' ' 7rasararu rrun 49 t ( Ford, Powell,and Carson, Archlfecls and Planners ;fi x: 32XIO 1-6 1 G C Denton Civic Center Park ( MEETING MINUTES ' Dew 22 April. 1997 L, w Denton. Texas rnvw [kwon Civic Censer Park Aalnly Mike Cochrane ( Mailer Plan Ford, Powell. and Canon: ( Boone Powell. Jim Shelton FORD r w s. 632RI Cullen Coltrane ( pan time) ( POWELL ( & CARSON ;;Fe-0 Ac~1-e ( h~ M Y eeeMse M owea Peal N w ww".af aaufve a ep awwV ( Civic Center Park Master Plan l Meeting with Mike Cochrane, Denture htm6cd Society ( is April 1997 9AR AM ( I Boone Powell started the meeting by aside{ W. Cochrane for his vision for the Civic Center Pant, and ha had any historical laghtt that should of ea how the matter plain Is devtiopei ■ W. Cochrane felt that there Is to much bind on Is the pw`16 The fact the none of h Is elated to each other makes the problem even wore. The park needs a unifying elemem that ties everything together into a more ( cohesive 4411, i a "era was a thriving black community located on present site of the park C The Denson hisrodcaf review had an issue devoted to the aubjMTbe chy bought the land and moved the residents to other puts of the city in the ( mid twenties. ( o A matter plan was developed is 1926 by Kock ■ Womens bunding win; built in 1929 designed by Miley Clubon ■ As ONO Fad dewing exists of an early matter plan of the park showing a aeries of small check dams to develop a series I small pool n along the err_1e. ■ The pA mutt keep site intsgriq of the community as %*U as the historical ectow of the put The pot s auld build an the O'Neil Ford legacy and Whade,his Wu for isle part, to feet the park should be named e71w owed Fad Cmc Center Poke. FOaD ta.ttu a COACK be 1 ~>t to caenwn saea to Aff, Teo lily s~tvssa«ua~xt 50 r Fotd, Powell,bnd Carson, Architects ind Plinnert C K to 32XIO o 0 star C I C Denton Civic Center Park C ■ The park tiNwid be an ideal relleetion for the communit). as well as a e place to hold large t+enu wch as kstivals and city wide events. I ( a The county building needs to be addrtsse 1. If the city takes over the ( building there Is a possibility that the spat could be better utilized if the building was removed. or if the building remains the spate around it could be made more parMike. ■ The gid stout cabin is an h toricsi part orate park is wed to sit near the current post office and was moved to its present location. 71he g'vl scouts do not use It any more, but possibly It tndd house a new function cc: Ricky Peery l Boone Powell ( Cullen Courant ( it s„ 't lob waa► a tMfdl a+t I IA lr a Two Inn r ~ Two "M srals►aa! e ~ 61 i t I Jul Ford, Powell,and Canon, Arch;teeft and P/annel! 7 10 32 X 0 IN 11 I . rw. c { Denton Civic Center Park I ( MEETING MINUTES " ( DW 22 April. 1997 L. w Denton, Texas ( hewn Denton Gent Cartier Park An." Richard Perkins (Teague, Nall and ( Matter Plan Perkins, Engineers) Ford. Powell, and Carson: ( FORD Boone Powell, Jim Shelton { POWELL r'"1Ow 67201 Cullen Coltrane ( & CARSON n.~»-w►t.rr..wae...e,.ar« ( boom w k wwwU► M awns WMw "r n Yr,r.xr "wV/ Y ti w"ry. ( Civic Center Park Maher Plan Meeting with Engineers about Drainage ( 19 April 1997 10:00 AM ( Boone Powell started the meuting by uking W. Perkins to descnbe the hydrology ( study dart his firm Teague, Nall, and Perkins has produced for the city of Denton ■ hdr. Prrklna vaned by stating that his was the prinelple in the firm, and ( that the report was prepared tnairdy by Gary Vickery. Mother comet In ( their office would be Kelly Dillard. I ( ■ Teague, Nall, and Perkins was asked by the city to produce a study of the Pear. Crack watershed and the creek as h !lows throogb Denton ( Included in th s sndy was Peon and North Pecan Creek as they flow througA Civic Cenuer Park ( ■ The entire study was grouped into smallet segments to identify potential construction pmjecu slut could be completed sequeadally, slnct h Is not ( economically feasible that the projen be eomplewil as s single project. In order to reduce worse flooding dowruueam the projects oted to start { downstream and wok their way upsutun ■ The rceommetdatioa for the Clark Center Park arts along Pecan Creek's { as earthen thaanel 95 feet across at tht bottom witb 3 to I sloped sides * wide a top opening of 175 feet rim M Is only a rttomautd►tiao and l Teague, Nall, std Perkins would study any wiJet■ that w proposed for the tnelu In the masterplan. I ■ The tort of du improvements dawn stream from Bell Ave. (the work that should be completed before eotuuuerion of the thannel through du park to started) is approximately 910 million Poao Powsu a WICK be 1 Pon to wo to ouftska. T" tools r,rxu.a r,►za►a.ar .►xl 62 Ford,•Powell,and Carson, Architects and Planners C - ~xla 32xlo K statists, AII&MLMRALJ~,mqjuLmq&~ • C ' ( Denton Civic Center Park ( a If a %wtet feature were to be included In the pork along Peen or North Pecan Creel the flowline of the Moodway must not be obstwed The small pools mum be excavated nthet than held behind small shed dame. ( ■ Boone suggested a section through the small pools that would allow the ( Mood waUen to wash out the silt and debm that Usually collects behind web dams. Mr. Perklnt mid the Teague, Nall, and Perkins would be glad ( to study any union that wu Proposed foe the claret duougb the park. a The channel would be cone wil to contain the entire 100 year flood, with IM% develoPmtem ittsldo the watershed. Inside of the channel huff. This would remove at significant portion of downtown Denton from the flood plain. ■ Teague, Nall sod Perkins will further study the possibility on tetining at L detaining any of the 100 yea Mood in additional panda upmnam of the Civic Comes Put They rill also /ndy If It is hceesury to add some stooge capacity to the nonh lakes focihry so hold the canna 100 you flood of the northern I& of the w21e1311e0 91111111 locatbn NO would r; allow the channel duougb the put to be reduced paty In sine and C scope' C C t t~ ~ t , roan awu a WsoN, oc His to e„w,.,a run ' Be aarla It" nsm s omi:.s avw«a gasp ~ • • r 53 { Ford, Powell,and Colson, ArfAifeels end Pleenen f - 2 5_x 10 32XIO p aa~rs C ( Denton Civic Center Park { ( ( Acknowledgments This Master Plan would not have been possible without the effort and input from ( the following Individuals: City Council Members lwtk Miller, Mayor 1 Euline Brock, Mayor Pro Tern ( Mike Cochran ( Carl Young Neil Durrance Roni Beasley Sandy Mstoferson Perks and Recreation Bard ( Annie Burroughs, Chair Don Edwards, Vice (hair ( Dalton Gregory t Willie Hudspeth ( Martha Garcia Civic Center Park Plan Advisory Committee Carol Short Fred Patterson Tom Harpool • Martha Len Nelson Herbert Holl Larry Hudson Christine Gossett Sue Endres Margaret Smith Jane Jenkins • • Dr. Keb Swigger 54 Ford, Powell,and Carson, AMthitects and Punnets i z~x10 32XIO • MOM . o , ' l ' I Denton Civic Center Park I C City of Denton 0 Ted Benavides, City Manager Rick Svehta, Deputy City Manager Michael W. lez, Assistant City Manager of Operations Jerry Clark, Director of Engineering and Transportation ( Eva Poole, Director of Libraries l David Hill, Director of Planning and Development ( Parks and Recreation Department ( Ed Hodney, Director Janie McLeod, Adminisb ative Secretary ( Janet Simpson, Superintendent C Bob Tickner, Superintendent ( Nona Muncie, Horticulturist Ricky Petty, Park Planner ( Special thanks to the Demon Record-Or wkk for publishing the three aRerna- tive schemes for public response. C C t 1• , ( Ford, Powell,and Carson, ( Architects and Planners r a:M 2i 10 32XI❑ 0 0 Agenda No, Agenda Item Date AGENDA INFORMATION SHEET AGENDA DA'T'E: March 24",1998 DEPARTMENT: Planning & Development CAVDChVACM: Rick Svelha rj 5UBJE~T Receive a report, bold a discussion, and give staff direction regarding the Drafl Landscape Ordinance. BACKGROUND Following the March 3`a, 1998 public hearing, City Council members postponed action on the draft landscape ordinance to allow further Work Session review on March 20, 1998. City Council requested staff respond to the following commcnw f Respond to the Trammel-Crow proposal as prepared by SPSD, Inc. ■ Further comparison of Metroplex cities landscape ordinances with a comparison of Jpen space and tree requirement ratios. ■ Examples of landscape plans in Metroplex cities of real projects. Stag' is preparing information as requested for presentation at the March 24d Work Session, Graphic exam,+les of landscape plans currently being reviewed will be presented along with Metroplex landscape plans we were able to obtain. In addition, the following revisions are suggested: Suggested Revisions to the Draft Landscape Ordinance: 1. Add to See. 31-5(1) Excluslons: The Denton Municipal Airport, Central Business Overlay Distnct, and the Fry Street Development Corporation Boundary are exempt from provisions of this ordinance, (Maps of the CBD, Denton Airport mid Fry Street Area are attached following this cover sbect.) 2. Change h,) Sec. 31.15 Selected Species I,ist: s Add: Designate the following trays as Street Trees, ■ Accent Tree Designation: Common Persimmon, Texas Persimmon, and Texas Rod Oak ■ Primary Tree Designation: SaMooth Oak, Lacey Oak, Bur Oak, ATIow Oak, Bald Cypress, and Lacebark Elm 0 Alw I C^Mrrlr lj'ix*oMOrdrw:v$r- ljtrfotnr.rKlCom Page I I 0 32XIO 1 0 1 3. Add to See, 31-7(1)a: Alternative shrub spacing may be used, with approval of the Development Review Committee, when it can be shown that the selected shrub species growth pattern differs significantly from the spacing requirements of this ordinance. 4. Revise Sec.31.7(3) Specific Landscape Area Requirements, as follo%3: Plant materials, walls, or fences may be used within required yard;, as specified in Section 35-91 of the City Code, to buffer adjacent land uses. Trees or plants used in required yards may be used to demonstrate compliance with other sections in this article. UTUMATED SCHEDULE OF PROJECT Two City Council Work Sessions were held to discuss the daft landscape ordinance, on February 100' and February 24% 1998. City Council Public Hearings were held on February 17d' and March 3rd, 1998. A third City Council Work Session is being held on March 241h, 1998. A third City Council Public Heating is scheduled on April 7", 1998, and if adopted, the landscape ordinance would take effect on May 1",1998. PRIOR ACI'ION/lIMEW A public meeting was held to discuss potential revisions to the current landscape ordinance on Uccember IId, 1997. A summary of meeting comments was included in one of the two packets of review materials recently delivered to City Council members and Planning and Zoning Commissioners. The Planning and Zoning Commission conducted a Work Session on this item January l4d', 1998 and held a Public Hearing on January 28°, 1998. The Planning and Zoning Commission recommended approval of the basic format or the ordinance by a vote of 5.2. Planning and Zoning Commissioners also asked that several issues identified during the public hearing be forwardEi to City Council for further discussion and deliberation, FISCAI. N OR'1IATIOY The draft ordinar ce will afixt all unplatted and undeveloped land located within the City of Denton, and will impose plan prc-..aration, plan review, and tree and landscape installation costs as part of project development costs. City owned property will also be subject to the ordinance as proposed. Ordinance administra:ron and enforcement costs will be bome by existing personnel, and will impact the operations of the Development Review Committee (DRC) and inspections and Cede Enromement staff members, The Engineering Department has indicated that city subdivision regulations and drainage manuals will require modification if the clearing and grading requirements contained in the • draft ordinance are adopted. Clearing and grading requirements may be extended to the extraterritorial jurisdiction (ETJ) in the future, but should be severed fiom the Landscape Ordinance and added to the Subdivision Regulations after proper analysis of impact if such an extension is implemented. ENIIIBITS r Exhibits with this packcl include; • EXHIBIT 1 Draft Interim Landscape Ordirance C'M)nommuls we 0dMMkVAJMhMSILo3-2xcme Paget 'w, i.,, 25 » 10 32 X I ❑ a 0 f II EXHIBIT 2 Additional Excluded Area Maps 2a Denton Central Business Overlay District Map 2b Fry Stmt Area Map with the Fry Street Development Corporation Boundary 2c Denton Municipal Airport Boundary 0 EXHIBIT 3 Open Space to Tree Quantity Comparisons Memo 3a Open Space to Tree Quantity Comparisons Table 3b Tree to Open Space Ratios, Comparison by Project Table EXHIBIT 4 Texas Women's University Property 4a Site Map 4b Acrial Photograph EXHIBITS Trammell-Crow Proposal 5a Analysis of Tranun:I-Crow Proposal 5b SPSD, Inc, letter of recommendations on behalf of Trammel-Crow 5c Denton Record-Chronicle article ;'Air gets a'F"' 5d Denton Record Chronicle article, "State may miss clean air deadline" ■ EXHIBIT 6 Table of City's Landscape Plans and Plan Exhibits i 6a Table of Projects 6b Exxon at Flower Mound ` 6c Columbia Medical Center at Flower Mound 6d Cracker Barrel at Benbrock 6f Padgett Place at Arlington 6g Medlin Addition at Arlington 6h Las Colinas Corporate Center at Irving 6i G -anite F:va at Irving V 6j Blockbuster Distribution Cenl7 ai McKinney (':My Ux~lsl nlxv 0N%rwwe A{m&1nfo LA J 2411'.dc Page3 25 x0 32XI❑ 0 6k Tom Thumb Center at McKinney 61 EDS Client Server at Allen r EXHIBIT"? City of Denton Projects Projects previously presented to City Council will be available of the Work Session for their review, as needed. These exhibits have not 'Am included again in this packet. m EXHIBIT 8 Letter from (Men Yost, Landscape Architect Respectfully Submitted; td M, Hill Director of Planning and Development I Prepared by: Nancy McBeth Comprebcncive Planning Manager C, ~Nr tax„m W'l Andwq* WmoKMSmLtnb to 3 24M4x Page 4 1 - E i2 y5 x ~ ~ 32 x ~ ❑ f Agenda Item - Date- AGE .4 ".a ~--lt NDA INFORNIATION SHEET AGENDA :DATE: March 24", 1998 DEPARTMENT: Planning & Development CMlDCMVACNI: Rick Svehla ,~c5 5UBJEC Receive as repom and hold a discussion regarding growth forecast., and projections. BACKGROUND The Denton Plan Process, approved by City Council in summer 1997 and shown graphically in Exhibit 1, includes a stage in the process devoted to projections of population growth and land use demand. This stage also entails an evaluation of the fiscal impacts that would be envisioned in providing public services to new residents and previously undeveloped land. Consultants contracted to prepare projections for the City of Denton are scheduled to make their first presentation to City Council at the March 24`h, 1998 Work Session. RUST Environment and Infrastructure is the lead firm, and is handling the preparation and presentation of the projections. A presentation outline has been prepared that highlights the major points of the forthcoming presentation (Exhibit 2 will be delivered to Council members on Monday, March 23rd, 1998). I The forecasts will provide support for two major activities: (1) the continuation of the consultant work will lead to the development of a "preferred development scenario" that will assist in the formulation of the comprehensive plan, particularly with respect to the growth management strategy, and (2) the forecasts will be used by the recently appointed capital improvements advisory committee to produce land use assumptions required to calculate development impact fees. ESI1MATFD SCHEDULE OF PROJECT " T he project schedule, attached as Exhibit 3, has four major components: 4I Forecasts City Coeocil Work Session: March 24i°, 1998 42 Alternative Development Scenarios City Council Work Session: April 28ei, 1998 03 Public Review & Comment May 1998 Public Meetings H4 Preferred Development Scenario City Council Work Session August I t'h, 1998 The use of the lorecasts for the development of impact fee land use assumptions will be completed by the advisory committee on April 22nd, 1998, when committee recommendations 1Q , are forwarded to City Council for adoption: PRIOR ACr10Nltt VI W I 32 X 6, r, 'J C e, s:x I 1 r i t ~ x x` ( I f ~ v fi e l q 1 1 r i f I i 4 T t , F ,L v jl .v. { v a r r ~ r 1 1 r S:'f r, tip 11OI~M } r..,l a , e 1 N v (D 1 } 'i I \ r t' ry +4 ~ ''n 1 i t 1 ` y r :f l~ 1~~ I Y M r q ' n « . 1 I . m.v:. l2~:n YWtG'.aw'Yntl~k.ure4+GM6MiMMrIGSa ~ C ~ a~+N.a'4lk•.ke wueu.M` - ; v ' I i I. The Denton City Council instructed staff to develop a schedule to integrate The Denton Plan 1 with the implementation of development impact fees. The Department of Planning and Development and the Department of Water/Wastewater have been working since November 1997 to prepare Requests for Proposals, review consultant proposals, and select consultant teams to coordinate all necessary activities. Two firms, RUST Environment & Infrastructure (RUST), and Hellmuth, Obata + Kassabaum, Inc. (HOK), were selected as the consultant team for the proect. The RUST / HOK contract for this project was approved by City Council on February 17 , 19^8, for an amount not to exceed $224,642.00. The scope of services for forecasting and land use planning consultant services is intended to assist community decision-making with respect to future growth by accomplishing the following tasks: I . Determine the City's build-out capacity 1. Forecast population growth 3. Forecast land use demand for different density patterns 4. Prepare alternative development scenarios 5. Allow time for public review and comment on scenarios 6. Prepare preferred development scenario for comprehensive plan guidance 1 FISCAL INFORMATION The RUST/ HOK consultant contract may not exceed $224,642.00. Additional services required to support the development of impact fee land use assumptions will require an amount not to exceed $7,520.01 to cover the costs of meeting attendance and possible twisions that may be required. I EXHIBI Exhibit 1: The Denton Plan Process Exhibit 1: RUST I HOK Forecasts Presentation Outline (to be hand-delivered Monday, Mash 23"t, 1998) Exhibit 3: RUST I HOK Project Schedule ; . na i y a ~r Respectfully Submitted- • vid M. Hill • • Director of Planning and Development h `I 1 ~i a9 t I Y r ! I ! r' Y ( I f 1 r F. 1 r 0 r , r I u., y, . p..wni' ~ c y1.eM'c!,.rv" Mns.: v . . , 1 Exhibit 1: The Denton Plan Process (Forecasting stage emphasized) j k EXISTING DATA Geographic Information Resource Availability External Influences FORECASTS t ~ COMMUNITY VISION Mission Statement Genera! Goals & Objectives POLICY STATEMENTB Denton Development Plan Growth Management Principles COMPREHENSIVE PLAN Citywide Application of DDP Implementation Strategy Priorities ! Schedules S • MALL AREA PLANS Narrow Scope of Interest Area - Specific I ssues IMPLEMENTATION TOOLS Plan Effectuation ZONING ORDINANCE SUBDIVISION REGULATIONS ANNEXATION PLAN INFRASTRUCTURE MASTER PLANS CAPITAL IMPROVEMENTS PROGRAM E BUDGETS/BONDS/IMPACT FEES PUBLIC FACILITIES PLANS VOLUNT) RYlINCENTIVE PROGRAMS 3. ?h 10 32 x I o a v 7 , c r { a } r' "r`., GSM 1 1 4 r 1 r i rIlls" fWru M4r4n M hM h 1 111 i. 0) Gals COIKbw Vr Mpplp lawim k NFm1 VI V1 71 91 i 911 SR7 971 4t7 411 471 YJ 10 V17 V74 dti4 N I/ 4101 IS 8t1 7A1 T17{ WI 1'JS V70 t 190 M FaduMp 1) Mol&q Cop" Mgrs 74 Ca OJHJ4 C4M Ants 01 EM OdOW Moor{ 41 Cdwl canpo'~va Moats 1)Ec kcsM MoMI 11 E4ma* sAw►INM Moor 7) A" bawl b ADS ! 11 Adpl FaaaM b►D6 1)MaAM PollswA "Is won S444wn IHGNV 01) Altair l c"04went Sc4MMs V 01.11 Cgpod ndo a AM Co Wlb 01 77 Apamahvs G { 0 Boor" 1 A Is !40t 01 ScaMrb knpk tkx* i T7 CC Won 64s4bn PrB4M~Mn 1 I I;NI I I 11 1107 11 Rd,rd Omum Sc ft 11 1407 71 Pldmd SCOMIKO Supw Dot, d cc wal Saelan &'Mnp ! 4* N I i j 71 X3 11D.0 F" A. 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I I I r rr 6~ O r " as gar 1 a MARCH 23RD, 1998 HAND DELIVERY ' For the MARCH 24T", 1998 ' CITY COUNCIL WORK SESSION Y ♦ AGENDA ITEM #4: Receive a report and hold a discussion regarding growth forecasts and a i projections. $ ♦ Enclosed is Exhibit #2: RUST 1 HOK Forecasts Presentation Outline r ♦ Please insert in your notebook for tomorrow night's meeting. r ♦ If you have any questions, please call Dave Hill, 349-8350. f, f f ~ •Il~li~~ ~,i ELI, ~ r ` , ~ C III "1;" 'f ~y~ ~ ,b ~ 1 1 c ~ ~r :Y ~ ~ ' k la r, 1 t t ~ i ~ rY ~ i ,a rtw~+rv° .+~;~v~~~~,r. h j ++r i .LL. q i ~ • . ~ ~ ~ ~ I I 4y,. r I i i r 6 • 1 ' ^ . i , ' ~ „c . 1. , ~`F. ~ • I !3 1 I 1 r r I P R II e..rrc~aci^inw•wr.~~ar..'i~t)xYY7arl:,:~u°~,.td:'WSi!Y~R:A.A~T:YIAa!AAC4Rsl711$7 uu~ v,~asv~vwr , x,nir n 1 ~ s 'r1~ ~Ti37 f 1 r 1~,♦ t E i { { i 1 r j SO i , 1 1 ~ 1. 17 V is _ a~ 1 f r n a Of, n 1 l I ~ r s y_--i- J! _ 1] • • 1t c 1 1! ° t 1 • 1 1 'ti h k'r',K i 7 , • r 1 r: c r 0 ~ i tillig And • I C, Cu cles In Thi Work I F 3 9 ~..lwtin~i~a~ tMO/1Q.71~Ci'?k.~~S41`~l~~h~fL11Y[Y/~. 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I 1 III 1 I III 1 tF{ 1 1 III ~ I 1 1 1 1 1 1, r l I 1 1 1 11 r l 1 1 I J. 1 I I I I t Alliance A I 22 o y, f Y r: C 7 i F f ~ e • e 1 ee o e+t a ~ 1 d k a .5 r 23 i P 0 ~ • IA-Jl ~l ply, MI~.a . .v .....r... sr."~/'T!•MK1 ~IfaRM~N~wn~w.....~ C~ Al. prro rG. ~ r~~ i i , I 14i slIty 11 24 If Ililiii~il OEM r. I s 1 fi i i i 44 • Ecohomy. • • • • 1 I • • i • • • • Y, p • t6et~ S • • • • • w 25 o ~ n o i } n04 ~ithln City 4i, its i 1 i D.Is the Se 1 1 Witt, v lent zoning ~5) 3 117 ' Highes in / / I i' 92 26 o o a i ;.J 0 i WAMM t ~LIML W, rr 1 ` j h 1 I r. f+ 27 0 4 Q \_...~.W .d+iw' u.•.a.w~'ular.t^.r.~rrlr~~~Y~r '~VI c. c II I' j I j J 1 _ ~ J 4 ~ k J i r i i I I Growth In The ETJ, D. ment Will • Ii 00 . Jai y 1 A allabilit of Servicos and Cost Will v ..y g t 28 I~ . o c r, c ~y Denton Orowth Rate I i y 600,00. i 'i 200.000 i 100.000 E ig" logs 2000 2005 010. 015 20;20 I I • Populailon. 300#0.r 4601000 :ii iii b.Gro.wth. gate.tk4 to 10 percent. I -2020 •.p r' iii ti High 230,660'. . Range Won , -30;606AtNeat 1 ~ r 29 , r i Summary (con't i Ass, rne 1 20%060~ln 2020 o. . - 36,000, Population' • Defito-dVoubles Anntia •1. . 'll F' SF atfilding Permitiki Year 340 i V _J40Apartment Units Per Year 11 I 111 In l6fra,struettire By Developers - $160,000,000 Added To Tax Base I Year i 'Work ROmaining I S i 30 I c+ c® 1 i 1 1 i ' riativelGroitth, • k s CoRkIDDk k I l I r r 1 k resin r rl li r it 1116car' 1 ,..UIkWLN-CEN*FFRS SCENARIO. *Modeled 1 I w Denton Developnient Plan v R" 4 to both regional bigbway'systems and Wal Poo ihorenthrares. I intersectionj identified rr cm at 1 Hod", I'D city 9 i f • • 11' 111 I 1, C1 Id, , f and Ytritsivy" • I. Tiddeaci foe fiqlil abd renovation activides, often making assembly n 31 O 0 a r I~ F "11 1' 1 . I y • O 1 ;aeraroal Aper~a No. AGENDA INFORMATION SHEET Agenda Item Date ~'o~ ttil - AGENDA DATE: March 24'h,1998 DEPARTMENT: Planning & Development CM/DCMIACM: RlckSvehlaTS SUBJECT Receive a report, hold a discussion, and give staff direction regarding the Denton Plan Drain Policy Documents. BACKGROUND The Draft Policy Documents are one of several stages of the Dcnton Plan process. The Draft Policy Documents contain three separate components: the Mission Statement, the Growth Management Strategy, and the Planning Policies. The public invohement process for these documents is nearing completion after a series of public meetings. The people who took the time and effort to attend the meetings offered comments that will be extremely helpful, Staff has responded to all public comments received thus far (see attached Public Meeting Comments & Staff Responses), and has prepared suggested revisions to the Draft Policy Documents. The Planning and Zoning Commission held a third public hearing to receive public comment on the drafl Policy Documents on March I I'h, 1998. One person spoke in opposition to policies diseissing mixed use and housing. The P&Z voted unanimously, 6-0 (Powell absent), to recommend approval of the dran Policy Documents to City Council, with changes as noted to Growth Management Strategy Policy 410 (page 8), and Housing Policy 42 (page 18). At the March 17'h, 1998 City Council public hearing the following comments were made: Economic Diversification: Economic diversification incentives should not be listed within the text of a policy document. If listed, tax abatements, grants, and loans may should not be included, although infrastructure could remain. Nciyhborhoods: Mixed use within new development will probably not work in Denton, but if included, a mixed use intensity area could be designated, about the same site as an 1988 DDP • High Intensity Area (640 acres). This area could serve as a trial area for mixed use to see if it i really works. Ng't~borhoods: The "young, disabled, and the elderly" should be the proper wording used to list population groups listed as "less mob lc" in the introductory paragraph. The last sentence in Item 45 should be revised to read "Our mobRity impaired citizens, including the elderly, young, and disabled, trust be provided R&rdable and timely access to stores, libraries, parks, amusements, Q and other facilities that promote our social well-being. Trolley availability and transit costs need to be addressed, J=22rtstion: A comprehensive transportation plan is needed to properly address traffic problems. Several location-specific examples were cited as evidence of this need, 10 3Zxl0 I I l y 1 Vi' ~ l t ° I ~I J 1 1 J 1" •'i I 0 1 1 I ~ J . 1 Oslo= Economic Diversification: Tax abatements are blatantly unfair, and should be reexamined as potential economic diversification incentive. Transoortatiop: The City is not providing transit opportunities that it should, and should improve services for disabled persons at no charge. r { Also offered at the public hearing was a report from Council member Mike Cochran (see Exhibit 3). The purpose of the March 20, 1998 City Council Work Session is to provide City Council members the opportunity to give instructions to staff regarding revisions to the Draft Policy Documents that should be made prior to the April 70x, 1998 public hearing. Upon adoption, the Policy Documents will be used by staff in conjunction with the 1988 Denton Development Plan, The current zoning ordinance will remain in effect. More importantly, the approved Policy Documents will be used to guide the recommendations of the Comprehensive Plan, and further policy revisions are likely as plan details unfold, The growth forecasts and alternative development scenarios developed over the next few months will provide further opportunities to determine if the policies reflect public sentiment. ESTIMATED SCHEDULE OF PROJECT The Draft Policy Documents were prepared by city staff during Fall 1997. They were released by City Council for public review in November 1997, Eleven public meetings have been held during January and February 1998. The Planning and Zoning Commission conducted its first public hearing on the draft policies on February 10% 1998. One person offered comments on this date. A second P&Z public hearing was held on February 25'h, 1998, with no comment from the public. Staff offered revision recommendations to P&Z on March I Vh, and upon the conclusion of a third and final public hearing, the P&Z Commissioners recommended approval, 6-0. City Council held its fast Draft Policy Documents public hearing on March 170, 1998. A Council Wort: Session is scheduled for March 24'x, 1998, for staff to receive instructions regarding proposed revisions to the policies. The second Council public hearing for the policies is scheduled to take place on April 7'h, 1998• Adoption of the Draft Policy Documents by Council resolu?i,)n will be requested by staff on April 7'h or soon thereafter. FISCAL INFORMATION The adopted Policy Documents will exert some level of impact on all city and ETJ property for several years to come. As a guidance tool for the Comprehensive Plan, the Policies will directly influence many r city activities and budget-making decisions undertaken during plan implementation, I EXW OM Exhibit 1. The Denton Plan Process Exhibit 2, The Denton Plan: Draft Policy Documents (revised March 12'h, 1998) Exhibit 3. Report from Mike Cochran, City Council Member Respectfully Submit) g vid M. Hill Director of Planning and Development 2 l . . , i 10 O i rnnnrn Exhibit L The Denton Plan (Stages relevant to the Draft Policy Documents emphasized) EXISTING DATA Geographic Information Resource Availability External Influences FORECASTS Demographics Land Use Demand Fiscal Impacts COMMUNITY VISION Mission Staten-tent General Goals • POLICY STATEMENTS Denton Developirnent Plan • Princil)les COMPREHENSIVE PLAN Citywide Application of OOP Implementation Strategy Priorities / Schedules SMALL AREA PLANS 4 Narrow Scope of Interest Area - Specific Issues s IMPLEMENTATION TOOLS Plan Effectuation . ZONING ORDINANCE SUBDIVISION REGULATIONS Q Q ANNEXATION PLAN ,t INFRASTRUCTURE MASTER PLANS CAPITAL IMPROVEMENTS PROGRAM BUDGETS/BONDS/IMPACT FEES PUBLIC FACILITIES PLANS VOLUNTARWINCENTIVE PROGRAMS 3 I 10 32XIO f i {'y i 1' tilt ~'n1V4 r 1.. i ro ~f .Its., to r l n .w♦~o- io ~ tr ~ r I":~+ ~ '`~~i t r~-fir '1rk +lrr o tip'. tI ti i' r 1 ,r' 1 t t 1 (f t S 'I• r I 1 r k t t~ ~ ~ ~J I'I 1~ t r 1" y 10 s e ti z I r i'-; i t ~ Q _ I q 11 a Eke. 1 I'/ n n} r 11r ~ t ~ I 1 1 l r I r t 1 l 01 r1 a-eA<. w r , nl" 1. B LS j'WI11t1t I LnA 't.NAti'13Y ~PRQIIMIMM ~~W:tlM'9A1alYR1/.';ki~MV ftftAAO*vte.q r 01"0rA' 1 1 .1, l THE DENTON PLAN , 'It ,r Draft Policy y Documents y: I r y Prepared for PUBLIC REVIEW I DRAFT MISSION STATEMENT DRAFT GROWTH MANAGEMENT STRATEGY DRAFT PUBLIC INVOLVEMENT PROCEDURES DRAFT PLANNING POLICIES ,a Public Hearings: P&Z - March 11'h,1998 at 5:30 PM City Council - March 17'h, 1998 at 7:00 PM City Council - April 7'h,1998 at 7:00 PM ~i I • Prepared and Revised by City Staff March it,1998 For cropks of this document, quesNau or meetbV schWas contact, Cky of Denton PtannkV and Devefopmenf DepeAmenf • City HaN West ' • 221 N. t:bn Denton, Texas 18201 1Ilt/~•l.r 9I0/3~9•d350 lar 940 /349 - 7701 • RELEASED NOVEMBER )Mr 1997 • REAM MARCH tP. I • t it f~{~ 1 y t 1 MAye ' ~ r J 4~~k~,~~ 32 X I ' d 1 A rti,~ ki .a CL dY IA TV y ~ X~F r ~ !r 1 i O THE DENTON PLAN: Draft Mission Statement, Growth Management Strategy, & Planning Policies INTRODUCTION The Denton Plan is an intensive process designed to determine, through community consensus, how our city will prepare for the future. Community consensus will be achieved by involving members of the public. City staff has been directed by the Denton City Council to engage as many citizens, or 'shareholders", as possible. As we start the Denton Plan process, the first stages are intended to develop a general sense of direction. N we don't know where we are heading, we cant develop a strategy to get there. The documents M this packet have } been prepared by city staff and released for public review by City Council. From November 1991 to February 4998, Denton's shareholders will be given a variety of options to provide the,'r views on these documents. In February and March 4998, the draft Policy Documents will be reviewed by the City Planning and Zoning Commission for recommendation to City Council. The Denton City Council will then be asked to make any revisions necessary for adoption by resolution. Once adopted, the Mission Statement, Growth Management Strefegy, and Planning Policies will be used in conjunction with the 4988 Dimon Development Plan as the first of y several planning guides to be used in the city. Other documents, such as the comprehensive pion and small area plans, wilt be generated as progress on the Denton Plan continues. i TABLE OF CONTENTS gage I City or Denton Draft Mission Statement 2.3 Draft Growth Management Strategy 4.5 Draft Public Involvement Procedures 6 DRAFT PLANNING POLICIES; 1. Infrastructure Poticies: Transport ttion System 7 II. Infrastructure Policies, Stormwater Drainage System 8 III. Infrastructure Policies: Water and Wastewater Systems 9 IV. Infrastructure Policies: Electric System 10 O V. Infrastructure PrAcies: Solid Waste 11 VI. Parks and Recreation Policies 12 Vil. Environmental ouaRy Policies 13 VIII. Neighborhoods Policies 14 IX. Housing Policies 15 X. Economic Diversification Policies 16 w XI. Government Policies 17 XII. Urban Design Policies 18.19 O ' XIII. Public Involvement Policies 20 Glossary 21 S a 75 10 32XIO { 4 ' ~V l 1 , 1 a O 1 1 I City of Denton Draft MISSION Statement Denton is a unique community whose diversity gives it strength. This uniqueness is a point of i community pride and it is the goal of the Denton Plan to insure -,hot growth, development and the use of community resources foster, encourage and promote the preservation of this vital quality. The proper stewardship of our community assets white managing the pressures of growth is a balancing act that will require foresight, long range planning and a great amount of community involvement. The Denton Plan should represent the best of our collective community aspirations and, while preparing Denton for the 21" century, should never lose sight of the fundamental qualities on which this town was built, Quality, diversity, and opportunity are the keys to future success. People with all kinds of different backgrounds are welcome to Denton, where they will continue to find a community that offers well-paying jobs, reasonably priced housing, and good schools and parks. Homes of all types and sizes offer a choice of lifestyles. Neighborhood centers will contain small shops and stores that are designed to harmonize with surrounding homes and provide daily necessities for the neighborhood. Residents will be able to choose to walk, ride a bike, use the transit system, or drive to many destinations throughout the city, Local businesses and employers will prosper, catering to customers needs and promoting Denton's image at the some time. There must be a place in the city for all types of development necessary for a healthy, vibrant market. We want to preserve the distinctive qualities of our city while growth occurs, a goal that we know requires foresigh P and preparation. The Downtown Is and always shall be the heart of Denton; the Square and surrounding streets will be used every day and night as a gathering place for commerce, civic events, and entertainment. Growing numbers of downtown residents will increase the energy level of the j downtown, and the renovated Civic Center Pork will draw new visitors from throughout the region. Yet the scale of the downtown will remain the some, human and comfortable, and examples of the city's history will continue to remind our citizens of their heritage. Historic preservation will ben major theme in all development and redevelopment efforts, The downtown -411 will become even more pedestrian-frier y, with new streetscopes and improved sidewalks I connecting the Square to both Eagle and University, encouraging sidewalk cafes and other outdoor businesses, To grow properly, Denton must nourish its university partnerships. The University of North Texas will flourish, and the UNT campus will Increase its visibility as a Denton landmark, prominently displayed to travelers passing through the city, The Fry Street Area and Oak- Hickory Historic District will continua to serve as important physical and social links between the Downtown and UNT, Texas Womanb University will also contribute to Demon's distinction O 0 as a city, and will be even more strongly connected to the Downtown as a result of Civic Center Park renovations. The UNT - Downtown - TWU corridor will achieve its full potential as a dynamic and lively area, essential to the well being of the city. Working with city government and the business community, the two universities will realize their full potential as magnets for high-tech and research-orlented development. b .I~r 2S 10 32XIO I a Y 1 l' M 4 4 4 s r t p j 1 4 ')L4 . -'ni 1~:. MI~.Ayt{MSM1C7~'1J,T11YiQ x[141 r1'ir. ~ , City of Denton braft MISSION Statemed (pope 2) The city, county, and school district will increasingly coordinate their efforts to improve public facilities and services, with careful planning for schools, roads, and utilities to accommodate growth, Residents must always have reason to be confident that their taxes are being spent wisely and efficiently. The Denton community will always be committed to enimic" .g the lives of its citizens - regardless of age, Income, or ethnic background - through ucation, culture, recreation, and entertainment, Through the efforts of our schools and urreirsities, our government, our civic j and cultural groups, and our businesses, Denton will build on its distinctive reputation as an arts city, and most especially a music city, Through its outstanding public art, its galleries and studios, its museums and theaters and clubs, its renowned university musicians and artists, its festivals and concerts and shows, Denton will provide to citizens a wide range of cultural and entertainment activities that will also attract numerous visitors to our community. We need nature as much in the city as in the countryside. Our built environment cannot remain healthy without properly managed land, air and water resources; as we grow these resources will become even more precious. We can avoid the costs of thoughtlessness while we capitalize on our natural assets. As the benefits of Lake Ray Roberts and the Elm Fork Nature Conservatory become fully realized, they will prove to be resources of incredible value, well worth our initial investment. rloodplains and creeks will emerge as greenway corridors that serve many needs, such as flood protection, recreation, tree preservation, and habitat support, Environmental planning must take its rightful place as on essential part of Denton 's strategy to grow wisely. The entire world is within easy reach of Denton, sitting at the convergence of two interstate highways and located a short distance from two international airports. We are regional partners within a major metropolitan area, and will share regional significance with Dallas and Fort Worth, with each of the three cities being recognized as a -,runty seat with a unique identity. The ability to interact within Denton itself, with the metroplex, or with the world is an asset that will continue to be useful in marketing Denton as a progressive, forward-looking city with a "home town" atmosphere. We can and will achieve what we want - growth that enhances rather than destroys the qunlitiee that make Denton attractive. We will bequeath to future generations a dynamic, interesting, and healthy city. Denton will prepare for growth and prosperity by considering all community interests. Our values and heritage are important to us. We like Denton now, but we know we can make it even better. Growth will coufe change, but the essential Ingredients that make e•~ Denton unique today will be preserved and cultivated In the future. • 7 low 2 5 K• ~ 32 X I O . ~ ~ rr urnw r ' ;csw.r DRAFT GROWTH MANAGEMENT STRATEGY INTaooucrroN Growth will continue to occur in Denton, and the rate of growth may accelerate in the near future. Proactive planning Is considered the preferable approach, defining the 'rules' by which growth will benefit the most people. Proactive planning requires preparation and an upfront Investment of resources In anticipation of growth. Public involvement is critical to plan success. Midge Prove4aa of adverse Impacts is a key element In such e strategy. The less preferable eRemative Is to react to growth and its Impacts as they happen. Preparation is not necessary. Consumer demand drives the location and type of new development, and governmental services and uNilies systems are designed in response to growth trends. Planning for city services becomes an educated guessing game. Responses to adverse impacts are typically more expensive to fix then to prevent. Proactive planning is a 'step ahead'of growth,, reactors to growth are always a 'step behind.' The growth management strategy contains policies that keep Denton a 'step ahead.' AA other policies in The Denton Plan must adhere to the Growth Management Strategy. 4. Essential services provided by government must be maintained at the highest levels of quality possible City services Intended to protect and preserve public health and safety must be provided to all existing and future Denton stakeholders. 2. The growth management strategy should support the coordination of public services with private development. Development patterns that make the most efficient use of public services and infrastructure should be promoted. The true impact of private development should be accurately identified and assessed In proportion to public costs and benefits 3. The community should establish development rules that are clearly stated, administered efficiently, and enforced consistently. If development is proposed that does not satisfy rJ the rules, 4 should not be allowed. 4. The city needs to make use of economic incentives, infrastructure and investment to coordinate and encourage development consistent with its vision. The use of these lools Is justified only when public benefits can be clearly defined and measured. 5. Land uses should be balanced to maintain a diverse economy and a wen-proportioned tax baser The city will provide opportunities for Iho development of a full array of land uses within the city. 6. Areas of the city susceptible to environmental damage, or where infrastructure systems are stressed, of where development would contradict city planning objectives should be Identified and protected. I e `i 1 0 32X10 t' T ~t~ l i • 1 r I V i 1 I e OAARA~ %XMIOU V e } • AYf..,_, G' :VtT'Jt'i'". d.1+ ,Y-AIP:;6Yx?1~egMO:,1.Yrt+itvhsama'WS1N. °.;~:yr: a gyu:+V, ~ tt , ome clo.ln Mr,epemera s~uar fo+os zl I 7. Zoning should be used as originally Intended, to address extreme incompatibilities between land uses. and negative side Okla. Zoning should be used to Identify nerfo maneo standard: that allow land uses In defined districts basod on their ability to mitlaats potential nowt€ve impacts on nelghborina ro rtf s A reexamination of the use of zoning as a planning tool should be conducted to reflect community values successfully. 8. Development guidelines should be established to allow a wider range of land uses to coexist within close proximity to each other. Site design principles, aesthetic guidelines, and construction standards should be investigated as possible tools to promote land use compatibility and encourage developmental diversity. 9. The location, placement, and design of public facilities such as parks, schools, fire stations, libraries, or human services facilities should be used to create neighborhood activity centers. Coordination of planning efforts between different units of local government should be encouraged to save money and yield greater benefits to residents. 10. WenWes should be developed le, allow pe"Is !Fam all lAwme W ' ek to liva In " same [This dedetlon was recommended by PU on March 110, 998.1 Res dential development that establishes a variety of lot sizes, dwelling types, and housing prices should be encouraged. 11. The City should be designed to accommodate people rather than automobiles. As growth occurs, a variety of mobility systems should be given space to connect people to destinations that are important to daily functions. Transit, bicycle, and pedestrian linkages should be planned and implemented to serve daily transportation needs safely and conveniently, 42. Denton'l aWlity to grow and expand should be identified In City's annexation stntegy. City limits and i extrator t .141 lorisdictton tETJ1 boundaries should t* clearly eatobllehod and relstlonshlos with other u sdictions should be delermined through Interlocal agream itts The annexallon strategy t should also reflect the costs of snit: provision and extomal environmental Impacts associated with land locoted In the ETJ• 4 25x~Ca 32X s Y a , 0 { ....+..rr; x L ` S. .JI Jl:e. ".n ` Y,t: r. •q¢1. w.,rya.,rkp Y•o. NNfO•$'k AMY ':e.,e ~ na n,.. DRAFT PUBLIC INVOLVEMENT PROCEDURES The Denton Plan will require time, effort, and resources to become a high quality product. Technical competency, innovative approaches to challenges, and equitable policies are Important as plan progress unfolds. The best-lad plans for any venture, however, wil never succeed without the commitment of its participants. The public involvement procedures for the Denton Plan must be WIDE OPEN to anyone who expresses interest in its contents. It is not enough to say that we will provide opportunities for all people to comment on the Plan. Creative methods must be employed to solicit, obtain, and record shareholder comments. Public involvement is critical, and Denton Plan success or failure hangs in the balance. When finished, the Plan should be considered DENTON'S PLAN- d must belong to everyone. The f0owing procedures are proposed to obtain public review and comment for the Denton Plan Mission Statement Growth Management Strategy, and Planning Policies. 1. The City's public access channel will be used to communicate elements of the plan and the events scheduled for plan review and comment 2. The City's half-page advertisement in the Denton Reoord-Chronicle will be used to publish elements of the plan, and may also be used to solicit written comments on the Plan. The City's Internet web-site will also be used to provide information and receive comments regarding the Plan. 3. Citywide public meetings will be scheduled at major points in the plan review process, when draft products have been generated A reasonable number of meetings, 6 to 12 in number, will be scheduled. All meetings will be held at ADA•accessible facilities that are safe and secure for attendees. 4. Paper copies of draft products subject to public review and comment shall be made available to anyune interested in the plan at no charge, 5. A speaker's bureau will be created, consisting of city staff members, whose purpose will be to make Plan presentations to groups upon invitation. Every effort will be made to make presentations to civic organizations, neighborhood associations, special interest groups, or r,lher interested parties. The intent of the speaker's bureau Is to reach a wider audience by attending neeUngs that have already been scheduled. « 6. Persons wishing to comment on the Plan may do so verbally at meetings, or is writing at their own convenience, Comment sheets will be prepared and made available at meetings, in newspaper publications, or at city offices. 7. All public comments received will be recorded and available for public review at the City Planning and Development offices. The comments will be made available to the City Planning and Zoning Commission, and to the City Council prior to deliberation by these bodies. • O 6. City stall shall organize and summarize the public comments, and shall Indicate specifically how the draft Plan was Influenced by the comments, 4 10 1 ?5 K ItJ 32XIO i . y 7 1 is , r i I 1. DRAFT INFRASTRUCTURE POLICIES: TRANSPORTATION SYSTEM Denton Is strategically located in the Dailas - Fort Worth Metroplex with respect to transportation In the past, attention has been focused on the highways and the vehictes that use them. A 'mufti-modeP approach that coordinates a variety of transportation aftematives, such as transit, bkycfe, and pedestrian systems, has been shown to result In economic, functional, and aesthetic benefits. Denton must handle interstate and regonal traffic with Innovative solutions that meet or exceed loaf needs using appropriate slate of•the art multi-modal systems. 1. The City of Denton should plan, design, and build a network of freeways, arterials (major and secondary), and collectors that provide acceptable levels of service while complementing the land use decisions in the Denton Plan, The (Denton Transportation System must be compatible with regional plans including the Mobility 2020 Plan, the Regional Thoroughfare Plan (NTCOG) and the Denton County Thoroughfare Plan. 2. The City of Denton shall use the Thoroughfare Plan to plan and design transportation improvements, program Capital Improvement Plan projects, and guide development review decisions. Many of the arterials in Denton are state roadways, so cooperation and partnerships with the Texas Department of Transportation (TXDOT) will be considered essential to the construction and operation of the the City's transportation system. 3. All freeways shall be designed with limited access that includes frontage or parallel mess roads. Loop 288 between US 380 and IH 35E shall be upgraded to this type of facility as allowed through redevelopment. 4. Major arterials are Intended to carry traffic across town and between major intensity centers, These facilities shall be divided by landscaped medians to blend capacity with aesthetic considerations, Minor arterials should be at least four lanes, with left turn lanes provided for all major intersections. Collectors shall have at least one full lane in each direction to carry traffic to the arterial system. 5 The City of Denton shall use Access Management Practices to make the Investment in the roadway infrastructure as cost efficient as possible. These practices Including placement of curb cuts, median openings spacing, and parallel access roads (public and private). 6. Residential streets shall be designed to include traffic calming practices that promote the use of collectors and arterials for trips that are not locally or ented 7, The transportation network shall be designed to optimize the emergency routes necessary for police and tire operations and to promote efficient delivery of services such as mail and solid waste. 8. The public transportation system shall provide services to all citizens at a reasonable cost, using routes that maximize service delivery and tat meet the needs of the mobility impaired. The system shall be developed to be compatible with the eventual connection to regional systems such as Dart, the 'T', DFW A Airport, and other future systems. 9 The Donlon Airport shall be a key component in the multi-modal transportation system. Denton Municipal Airport Is effectively located to optimize the movement of goods and services throughout the Melroplex. 10. The Denton Trails Plan should be adopted and the network of sidewalks, bike trails, and greenbelt paths should be included Into the Capital Improvement Program for funding. Development shall address this network by dedicating dghls-of•way and constructing portions of the network across their properties. 0 Linkages to declinations that serve daily needs should be emphasized to reduce vehicular trip generation. I il. A transportation lobbying campaign should be conducted to ensure participation in federal, state, and regional infrastructure funding decisions Local funding artlcloatlo in Moth DroloCte should M considered for Inclusion in the City's capital Improvements maram, 11 1 x 10 32X IO O i II. DRAFT INFRASTRUCTURE POLICISS: STORMWATER DRAINAGE SYSTEM A basic service of the Cify is to provide end oversee a safe, effective drainage system that respects both the natural and urban environment within the City's limits. Floodplains benefit citizens not only by conveying runoff ' water but providing opportunities for open space and trails, preserving the natural environment of the community, and improving the aesthetics of the community. Designing this type of drainage system is complex and can be facilitated Through carefully prepared watershed management plans and design regulations. These regulations must also address the problems associated with erosion, which can easily be accelerated during the development process 1. Floodplains shall be dedicated to the City In accordance with the City's watershed management plans and the Parks and Recreation Strategic Plan. Floodplains should perform multiple functions for flood conveyance, transportation (trails), recreation and open space, habitat protection, and environmental preservation. 2. The City shall endeavor to protect the life and properly of its citizens from the 100-year storm through these policies and design criteria adopted through the Subdivision Regulations. 3 Drainage infrastructure for new development shall conform to City Council approved watershed management plans that address both water quality and quantity issues, Including giving guidance on where natural versus improved channels and rural versus urban drainage systems should be located. 4. Design criteria shall reflect a balance between aesthetics and low maintenance life cycle costs. 5. Developments in the City shall minimize erosion occurring during the physical oNslniction of the infrastructure and private improvements using adopted best management practices. These practices should reduce the potential of erosion that damages the existing ecosystem and produces silt, Siltation reduces the capacity and functionality of the drainage system so it must be minimized. 6 Regional detention shall be Implemented versus onsile ponds according to the approved Watershed Management Plans The City and developers wilt be required to combine resources and create partnerships to satisfy regional detention plans 7. The City shall minimize channel crossings to reduce potential restrictions and safety hazards, The City shall pfomole the use of roadways parallel to the limits of the 100-year floodplains to provide a natural riparian environment by establishing green space between the road and the channel. Green space Is required even if the channels are improved so that the limits of the floodpiain are contained within the channel area The green space between the channel and parallel roadways shall be dedicated to the city to serve as open space, limit flood exposure, and facilitate channel maintenance. 8. As infill and redevelopment occur inside the developed portions of the City, the existing substandard drainage systems must be reconstructed in a cost-effective manner to limit impacts on the adjacent developed properties The reconstruction of these channel systems will occur through redevelopment, rA t and may include the use of public funds to correct existing problems. The design of these drainage improvemenis shall minimize the damage caused by flooding and the cost of maintaining the drainage system. I i 12 i I 25❑ 32xIa `1Q 4 I A t , yk + x 1' 1 '~P n ~ I l 1 V 1 " ` r , s y r- rvL + ' i + (l Iw t~ ;r v n~ a 1u 1 i r v 1 1 ~ v r r ~ I 1` :.i ,I . it •r , .i, L. ':Ataif ' 1 f ~ r , ~ } i I. ,i. i1%.'4~"aniEtivT~*Faeeti,k.Yirllt.:u: R~'~'n'.'1.+:-J[iS'A:+C .'1.,ldHlL'$!'"~IF~i1JF'4.5{G`dC ~1".~Sk1QA1'?~36V ' i' ' N151'Rat' 4i r i •"fit Ill. DRAFT INFRASTRUCTURE POLICIES: WATER AND WASTEWATER SYSTEMS Sale drinking wafer delivered efrklentty and In sufficient quantity to homes and businesses and wastewater that Is collected, treated and released back to the envronmenf are fundamental City services. These services must be provided at fair and reasonable nost to customers, Water suppres must be evallable to meet future demands and the Y time spans for devabpin9 these suPpr ues requires continued foresight, Localr'n4 wafer and wastewater Wlifies needs to be sensitive to environmental and ne' hborfaod concerns In addition to englnearkrg criteria. r The overriding concern of alf of these offnbutes of a desirable wafer and wastewater system is the conoem for profecling publk health. 1. Developments shall be oonstnuled and property owners shall maintain their properties and private Infrastructure in such a manner as to not compromise public health, endanger the public drinking supplies, or pollute to environment. r r'2. Water and wastewater facilities should be located in areas that meet engineering criteria and are r r compatible with adjacent properties to the greatest extent possible. t' , r F 3. The City will not pre-Install water and wastewater Infrastructure to new areas, but will follow development as determined by the private sector or as directed by the governing body, with overriiing and existing trunk system upgrades. 4. All water distribution Infrastructure and wastewater collection infrastructure extensions to residential and commercial development shall generally be the responsibility and expense of the developer, 5. The City may participate in the cost of overs[zing water and wastewater fines to meet future development 6. The City shall strive to oversee the development and operation of water and wastewater Infrastructure that Is safe, reliable, cost effective, environmentally sensitive and sufficient to meet future demands In + cooperation with other enbl es, . 7. The City should promote infill infrastructure improvements over new line extensons that expand the, geographic coverage of the Cri'Ys infrastructure systems. c 1 • p• 4 1 ~ 3f 't a i'. ~r. 13 E r V, i a ) l i" + . , y . j "I X37 X l rM 1 1 YIf S a r I ~ L ' 1 1 i a ra. 1 l a, r i ~ a r r r a i ~:Ij a ti M r. r 4 v a. J a~ ' r ~ y WR ~ ~ ' J 1 V Y I Y 1 ~ 1 . 1 ' 1 4 , r. l .r.,.u s:+^.C d. ,mtYM.vuvaeA .drl .Pick'C'.n,CSCGDI4dJ}tp~i~p+a°%S'ALei',`Sam79C'.-rg.1r,•01EM~AKLtlSOiY~1?2kkMlP ~b?p~P1hW1Cd .i' wRaaK'w i i IV. DRAFT INFRASTRUCTURE POLICIES: ELECTRIC SYSTEM 'the City shell strive to devefop through either improvements it makes, or improvements made by devekrpers or other etecfric ulPities, Infrastructure that is safe, relrabfe, cost effective, onvironmenlelt sensitive and sufficient to meet future demands. Underground ekrchic uti* service to new developments is important to promote good urban design and enhance the aesthetic quality of the developing neighborhoods. A cooperative effort between locef govomment and the private sector Is required to provide electric faciNW in a cost- oftive manner. Policies related to efectrlo utilities will be based on Mk and reasonable participation h the r costs of WOW by both public and pdvate Interests, 1. Electric service to all new commercial and residential developments shall be installed underground. 2. Electric service providers and the City will work together to achieve the goal of installing electric utilities underground along and adjacent to major entranceways. 3. New electric feeder lines to major load centers may be installed overhead except In specially designated areas or where existing electric, communications and cable facilities have already been converted to underground facilities. 4. Electric service providers in the City shall cooperate with City initiatives to convert existing overhead electric facilities to underground, 5. All street light natures in new developments shall be In compliance with City specifications. The City will use municipal lighting fixtures that direct illumination efficiently, reduce potential nuisance tighting problems, and enhance views of the night time sky. 6. Developers are required to adhere to the City's sheet outdoor lighting policies. Any additional expenses incurred as a result of approved variances from this policy shall be borne by the developer. t ' ;r 14 r R ~ i 1 ! I 'f~~ Y Y ~ n 5 r l°~ f Y tL f I, l 0 tr i7 I I~ ~ Y I • ~ I I Y .~1 I 1 ~ L ~I . ^ ~ t ~ , ~ y in rt.• I .i 1~,.,1 t { r~,,, i I i f~ i'; 11 C L 17 4y e. , J r I. r I { ' rY 'L1 r I 1 0 I II 191 1, , a ~ ! I .Yr: -a..._ r.tiw.~ a.....:.-v .w.u.Nr~fh.~.c+ouZnmYxMVA~wlY4tie.i...+rrM/kartv r,i~IMi~..ri Mdvr.C.wws• YlwSx. • Y I V. DRAFT INFRASTRUCTURE POLICIES; SOLID WASTE The safe and of k*4 removal of solid waste hom the comaxp dy is essential in Protecting public heath. Responsible disposal of these wastes minlmhes the coamnty's impad on the enAwmant Catec* and disposal servkws must be provided to the cnamly at a reason" cast end should refled the We of seMces that customers want . The efbdenoy and cost of solid waste servkas are larpely dependent upon oannunily devrloprnent ectivties. Planning end proper management of growth hhuenoss sorrd waste service opW& Development policies must support lire effideM collodion and disposal of solid waste end pmv* the texibUity necessary to accommodate the delkery of services that the co vwfly desires 1. Urban design and transportation hhsbucture policies shall promole effr;mt access to all residential and commercial developmrent. i 2 Site planning and design should not limit oolledion service derAry altematives. i 3• Development crilerla shall establish on-site construction standards appropriate for solid waste service delivery. I 4. Development policies will Integrate consideration of community aesthetics when planning solid waste and recycling containment facilities, L Program goiicile will sumo cost effective recycling mmins that encoureae Public oducatbnL r waste minimization, meferfals reuse and environmental ktewerdshlg, I 1 0 ~I f '°x JAI a~e 1 f { 'I V. 1e J' I, ~i 19 L ~ a. 1 ~ C I h r. 'rr v IIE .32 X I O 4 J' ~ ) N 6 'i1 r ~1 1 I Fi r { A 0 4 , ~ 'F! P f r ° A ] l~ F n t r r i t ~ n~ , r; t r, nm~ it . , .i ~ . iwu:'r+Ltt s-..+,aord.art.'~:.»r;t ,r'3 :ar u.ii,•a'!t1kAJPL7^..'Citr'aRr.'^:dP,feaGit~W;atSnvr ntmut~+sakn7atA+"tiiWM+rax~mmG*'~ rae. , i A DRAFT PARKS AND RECREATION POLICIES Attractive, safe and wet!-maintained parks and recreation faciles are essential elements of Denton's image and quality of life, N strategWy placed and equifaby distributed, they can provide a wide array of opportunities br 3 bc!h individual and community enridunent. In addition, parks and open spaces may serve to protect onvironmentally sensitive lands from Me potentially harmful impacts of urban development, white preserving the recreation and transportation opportunitles these lands may offer. A cooperative effort between /cat government and the private sector is required to provide public facilities in e cost-effective manner Porkies related to parks and recreation should be based on fair and reasonable ? participation In the costs of such fecifts by pubrk and pirvale interests T t. A wide array of parks and recreation opportunities should be equitably distributed and aocessible lo all Denton residents. Park and facility locations will be determined in accordance with the Parks and Recreation Strategic Plan. 2. Parks and open spaces should be located in or adjacent to floodplahs, where possible, to aid in tlodplain conservation efforts and to enhance recreation opplvtunities. Such areas may be developed with recreation facilities or set aside as open space to preserve sensitive areas, 3. The City should acquire and develop parks In combination with other public facilities to achieve cost-effective delivery of public services, Park property could be developed jointly with fadlitles such as new schools, storm water detention basins, drainage channels, fire or police substations, or libraries. This policy should not contradict to spatial distribution objectives determined by the Parks and Recreation Sb ategic Plan, 4. In order to ensure the reason We distribution of public parks In accordance with the Strategic Plan, residentiat developers should provide in their projects land for Neghborhood parks sufficient to meet the needs generated by their development, or provide an alternative strategy to satisfy this demand, r 5. The City should be responsible for the acquisition W development of Community and Citywide parks. it r 0 t ° A it 1! a s olio ~ r r ~Jy V h k , X YM 32 1 t - t L I' ~ n .1 l ~ 1 N 4 ~ 1 4 1 w 1 I / 1 i ~ , sr . t ' ,a` r` It i , r\`t • fir. "r" j it c 5r r I ° i, N y•'a~l 1 f~ I i ~d 1' / y „ t Y r JY t r• 1 .~.4A^ 1 ,~r?1 i .wt.'+:4 .,G v,Y ..•C,t:G,~t11w , '•.r ,°ai'',YA9 ..7 .'Yi,{!'~:rtY'~ i'b'?'rY'G^.IF"..~iR!GY'Nf"Y..:!'n`.NFa,'IRyd4'b1XSW:JiMN!VtSdS1EA,iYWMdfi ...14 1 VII. DRAFT ENVIRONMENTAL QUALITY POLICIES { Our quafly of lde begins whh our envuanmenf. On a global basis, Americans use approximate y 25% of the world's S resources though we represent only 5% of the world's population. The increasing pressure on our natural resources threatens the balance between quaftly of life and economic growth, Recognizing a healthy He necessitates a healthy ecosYstem. Our com unRY is committed to pro!ectirig and sustaut' 'urg the natumi systems that form the basis of We tser.. t Development in a community knpaWs the eMmnmert. By minimizing the negative impacts of development while J optimizing the posXive aspects of development a balance between enviraxnerta! qualty and commurtry deveopment can be etfakred. Wafer, ek, and earth - all are components necessary far growth and sustaining fife. ' These components deserve our attention as our communty grows. A hoCstic or muV-discipWry approach offers a comprehensive method for planning By kfent*kq ecological function and value, promoting environmental awareness and education, and supporting 6"nge comprehensive tt natural resource planning, our cornrrwnily can meet the needs of growth wN out popardiring our environment. 1, Development policies shall emphasize environmental awareness, promole to ethical use of natural resources, and encourags the preservation of the native habitat ;t 2. Environmental protection is an Integral consideration in the development of policies conceming economic growth and community development { 3. The development plan shall evaluate the value and function of tie natural environment within tie study area and identify areas with unique ecological significance. ; 4. Policies should promote the appropriate proledw measures and management techniques b minimize harmful discharges directly to the environment 5. Slte•spedfic pollution control techniques shall be based on the environmental significance of the area and the ` pollution potential of the development ' k±` f 4^ " 64 Environmental mitigation should be considered for developmeM In areas of eoological significance, j 7. Deveopment policies shah attempt to establish the equitable distft6on and use of natural resources. I 17<' ~ P CR 54 6 • r 1 a1 ; r 1', ~Y r I' :i 0 i' . h ✓n.r , .:'.M d, ~,^N:^.'ya a.+5 A M!.a, ~'.K^r.;-' V`b . .i w ~-:w dr VIII. DRAFT NEIGHBORHOODS POLICIES Neighborhoods can be defined in many ways, but for the purposes of the Denton Plan, they are viewed as clusters of residential development that share a variety of functional and social Pies. Neighborhoods form the backbone of Denton's citizenry; these areas are where people live. Neighborhoods are expected Io be safe end secure, places of quality where families Ihnve and uhikfren go to school and play. Neighborhoods face challenges as well Low Income and minonly neighborhoods need revitalization assistance, Other neighborhoods feel overwhelmed by traffic congestion and development that oulstrips our ability to provide schools and other services. An Increasing body of knowledge indicates that neighborhood subdivisions contnbute to sprawl, causing city Infrastructure systems to be stressed and underutilized. When services are Inefficiently provided, tax dollars are not spent wisely. A recent series of national debates has also tocused on the relationship between neighbortrood design and quality of lrfe. Current zoning trends fend to separate land uses from each other, increasing the need to travel and promoting social Isolation for the less mobile members of the community, primarily the young and the elderly. Subdivision practices have been found to contribute to Increased vehicle use, vehicle speeds, and thoroughfare traffic congestion. These issues need to be discussed as Denton's future is pianned. 1. All neighborhoods shall be served by adequate Infrastructure and shall have adequate access to public and community facilities. L4 Land use policies that encourage a mix of uses should be investigated LQ offer a r}~gs of We% to residents and the entire city, A limited m W of r onltes'de0al land uses should be 494W, OGWN !he GondiWAi undo; MIGh the Nse would be 1 ble,, in order as . Standards shouid be dewfoi> d to ensure well-designed mixed use pro e;ts for undsvill propetfir including the MW a on of any potentlal adyerat Impacts on existing neighborhoods. r FxJ} I a neighborhoods should bs protected and per , 4. Neighborhoods should accommodate transit, pedestrian, and bicycle sy. ems to reduce vehicle use. r 5 Discussions should be initiated to determine how neighborhoods can be designed to promote social contact and civic responsibility. Our mobility Impaired citizens, Including the elderly, young, and disabled, should be • provided access to stores, libraries, parks, smusements, and other facilities that promote our social well- being I 6. A forum should be developed to address neighborhood quality of life issues, evold competition for resources among neighborhoods and ensure that the larger community interests are not sacrificed for the Interests of e single neighborhood. The City of Denton will designate a 'single point of contact" staff liaison to provide • information and support to neighborhood groups. p l8 .h 10 a2xi❑ n, r V r • 1 I W. DRAFT HOUSING POLICIES i `Housing" has different meaning to different people: Some people envision a farm with acreage, while others think of an apartment on the Square: Home ownership continues to be an important element of the American Dream. Housing construction costs have made this goof much more difrcu8 to achieve, and growth Intensities the competition and demand for existing homes. Homes that are similar to each other tend to be concentrated in one area, a phenomenon that creates neighborhoods based on income. Devefapment and leading practices are market-driven, and new housing construction for homes priced under $1`00,000 Is rare. Yet apartments and manufactured homes are not tolerated as acceptable housing alternatives in many situations 1: Alternative types of housing that respond to the differing economic and individual life-style3 of Denton's citizens should be developed In all areas of the city to achieve balance and diversity. All people who work In Denton should be able to live In Denton. 2. Homes that vary In lot size, building size, and cost should be allowed IA the same SeYj~! PermItted In new development. 11 !he! is the PW#w-- The WIN testablish a •atonable price range should be governed by private market forces. (The deletion of the end of the first sentence wit recommended by P&Z on March 11m, 1888.) 3. Existing housing stock, particularly for homes priced under $100,000 should be protected and preserved to avoid the loss of dwelling units that are typically not replaced. 4. Incentives should be Investigated to encourage Infill housing construction, especially in conjunction with low Income and minority neighborhood revitalization plans. 5. Design and construction quality expeclations should not be relaxed in order to meet affordable housing objectives. 6 City review and inspection fees should be reviewed to determine it changes could be made to ease affordable home construction costs. Such an examination should be undertaken only if benefits are passed on to homebuyers. 7. The nied to provide a sufficient amount of land to accommodate housing demand should be balanced by the desire to maintain compact urban poems 8. The range of housing types available for the specialized needs of the elderly, disabled, tow Income, students, single•person, or female-headed households should be acknowledged as part of a strategy to diversity our nelghborhoods 9. Areas where higher housing densities are allowed should be supported by the availability of employment, • commercial services, public utilities and facilities, and transit, pedestrian, and bicycle systems. O • '"F 19 10 sz jif, Y. !a r•: to .3+ £ ep ys i I4 0 ~GLV,3 ~ ro"~ ry'~r *.M ql.. ~ i r r ~ i ,yA FL ,i~i ~r f 1 t'r [ u ( ~r , ♦ r . ,w, r 4 i r I a .~~1~~a:~yy~'i~'.i%trti?~-'f+Trcr•N,.na.r~irl.ri txvtLyf~..•'.3tY~.ul'r•e.w_+i.'~4D'kfieY4S~~C=N9f`HYf"dbf~MAhN1iM r ~RAAM`AAiN4iiAMlk'PptlFA!A~Mi ft4kldr r, ~1 , f , V X, DRAFT ECONOMIC DNERSiFICATiON POLICIES A healthy economy Is Important to eN cNy functions. Major Issues that must be addressed btolude fob creation, business recruitment business expansion, and sma# business formatioa A number of Amenls ment consideration, including Job quality, environmental Impacts, publk resource demands, and quality of life Issues. The characteristics of the We wo*f ce - salaries, education, job location (rnstde or outside of the rity), end quality of Ids prospects - are Important In determining strengths and weaknesses In providing a healthy business I`t climate. , 1, The city should encourage a strong, diversified, and self-sustaining economy, creating a wide range of employment opportunities, enhancing local ownership opportunities, and expanding the tax base of the & city. ,2p 2. Local business ownership and small business creation should be considered high economic diversifrxalion priorities. I 3 Development Incentives such as infrastructure Improvements and/or assistance, tax abatement, grants, or bans should be considered to encourage industries and businesses to expand or relocate within the city. A costtbenefit analysis should be performed to define and measure short- and long-ton benefits prior to granting Incentives. Incentives should be considered only when proposed development Is consistent with community plans,+ 44 Development Incentives may vary by site and type of establishment, and initial end potential capacity es a generator of employment and other economic gains, Priority may be given to basic Industries that art generally clean and that will make a significant contribution to city employment or the city's tax base. 5. Consideration of site planning, urban design or neighborhood compatibility objectives will be Included in the eligibility requirements for tusiness retention, expansion, or recrultment incentives, , I I a j • r I' 20 .u 14k ~t!!~ ~rrlrr ;'1,~1. iGx• f~ k i l ~2X n 'v 7 .1 i I , rk r 4r'1 r,,, j y 51 J,).. ♦ J f 'wry ei v w f 'da S~il ,f.J F. Pik ~it y 1 yx f It i 4{ ~ 1 f ~o~ w q•A ~,i L y + . , r " . 0 rJ s':. t U ~ . , r 11~MI r r , . y t ~'s n !,ni .'M'~ti~~~.xh'.'^^:ti'F, fRlF Mmal ~wwwn,.Ya era 4:`,+b.l:W'>1:.,kaaa'-✓VICNSNLYVx aYiilRR~MBYIV![o'~f'iNHc.adw?riicnlWMt a[ta~+IW+1711'>~MWRRAI, w 4R'r'WM~: y~ s A DRAFT GOVERNMENT POLICIES Denton's city govemment 1s under pressure to provide better services with less money, a challenge posed by ' taxpayers to many dies throughout the nation. General guidelines need to be developed that set the standards for performance in relation to growth and new development tear and understandable, operate with a minimum of administrative 1. Development regulations should be clear and understandable, operate with a minimum of administrative t h ld be c . a time and expense, and should be consistently enforced, 2. Developers and Investors should be Informed of all project expectations during early planning stages, and guidelines, n conditions subject to Interpretive rev1ew should be supported by carefully defined 3. Intergovernmental coordination should be facilitated to the maximum extent possible, regardless of Jurisdiction or serf responsibilities. Efforts should be made to share resources whenever possible, and redundancies or duplication of effort should be eliminated. 4. The development review and decision-making processes used in Denton should guarantee full notice and equal paMpation opportunities for all Interested parties. City staff will maintaln neutrality and provide clear, unbiased information lo facilitate communitydiscusslons. 5. City government will comply with the same regulations that are Imposed on private development within the community. Every effort should be made to ensure compliance on the part of school district and county projects as well I i c I h~~s 1 I M 7 1 3 d l ?I d ?t , r 4 7° ' h 1 "i1 1 a ~ r . Z 1 Xlh DRAFT URBAN DESIGN POLICIES The city - buildings, roadways, and landscape - is the physical manifestation of its people, their values, and the community's character. What Is built and how it is buw 4 is on display for everyone to see. Residents and visitors form their own Impressions of Denton's image and identity based upon Individual experiences. As a community, aft stakeholders influence the city's urban design qualities. Urban character is Influenced by thousands of individual Investment decisions made on a daily basis by homeowners, devetopers, business firms, institutions, and public agencies. Many other cities have experienced significant economic benerrls when urban design issues are property addressed. `Urban Design' Is a term used to de6ns how a community manages its physical and visual character, Properly developed urban design policies need to acknowledge economic realities and functional necessities. Different areas in the city serve different purposes, so district-onented urban design strategies are appropriate. Practical and reasonable expectations require that urban design efforts be concentrated on the 'public environment", a term that refers to areas that are a iher physically accessible or visually prominent to members of the general public. We seek to maximize both public and private benefits by improving visual quaRy and perceptions of our Image. 1. Visual quality objectives and a healthy business climate should not be considered mutually exclusive Any urban design strategies adopted in Denlon should demonstrate strong consideration of private property impacts Urban design concepts should be incorporated into private development plans early Into the review process. Attention should be paid to design principles that In many cases do not increase project costs. 2. The impact of public features such as signaae, electric lines, valve boxes, streets, curbs and gutters, sidewalks, buildings, parking lots, and parka should be recognized as Important factors in affecting community appearance City government will exert a leadership rote in following the principles of good urban design 1 The city's urban design strategies should be guided by the principle that the spaces between buildings are just as Important as the buildings themselves The form of public spaces should support their intended functions, and their visual qualities should communicate the values we feel are Important 4, Concern for Community appearance should be addressed in a comprehensive manner, Such an approach provides the opportunity to integrate urban design objectives with other planning mechanisms, such as zoning subdivision regulations, historic preservation, economic development, and environmental protection, 5. Architectural diversity and creativity should be encouraged to avoid homogeneity and sterility, Contrast and variety contribute strongly to visual interest and viewer percepllons of quality, If aesthetic standards are implemented by city government, strong attention should be paid to avoid regulations that promote sameness and stilts Individuality. 6 Urban design principles should be emphasized in neighborhood revitalization plans, and residents should 0 • help to determine social and cultural values that are reflected visually. Inflll development should be evaluated carefully to promote compatibility with existing structures New development can provide contrast yet complement older structures l 22 i 10 32x 0 yn } , h r x a ~ S I.yr 1 w ~ rI ~ I tiP ~ "1 ' 6rt ' r~'~. ) x t~v ~ ~ e t„ A4~A l:I .,2, x t 1• c~.~ x. 1 , vF N r 6~ r s I ..L A,a w ~ 8'}~ 3r w r l ~ ~ ; r , III , 'I 1 ,'C ~ I ~ r r 'qn 5a:y f v ,I>(~ Y i eJ r . i 1 l ~ \ 4 L 1 \ , 1 r . 1 , I i ' r,„t, rw A4~:7ai,~i'~,`v.ra.i•..,ut'.nfAY.•r.''d.'IC.,". aliiatti11iP1."`.1~+f..MY,6'4~".A?:47P~~Mkh'AN,s4Y'I~Ai9bk11M'7aMP~ 1K~ripk , , q M1J t00'k~lU/df a _ W L*r 00* 34 1 v J t. Opportunities for N display of pubic art and practice of the performing arts should be provided In a variety of public property venues, Including parks, street rights-of-way and public buildings. & The unique and distinetivs cultural, hlstorkat and architectural features of Denton should be Identified, restored, preserved and maintained through a partnership betwoon the City and private Interests, in keeping with the Historic Preservation Plan. 9. Development along major entranceways influences first impressions end the image of the Denton. Good urban design should be encouraged and promoted to enhance the appearance and perception of quality along thoroughfare corridors, <1 ry 10. The City of Denton's Image is strongly Influenced by Its universities, and efforts should be made to enhance their appearance whenever possible, The City should strive to encourage more community Interaction with the universities by linking physical access between university and public property, S1 The value of tries and landscsdno should be neoonlud as lm22r4snt faturea that Strongly Influence the sesthsics and environmental oualkv of the Cfhr,_ This rec2gohl of voles should be reflected In all develooment standsrdsr 12. The City will continue to view the Downtown as a unique and dominant area that merits special attention, A comprehensive downtown revitalization program, based on the strategies of the Texas Urban Main Street program, will be pursued to maintain the momentum created by recent Improvements. I „ • I Kw, I, Fr 7 1 I ' I r 73 , r' i L ~,,r F iv i~,;~ e ~ 'i ^ ~ lS K~ ea frar"C~..F { ~lf Jr~ n{~w~{ r~~i ~ ~J; ~r 1~,, t, f rk~~, , ~ i ]...»g .,l ~ t•„ a fI 1~ K~?C" ~fi f 4~, .i ~ h 'f U y l rl r + i. tr' , u 1 , , h fo r . n AI V " 1 Y I , r, ~ r r 1<d A.•sq t,~t,~. 3rA.>s4 r,ro r .,»w... 1rY++ 3r •wr . L .>SAM!'.~Xy14'k'L9's1Y+.1wtW.Pb/iw.«rmr+,ly5vi.oJ.~MKi-w"0.rRNrlwrtxvrsrm7i~w ^..'4^.nv+'h i r X111, DRAFT PUKIC INVOLVEMENT POLICIES The Denfon Plan will require time, effort, and resources to become a high quality product. Technical competency, Innovative approaches to challenges, and equitable policies are I mporlant as plan progress unfolds. The best-laid plans for any venture, however, tvJW never succeed without the commitment of its pariicipents. The public Invotmenenl procedures for the Denton Plan must be WIDE OPEN to anyone who expresses lnteres! In its contents ll Is not enough to soy that we w1k provide opportunities for all people to comment on the Plan. Creative methods must be employed to solicit, obtain, and record shareholder comments, Public Involvement Is critical, and Denton Plan success or failure hangs In the balance. 1Nhsn finishod, the Plan should be considered DENTON1 PUN- it must belong to everyone. 1, All City of Denton stakeholders should be bulled to participate In all stages of the planning processes conducted by city government. City staff Will design public Involvement procedures that actively engage stakeholders to participate In city planning This approach should extend beyond planning Into design and project-specific activities. Charettes, which are used to involve groups of people In project design, and i demonstration projects should be considered to obtain citizen input before major projects are Implemented or to Introduce Innovative design concepts, i 2. The public Involvement process should be structured to take advantage of the opportunity to use the planning process as an educational tool, The Denton Plan Is of only limited value H members of thn community do not understand 4 contents, Development concepts can be highly technical and complex, and the Plan should define and explain items that are unusual or unique, and that may not be easily comprehended by the general public. 3 The use of different types of media should be explored to det%,rmine the best way to engage as many City stakeholders In the planning process as possible. Television, newspapers, newsletters, meetings, speaking engagements, publications, resource centers, and other options should be utilized as appropriate to communicate with as many stakeholders as possible, j ' 4 The public Involvement procedures used by the City will be coWinated to avoid communications 'over. w, saturation'. i"rv ~ r , ,f. • t 24 , . ,d.~au ':S na 11NwJ,~wla .'i ^/n}r+ e • k wfV x i i., ~1.i .1.y7 Aa LI1 :"rl32XIQ V e 0 I i , GLOSSARY OF TERMS 100 Year Storm: The one hundred year storm is s "event which Is determined to happen wbin a 100 year cycle, Us determined by use of periodic flood measurements of past stone events, actual flood tables, water low, and other means. I Access Manaaement Practices: The use of engineering practices which determine site distances, vehicular speed, and other methods to calculate the maximum access points allowable at any given section along a roadway. Curb cuts an limited so that congestion -occurs odmolhr off the roadway. Capital Improvement Proor m: A program that forecasts infrastructure improvements to the City using a set timeline and financing methodology, h r ~ A group design process usually utilizing the skills of design professinals, city officlals, citizens, and other Interested parties. The'Charette Is accomplished over a predetemiined lime period regarding a specific land area, or a larger overall plan area as a design tool. This process Is also t sed as a forum for Ideas and goal setting, Detention: A method of detaining or delaying the flow of water or run-off, and eventually releasing the water of a slower rate of flow Another stone water control option, called retention, captures water and creates a ponding effect. Ecosystem: The natural systems of our environment, including air quality, water quality, plant and wildlife habitats, soli , stability and other systems of our habitat. f ctu % Public facilities that support the City such as water mains, sewer mains, streets, sidewalks, parks, public facilities, wastewater treatment plants, storm water, electric facilities, and solid waste disposal. Master Pl n: A master plan is a tool used for planning future land use, transportation, water, sewer, parks and other city facilities These plans allow the City to forecast future costs and infrastructure needs Some of the Plans In this document Include the Parks and Recreation Strategic Plan, the Thoroughfare Master Plan and others I i-m a. The coordination of a variety of transportation devices, such as, vehicles, bicycles, transit, and pedestrian systems Roolonal Detention: A seder of large bulfi, publlcly owned, that are designed to hold stormwater and release it slowly to avoid channel overflow or drolnect svilemfollure, i h • f w An area of land for constriction and maintenance of roadways, sidewalks end utilities Shareholders Interested Pallet or groups end organlzelions with a share or Interest In a Proo sty. communitvor cl~ Riperlon: Alarm r sod to describe area or features on or moor s bank of a river, pond. or smell lake, S Ina le To maintain and support a system or lifestyle withoul detrimental harm or overburdening of the community or system. Includes a broad-based economic process through a system that protects and restores the quality of life for indiMuats, the quality of the natural Env'ronment, and broadens the prospecls for future generst'rons The merging of economic and environmental goats Is a concept of sustainable development • fpuahfers: A roadwav Chet evees ss a Ilnk between malor activity centers within in urban area. 0 ~ Urban si Design patlems and details such as architecture, massing, scale, landscape, public Improvements and other elements In combination which cohesively create a design theme Watershed- An area of fend that evenlu4h dralne to a single destlnatlon through surface runoff, a tones pf stresms, or a drainage system, 25 ~ 32XIO p ; snesnen f i Mike Cochran Denton City Council District 3 Report on the 2 tst International Conference on Making Cities Livable Carmel, CA march 9-13, t998 The major themes of the making cities Livable Conference can be categorized thusly, t. City form affects how citizens relate to one another. 2. To make a community more people friendly it is necessary to control traffic 3. Increasing density reduces strain on infrastructure and helps promote a sense of community, 4. Stewardship of public open places is a vital rote of the city planning process and Is an Important means of promoting a sense of community. 5. To steer towards the future some sort of Nisioning' process is necessary. I Henry Lenard, one of the IMLC organizers reminded us that the city is an organism that must work together to function properly. it Is important to balance the interests of the various cc mmunitieswithin the city, Don't sacrifice pedestrian use to make it easier for automobile s, etc The built environment effects how people feel about their community and creating a sense of place enhances citizens' sense of community. investing In high quality public works Is an investment that will help insure community continuity. if public structures are temporary, poorly designed and need to be replaced every generation then this removes cultural landmarks and diminishes a sense of community. If you make your community a place for people the other things will take care of themselves. A quality environment will drive the other elements of city life, Traffic is a major factor in the city form. wide urban thoroughfares can act as a barriers for pedestrians and fragment the community Into artificial segments. Various techniques can mitigate the negative effects of traffic by'cal ming' it down in highly urbanized areas. Narrowing lanes, changing the visual and tactile toad surface in pedestrian crossings and i "bumping" out the comers at intersections can help with this. 0 Encouraging public transportation can significantly reduce traffic congestion. Public O transportation also has other benefits in that the elderly and the young have greater independence when there Is a public transportation altematfve. How many trips generated in our community are parents taking their child somewhere 26. r ~a 25 10 32XIO Q t 'Calming" traffic also has other benefits besides making the community more 'people friendly'. statistics show that the survival rate of children struck by automobiles where the f speed limit is 30 mph is sons, The survival rate where the speed is 18 mph Is go%. Allowing for alternative forms of transportation such as bikes and walking paths can also help Citizens will generally use the quickest means of traveling to their destination. In Denton these efforts will only become viable when driving ones own car becomes too much t trouble. we must anticipate and plan for this eventuality now so that we are notjust 'reacting' toa failed traffic system in most of the great cities of the world the density is considerably higher than in a typical suburbia. This density helps promote a sense of community by bringing people into daily contact with one another. Higher density does not mean lower quality, in fact it an often enhance the quality of life for residents Higher density reduces strain on Infrastructure and is more cost effective than the typical suburb. By concentrating population it becomes more feasible to provide adequate public transportation Higher density means that desirable commercial amenities are mote likely to locate in a community because of a concentrated customer base. Shorter trips for the necessities of life reduces traffic and time spent commuting" to the store and Is a desirable goal for a community. In successful cities, a sense of community is enhanced when people come together in public places on a regular basis. Public squares serve this purpose for neighborhoods in larger cities and central open places serve in smaller communities. Having commercial opportunities in these open places an enhance their vitality and is often used as a focal point for activities. in new urban examples, public buildings are built as focal points for public places. These public Investments help bring people together and provide a "center' for a residential cluster. Consensus build big is an Important step in dealing with the future, Many communities have embraced the'vision ing' process as a means of arriving et community consensus, Since growth is rendering city boundaries obsolete it is necessary to look at community visioning as a regional issue. 1 In the visioning process it is Important to include a broad spectrum of citizens to f empower local residents. Empowering citizens means not just doing everything for them, but including them in the decision making process so that they have an Investment in the product 27, I 'I 1 10 37x1[ p ; % l t fl ' r My conclusions and observations: Denton is doing pretty well compared to some of the communities represented at the conference. Some communities have massive problems with unemployment, decaying q infrastructure and dwindling revenues. ' on the other hand, many communities have the ability to take a long range look at planning and decision making that we are unable to do because of the political reality of our community. Short teens of office and term limits make it more difllult for any group of elected officials to plan and implement long range public improvements. Staff is hampered in implement Ing long range projects because of the budget cycle and a need to show a positive balance every year. In our community, growth is driving us rather than the other way around In many communities there Ise. considerable amount of planning with the city and the private sector as partners. The adversarial nature of the relationship is lessened and long range public goals are accomplished It seems self evident that the day will come when we will have to have a light-rait system to Dallas. Traf fic is already becoming a nightmare on 1.35 and bumperrto-bumper conditions already almost reach Denton in the evenings. with almost 3o% of our workforce commuting out of the community and an equal number commuting In, it seems that we could greatly reduce the load on our streets and highways by looking ahead and making plans now. New subdivisions should already be required to make allowancei for some future form of mass transit to lesson the burden of commuting residents on the public streets. Public art Is not always expensive. Good design of public works projects can enhance a community visually as easily as sculptures. Citizens should be allowed to participate In aesthetic decision making. Eugene, Oregon earmarks their telecom franchise fees to pay for public information projects. We should market our town square by going soliciting merchants who might become an "anchor" tenant for a revitalized downtown commercial center. Regional shopping malls are less r onvenlent places to shop. we have too many antique stores which 1 believe is too many eggs Inane basket With the upcoming widening of University Drive we need to pay particular attention to how pedestrians will be treated at crossings. Since school children will be crossing this wider street we need to insure that the crosswalks are well marked and that there Is ample space in the median for pedestrians to stand if they are caught in the middle. We should narrow the lanes in areas where there is likely to be pedestrian traffic j 28. - -----r+ r ?y K 1a 32xI❑