HomeMy WebLinkAbout03-24-1998
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City Council Agenda Packet
March 24, 1998
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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.)
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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.
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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.
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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.
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Agenda Item
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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.
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FISCAL INFORM TION
The Utility System Revenue Bonds, Series 1998 will rcquiN an average
annual debt services payment of approximately S 554,232. l
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DID INFORMATION
To be distributed under a separate cover.
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Respectfully submitted:
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Diana 0. Ortiz
Director of Fiscal Operations
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AGENDA INFORMATION SHEET
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AGENDA DATE: March 24, 1998
DF,PARTn1ENT: Flnance
CM(DCbI/ACM: Kathy DuBose V~b
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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,
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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
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ORDINANCE NO, 96-~
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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
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THE COUNCIL OF THE CITY OF DENTON WY EB GTtc^.AINS:
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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.
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(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;
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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
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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
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WrIYEOr 0 94 90; 10:401 $141649260 •r DATON•CM-ACC10, Eo r
MAR-24-88 08.44 FRON.HoCALL PARKtiURST a HORTON ID-2147649260 PACE 2/2
be pays+blq all is the manner provided and W the rata and on the data Gated 1a the FORM OF
DAMAL BOND sd forth in thb Ordinance.
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SOC&O S. FORM OF INITIAL Bom. The form of the latch! Bor4 Wuding the fora: of
RegWadoo Owd$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: ~
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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
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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.
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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.
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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
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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
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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.
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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)
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(BOND INSURANCE LEGEND, IF ANY)
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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
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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
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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
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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
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(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
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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
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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
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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
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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
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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.
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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.
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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
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(BOND INSURANCE LEGEND, IF ANY)
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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.
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(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,
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(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
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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".
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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.
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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
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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
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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.
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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
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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
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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,
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(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,
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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
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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.
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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
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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.
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(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
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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
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(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;
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(2) Reduce the rate of interest borne by any of the outstanding Parity Bonds or Additional
Bonds;
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(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
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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
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(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
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(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
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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
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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
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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;
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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.
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(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
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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:
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Jennifer Walters, City Secretary
APPROVED AS TO LEGAL FORM:
r~ Herbert L. Prouty, City Attorney
By: IVA r ~r
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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. `
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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
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)XV 1WA Awww 01W W a Ad^ !ew ),M1-46M -11 f %,104010' hs Jif-H "ota
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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
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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 $40.6 million in
the next three to six mouths to both refund certala oatetandina maturities, as
vell as psy-off an outstanding Corp of Ynainamrs note, vhich will result in a
significant net present value savings to the city. In addition, Moody's
believes that future borrowings to address capital needs should remain
affotdsble, given that projected needs are maaagsable and the fact that all
systea debt is retired in twenty years. ,
A11ALT6T6 i
Dennis Porearo, Analyst, Public Finance Group, Moody's investors service
Orlie Prince, Senior credit officer, Public Tinanca Croup, Moody's investors
service
Steven Levine, Diractor, Public rinanee Oroup, Moody's investors Sarviae
MTACTSf
Journaliets, (111) SS3-1376
Research Clieaten (212) 553-1625
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ANNE
A ,
O"ton, We U01 Sys R•v Bnd• sw 98 RW A+ by Sp
EdW&d R Ak'(118* New Yair (1) 212.2 I?41;
Kh W0np, *W Yak (1) 212.2w 1d0
NY Standard E, Door's CreditNire 3/23/90 standard a
Poor's today aasignad its single- 'A' -plus rating to Denton,
Texas's utility system revenue bonds series 1990 issued for
Denton Utility System.
In addition, standard i Poor's affirmed its single-'A'-
plus rating on Denton's outstandl bon".
Tha rating reflects the following credit risks which
include the electric system's (70 of total revenues) reliance
upon Texas Municipal Power Agency (TWA) for 651 of its power
requirements, sad high systems fixed cost, primarily from off
balance sheet debt of TWA.
Credit strengths which preclude a lower rating include
the following$
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
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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
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TOM FAM
25 32XI❑
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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
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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
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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:
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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
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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
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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
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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
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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"
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"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
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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
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CITY OF DENTON, TEXAS
(Denton County)
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$7,175,000
UTILITY SYSTEM REVENUE BONDS,
SI'RIES 1998
L ~
Sealed Bids Due Tuesday, March 24,1998,
at 11:00 AM, CST
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NOTICE OF SALE
AND
BIDDING INSTRUCTIONS
ON
57,173,000 ,
CITY OF DENTON,TE7LAS
(Denton Count))
UTILITY SYSTES1 REVENUE SOWS, SERIES 1998
Sealed Nds Due Tuesday, March 24,199!, a I 11:00 AM, CST
TI4E SALE
` Bo',DS Orrtnt0 TOP Sni.E AT COSIRTIM I BIDDING . . The City of Dsmtoo, Tau (the "City") is offering fin sale Its f7,17$,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
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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
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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 $5,000 for any one maturity. The Bonds will mature on
I),ccmbcr I in each )car as rollm4s
MATUR111l' SCIIEDL LE
Principal Principal Principal
Year Amount Year Amount Year Amount
1998 S 360,D0(I 2005 S 360,000 2011 S 360.000 0 •
E 1999 360.(100 2006 )60,000 2012 )60,000
2000 360.000 2007 360,000 2013 355,(100
2001 3601000 2008 360,000 2014 355.'100
2002 360.00 2009 360.000 2015 )53,000
200) 360,000 2010 360,000 2016 355.00
I 204 360,000 2017 DSS,DO
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Bo0k-F.v1R1-0ST1 S1S1'FSI [be City intends to utilbe the Boolt•Fntry-Only System of The Dcposilory Trust csrapaay
("DI C"$ 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
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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.
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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.
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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
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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.
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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
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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 $9,471,533 2013
2016 335,000 6,642,444 66,079.778 2016
2017 353,OW 6,997,444 73,077122 2017
AscrugeMafurity.. ...............10,18SYesn
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OFFICIAL BID FORM
Honorable Mayor and City Council Much 21,1998
C'ily of Denton, Tesan I
Members of the City Council:
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i I Reference is made to your Ofricial Statement and Notice of sale and Bidding Insuonlitms, dated March 10, 1998 of 57,173,000
CI I Y OF I3F.NT ON,'FEXAS U111,I fY SYSTEM RRkT NUE BONDS, SLRIES 1998, both of %hich constitute a pan hereof
T I
I For your Icgalty Issued Bonds, as described in said Notice of Sale and !lidding Imstnections and Olt clul Statement, we %ilt pay you
I par and accrued Interest from date of issue to date of dclirery In us, plus a cash premium or S_ rot Bonds
maturing and hearing Interest as follows:
?,a
Principal In a•tat Prlndpol Interest Principal Intact
I hlalioIt Amuunl Role Maluri _ AMMMI Roie Matwi Amount lu$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
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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 %
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1 121rUJ W.1410 !G 1211111 351,000 %
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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
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as
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{ 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,
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! 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.
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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.
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Respectfully suhmiued,
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Bylf
Authorised Representative
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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 ,
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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
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! 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
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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,
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(Name of Undcr+sthrt or Mannger) -
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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
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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
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OFFICIAL STATE MENT SUMMARY
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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
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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
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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,
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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
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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%)).
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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
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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.
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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
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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 ,
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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
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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
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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 +
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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.
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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,
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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(i) The I met "Pledged Revenues" shall mean
I') the Net Revenues, plus '
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(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
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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.
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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
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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-
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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
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(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:
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(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.
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(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
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(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;
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(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.
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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
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(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;
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(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 '
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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
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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;
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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
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"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.
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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,
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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.
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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
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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.
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" 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
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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
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JE(NNII'LR WAIAI:RS
City Secretary
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APPF\UIS A
GENERAL moRMAMN' REGARDING THE MY
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THIS PACE LE Pr BLANK INTENTIONALLY i
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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
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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
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'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.
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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
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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
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2r)A10 32XIO
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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
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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,
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MIS PACE LEFT BLANK INTLNTIOYALLY
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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
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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
{
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-261c] 32X
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a
-CITY OF UNION, TEXAS
1.
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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
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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
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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
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32 xiC]
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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$61 ,
1140.401.110 14 341,101 13.696797 1 031441,150 1116003,416 1107.621170
Comor4hsntlr6 Annual Fimvelml Ile0on I
- M, - w shells 32xfrj
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1
CITY OF DENTON, TEXAS `j
COMBINED BALANCE SHEET • ALL FUND TYPES AND ACCOUNT GPOUPS ICdnduded!
SEPTEMBER 30, 1997 I1
Govunmantal FUM Typu
111
UAUY S, EQUITY AND OTHER CREDITS OanuH Soed,al Rave%* Debt junta Capital Projects
Funl ERUlty , ~
Contributed capitol • Im, tyhera applical
of accumalatad dopeaclahenl ( l 1 1
Investment In general fixed 11tela INote 11 -
Ratalmd urNnge • k
] I
Aatansd lot bend ratirament NOW 4)
Roomed for taptal prolactf 1l
Raeemod lot fleet foolfcemant
Mterved for le MflH rabrtmant 1
Ratervsd lot debt fabremtnt 1
Raurvad fat dumpster Rolacemant
Rautvad far fall sublGratlon a!
Ruarved far working eomul
Ruerved fat emargancy
Ptlerved fat *1111 lavost
Ruervad for.n frtnrvc tuft linanaino .
Reamed fm conbngamy
Raolrved foe lutufa ala,me
Reserved lot cepbtd construcben r
Ruarvad for sulhon»d upfnd'uunt
unruu+ad
fund bolsncu .
Roomed lop debt sunca 501,710
1 P Ruined top amumbta"ol 113.111 5711,511 112,102
it
' Ruernd for csp~tM Drepob /17/,62i r
r
Unrasofvad •
006iona!ad for eubuluent
years' atpnndaural 111,741 .
U Meegnated 6 171.506 491270
lapel Elvily End Other Crldib 7,776,417 1,013111 701.740 10,117,117 { 1
Total Gabilitiss. ElWly f
i' • and 0011p Cradds 110A12067 12.Lri.2f1 172s.D07 112,ifi0,111 O •
.et•
Tna actomDanpn6 natM le fmMC,1 e!atemenH art an mtagfM pM of Inl tlallm/nt
4 E
CanpraN/mNl Annual Pinenc;al Repoli ~ ~ i
32 x 1 0
A
allt.ms ,
o ,
I CITY OF DENTON, TEXAS
Fdueiary fund Totali
!•topetary Fund Typal Types AecauM Groups (Mamarvdum ONyl
awes
Trust and 04nard Food Garrarll Lano- fapumeat 30. 6aptamD4r 30,
Entarp2so Inwhal S$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
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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 ~
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Tn4 ve4ent4n rMC nrt44 tr tinned el4rwewm4 rr n rnp,r rtn r2 1n4 4en4m4n1 !
Com011hen/ir1 Anou41 Pinlncid ReDott f
7
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-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
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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 - !
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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
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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.
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Comwithanslve Annual Fins, clsl Report -
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I CITY OF DENTON, TEXAS
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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
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Comor6A6nsiv6 Annu61 Fimmo;91 Ibaom
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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
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Tme accompsnnng Motu to Imhenca11r11amanta are an mle2rel Pon at this statamarnL • •
ComorMarl AnhuN flnandial Report ( !
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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
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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.
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Comveheno+va Annual Financier Report
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CITY OF DENTON, TEXAS
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_ 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
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CITY OF DENTON, TEXAS
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Comonhsnfiw Annuli Fansndst Mood
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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 -
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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
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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
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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
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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
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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
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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
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2 5Ix i0 32XI~
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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
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.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 '
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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
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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
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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
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?~xIQ 32x~❑
Seem
e
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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
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f I'
32X10
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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
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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
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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
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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
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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
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"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
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ewsaoar
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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:
)
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ALL
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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•
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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
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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)
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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~
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2.5-x 32x10
•
;tee.
f
APPENDIX C
FOILM OF BOND COUNSEL'S OPIMON
' i
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25 x 10 32x~1~
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11115 PACE U n BLANK INTENTIONALLY
~I
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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.
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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
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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
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Worksheetl
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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
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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
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Denton Civic Center Park
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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,
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( Ford, Powell,and Carson,
( ArchNefs and Planners
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( 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
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PEDESTRIAN ACCESS
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VISUAL ANALYSIS
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AnAltects and Plannets
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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
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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
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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
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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'
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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
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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
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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
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FORD
POWFLL
& CARSON
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CEvTOY CIVIC CE14TEP PAPK
MASTER PLAN
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( 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
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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
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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,
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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
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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
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( 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. - <
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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.
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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
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the need for private service vehicles related to the festivals to be dn-
ven In the park.
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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.
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PARK STANDARDS
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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'
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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
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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
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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.
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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.
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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
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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
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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.
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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.
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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.
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Phasing / Implementation
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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
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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,
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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,
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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
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Denton Civic Center Park
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t Appendix
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( Chronology
t Plant lists
t Color Samples
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( Meeting Minutes
( Acknowledgments
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( Chronology
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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.
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Plant Lists
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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
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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
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t gnayep(a1 Trees
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( 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
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` 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.
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llgbl rime color. Munsell I OB 612
Ml0 range color, Munsell 108 512
Dark range color Munsell 108 412
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I Following are meeting minutes from the various meetings Involving the
planning process.
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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
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Atehileirtil and Plennert
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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:
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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
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Architects in0 Planners
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Denton Civic Center Park
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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
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Arrh1lerlr and Planners
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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,
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' ■ 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 ~ •
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Architecft ono Plienets
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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
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( 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 .
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( 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.
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■ 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
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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.
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: Ricky Petty
{ Boone Powell
{ Cullen Cohraae
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ArtAlletfs end Plenners
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MEETING MINUTES
( D. 21 April. 1997 wa Renton, ievf '
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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 .
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( ■ 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
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0
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o
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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
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FORD PONLL+ C.Aa+011, r4
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1 sivi»,.n tact 48
Ford, Powell,and Carson,
Arehirects and P/Anners
25 x10 32XId
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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
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( 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
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M
so 4 ?Mtaro,
• ' i ~ f~a • •
1 71 Na►i7M
i 7 rrsaiw pxxl ~8
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ford; Powell,and Carson,
Areh/leels ind Planners
25, ~ 10 32 x~❑
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( 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
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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
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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
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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'
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r 53
{ Ford, Powell,and Colson,
ArfAifeels end Pleenen
f - 2 5_x 10 32XIO
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( 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
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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
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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 ; .
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Respectfully Submitted-
• vid M. Hill • •
Director of Planning and Development
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Exhibit 1: The Denton Plan Process (Forecasting stage emphasized) j
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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
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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
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♦ Please insert in your notebook for tomorrow
night's meeting.
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♦ If you have any questions, please call Dave
Hill, 349-8350.
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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
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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
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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
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THE DENTON PLAN ,
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Draft Policy y Documents
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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 •
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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
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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.
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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. •
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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.
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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•
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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.
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6. City stall shall organize and summarize the public comments, and shall Indicate specifically how the draft
Plan was Influenced by the comments,
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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,
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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.
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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.
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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.
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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,
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7. The City should promote infill infrastructure improvements over new line extensons that expand the,
geographic coverage of the Cri'Ys infrastructure systems.
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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.
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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.
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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
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waste minimization, meferfals reuse and environmental ktewerdshlg,
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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,
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5. The City should be responsible for the acquisition W development of Community and Citywide parks.
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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
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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
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" 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.
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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.
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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
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W. DRAFT HOUSING POLICIES
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`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 •
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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.
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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,
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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
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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
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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
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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,
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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.
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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,
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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,
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4 The public Involvement procedures used by the City will be coWinated to avoid communications 'over.
w, saturation'.
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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
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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.
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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,
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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.
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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
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"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
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'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
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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
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